Development News for Decatur, Georgia

City Council Reviews Vision-Based Budget, Proposing 5.5% Increase Amidst Tax Digest Growth and Personnel Investments

The city is presenting its budget process and proposed budget for the upcoming fiscal year. The vision-based budgeting process connects the community's vision to necessary resources. Key themes include equity, climate action, civic trust, affordable housing, mobility, and economic growth. The budget aims to be a financial, policy, and communications tool. The proposed budget shows an increase of approximately 5.5% over the revised budget, influenced by a projected increase in the DeKalb County tax digest. The millage rate remains the same at 12.97 mils. The city plans to use nearly $3.5 million in fund balance to balance the budget. Full-time employees are eligible for a 2.5% cost of living adjustment and a 2.5% merit-based increase. Personnel costs account for about 58% of the total budget. The city's contribution to its retirement system is recommended to decrease from 9.5% to 9% of payroll. Health insurance costs show the smallest employee premium increase in three years. The real property tax digest increased by approximately 4.9%, with 77% attributed to new value and 23% to revaluation. The commercial property digest is $907 million, and residential is $2.7 billion, making residential 75% of the total tax digest. The rollback rate is 11.021 mils, while the tentative millage rate is 11.2 mils. The advertised tax increase under truth in taxation is just under 2%, but the actual tax revenue increase is 5.8%. The city has $139 million in outstanding long-term debt, with 47% for school purposes. General fund revenues are budgeted at $47.5 million, equaling expenditures due to the legal requirement for a balanced budget. Property taxes constitute 81% of total revenue. The construction permit revenue estimate has been reduced due to anticipated projects not yet starting. Parking meter fees have decreased due to construction impacts on parking availability. Recreation fees are projected to be around $4 million. Penalties and fines are expected to increase due to improved police staffing. The city aims to maintain a fund balance of 20-30% of general operating expenditures, currently projected to be 24% at the end of the next fiscal year. Personnel services represent the largest expenditure increase at $1.5 million. Health care cost increases are projected at $318,000, with a transition to a partially self-insured model for liability insurance resulting in savings. Professional services are increasing by $460,000, covering areas like permitting, legal, and audit services. Contracts show a decrease, partly due to changes in pool management contracts. The budget addresses personnel services, including a recommendation for three new firefighter positions, reclassifications of several roles, and adjustments to salary ranges to remain competitive. The proposed budget also includes funding for a development services director position, an assistant city manager position, and various other reclassifications to align with operational needs and strategic priorities. The budget also details investments in employees through health insurance, retirement plans, tuition assistance, and wellness programs, aiming for competitive salaries and a positive organizational culture. Specific financial impacts are noted for each strategic theme. Health care costs are projected at just over $4 million (8.5% of the general fund budget), with a partially self-insured model for health insurance up to $105,000 per person. The employee premium increase for health insurance is the smallest in three years. Enhanced dental benefits and cancer screenings are new offerings. The city maintains an 80-20 split for health care costs, with employees contributing 20% (or 15% for employee-only coverage). The 'Know Your Numbers' wellness program offers a 30% discount on premiums for participation. The budget includes a $3.5 million allocation for claims and $1.25 million for stop-loss insurance. The budget also highlights contributions to the Affordable Housing Trust Fund ($100,000) and ongoing affordable housing initiatives such as the 600 Commerce Drive project and the Decatur Home Rehab program. Hotel motel tax revenue is projected conservatively, with short-term rentals contributing significantly. The Tax Allocation District (TAD) fund will support public improvements for the Northwood Raven project. The sales tax fund (SPLOST 2) is projected to generate $30.5 million, with expenditures primarily for debt service on city facilities and the square project. The Public Facilities Authority fund covers debt service for Legacy Park land purchase, with a portion of the capital improvements fund generating revenue for this. The Capital Improvements Fund aims to bring in nearly $7 million in taxes and other revenue, including grants for solar projects at the recreation center and police department. Projects include playground equipment, tennis court resurfacing, EV charging stations, a new telephone system, and website upgrades. Road repair and paving (LMIG) is budgeted at $1 million, with contributions from GDOT. The School Zone Camera Fund has estimated revenues of $1.8 million and expenditures of $2.3 million, maintaining a $500,000 fund balance, and enabling public safety enhancements. Recent legislation impacts the use of school zone cameras, removing the school superintendent's sign-off requirement and mandating referendum approval for future camera contract renewals. The Community Energy Fund is funded by 10% of utility franchise fees, totaling around $173,000, supporting initiatives like the 'Electrified Decatur' campaign and an energy rebate program. The American Rescue Plan Act (ARPA) funding of nearly $9.6 million has been fully expended on projects including virtual court recordings, COVID supplies, pandemic premium pay, hybrid AV systems, infrastructure for the South Housing Village ($3.8 million), and the track and field at Legacy Park ($3.5 million). The Special Events Fund covers costs for 'WatchFest.' Upcoming projects include downtown square transformation phases, wayfinding signage updates, the first electric fire engine delivery, and a Glen Lake Tennis Academy. The budget also addresses the unhoused task force, a phone system upgrade, and an IT needs assessment. Achievements from the past fiscal year include a compost partnership, sidewalk maintenance, adoption of a new city charter, traffic calming projects, the 'Electrified Decatur' program launch, Narcan distribution, creation of the Beacon Hill Historic District, a new podcast, carrying out Safe Streets Safety Action Plan projects, completion of the South Housing Village phases, and reestablishment of the School Resource Officer program. Public hearings for budget adoption are scheduled, with final adoption on June 15th and the budget effective July 1st.