Atlanta Mayor Kasim Reed has said tackling the city’s aging infrastructure is his No. 1 priority for his second term, a goal he’ll need public approval of a bond referendum worth up to $250 million to achieve.
But because he doesn’t want to ask Atlantans to pay for the financing costs through tax hikes, he’s turned to local business executives, union leaders and City Council members for help. Atlanta needs to set aside anywhere from $15 million to $17 million each year for 30 years to fund the bond deal.
The 16-member group that’s supposed to find those savings began its work this week, while Atlanta officials laid bare the city’s financial forecast.
The infrastructure backlog has grown to $1.1 billion in needed road, bridge, street and sidewalk repairs, according to documents released by the city. Attempting to fund a bond for the entire billion-dollar problem is a pipe dream, as it would cost about $75 million annually in financing costs, interim Chief Operating Officer Michael Geisler said.
Councilman Howard Shook, who with Delta CEO Richard Anderson is co-chairing the blue ribbon commission, painted a bleak picture of the backlog.
“The world caved in on us and we’re digging ourselves out,” Shook said. “The problem is getting so big it’s going to slip away from us with lawsuits and consent decrees … trauma will follow for many years.”
Complicating the commission and city’s behemoth task is that, despite an improving economy, Atlanta’s revenue projections remain sluggish. Property tax revenue is set to rise just 1 percent in coming years, according to documents released by Reed’s administration this week.
All told, Atlanta officials are working to identify tens of millions in savings over the next several months — some for short-term budget-balancing needs and up to $17 million to fund the debt service for the infrastructure bond, if approved.
“We have already taken much of the easy pickings to achieve cost savings,” Geisler said this week. “Property taxes are not going to be the solution to the city’s infrastructure needs.”
By now, Atlanta is well accustomed to the hard cuts. It’s something the city has been forced to do since the recession, which saw the general fund drop from $670 million in 2007 to $544 million. City officials are now considering measures that include trimming departmental expenses and shedding underperforming real estate.
Just last week, Atlanta announced plans to buy out the management of Underground Atlanta and sell to a developer. That alone could save the city about $8 million annually, officials said. The city is likely to consider selling other underperforming properties, such as the Boisfeuillet Jones Atlanta Civic Center or Turner Field after the Braves leave.
Reed’s administration also held an employee contest for cost-saving ideas, and recently cut a $25,000 check to an employee who suggested using inmates to clean blighted properties at a roughly $2 million savings.
The public can email ideas to efficiency.commission@atlantaga.gov. The mayor’s office will vet the submissions.
The commission plans to issue final recommendations by late June.
About the Author
