Fresh Loaf

OK, that may be a little over-dramatic, but it’s essentially true.

Two days ago, the City Council passed a $541 million city budget for fiscal year 2010 —  beginning, well, today, actually — which is $100 million less than the $640 million budget adopted in 2007. Now, that comparison is a little misleading because the FY2008 budget was based on some rather hinky accounting. Still, the city had to do a lot of heavy lifting to cut the budget down to $541 million, including staff layoffs, employee furloughs and a 3-mill tax hike.

Perhaps you’ve heard something about this. Well, what you likely hadn’t heard much about is a re-amortization of the city’s pension obligations, a provision buried within the budget.

I don’t mean to suggest anything sneaky about the action. It was certainly discussed at length in meetings that were open to the public, if poorly attended. But it was somewhat controversial among Council members because it carries a certain financial risk.

(more…)

Bookmark It

UPDATE: Word comes in that City Council might make a motion to reconsider the property-tax vote. More details to come. The move to reconsider failed. The final budget adoption will most likely take place around 1:30 p.m.

The Atlanta Business Chronicle reports the Atlanta City Council this morning narrowly approved a three mill property-tax increase that will plug a $56 million budget shortfall. The average homeowner will see his or her property tax bill increase by $240.

The 8-7 vote Monday morning to raise property taxes by 3 mills was still considered preliminary. It is contingent upon council members adopting the mayor’s $541 million fiscal 2010 budget, a vote expected to take place on Monday afternoon.

The closeness of the tax vote reflected criticism aimed at the council during several public hearings for considering a tax hike in the midst of a severe recession.

…

If the budget passes, the tax increase would allow the city to end employee furloughs during the fiscal year that starts on Wednesday. Furloughs of police officers and firefighters, and the subsequent impact on public safety, emerged as major concerns during the council’s review of Franklin’s budget.

The vote’s roll call:

Yeas: Carla Smith, Ivory Lee Young, Jr., Natalyn Archibong, Anne Fauver, Felicia Moore, C.T. Martin, Joyce Sheperd and Ceasar Mitchell.

Nays: Kwanza Hall, Cleta Winslow, Howard Shook, Clair Muller, Jim Maddox, Mary Norwood and H. Lamar Willis.

Bookmark It

The Atlanta City Council’s Finance Committee voted unanimously today to send Mayor Shirley Franklin’s budget proposal — which includes a 3-mill tax hike — on to the full Council for a vote later this month. This was a formal necessity; the Council must approve an annual budget before the beginning of the next fiscal year, which starts July 1.

Last year, the final vote didn’t take place until late on June 27, which, because it was a Friday, represented the last possible moment the Council could act without being in violation of the city charter. This year, the vote is scheduled for June 29, a Monday, which gives them one more day to find a consensus if they reach a stalemate.

But chances are, they won’t.

As of this writing, I count at least nine likely votes in support of the mayor’s budget. Franklin only needs eight to win. The Finance Committee sent the budget forward without a recommendation, so no members would need to tip their hands in advance, but the chatter at City Hall is that the budget will pass.

(more…)

Bookmark It