cvi brookhaven feasibility study

7/28/2019 CVI Brookhaven Feasibility Study

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RevenueandExpenditure

Estimatesfor aProposedCityofBrookhaven

November 2011


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TableofContentsIntroduction............................................................................................................................. 1I. Revenues............................................................................................................................ 3II. Expenditures.................................................................................................................... 17AppendixA StudyAreaMap.............................................................................................. 32AppendixB TownBrookhavenDevelopment.................................................................... 33AppendixC MiscellaneousRevenues................................................................................. 37AppendixD UnincorporatedCountyRevenueFiguresandDataSources........................40AppendixE HotelsintheStudyArea................................................................................ 42Appendix

F

HOSTCalculations

and

County

Certification

Letter

........................................

43

AppendixG CDBGDataTables.......................................................................................... 50AppendixH ParksData...................................................................................................... 55AppendixI CapitalDataTables......................................................................................... 57


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Introduction

SeeAppendixAforamapofthestudyarea

See


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3See.


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I. Revenues

TheFiscalImpactonDeKalbCountywithPossible IncorporationofDunwoody,Georgia Revenue and ExpenditureAnalysis of a Proposed City ofDunwoody

SeeAppendixBforfurtherexplanationTable1:StudyAreaRevenueEstimates

RevenueSource DataSource Amount


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SeeAppendixC.

SeeAppendixDforcountyrevenuedatadetail.

TotalRevenueEstimate $23,810,619 $28,528,983


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Table2:2010PropertyValuesinStudyAreaandUnincorporatedDeKalb

StudyArea UnincorporatedDeKalbCounty

PercentStudyAreato

Unincorporated


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ThesearelistedinAppendixE


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Table3:2010PopulationFiguresforStudyAreaandUnincorporatedDeKalb

StudyArea

Unincorporated

DeKalbCountyPercent

Study

AreatoUnincorporated


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Appendix F contains these two separate calculations using the


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spreadsheetutilizedbytheGeorgiaDepartmentofRevenueaswellasthemostrecentcountycertificationletter.

ThedatausedforthesecalculationsisshowninAppendixG.4 see


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Table4:

City

and

Fiscal

Year

Budget

Revenue

Per

Capita

StudyAreaRevenueEstimate $149,040

See


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7See.


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Table5:2010DemographicProfileofStudyAreaandPrimaryComparisonCities

StudyArea JohnsCreek Dunwoody


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Table6:SummaryofExpenditureEstimates

TotalOperatingCosts $21,311,237

TotalAnnualExpenditures $25,083,242

DeficitBasedonRevenueEstimatesUsing2010PropertyTaxes $1,272,623SurplusBasedonRevenueEstimatesUsing2011PropertyTaxes*** +$3,445,741


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Cityand

Fiscal

Year

Budget

Dept.

Budget

StudyAreaEstimate$215,093

City

and

Fiscal

Year

Budget

Dept.

Budget Per

Capita

StudyAreaExpenditureEstimate $408,260


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CityandFiscalYearBudget Dept.Budget PerCapita

StudyAreaExpenditureEstimate $2,035,399

Cityand

Fiscal

Year

Budget

Dept.

Budget Per

Capita





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CityandFiscalYearBudget LeasedSpaceSq.Ft. PerCapitaSq.Ft.

StudyAreaEstimateofSquareFootageNeeded 30,005

CityandFiscalYearBudget Dept.Budget PerSq.Ft.



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SeeAppendixH.


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Table7:StudyAreaParkAmenities

CityandFiscalYearBudget Dept.Budget Acres CostPerAcre


See


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2010DemographicProfileStudyAreaandSmyrna

StudyArea Smyrna


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CityandFiscalYearBudget Dept.Budget LaneMiles CostperLaneMile





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SeeAppendixI


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CityandFiscalYearBudget Budget CostPerOfficer



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CityandFiscalYearBudget Budget PerCapita StudyAreaExpenditureEstimate $827,342

$3,077,847

$827,342

$3,905,189

Amortizedover5yearsat2.5%interest $831,682


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Appendix


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BackgroundofTaxAbatementTransactions


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TownBrookhavenTaxAbatementStructure

17 The bond-lease transaction approved for Town Brookhaven consists of five separate series of bonds. The fiveseries were validated in the same validation proceeding in an aggregate principal amount not to exceed$244,000,000. Typically, the aggregate amount of the bonds will reflect the total amount of expected constructionand other development costs for a project.18 For example, initial bonds would be issued to acquire the land, and as improvements are constructed, additionalbonds are issued to acquire those improvements.


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TownBrookhavenPILOTAgreements

19 Since the bond structure technically consisted of five separate series of bonds, there are five separate, butsubstantially identical, PILOT agreements one for each series of bonds.


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RevenueSource

Methodology StudyAreaEstimate

DataSource

TotalMiscellaneous $13,743


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Example from 48-8-104

(2) For illustration purposes, a hypothetical example of the (3) In the event the total amount payable in a calendar year to all existing municipalities

calculation of the equalization amount is provided below. Calculated using DeKalb/Study Area as certified by the county pursuant to subparagraph (d)(2)(B) of this Code section plus

Example Example data Calculation the total equalization amount payable to all qualified municipalities in the special district

First, calculate the exceeds the capital outlay proceeds calculated based on a maximum capital factor of 0.200,

homestead factor in the commissio ner shall pay to the governing authority of each qualified municipali ty a share

accordance with division of such proceeds calculated as follows:

(c)(2)(B)(i) of this Code Amount from county certification letter (A) above plus Equalization amount (J) from lef 3,814,328.47$

section as follows: Does this amount exceed Capital outlay proceeds (A) below? YES

(A) Capital factor 0.150 0.150 - If yes, continue calculation below. If no, go to (5) belo

certified by county as

required by subsection (d) (A) Determine the capital outlay proceeds based on a maximum capital factor of 0.200;

of this Code section Capital outlay proceeds = Capital factor (A) times Net Sales & Use tax (B) from left 16,600,000.00$(B) Net amount of sales and $50 million 50,000,000.00$ 83,000,000.00$ (B) Subtract the amount certified by the county as payable to existing municipal ities pursuantuse tax collected in the to subparagraph (d)(2)(B) of this Code section;

special district pursuant Amount from county certification letter: $0.00

to this article for the (C) The remaining amount equals the portion of the capital outlay proceeds that may be used

previous calendar year by the commissioner to pay equalization amounts to qualified municipalities.

(C) Taxes levied for county $1 00 m il li on 10 0, 000 ,0 00 .0 0$ 154,329,606.97$ Total: 16,600,000.00$purposes on only that The commission er shall calculate each qualified municipalit y's share of such remaining amount

portion of the county tax by dividing the net homestead digest for each qualified municipality by the total homestead

digest that represents net digest for all municipalities.

assessments on qualified Net Homestead Digest for municipality: 1,291,864,316$

homestead property after Total Homestead Digest for all municipalities: 4,198,280,316

all other homestead Divide Net Homestead Digest by Total Homestead Digest: 31%

exemptions have been applied

(D) Calculation of 0.425 0.425 0.538 Total (C) above times calculated percentage above 5,108,031.39$homestead factor using

figures above =

[(1-0.150)($50 (4) In the event the incorporated county millage rate for a qualified municipality is greater than

million/$100 million)] the unincorporated county millage rate, no payment shall be due from the governing authority

Next, calculate the 15.0 mills of the qualified municipal ity to the governing authority of the county.equalization amount in

accordance with paragraph (1)

of this subsection as follows: (5) In the event the amount of capital outlay proceeds exceeds the sum of the equalization

(E) Unincorporated county 15.0 mills 15.00 19.40 mills amounts due all qualified municipalities plus the total amount certified under subparagraph (d)(2)(B)

millage rate of this Code section as due all existing municipalities, the commissioner shall distribute to each(F)Minus the incorporated Difference: (10.0 mills) (10.00) (13.91) mills qualified municipality a portion of such excess equal to the net homestead digest for such

county millage rate for municipality divided by the total homestead digest.

qualified municipality "Y" Capital outlay proceeds = Capital factor (A) times Net Sales & Use tax (B) from left -$

Difference: = 5.0 mills 5.00 5.49 mills Amount from county certification letter (A) above plus Equalization amount (J) from lef 10,928,408.00$

(G) Times homestead factor x .425 0.425 x 0.538 Does amount of Capital outlay proceeds exceed amount from (3) above NO

(calculated above) If yes, continue calculation below. If no, go back to (3) above

(H) Equals the equalization = 2.125 2.125 2.953 millsmillage: Amount of excess = Capital outlay proceeds minus amount from (3) above (10,928,408.00)$

(I) Times net homestead $2 00 m il li on 20 0, 000 ,0 00 .0 0$ 1,291,864,316$

digest for qualified Net Homestead Digest for municipality from Certification letter: 1,291,864,316.00$

municipality "Y" Total Homestead Digest for county: 9,051,268,724.00$

(J) Equals the equalization $425,000 $425,000.00 3,814,328.47$ Divide Net Homestead Digest by Total Homestead Digest: 14%

amount payable to

municipality "Y" Total (C) above times calculated percentage above (1,559,783.58)$

Georgia Department of Revenue

Local Government Services Division

Data compiled by: J.Ussery1 of 1

Scenario 1

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Example from 48-8-104

(2) For illustration purposes, a hypothetical example of the (3) In the event the total amount payable in a calendar year to all existing municipalities

calculation of the equalization amount is provided below. Calculated using DeKalb/Study Area as certified by the county pursuant to subparagraph (d)(2)(B) of this Code section plus

Example Example data Calculation the total equalization amount payable to all qualified municipalities in the special district

First, calculate the exceeds the capital outlay proceeds calculated based on a maximum capital factor of 0.200,

homestead factor in the commissio ner shall pay to the governing authority of each qualified municipali ty a share

accordance with division of such proceeds calculated as follows:

(c)(2)(B)(i) of this Code Amount from county certification letter (A) above plus Equalization amount (J) from lef 3,902,927.31$

section as follows: Does this amount exceed Capital outlay proceeds (A) below? NO

(A) Capital factor 0.150 0.150 0.200 If yes, continue calculation below. If no, go to (5) belo

certified by county as

required by subsection (d) (A) Determine the capital outlay proceeds based on a maximum capital factor of 0.200;

of this Code section Capital outlay proceeds = Capital factor (A) times Net Sales & Use tax (B) from left 18,241,559.40$(B) Net amount of sales and $50 million 50,000,000.00$ 91,207,797.00$ (B) Subtract the amount certified by the county as payable to existing municipal ities pursuantuse tax collected in the to subparagraph (d)(2)(B) of this Code section;

special district pursuant Amount from county certification letter: $0.00

to this article for the (C) The remaining amount equals the portion of the capital outlay proceeds that may be used

previous calendar year by the commissioner to pay equalization amounts to qualified municipalities.

(C) Taxes levied for county $1 00 m il li on 10 0, 000 ,0 00 .0 0$ 154,329,606.97$ Total: 18,241,559.40$purposes on only that The commission er shall calculate each qualified municipalit y's share of such remaining amount

portion of the county tax by dividing the net homestead digest for each qualified municipality by the total homestead

digest that represents net digest for all municipalities.

assessments on qualified Net Homestead Digest for municipality: 1,291,864,316$

homestead property after Total Homestead Digest for all municipalities: 4,198,280,316

all other homestead Divide Net Homestead Digest by Total Homestead Digest: 31%

exemptions have been applied

(D) Calculation of 0.425 0.425 0.473 Total (C) above times calculated percentage above 5,613,160.12$homestead factor using

figures above =

[(1-0.150)($50 (4) In the event the incorporated county millage rate for a qualified municipality is greater than

million/$100 million)] the unincorporated county millage rate, no payment shall be due from the governing authority

Next, calculate the 15.0 mills of the qualified municipal ity to the governing authority of the county.equalization amount in

accordance with paragraph (1)

of this subsection as follows: (5) In the event the amount of capital outlay proceeds exceeds the sum of the equalization

(E) Unincorporated county 15.0 mills 15.00 19.40 mills amounts due all qualified municipalities plus the total amount certified under subparagraph (d)(2)(B)

millage rate of this Code section as due all existing municipalities, the commissioner shall distribute to each(F)Minus the incorporated Difference: (10.0 mills) (10.00) (13.01) mills qualified municipality a portion of such excess equal to the net homestead digest for such

county millage rate for municipality divided by the total homestead digest.

qualified municipality "Y" Capital outlay proceeds = Capital factor (A) times Net Sales & Use tax (B) from left 18,241,559.40$

Difference: = 5.0 mills 5.00 6.39 mills Amount from county certification letter (A) above plus Equalization amount (J) from lef 11,211,166.00$

(G) Times homestead factor x .425 0.425 x 0.473 Does amount of Capital outlay proceeds exceed amount from (3) above YES

(calculated above) If yes, continue calculation below. If no, go back to (3) above

(H) Equals the equalization = 2.125 2.125 3.021 millsmillage: Amount of excess = Capital outlay proceeds minus amount from (3) above 7,030,393.40$

(I) Times net homestead $2 00 m il li on 20 0, 000 ,0 00 .0 0$ 1,291,864,316$

digest for qualified Net Homestead Digest for municipality from Certification letter: 1,291,864,316$

municipality "Y" Total Homestead Digest for county: 9,051,268,724$

(J) Equals the equalization $425,000 $425,000.00 3,902,927.31$ Divide Net Homestead Digest by Total Homestead Digest: 14%

amount payable to

municipality "Y" Total (C) above times calculated percentage above 1,003,429.98$

Georgia Department of Revenue

Local Government Services Division

Data compiled by: J.Ussery1 of 1

Scenario 2

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Department of Recreation, Parks and Cultural Affairs

Brookhaven Scope Questions

1. The age and square footage of the recreation centers in Briarwood Park and

Lynwood Park?

Briarwood Recreation Center

History

The center was built in 1964. It is unknown if the property was either purchased or donated.The origin of its name is unknown.Building Features - less than 10,000 square feet to include:

x Gymnasium 5205 sq. ft. Multi-purpose room 1200 sq. ft.

x classroom 525 sq. ft.(estimate) office 90 sq. ft. (est.)

x mechanical room 60 sq. ft. (est.) hallway 32 sq. ft. (est.)

x snack area 464 sq. ft (est.) kitchen 70 sq. ft. (est.)

x x-room 44 sq. ft. (est.) restrooms each @ 296 sq. ft. (est.)

Lynwood Recreation Center

History

x Lynwood Recreation Center originated from the Lynwood Park School.

x The school was built in the early 40s for the African-American communitystudents in grades 1-12

x When integration took place in the mid-60s the school closed.

x The county purchased the land for $1.00 and redeveloped the recreation center inthe early 70s.

Building Features - 15,000 square ft. The building consist of a game room 38x 28 ,art/weight room 28x 24,

2. The annual revenue collected from the reservation fees for picnic shelters in Blackwood

Park and Murphey Candler Park?

The department only charges a fee to rent a picnic shelter at Blackburn and its estimated annualrevenue is around 1,500 dollars annually.


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3. The total annual revenue generated by the pools in Briarwood, Lynwood, and Murphey

Candler Parks?

Briarwood pool = pool closed due environmental issuesLynwood Pool = $800 dollars annually

Murphey Candler = 31,000 annually

4. The total annual revenue generated by the tennis courts in Ashford, Blackburn,

Briarwood, Lynwood, Murphey Candler, and Skyland Parks?

The Department only charges a fee at Blackburn tennis center and it brings in an estimated$16,600 dollars annually.

5. The annual costs for operating these parks, pools and recreation centers?

x It costs the County approximately $113,000 annually to operate the Lynwood and

Briarwood Recreation Centers.

x Annual costs to the County to operate Murphey Candler, Lynwood and Briarwood pools:

Murphy Candler:o $25,000 for personnelo $9,000 chemical costo $3,000 supplies

Briarwood and Lynwood are the same due to volume of people attending:o 16,000 for personnelo

5,500 chemical costo 3,000 supplies

Annual costs for operating Ashford, Blackburn, Briarwood, Lynwood, Murphey Candler, andSkyland Parks:

o $331,040 per year


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Supplemental ProposedCityofBrookhavenPropertyTaxAnalysis

January 2012


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SupplementalProposedCityofBrookhavenPropertyTaxAnalysis

AttherequestofStateRepresentativeMikeJacobs,thissupplementalanalysiswasundertakento determine the potential property tax revenue that would be derived under two hypotheticalmunicipalmillageratescenarios.Utilizingthesamedatausedtopreparetheprimaryreport,RevenueandExpenditureEstimatesforaProposedCityofBrookhaven,theamountofpropertytaxrevenuethatwould be generated by a hypothetical municipal millage rate of 3.35 mills and 3.221 mills with ahomestead exemption of $20,000 was calculated. Because residential homestead property owners inDeKalbCountyenjoythebenefitofapropertytaxrollbackoncountytaxesbyvirtueoftheoperationofthe Homestead Option Sales Tax, identical millage rates imposed by the county and cities within thecounty have a different impact in the dollar amount due the applicable government from residentialhomesteadpropertyowners.

Theprimarystudyestimatedexpendituresat$25,083,242andrevenuesof$28,528,983basedon the 2011 preliminary tax digest and current county special district millage rate of 6.39 mills. Thisrevenue estimate is based upon an estimation of $9,927,881 in property tax revenue and $43,207 inproperty tax penalties currently being collected in the DeKalb County special district. The estimatedrevenues other than the property tax related revenues are $18,557,895, meaning that for estimatedrevenuestomatchestimatedexpenditures,$6,525,347wouldneedtobegeneratedbypropertytaxes.Asdemonstratedinthetablebelow,themillageratenecessarytogeneratethatamountofpropertytaxrevenue is 3.221. A municipal millage rate of 3.35 mills would generate $6,786,928, which exceedsestimatedexpendituresintheprimarystudyby$261,348.

Table1:RevenueGeneratedbyHypotheticalCityMillageRates andDeKalbSpecialDistrictMillageRateCityMillageRateof3.221millswith$20,000homesteadexemption

City Millage Rate of 3.35 mills with$20,000homesteadexemption

DeKalbCountyMillageRate of6.39mills with existing homesteadexemptions and HOST factor of47.3%

$6,525,580 $6,786,928 $9,927,881


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Supplemental ProposedCityofBrookhavenAirportAreaRevenueAnalysis

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SupplementalProposedCityofBrookhavenAirportAreaRevenueAnalysis

ThissupplementalanalysiswasundertakenattherequestofStateRepresentativeMikeJacobsto determine the estimated potential tax and fee revenue value that could be derived from a smallportionoftheareaoriginallyincludedinthestudyareaintheprimaryreport,RevenueandExpenditureEstimatesforaProposedCityofBrookhaven.Utilizingthesamedataandmethodologyusedtopreparetheprimaryreport,theestimatedamountofrevenuethatwouldbegeneratedbythesocalledairportareawascalculated.1

It should be noted that much of this area is part of Peachtree DeKalb Airport and thus beingpublicproperty,wouldnotgeneratetaxrevenuetoamunicipalcorporation.Becausethereisverylittleresidentpopulationintheairportarea,therevenueestimatemethodologiesprovidedinthereportthataremostheavilydependentoncommercialpropertywereutilized.Includingpropertytaxes,removaloftheairportareawouldreducetheoverallrevenueestimatebyapproximately$126,000.Fordeterminingthepropertytaxportionofthisestimate,apropertytaxmillagerateof3.35millsandthe2011propertytaxdigestvalues,whichwerelowerthan2010values,wereused.

The following table demonstrates the changes in the ratios of residential, commercial, andindustrial areas of the study area to the unincorporated area of DeKalb County with the Airport Arearemoved.

RatioComparisonsPrimaryReportStudyAreaWithandWithoutAirportArea OriginalStudyArea (including

AirportArea) StudyAreawithoutAirportAreaResidentialAV 14.67% 14.66%

CommercialAV 12.41% 12.10%IndustrialAV 1.40% 1.31%

A previous supplemental analysis, Supplemental Proposed City of Brookhaven Property TaxAnalysis,indicatedthatamunicipalmillagerateof3.35millsinthestudyareawouldgenerateanoverallrevenueestimatewhichexceedsestimatedexpendituresintheprimarystudyby$261,348.Subtractingthe estimated revenue loss resulting from removal of the airport area from this figure, results in ananticipatedsurplusof$135,348,beforetakingintoconsiderationanypossiblereductioninexpendituresthatmightresultfromremovaloftheairportarea.

removal of

the airport area would reduce the overall revenue estimate by approximately $126,000.

3.35 mills

anticipated surplus of $135,348,

results in an

cvi brookhaven feasibility study

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