Mayor, Finance Present Five-Year Fiscal Projection
Representatives from Mayor Shirley Franklin’s office, along with the city’s finance department, presented its Five Year Financial Plan for the City of Atlanta to the council’s Finance/Executive Committee on Wednesday.
The report estimates General Fund revenues will rise 1.4 percent annually from Fiscal Year 2010 to Fiscal Year 2014 while expenses are expected to grow 2.5 percent annually over the same period.
Assuming existing service levels, things will look much the same next year as they do right now: no raises or cost of living adjustments for city employees, 1,751 police officers, and 16 closed recreation centers.
“The bottom line is that the City can continue to provide its present level of service assuming that the economy improves in line with current forecasts,” Franklin wrote. “However, based on current projections and absent a significant new source of revenue, we will not be in a position to enhance service levels nor address several core priorities – such a replacing our fleet and making much-needed investments in our roads, bridges and sidewalks.”
The sales tax is expected to grow by 7 percent in FY 2011 and grow 2 percent in the following years while expenses are expected to remain flat until FY 2012.
The report presents some options for increasing revenue, including increasing state revenue support (low feasibility, potential $30 million+ per year in revenue); selling City Hall East (medium feasibility, one-time shot of $10 million+); and adjusting city fees for inflation (high feasibility, less than $10 million per year).
Other options include selling the city jail, renewing the local option sales tax, adjusting alcohol tax rates, and implementing a parking tax.