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A. County Versus City Services: a Non-Exhaustive List

1. Traditional county services

a. Jails

b. Office of the Sheriff

c. Courts

d. Roads

2. Traditional city services

a. Police

b. Parks

c. Zoning

d. Roads

3. Property taxes pay for approximately 25% of total county revenue

B. City Revenues1. Traditional city revenue items

a. Business licenses

b. Hotel taxes

c. Ad valorem taxes

d. HOST proceeds

2. Unincorporated DeKalb residents are currently paying city revenue taxes as a "specialservices" line item on their tax bills. HOST proceeds in DeKalb offset the "specialservices" fee.

C. Changes Resulting from Incorporation1. Any new city would still pay for certain county services and could (but is not required

to) contract with other cities or counties (including DeKalb) for the continued provisionof services such as trash collection, fire, police, etc.

2. A new city would take over current city revenue streams being collected by the county("special services").

3. A new city must provide at least three services from a list of government services to beconsidered a city (such as police, zoning, etc.)

D. Process of Incorporation

1. By legislative rule, the process to form a city must take at least two years.

2. A feasibility study (usually conducted by the Carl Vinson Institute) must be conducted.The cost of the study would range from approximately $20,000-$30,000, which fundsmust be raised by the community seeking incorporation (as opposed to being fundedby the Legislature).

3. If legislation were passed by the General Assembly, it would likely be in the form of"general" (full General Assembly) as opposed to "local" (county delegation only)legislation.

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4. If city-charter legislation is passed and signed into law, then a date would be set for areferendum within the boundaries of the new city to decide whether to create the newcity.

5. If the referendum passes, then a date for municipal elections would be set.

6. The Governor may appoint a commission to help guide the transition to becoming a

city.

7. For two years after passage of the referendum, the new city can continue to usecounty services.

E. City of DeKalb

1. There is a legislative study committee considering the incorporation of allunincorporated areas of DeKalb County.

a. According to at least one speaker, no legislative proposal for the City of DeKalbwill pass either chamber at this time.

b. The effect of the creation of the City of DeKalb would be to foreclose thepossibility of forming any additional cities within DeKalb.

c. The City of DeKalb could begin to collect new city streams of revenue, such utilityfranchise (right-of-way) fees.

d. It is estimated that the creation of the City of DeKalb would generateapproximately $30 million in new revenue.

F. The Dunwoody Experience

1. Dunwoody has about 39% commercial and industrial property, which provided avital revenue stream.

2. When the city was formed, it broke up service contracts to fund interim services that itcould not afford initially.

3. The revenue generated from residential property taxes is approximately $350/person.

4. Dunwoody is now running a fund surplus of approximately $2-3 million and has thelowest tax burden in DeKalb.

G. Other Considerations

1. A new city usually requires a substantial amount of commercial and industrial property;residential property taxes alone are usually insufficient to operate a city.

2. A city could incorporate as a "city light," providing on a few services, such as zoning,to keep operating costs low while retaining local control over certain services.

3. Former DeKalb Commissioner Yates offered police services should be budgeted at therate of approximately four officers per thousand residents.

4. A member of the audience offered that northern DeKalb needs to find an identity("defining who we are") prior to considering incorporation.