Oversight commission backs neighborhoods plan, stops short on tax extensions
An oversight commission formed to ensure fiscal responsibility and due diligence with Atlanta Mayor Andre Dickens’ $5 billion neighborhood revitalization plan agreed there is a critical need to invest in underserved areas of the city.
But in its final report released Tuesday, the 13-member board didn’t take a firm stance on whether raising the revenue through extension of eight tax allocation districts across the city is the best way to do it.
Key to the mayor’s proposal is support from Atlanta City Council, Fulton County government and Atlanta Public Schools, who all need to sign off on a full extension to realize the projected $5 billion in revenue.
But representatives from the county and school system expressed deep reservations with dedicating their revenue through tax district extensions for the initiative.
Without their support, only a fraction of the projected revenue would be raised to go toward neighborhood infrastructure projects — about $1.4 billion.
Although the oversight commission’s report and votes serve as recommendations only, the panel was created to help inform City Council members before they vote on a full extension.
Atlanta City Council member Matt Westmoreland, who co-chaired the commission, said the group unanimously endorses a targeted effort to spur growth in underdeveloped areas of the city.
But he added the city’s TADs as currently drawn don’t include all of Atlanta’s neediest neighborhoods — and revenue generated from each TAD varies widely, with more developed areas bringing in more funds than struggling neighborhoods.
“All TADs are not created equal,” Westmoreland said. “And if this is — if we’re making a 30-year decision, then we need to make sure that the neighborhoods that need investment and attention the most are able to actually get it.”
The oversight commission is made up of representatives from the city, Fulton County and Atlanta schools, along with the business and nonprofit communities. Its report underscores that financial tools other than TADs should be considered to fund the investments.
Representatives from Fulton County and Atlanta Public Schools expressed the strongest reservations.
“I do not feel this recommendation recognizes that each contributing jurisdiction has different legal mandates, and therefore different priorities and different budget pressures,” Fulton County Commissioner Dana Barrett said in the report.
Atlanta Board of Education member Ken Zeff voiced the strongest opposition to extending the city’s current TADs. He argued that investments in areas like transit and trails shouldn’t take priority over teacher salaries and student services.
Extending the Beltline TAD alone, Zeff said, would cost the school system an estimated $80 million per year.
“Ultimately, I believe APS’s core responsibility is to ensure teachers are fairly compensated, schools remain central to their communities, and students receive the high-quality education they deserve,” he wrote.
Courtney English, the mayor’s chief of staff who is spearheading the initiative for the administration, said the city, county and school system are “all in this together.
“Our communities need quality teachers, access to early education and affordable housing, fresh food, health care, and jobs that pay a living wage,” he wrote. “We don’t have to choose. We have a responsibility to deliver them all.”
Other key takeaways from the report include:
- Other funding tools should be explored: Although the city’s TADs have been a successful tool in jump-starting growth in certain areas, funds generated are specifically dedicated to capital improvements. The report recommends exploring other funding options, like special service districts and economic development millage, that could be used for program and operating costs.
- If TADs are extended, Fulton County and APS should receive a portion back: Both Fulton County and Atlanta school officials say they are uncomfortable with handing over a large portion of their tax digest to the city, citing their own budgetary struggles. The commission recommends the city give regular payment in lieu of taxes to the jurisdictions contributing to the tax districts. They also suggest Atlanta sets up a trust fund to invest in areas outside the TAD boundaries.
- Communities should have a say in prioritized projects: Projects funded as part of the revitalization effort and their prioritization should receive input by affected communities, the commission said. Critics of the decades-long extension argue projects could fluctuate across mayoral administrations, which may have differing opinions on where investments should go.
- Efforts to fight displacement should be enhanced: The commission urged that additional policies and resources be put toward fighting potential displacement of legacy residents caused by increased development in underserved neighborhoods.
Coined the “Neighborhood Reinvestment Initiative,” the mayor’s second-term proposal hinges on extending all eight of the city’s tax allocation districts, in which property tax revenue growth is allocated to pay for infrastructure within the individual district’s boundaries.
Dickens wants to extend the TADS beyond 2050, long after most are set to expire in 2030.
With the approval of Atlanta City Council, Fulton County and Atlanta Public Schools, the extension would generate more than $5 billion to be directed to major infrastructure projects — like transit along the Beltline’s Southside Trail and new MARTA stations to funds for the ambitious Stitch project and a new hospital.
It is unclear how, or if, the ambitious projects in the plan could be funded without tax district extensions.
The Fulton County and APS responses in the final report don’t bode well for Dickens, who earlier this month urged city leaders to support a full TAD extension at his annual State of the City address.
“Our most powerful tool is one we already have: our tax allocation districts,” he said. “The momentum is here. The willpower is here. We need to capture that energy and put our TADs to work now.”
About the Author
Riley Bunch is a reporter on the local government team at The Atlanta Journal-Constitution covering Atlanta City Hall. She covers the mayor and Atlanta City Council while also keeping an eye on the city’s diverse neighborhoods.
