DeKalb 2016 budget proposal contains warning signs

Interim DeKalb County CEO Lee May is recommending a 2016 budget that holds tax rates steady, dedicates $1 million to launch a government financial accountability office and spends $8.5 million for road repaving and transportation. The $1.31 billion budget is about 2 percent smaller than this year's spending plan.

May warned Tuesday that the county's finances are beginning to falter because of the creation of new cities and expansion of existing municipalities.

Soon, May said the county will have to decide whether to raise taxes or decrease service levels.

“This budget does not solve the financial state underpinning operations in DeKalb County,” May wrote in a letter to the DeKalb Commission, which will vote on a budget in February. “Incorporation and annexation have continued to erode the tax digest of unincorporated DeKalb by selectively drawing their borders to encompass areas of the county that generate more revenue than they require in services.”

May and the DeKalb Commission approved a property tax cut this year for residents living outside city limits. Tax rates dropped from 21.21 mills to 20.81 mills, which was worth roughly $50 a year on a $300,000 house. May’s proposed budget would sustain that tax cut next year.

The budget also pays for creating the Office of the Internal Auditor, a financial watchdog position approved by the Georgia General Assembly this year. The internal auditor will be responsible for finding fraud, reducing inefficiencies and exposing waste.

Other highlights of the budget include: