A Response to NO Information from a Peachtree Corners Neighbor

This is an item we received from a neighbor who took some time and thought to respond to the negative city information that has been floating around in e-mails and illegally taped to mailboxes. Enjoy!

When in the course of human events it becomes necessary ...***

( With apologies to Thomas …)

A sidebar item:

FIRST:  I believe there is no perfect answer / solution to the “city” dilemma.

It’s a matter of shades of incremental grey…

NOW ….

Why I chose to SUPPORT the city concept.

Let’s start with the NO CITY flyer you recently had attached to your mailbox and address some of the “information” they provided. Candidly, it was better / fairer than anticipated but still misleading or at least incomplete on a few points. I prefer not address every line item. I accept some of their premises, also.

Here goes:

If approved – the city becomes the largest city in the county. Bravo. I think this point actually SUPPORTS the premise. Critical mass helps in gaining political outcomes and in promoting economies of scale if there are any to be garnered. (size matters!)

There will be a 1 mil tax increase and ad valorem taxes will rise. The estimate given is $120 / 300,000 of appraised value per home. The last time I had my gutters cleaned it cost me about $90 and I sometimes do it twice in a year. Your cable bill makes this look silly. Is this REALLY an objection? I prefer to look at the flip side – you get an energized group of local advocates who passionately care about how this neighborhood/city works… all for less than cost of your gutters being kept clean. You can’t BUY that kind of representation/support.

Speaking of cable –

The city will also collect franchise fees on your current utilities. ( telephone, cable, gas, electric).

THIS IS FLAT OUT MISLEADING. The flyer conveniently leaves out all of the these fees are ALREADY being collected and turned over to….. are you ready …. OTHER CITIES. Truth be told … now OUR CITY will get IT’S fair share of these fees and presumably will spend them here rather than elsewhere. HENCE, this is an ASSET. The fees you already pay will not change. TELL ME HOW THAT IS A PROBLEM!?

The city “only” plans to offer three services. < zoning, code enforcement, trash>

DUH! That’s the POINT of a limited city. The law demands they offer at least three services to qualify as a “city”. They have studied the services that the county provides and specifically chosen the most COST EFFECTIVE ones to absorb. I would call that good governance. For instance, taking over the maintenance of Parks and Recreation would be excessive / expensive.

The city will establish a court and enforce the codes. YES, sort of. My understanding is it is likely to have a judge on “contract basis” working out of some limited office space for minimal enforcement. I will agree however, that the this is one area where “costs” could run more than anticipated.

The city can incur debt. SO WHAT? The county can incur debt …

HERE is the dirty little secret the flyer does not want you to understand / know about. THIS city charter has a provision it that limits the tax increases that can be projected on us … at the one mill level. The city in and of itself CANNOT simply increase taxes on us without an act at the state legislature or a local vote. WE ARE THE ONLY CITY IN GEORGIA TO INCORPORATE THIS FUNCTION IN THE CHARTER. It’s NOT perfect, but it’s clear to me that the people behind the city recognize the tax issues for what they are and have gone above and beyond to address it to the point that we have more protection against tax increases than ANY city including John’s Creek, Sandy Springs, etc.

Trash service will be billed separately on your taxes as it is now. SO?

Who needs another bill in their mailbox? You will not be paying twice … is that what they were trying to infer????

The city doesn’t have a “trash plan”… they just hope they can negotiate a better deal.

You can’t negotiate on behalf of the city… it hasn’t been created yet! They have simply “shopped”. I personally question how long and at what cost it may incur as to their ability to “break” or get out of the current county agreement, but ultimately it will happen.

It appears there are some minor advantages and there should be as we have VERY dense neighborhood garbage truck runs. There SHOULD be some value / economies of scale.

You can’t be annexed without a petition and/or a vote.

I’ll presume that’s true. But examine what that DOESN’T address. Years ago Norcross wanted to annex Technology Park. They wanted the lucrative business tax base. It’s not clear to me what parcels I DO get a vote on and where those lines are drawn. Certainly I can vote not to annex MY home, but when it comes to taking away some of the surrounding area parcels that help pay my county taxes, I’m not so sure I’d be offered a chance to participate or have any legal protections. The result could easily be YOU end up in unincorporated Gwinnett and find yourself having to carry the tax load while other areas encroach / take away things that used to contribute to your benefit. CHANGE HAPPENS.

OVERVIEW:

Three things come to mind when I look at this vote.

I’ve been here for 25 years and things do change. The county HAS worked well, but even it is struggling to manage the size scope and scale of hundreds of thousands new residents. Dacula, Snellville, Lawrenceville residents really don’t care a hoot about what goes on in the very southwest corner of the county. I’ve watched other communities lose control. Drive down ANY former artery in ATLANTA . . . . say Buford HWY. , Roswell Road, Memorial Drive, Scenic HWY in Snellville. Going local / smaller for a reasonable amount of tax exposure seems like a bargain to me. Getting a local passionate group monitoring things has its upside. YES, sometimes I’ll disagree with THEM, too. BUT, they will be far more addressable on a small local level, too. I’m not fear mongering. I’m living in the moment, and the moment suggests to me that the size, scale, scope is worthy of considering.

Some suggest that creating a city will only lead to more and more government and hence more and more taxes. I believe THAT is partially fear mongering. The charter has contemplated and brought in reasonable items to address that to the extent we are now THE MODEL charter if so approved.

MARKETING: for what it is worth, I DO believe that “peachtree corners” as an address / city has some merit in terms of marketing. The world is run by “data” / the web. Once the city becomes legitimate, there will be compilations of exactly what we are and right now on paper we look better than the average parcel of unincorporated GWINNETT. I don’t think it SHOULD matter, but I KNOW it DOES matter. The “name brand” will sell and that helps all of us.

I’m not on any committee nor did I advocate any formal position for this city thing to take place.

I’m just homeowner like you.

There are websites (  http://peachtreecorners.patch.com/blog_posts/setting-the-facts-straight ) and meetings to discuss this.  

That’s all folks ….

Enjoy your day and remember to vote.

Edward A. Thayer

*** Recently a neighbor of mine sent me and a few close friends/ other neighbors an email discussing why he was NOT supporting the “city” concept. Then I also recently received a flyer attached to my mailbox outlining some information advanced from a group that is seemingly is responsible for the “no city” concept / signs. This is my response. It is a personal understanding that I am willing to share and debate with reasonable people. I hope you enjoyed the thinking exercise.

Peachtree Corners – The Real Facts about Cost

There has been much discussion about how much the city will cost. We address each point below. The numbers are from the feasibility study done by the Carl Vinson Institute. These numbers are not a budget, but were used only to determine if the City of Peachtree Corners would be financially viable.

The possible revenue from property and ad valorum taxes is $2,000,000. The possible revenue from the franchise fees is $1,000,000. For the record, you are already paying these franchise fees. That is a total possible revenue stream of $3,000,000.

Now that study was done back in 2009. There has been some depreciation in our home values. Even if our property values dropped by as much as 30%, we could still raise $1.5 million from property taxes. And the lesson learned from Dunwoody is that the impact of franchise fees may more than double, with estimates of up to $2.5 million. Any way you cut it, these are significant revenues.

The worst cost estimate of annual expenditures from the feasibility study is less than $800,000. Possible revenues are more than three times the worst case cost scenario. It may be possible in the long run to fund the city operations completely through franchise fees.

Now to address the misunderstandings.

Initially property taxes will increase by one mill for all residential and business properties:

While property taxes will increase, it is unlikely that they will go up anywhere close to the legal limit. The Mayor and City Council will set the rate. Because the possible revenues far exceed the anticipated costs, it is likely that the rate will be set much lower than 1 mill.

1.     Business taxes and fees support residential services. If not enough businesses stay in PC, the City will likely borrow to make ends meet and then call for a tax increase vote..

The combined effect of the loss of revenue from businesses that may be annexed prior to when the city stands up is not significant.  Given that we may be able to fund the city entirely through franchise fees, there will be no need for any tax increase.

2.     The charter authorizes PC City to add-on to ad valorem tax for vehicles, boats, trailers, motorcycles, etc.

That is true.

3.     Franchise fees on utilities can and will be increased.

Franchise fees are regulated by the state. The city cannot arbitrarily increase these fees. There is one possible increase we may experience. Georgia Power has a tiered fee system Unincorporated areas of the county are charged 1.0801% of electric usage while incorporated areas are charged at a rate of 2.9109%. This only applies if there is an agreement between the city and the power company. As there will be no agreement to start, there will not be an immediate change in the rate. You can see the information here http://www.psc.state.ga.us/calc/electric/gpcalc.asp.

 
4.     These increased costs to local businesses would be passed along in the form of higher prices to us.

Actually, we pay the franchise fee to these businesses and they pass the fees on to those areas that are qualified to receive them. No higher prices!

5.     There is no new garbage plan contract guaranteeing a lower price. There is a hope it can become cheaper.

We know that trash pickup costs are directly related to the number of trucks required, the distance between stops, number of employees needed, and gas. The county took the costs for disparate areas and averaged them over the county. That means that densely populated areas like Peachtree Corners are subsidizing the areas with fewer homes and more distance between them. Our trash cost will likely be less than the county cost just because of our demographics.

6.     Once the City incorporates, it must negotiate a Service Delivery Strategy (SDS) with the County.  There is no County tax relief for Redundant services.

Actually, the county is required to provide the services we will not at the same cost as it provides these services to unincorporated Gwinnett. What SDS does is identify those tax dollars that county is collecting for services the cities provide and rebate them back to the cities.

The charter gives the city council the rights to set fees, assessments, and to issue debt bonds.  It reserves the right to spend money with impunity and we have seen what happens when a government can spend at will without the means to fund it—big debt.   The city will need buildings, IT infrastructure, employees, employee benefits including retirement, legal council and more to operate.  We already b\ought these things once for the County.  Why buy them again for a city?

The City Charter gives the city government the same rights and powers as any other municipality. Our government is limited to three services. If the “rights” are not required to provide these services, the “rights” cannot be exercised. In government today, any persons spending “with impunity” without the will of the people will be voted out of office at the next opportunity.

The government will not need “buildings”. There is ample space for lease right here in Peachtree Corners. Why would the city build another building when the goal is to populate the existing businesses?

The Mayor and City Council are part-time positions. They will not be eligible for pensions. There may be two employees, a city manager and a city clerk. There are good 401K-type retirement plans available that would be used for retirement. No unfunded pension liability.

For the record, Dunwoody is a full service city. They have only 5 full time employees and lease space for city operations.

The IT infrastructure, legal counsel, municipal court, code enforcement, etc. can be contracted out. That allows for flexibility.

In the long run, we may actually be able to run the city with the current services on franchise fees alone once a reserve is established.

Get the real facts. Vote YES November 8th!