The threat of a new city being carved out of a swath of north-central DeKalb County later this year could mean higher taxes for county residents come 2013.
If voters in the area between Buckhead and Chamblee vote to become Brookhaven this summer, DeKalb stands to lose between $25 and $27 million in revenue, some of it as early as December. Tuesday, the county administration said it had yet to plan exactly how it would deal with that blow.
“Our only options are to raise revenues, reduce expenses or draw down our reserves,” said chief operating officer Richard Stogner, adding a mix of those options will be the most likely outcome.
Six new cities have taken shape in metro Atlanta since 2005, most recently last year’s incorporation of Peachtree Corners in Gwinnett County.
In nearly every case, supporters argue the new cities mean better services and more responsive government. But since each new city must include plenty of commercial land so taxes will cover those services, critics argue the incorporation movement leaves behind poorer or mostly residential areas.
DeKalb has made those same criticisms. But Stogner said the county still cannot begin planning until it sees if Brookhaven residents agree to become a city. The bill allowing that vote is being finalized in the state Legislature and is expected to be signed soon by Gov. Nathan Deal.
County Commissioner Elaine Boyer argued for months that waiting until July will be too late for the county to develop a thoughtful plan for its finances. The commission’s sole Republican member, she prefers job cuts to increased taxes, but said proper planning could blunt both of those options.
“We need to restructure how we deliver services. We need to figure out how to support and build up Stonecrest as our future,” Boyer said of the fast-growing area in south DeKalb. “The problem with DeKalb County is we never plan ahead.”
Rhea Johnson, a taxpayer advocate who lives just south of the proposal for Brookhaven, agreed the county should be planning ways to restructure now. That work needs to be done, even if cityhood fails, Johnson said. And if it passes, the county should cut all services, including police designed for that area, before even thinking about new taxes.
"I don't think there is any other alternative, unless people say they will accept a two mil increase in their tax rates," he said of the tax increase needed to offset the loss.
DeKalb didn’t cut police jobs when Dunwoody became a city in 2008. Keeping the 77 police officers, plus the loss of $18 to $20 million, was blamed for the county’s 5 percent tax increase in 2009. This time, though, such cuts would be considered.
"Everything is on the table," Stogner said.
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