It’s budget season at Atlanta City Hall, and Mayor Kasim Reed’s administration has unveiled a $590.5 million proposed spending plan, the largest since Reed took office in 2010.
The budget — up from $568 million a year ago — is now before the city council for vetting and approval.
Reed officials said this year marks the first time the city hasn’t had to dip into its savings to balance the budget since fiscal year 2011. And, with a growing reserve, they believe Atlanta might be on track for another ratings upgrade.
“The bottom line is we weathered the storm and now we’re back at a place where the budget is structurally balanced,” Chief Financial Officer Jim Beard said.
But not everyone will cheer this year’s proposed budget, which includes millions in anticipated new revenue from fees and fines.
Highlights include:
No raises
For the second year, Reed’s budget denies across-the-board salary increases to city workers, a decision he defends as necessary as the city still faces a class action lawsuit that seeks to overturn his 2011 pension reform.
City employees filed suit against Atlanta in late 2013, contending that the increase in their pension contributions was unconstitutional. A Fulton Superior Court judge ruled against them last year. The employees filed an appeal that’s still pending before the Georgia Supreme Court.
It’s unclear how this will go over with the city council, as Councilmembers Yolanda Adrean and Alex Wan proposed several actions to address employee compensation, including setting aside $5 million annually for merit-based raises.
Millions in anticipated fee/fine revenue
Tucked into the budget is $7.6 million in anticipated new revenue from a recommended increase in traffic fine amounts. City officials said a blue ribbon commission reviewed its fine and fee structure last year and found Atlanta charged less for infractions, such as speeding tickets, than neighboring counties. The city has since recommended bringing those amounts in line with Fulton County. The decision is still being reviewed by the municipal court.
At least $6 million in new 911 fee revenue
Atlantans could soon pay more for 911 services. Reed scored a major 11th hour win at the state legislature in April when he garnered support for House Bill 650, a law that allows Atlanta to levy a new public safety access assessment to cover the costs of running its 911 system.
Under existing state law, a government can charge up to $1.50 per phone line to pay for 911 services. In Atlanta, that revenue only covers about two-thirds of the system’s annual operating costs, about $16.3 million, according to the city.
Officials haven’t yet said just how much more Atlantans will pay for the service, or how the new fee will be collected. But Beard said the city has a target of raising at least $6 million annually to fully fund the service.
Infrastructure maintenance
Voters overwhelmingly approved an infrastructure bond initiative in March to spend $250 million to chip away the city’s aging infrastructure, a problem that city leaders say could cost about $1 billion to fix. Now, at the urging of leaders, including Councilman Howard Shook, the city is working to prevent that problem in the future by setting aside a percentage of its dollars to maintain existing infrastructure. This year, the budget includes $5.5 million for that purpose. The funds are separate from the quarter-billion dollar bond money.
Fatter piggy bank
The city projects the reserves will end up at $145.1 million, an increase of about $3 million from last year. Reed has made building reserves a priority, noting the city had about $7.4 million in its coffers when he took office.
About the Author
