Atlanta mayoral candidates discuss budget plans

The dozen men and women who dream of becoming Atlanta’s next mayor talk tough about how they’ll handle the city’s shaky finances.

They say they’ll focus on spending city funds to pay for the “basic” services — police, fire protection, water service, trash pickup — and watch the city’s money like a hawk.

Easier said than done.

Sales taxes and other revenues were down 12 percent during the first half of its budget year. The city spends more than $100 million a year, about one-fifth of its general fund budget, on employee pensions. Its bond ratings, the city government’s version of a credit report, have dropped to perilous territory.

“[Finances] are going to be for the next mayor what water and sewer upgrades were for Mayor [Shirley] Franklin,” warned City Council President Lisa Borders, who is running for mayor.

So how will the candidates make things better?

State Sen. Kasim Reed (D-Atlanta) will try to recruit more businesses to Atlanta and create a “closing fund” to help seal the deal. Reed, who managed both of Franklin’s mayoral campaigns, also said he would consider reducing the city’s pension contribution to new employees as a way of reducing costs.

Jesse Spikes, a partner at the law firm McKenna, Long & Aldridge, said he too will focus on economic development, but added he’ll reach out to the federal government for more city aid.

In addition to luring more companies to Atlanta, Borders envisioned a “trash to treasure” program that sells methane from city-owned landfills that are no longer operating.

Councilwoman Mary Norwood said there’s a more basic problem at City Hall: It’s hard to keep track of the city’s financial books.

Norwood, who has city budget data on her laptop computer dating back to 2000, said the numbers from Franklin’s staff often differ in various documents. Largely for that reason, Norwood said she won’t vote in favor of the mayor’s proposal to raise property taxes by about $240 for the average city homeowner.

Atlanta’s budget, she said, is a “shell game.”

“I don’t have the information to have the confidence in the numbers,” said Norwood, who joined the council in 2002.

The current budget and Franklin’s proposed tax increase has caused the biggest difference among the candidates thus far on the campaign trail.

Reed supports a 1 mill tax hike to end furloughs on police officers and firefighters. He recently said it’s “disingenuous” to side against any tax increase without offering ways to end the furloughs. Norwood countered that the mayor must “prioritize resources in the public’s interest.”

Borders, the only other mayoral candidate who can vote on the budget, supports the mayor’s plan if it will end the furloughs, according to a campaign spokesman. The council president only votes on items if there is a tie.

Candidate Glenn Thomas, a former city employee, does not think Atlanta needs to raise taxes this year. He said the city can find at least $50 million if it cuts consultant fees and more aggressively seeks other revenues currently available, like charging Philips Arena for police officers to manage traffic at events.

“That’s how we fill the gap,” said Thomas, former budget manager for the city’s Management Services Office.

The candidates agree that one nagging problem is Underground Atlanta, the city-owned downtown shopping mall and entertainment center. The city spends about $8 million a year on bond payments.

Borders said she would prefer to redevelop the property into something that would complement the area, particularly Georgia State University, which has been in a construction boom.

Underground leaseholder Dan O’Leary introduced an idea earlier this year to build a 29-story hotel with video lottery terminals there.

Borders said that because of GSU, she does not support casino gambling at Underground. She said she would rather see casino gambling in the gulch area, between the Five Points MARTA station and Philips Arena, only if it provides a revenue stream for public safety.

Thomas said he’ll push for a redevelopment plan that includes Underground and Five Points.

Reed said in one debate that he does not support gambling at Underground. In a recent interview, Reed said he would not look into selling the property right now because of the shaky real estate market.

Reed, as did most candidates, said he’d take a cautious approach to outsourcing some city services to private companies.

Spikes, a political newcomer, pledges to keep an open mind on outsourcing. Like Norwood, he said he needs a first-hand look at the city’s books before committing to absolute positions on some financial issues.

But Spikes knows one thing about what faces the next mayor. “It’s not going to be an easy job.”

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Commuter Tax

Some Atlanta leaders over the years have pushed for a commuter tax, arguing the city is paying for services for people who work but don’t live inside city limits. The AJC asked some candidates for mayor if they would support such an idea.

Lisa Borders: “People don’t like to pay taxes. The better answer … is to bring businesses to the city, generate more revenue for the city and create more jobs for the city.”

Mary Norwood: “We could break this logjam if — assisted by a forward-thinking governor — we could make a commuter tax not about Atlanta, but about equalizing burdens throughout the region; net daily destination jurisdictions should get some kind of contribution from net daily sources of employee outflow.”

Kasim Reed: “It would jeopardize attracting and retaining businesses in this city at a time the mayor needs to be focused on job creation and job retention.”

Jesse Spikes: “While a commuter tax could bring a short-term resolution, long term it could cause more harm than good. We have about a half-million people paying for the infrastructure that is being used by millions. There needs to be a way to share those costs.”

Glenn Thomas: “Rebuild the city, and if folks still want to live outside the city, then we can discuss whether or not to charge a tax.”