The Atlanta City Council voted Tuesday to dissolve the enterprise fund for the Office of Buildings and Ordinances and transfer all of the money — $52 million — into the city's general fund.
The vote comes two weeks after Atlanta Mayor Kasim Reed showed up unexpectedly at a committee meeting to blast several developers who were lobbying the city council to oppose an ordinance that authorized dissolving the fund.
In a fiery 10-minute appeal, Reed said the move would increase the city’s general fund capacity and help Atlanta achieve a AAA credit rating.
Reed said the money in the enterprise fund is sitting idle.
The City Council approved the ordinance 9-2.
The enterprise fund was created in 2012 to quell complaints from builders about increasing fees. The fund allowed for the permitting fees charged for services to remain in the Office of Buildings for critical technology upgrades and staff training.
Going forward, permitting fees will now go directly to the general fund.
Reed didn’t attend Tuesday’s meeting, but his Chief Financial Officer Jim Beard said Wall Street was watching.
“Anything that makes our balance sheet look forward will look favorably on Wall Street,” Beard said.
The city’s credit rating has grown from just above junk to AA+ since Reed took office.
Councilwoman Felicia Moore, who voted against the change, said the council was “putting the cart before the horse,” and said she wasn’t clear on how the permitting fees would now be used.
Mary Norwood also voted no.
"I don't believe we should approve without seeing a draft plan," Norwood said. "I don't agree that funds going forward would go straight to general fund."
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