Pensions are killing Atlanta

[w¡n9Nµ7 §£@¥€r 123]

City revenues have dropped by $14 million since 2007, which is partially responsible for service cuts — such as closing a fire station and nearly two-dozen recreation centers — and layoffs of several hundred employees.

Last Thursday, the mayor unveiled a proposed budget to operate the city between July 1 and June 30, 2010. But city officials, civic leaders and some of the folks who hope to become mayor in January say City Hall needs a long-term diagnosis for Atlanta’s future financial health.

“We are fighting for our survival,” City Council President Lisa Borders, a mayoral candidate, said during a council retreat Friday.

Property taxes represent the largest chunk of the city’s revenue — 28 percent — but that’s lower than other similarly-sized cities. By contrast, more than 60 percent of Charlotte’s revenues last fiscal year came from property taxes.

The mayor’s budget proposes raising taxes in June, never a popular idea among homeowners who get to vote in November for a new mayor and council.

One major problem is employee pensions. Nearly one-fifth of [Mayor Shirley] Franklin’s $541 million proposed budget is devoted to pensions. The city’s annual contribution to its three pension plans has nearly tripled from $36.6 million in 2003 to its current level of $100.3 million.

...

After years of underfunding the pension plans, the City Council earlier this decade approved several changes to its pension contributions, which has resulted in higher annual obligations. The mayor’s staff has proposed reamortizing its pension payments over the next 30 years, which they say will save the city about $19 million for the coming budget year, which starts July 1.

...

Jeff Humphries, an economist at the University of Georgia, told council members at the retreat that the city should seek opportunities to help create more jobs as a strategy to improve its financial health.

“The jobs are more important because they create the demand for housing,” said Humphries, director of the university’s Selig Center for Economic Growth.

Housing means more residents, which adds to the city’s tax coffers.

One current solution the city is considering is raising property taxes next month. City officials often note that about one-half of the property taxes that homeowners pay goes to the Atlanta school system, while one-quarter of the money goes to City Hall.

http://www.ajc.com/metro/content/metro/atl...n_survival.html

[~PalmTreeGurl~ 154]

thats my good ol' city of ATL for you... jobs being lost, hours being cut, but... they are putting out "spy" cameras at every red light .... good ol ATL

[natty bumppo 297]

City revenues have dropped by $14 million since 2007 ...

only 14 million? for a city the size of ATL? that number is peanuts ...

[w¡n9Nµ7 §£@¥€r 123]

City revenues have dropped by $14 million since 2007 ...

only 14 million? for a city the size of ATL? that number is peanuts ...

Well, given that most cities do things with every dollar they get, that's $14 m less they can do.

[natty bumppo 297]

City revenues have dropped by $14 million since 2007 ...

only 14 million? for a city the size of ATL? that number is peanuts ...

Well, given that most cities do things with every dollar they get, that's $14 m less they can do.

so .. cut the pork. there must be some there .. after all ... this is ATL.

[Saddle Bronc 124]

City revenues have dropped by $14 million since 2007 ...

only 14 million? for a city the size of ATL? that number is peanuts ...

Well, given that most cities do things with every dollar they get, that's $14 m less they can do.

so .. cut the pork. there must be some there .. after all ... this is ATL.

Why do you specifically hate Atlanta?

(as there is no city in the world with pork-free budget)