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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