Will There be a Property Tax in Peachtree Corners? When? How Much? Why?

Studying the Peachtree Corners City Charter and the Feasibility Study conducted by the Vinson Institute of Government at UGA you will find that there will be a “Gap” between when the City “Stands up” and begins collecting Franchise fees (See below). Based on the established requirements the estimated expenses for the city should eventually be covered within its budgeted revenue.

Adhering to the City Charter will avoid overspending and debt thus there will be no need for tax increases.  The key is tax “increases” – to stand up as a new city the only way to generate the revenue required will be to tax (See tables 22-24 below).  The question is how much?  Then once the tax is passed the city will need to borrow short-term money.  Per the City Charter a short-term loan (TAN – see below) will need to be repaid by December 31, 2012.  Once paid back, the city would repeat for 2013 for repayment by December 31, 2013.  I’ve heard a lot of other candidates tell voters that they will not vote for any tax.  The bottom-line is that they will have no choice.  We are a city now and the city council will need to generate revenue run the city. 

What are Franchise fees?  The City Charter states: 

“The city council shall have the power to grant franchises for the use of this city's streets and alleys for the purposes of railroads, street railways, telephone companies, electric companies, electric membership corporations, cable television and other telecommunications 720 companies, gas companies, transportation companies, and other similar organizations”.  Source:  City of Peachtree Corners Charter SECTION 6.14. Franchises)

What does the City Charter Say about Taxes?

“The city council may assess, levy, and collect an ad valorem tax on all real and personal property within the corporate limits of the city that is subject to such taxation by the state and county.  This tax is for the purpose of raising revenues to defray the costs of operating the city government, of providing governmental services, for the repayment of principal and interest on general obligations, and for any other public purpose as determined by the city council in its discretion”. Source:  City of Peachtree Corners Charter (ARTICLE VI FINANCE SECTION 6.10. Property tax)

Can the City borrow money?

“The city may obtain short-term loans and must repay such loans not later than December 31 of each year, unless otherwise provided by law”.  Source:  City of Peachtree Corners Charter (SECTION 6.21. Short-term loans)

These short-term loans are commonly known at TANS or Tax Anticipation Notes.  Pay close attention to the word “Anticipation” – The city will need to tax in order to borrow.  The question is how much?

Carl Vinson Institute of Government - Summary Findings Related to Fiscal Viability

Table 22: Estimation of One Mill of Property Tax

Est. Value of one Mill of Real Estate Assessed Value - $1,985,768

Est. Value of one Mill of Motor Vehicle Assessed Value - $84,664

Total Estimated Value of One Mill $2,070,432

Source:  Fiscal Analysis of a Proposed City of Peachtree Corners By Governmental Research and Services Division Carl Vinson Institute of Government - March, 2010

Table 23: Summary of Expected Expenditures

Estimated Expenditure (Above Service Charges/Fees/Fines Revenue )

Long-term Capital $63,359

Short-term Capital $68,965

Development-Related Services $162,140

Municipal Court -$22,107

Elections $11,310

Legal Services $68,548

Administration $375,700

Elected Officials $33,000

Total Estimated Expenditure $760,917

Source:  Fiscal Analysis of a Proposed City of Peachtree Corners By Governmental Research and Services Division Carl Vinson Institute of Government - March, 2010

Table 24: Summary of Expected Additional Revenues

Franchise Fees $1,005,946

Property Taxes $2,070,432

Total Estimated Revenue Above Service Charges/Fees/Fines $3,076,378

Source:  Fiscal Analysis of a Proposed City of Peachtree Corners By Governmental Research and Services Division Carl Vinson Institute of Government - March, 2010

Clearly defining city issues and answering tough questions is exactly what you will come to expect from me as a city councilman.  I will treat all city business with professionalism, integrity and have the guts to tell it as it is.

If you want to meet me personally or just shake my hand, don’t forget to visit me a Grouchy’s every Monday until March 5th from 7:15am – 9am. I would love the opportunity to earn your vote.

Visit www.jayloweforpeachtreecorners.com