DeKalb CEO calls for tax hike

By Megan Matteucci

The Atlanta Journal-Constitution

If DeKalb County CEO Burrell Ellis gets his way, property taxes will be raised by 2.32 mills next year.

That’s about $264 a year for the average home, which is valued at $200,000.

But county commissioners, who have the final say on the budget, are reluctant to approve any hike in taxes until they see the government reorganized.

On Wednesday, the CEO unveiled a $563.3 million proposed 2011 tax funds budget. That represents a .8 percent increase over the 2010 budget of $558.6 million. The spending plan, which doesn’t include water, trash and 911 service, has $39 million in additional expenditures compared to the current budget.

“We must strike the necessary balance between fiscal prudence and delivering the necessary services to our people,” Ellis said. “I am keenly aware that this is a difficult time to ask citizens to give more without making cuts in spending. But this year leaves us with little choice.”

Even if the tax hike goes through, some county employees may loose their jobs to outsourcing and consolidation. But police officers are protected and may get a raise.

“There is no guarantee that every individual will continue to have a job going forward,” Ellis said.

If approved, DeKalb’s millage rate would go from 16.86 to 19.18. Ellis argues that the county has not raised taxes since 2006, before the recession started. Other areas, including the City of Atlanta, Fulton and Gwinnett, have raised taxes in the last few years.

“During the duration of the recession, DeKalb has endured as long as we can without decimating our reserve,” Ellis said. “Essentially, it’s like living paycheck to paycheck."

The CEO said the tax hike is necessary because of a $12.8 million drop in revenue in 2011. Over the past two years, the decline in property tax revenue has hit $86 million as a result of the real estate market crash.

But Ellis also is calling for an additional $39 million in expenses over this year’s budget, some which he says are not optional, including an additional $17 million for the pension fund and $4 million for increases in health insurance.

However, the tax hike would mean no more furloughs for county workers, who have complained about seven furlough days in this year’s budget. Eliminating the furloughs will cost the county an extra $10 million.

In addition to abolishing furloughs, other areas of the CEO’s proposal are directed at appeasing police officers. County officials said they lost a “substantial” amount of revenue this year as a result of officers protesting furloughs by issuing less traffic tickets.

The CEO’s recommendation calls for a $250 one-time bonus to the 750 master police officers and a $500 bonus to the 633 workers who make under $35,000.

Ellis also said he is saving the jobs of 73 officers who previously patrolled the area of the county that has since been incorporated by the city of Dunwoody. Those officers, who have been reassigned to other areas of the county, will cost the county $5.1 million.

Sgt. Jeff Wiggs, president of the DeKalb Fraternal Order of Police, said there was never a risk of those officers losing their jobs.

“We are happy with the fact that he is proposing no furloughs,” Wiggs said. “However, it still is a concern to us because we know a lot of the commissioners are against a tax increase. That means we are back to square one and in the same situation we were in last year.”

Last year, the CEO proposed a tax increase and the commission overwhelmingly rejected it.

Commissioners have repeatedly said they need to see deep cuts and a government reorganization before raising taxes.

On Wednesday, Commissioner Jeff Rader and Commissioner Lee May said they needed to read the CEO’s three-inch thick budget before making a decision.

“We have to evaluate the extent of the reorganization against the proposal for a tax increase to see if we believe it is justified,” Rader said. “We asked for more effect and we need to see if his claims are true.”

Rader also said he wants to see if the county’s service delivery is in line with other counties in the region.

Earlier this year, a Georgia State University study found that DeKalb’s staff is bloated in comparison to Gwinnett and Cobb counties. The county lost about 825 workers through early retirement, but then filled about 600 of those positions.

Ellis said the budget is already lean and that 47 percent of it is dedicated to public safety. Administrative operations, including the CEO’s office, tax commissioner, finance and other offices, make up 12.4 percent of the budget.

The CEO’s budget calls for increasing the reserve from $9 million to $12 million. The state’s recommendation is $45 million, which equals one month’s operating expense.

Ellis' proposed cuts include the cooperative extension, $1.4 million less to Grady Healthcare, reducing overtime and subsidies to golf courses.

However, the CEO did not list any alternative cuts if the commission rejects the tax increase.

“We hope the CEO is working on a contingency plan. We doubt commissioners will vote on a millage increase,” Wiggs said.

On Wednesday night, DeKalb attorney Henry A. Turner sent a letter to Rader, urging him to vote against the tax hike.

“Please vote against this outrageous proposal. This, combined with the soaring water/sewer fees, is unconscionable in this economy,” he wrote. “Instead, make cuts in non-core services such as parks and recreation and Vernon Jones’ legal defense costs.”

On Tuesday, the commission approved a hike in water and sewer rates to fund a federal mandate to upgrade sewers. Residents’ water bills will rise 49 percent increase over the next four years.

The commission also approved increasing employees’ pension contributions by an average of $50 a paycheck.