An independent panel has been poring over a financial feasibility study for the proposed City of East Cobb this summer as it also fashions a working budget from those numbers.
Rob Eble, a spokesman for the Committee for East Cobb Cityhood, told East Cobb News the group’s results are expected to be made public later this summer, with another town hall meeting tentatively scheduled for August.
“They are taking this very seriously,” Eble said. “All of their findings will be made public—good or bad.”
He said the group—which is not part of the cityhood committee—is being led by Bill Green, a former financial executive with Coca-Cola and Delta.
The other financial experts, whom Eble did not identify, included those with experience with a company on the Fortune 1000 list, as well as a CPA, an auditor and someone with a background in public budgeting.
Also involved in the process, Eble said, is a public finance attorney.
Eble said the group has been given two mandates: Conduct a complete audit of the feasibility study, and propose a realistic budget.
The study was commissioned by the cityhood committee last fall for $35,000, and was done by The Center for State and Local Finance at Georgia State University.
(Download and read the study here.)
The main conclusion of the study is that a City of East Cobb, with a proposed population of 96,000, is financially feasible with a millage rate of 2.96, what’s currently levied for fire services in unincorporated Cobb.
The study asserts that the City of East Cobb would not have to impose a millage rate higher than what those currently in unincorporated pay in property taxes.
That’s providing police, fire and community development services, the mandated minimum of three services required by Georgia law for new cities.
The study figured an annual budget of $45.6 million, and estimated revenues of $49.8 million.
One of the revenue lines is nearly $7.3 million in franchise fees. Those are additional monies collected by municipalities for things like electric, natural gas, telephone and cable television services.
Questioning budget assumptions
That figure is being questioned by a vocal opponent of cityhood. Bill Simon said he checked with officials from Cobb EMC, who told him the electrical provider doesn’t collect franchise fees in unincorporated Cobb.
If East Cobb should become a city, it would have the power to charge all residential and commercial customers a four-percent surcharge on their monthly Cobb EMC bills.
If the city elects not to impose this charge, Simon said, there would be a deficit of $3.1 million.
That also amounts to what Simon considers another tax, which is among the reasons he is against a new city. He provided East Cobb News a copy of a June 3 letter sent to him by Kevin Moore, the general counsel for Cobb EMC.
Eble said “I appreciate people questioning” the franchise fee matter, because “it’s very complex” and that’s one of the reasons why the cityhood committee is having the feasibility study examined.
He maintained the cityhood committee’s pledge to “not raise taxes and not raise fees. That is the goal, and it’s all being reviewed.”
The existing six cities in Cobb all have higher overall millage rates than unincorporated Cobb, which has spurred some of the skepticism about cityhood proponents’ claims.
Eble said that the study is required by state law in order for a cityhood bill to be introduced, and was meant only to be an outline.
“We want to bring it to life,” he said, “validate what’s in it and build a budget.”
Mapping a new city
The audit of the feasibility study, and any budget formulated by the finance group, may have to be amended if the proposed city boundaries (view map here) are altered. At an April town hall meeting at Walton High School, cityhood leaders said they’ve been lobbied by citizens, especially in the Pope and Lassiter areas, for possible inclusion.
The area around Shallowford and Trickum roads in northeast Cobb was mentioned by a cityhood leader as a possible new northern boundary.
As drawn up for the study and in the legislation, the proposed city encompasses all of unincorporated Cobb Commission District 2 east of I-75 and excluding the Cumberland Community Improvement District.
Eble told East Cobb News Thursday that the cityhood group met recently with officials in the state reapportionment office, at which “we have discussed an expanded map. I would say it has not been formally opposed.”
He added that “there has definitely been talk and we would like to see the borders expanded,” and that he was hopeful “we would get it done” well before the legislative session begins in January.
East Cobb News Cityhood Coverage
- Cityhood budget, taxes discussed at Powers Ferry forum
- Defining and redrawing the East Cobb city map
- How many police officers would a City of East Cobb need?
- Cityhood leaders press case for “more local control”
- Town hall meeting to mark cityhood’s “reset” effort
- Editor’s Note: Taking on the tough sell of cityhood
- Cityhood bill calls for referendum and initial elections in 2020
- More Cityhood news, maps and other information
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As an East Cobb resident and tax payer, I am VERY MUCH OPPOSED to the development of a “City of East Cobb.” Proponents of cityhood have NOT demonstrated: #1…That there is an actual/genuine NEED for cityhood (…their reasoning is actually laughable), #2…A satisfactory explanation of their so-called budget (…can you say “franchise fees”?), or #3…A clear plan on how cityhood would BENEFIT the East Cobb community. Proliferating the MYTH that East Cobb is underserved by police/fire/emergency services is a joke, and not to be believed. Let’s not line the pockets of a select few individuals with political aspirations, who stand to gain financially.
This is insane!!!!!!!!!!!!!!!!!!!!! NO NO NO NO City of East Cobb,
say no to new taxes
san no to high density living
JUST SAY NO
The Committee sponsored a study by Georgia State and has presented a preliminary budget stating it would take $45M to run the proposed City of East Cobb (CEC). Sandy Springs to our south and Roswell to our north have very similar population numbers and vey similar total geography. Sandy Springs budget is $110M and Roswell is $73M (2019). One CEC Committee reason for cityhood is better services. Proposed budget for Police is $13M and Fire is $6M. Sandy Springs is Police $23M and Fire $15M. Roswell Police $18M and Fire $10M. As you see, their current proposal is far less. As an aside, I have heard no answer to how they propose to address pensions for the current force should they stay on.
I encourage everyone to read OCGA 36-31-1. Just google and it will come up. It is Georgia statutes regarding transfer of assets to a municipality.
(k) (1) Except as otherwise provided in paragraph (2) of this subsection, if a qualified municipality elects to purchase a fire station that serves only territory wholly within the qualified municipality, the purchase price shall be $5,000.00 for each such fire station. Specific acquisitions are outlined in 36-31-7.
No mention of assets therein are mentioned. That would be fire engines and EMT equipment. My interpretation of the code is that is that items such as fire engines, ladder trucks and EMT equipment are subject to negotiation. Further, my interpretation of comments made by Chairman Boyce is the County has not made any decisions relative to those assets and will not until such time as a city charter is established and then the state statutes will provide the guidelines for the negotiations between the interim municipality’s representatives and the county officials as they decide the core questions of asset division and delivery of services. Obviously, it’s premature at this stage to determine the outcome of those negotiations. Thus, any assumptions made by the CEC committee are no more than a wish at this time. To me, that also includes the East Cobb Government Center which is attached to a fire station but not a fire station. Should the committee state the City of East Cobb could simply take over the Government Center needs to be fully vetted. I see no evidence in the CEC proposed budget to actually pay for County Police and Fire assets.
Regarding Franchise Fees which is $7M of the $45M proposed budget. Please see the statement from the Attorneys at Cobb EMC. Many of us are Georgia Power but the result will be the same.
The assessment and collection of franchise fees is· governed by state law. In unincorporated areas of Cobb County, Georgia law does not authorize the imposition of franchise fees, and Cobb EMC therefore does not assess or collect franchise fees from those members receiving electrical service in unincorporated Cobb County. Georgia law, however, does provide cities the option, but not the obligation, to impose franchise fees for utility providers within municipal boundaries. In cities that have elected to impose franchise fees on utility providers, Cobb EMC assesses and collects the franchise fee, which is typically 4 percent of the entire electric bill. Cobb EMC remits collected franchise fees back to the applicable.
municipality.
Lastly, the 6 municipalities now within Cobb County all have higher tax millage rates than the County.
Taking all these items into consideration, I believe taxes will have to increase and I question as to what benefit to the Citizens of East Cobb
I agree with you 100%. The only people who will benefit from a City of East Cobb will be the real estate developers, while the rest of us will have to endure higher taxes, increased density, overcrowded schools, and traffic.
It appears that a lot of the push for a city in east Cobb is motivated by greed. The idea that the person pushing this is a real estate developer points in the direction of creating the same situation as Sandy Springs with high priced apartments and condos being built everywhere there is a napkin sized piece of land. We don’t need to be a city, our schools as well as those in The actual county will suffer, property will become even more expensive and traffic will get worse with an influx of huge numbers of people, or worse, those fancy apartments will sit empty. We don’t need more taxes and yes, city hood will mean more taxes, for totally unnecessary expansion.
Aside from franchise taxes, which could be substantial, I would hate to see East Cobb become the next Smyrna or Sandy Springs. The high density that will result from cityhood is inevitable- as the real estate landscape changes and more apartments are built. In addition, if you read the entire bill sponsored by Matt Dollar, a new city will have all sorts of leeway to levy taxes as it sees fit. My vote…..”Keep East Cobb Suburban!”
It just defies common sense that adding an extra layer of government would be possible without raising taxes. And the proposed budget for police and fire don’t make sense, as others have pointed out. I think cityhood for East Cobb is a very bad idea.
Two of the services the city plans to provide police and fire are grossly misrepresented in my opinion. 142 officers for the new city, when the study states not enough 911 data for this area to understand the need. $5k per fire station and no details on how existing or needed equipment such as pumper trucks would be allocated from the county. No answers on pensions, or training. We currently benefit from an ISO1 rated fire protection department and the new city can maintain that when starting anew without costing me a penny more…I doubt it
I would like to know who, exactly, is on the committee doing this study. I see no benefits to cityhood so far.
I would like to know who, exactly, is on the committee doing this study. I see no benefits to cityhood so far.