E. Alexander Gothard City Councilman of East Point, GA Recent Email To Resident

Good Morning Residents,

Monday night at the council meeting, I was stunned to see that the fiscal year ‘13 budget did not pass. I have personally held extensive conversations with our (Interim) City Manager and with our Finance Director in helping me determine if this budget was right for our city and to understand the budget from several different views.

At one point, I was even under the impression that this budget called for the elimination of 18 unfilled police positions. I inquired, and this is the response I received from our Finance Director:

Hello Councilperson Gothard,

The math may point to 18 positions unfunded however, the facts show that the Police Department is free to fill all positions and funds will be available. FY12 actual personnel cost for the Police Department is projected to be 9.5million. The FY13 budget allots $11.1 million for Police personnel cost. That is an additional $1.6 million over their FY12 actual cost, which will more than cover 18 positions. Attached, is an analysis of the Police Department Personnel Budget.

Thanks,
Derrick


This was a huge concern for many residents as it was a concern of mine. There will be no cuts to our police department, filled or unfilled positions. Please do not pay attention to the rhetoric. See the link to a video below of Monday’s council meeting:

http://www.cbsatlanta.com/story/18820051/contested-east-point-budget-fails-to-get-votes

Also of concern to our residents was the property tax situation. We have heard everything that the council is apparently planning to do, including raising the millage rate to 20 or even 30 mils. The truth is, our city has seen a tremendous decline in property values. Personally, my property has seen a more than 50 percent decrease in value over the course of only one year. Of course I am happy to receive a large check back from overpaying my escrow account, but what is the real cost?

Currently, we pay a millage rate of 13.75. The council has recommended we raise the millage rate to 15, which will generate about another $1 million for the city’s general fund. What does this mean to you? More than likely nothing. Yes, the millage rate may go up but property values have unfortunately fallen so far that we still will pay less in taxes than typically paid over the past few years. East Point has been hit hard in this economic downturn, but we are not unique in this challenge. Below reflects the total amount collected in tax revenues over the years:

Year| Tax Receipts| Millage Rate|

2005| $10.4 million| 12.369 mils|

2006| $10.7| 12.163|

2007| $15.3| 14.75|

2008| $16.8| 14.75|

2009| $15.8| 14.75|

2010| $12.7| 14.75|

2011| $9.8| 13.75|

2012 (projected)| $9.2| 15.00|

As you may notice, it was not a good move for the previous council to drop the millage rate in 2011 at time we were in the middle of declining home values. Evening in raising the millage rate to 15, East Point will still not realize the same amount in tax values we saw in 2011.

Some other highlights of this budget include:

*Additional $1.2 million contribution for unfunded pension. Being proactive and ensuring city retirees will have the state required retirement amount available when due.

*No water base rate increase and less transferred from the Enterprise/Utilities Fund to the General Fund. Over the past few years, an average of more than $5 million has been moved from the Enterprise Fund to the General Fund. With this budget, there will be no question of the transfer amount of $1.28 million to help cover utility generated expenses.

*$776,889 for street repaving

In regards to recycling, I do not believe anyone on council wants to see the elimination of this program as has been put out there. At this point, our city staff is working to renegotiate the contract with Republic so that the city gets a fair deal. I am convinced that Republic can do a lot better in terms of what they offer us. In the first quarter of 2012, residents have redeemed their reyclebank points for a total amount of $1,134.40 worth of prizes and gifts. Also during the first quarter of 2012, the city has paid Republic a total of $71,882.10. In other words, for every $1 a resident receives in redemption points, the city pays out $63.37. We can do better and hopefully Republic will agree to better terms.

Also, I will be pushing for changes to the capital projects list, as several projects currently earmarked are not worthy of tax payer dollars at this time.

These are only a few of the highlights. This is, however, a balanced and very compromising budget. I am very excited about the possibilities of this coming year as we have some very exciting things on the table for our city. Please be sure to call your elected officials and tell them to show up for work, especially when voting on our fiscal budget as one Council Member intentionally chose to stall the city by refusing to show up for the vote. This is important once a year business...I do not think that is too much to ask. After all, as elected officials we are fully aware of this annual task and it is our responsibility to pass a budget in a timely manner. Thank you and have a wonderful day.

Cordially,

E. Alexander Gothard



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