CityLite for Peachtree Corners: A Fiscal Viability Analysis

1. By John O�Looney Senior Public Services Associate Carl Vinson Institute of Government CityLite for Peachtree Corners: A Fiscal Viability Analysis

2. Institute of Government Over 80 years at the University of Georgia Provide research, training, & technical assistance to local and state government agencies and the Georgia General Assembly Technical assistance in issues of governance, management, budgeting, incorporation, consolidation, annexation, organizational design, staffing, efficiency, effectiveness, accountability, etc.

3. CityLite Concept CityLite is a concept for a city with a limited scope of responsibility and limited revenue generating powers. Different states have different models for what is a �City� and some states have different classes of cities. GA only has one class/type of city, but GA law allows counties to act as cities�which can cause conflict (SDS). GA requires that cities provide at least a minimum number of services�so the city can only be so �lite� In some states CityLite would be specific type of city with limited powers/responsibilities spelled out in law and with the relationship to the county also specified�.

4. CityLite Concept In GA, CityLite must be created within the existing city concept which automatically provides for powers/authorities that make it independent from the County�.Charter limitations�intergovernmental agreement with the county. Cities typically are formed because of a need for urban services (planning & zoning, utilities, police, fire, code enforcement, inspections, etc.) Some urban services can be efficiently provided at a large scale (e.g., countywide)�.planning & zoning may be an exception.

5. Elements of the Peachtree Corners� CityLite Concept:  County services for the most part are satisfactory. Planning/zoning/code enforcement are services that should be more local than the countywide level�These services define a city/area identity and look and feel. To retain the relationship with the County, need to ensure that the City does not take away county revenue..new revenue sources. Need to supply an additional service in order to qualify as a city (i.e., Sanitation). This service can be contracted out.

6. Elements of the Peachtree Corners� CityLite Concept: In order to provide code enforcement, you must have a municipal court. Need to have some administrative staff to answer the phone, submit required reports to the state, prepare budgets, execute contracts, payroll, etc.

8. Population Estimate Because the Census Bureau does not publish population estimates for areas that are smaller than existing counties and some cities, we identified the closest existing city (i.e., Norcross) and calculated the percentage increase in population from 2000 to 2008 using Department of Community Affairs (DCA) population figures for these years (i.e., approximately 27% growth). We then applied this percentage to the 2000 estimated population of the proposed new city to arrive at a 2008 population estimate for this new city area of 34,274.

9. Fiscal Viability & Revenues Fiscal Viability = ability to meet expected expenses with expected revenues. Assumed revenue sources: Fees for planning/permitting services Fines from enforcement of code violations Franchise fees Up to 1 mill in property taxes

10. Methodology Base most expected expenses and revenues on the experience of comparison city models. Estimate property taxes @ 1 mill and exemptions that approximate those of comparison cities. Estimate long-term capital costs and amortize over 30 years at an interest rate of 5.5% Assume 13 total staff @ 110 sq. ft. per staff Assume market rates for land/construction

11. Capital

12. Development Services

13. Municipal Court

14. Code Enforcement Revenue

15. Elections, Legal & Admin.

16. Franchise Fee Revenue

17. Property Tax Revenue

18. Summary Expenditures

19. Summary & Net