A

CITYOF TLANTA

KASIMREED

MAYOR

PROPOSEDBUDGET

FISCALYEAR2013

TABLEOFCONTENTS PREFACE

THEREADERSGUIDE THEHISTORYOFTHECITYOFATLANTA THEHONORABLEMAYORKASIMREED ATLANTACITYCOUNCILMEMBERS COUNCILDISTRICTSMAP HOWCITYCOUNCILWORKS CITYOFFICIALS CITYORGANIZATIONALSTRUCTURE

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MAYOR&CFOS MESSAGE

THEMAYORSMESSAGE THECHIEFFINANCIALOFFICERSMESSAGE

13 15

INTRODUCTIONBUDGETOVERVIEW ECONOMICANDDEMOGRAPHICINFORMATION ECONOMICOUTLOOK ATLSTATPERFORMANCEHIGHLIGHTS 23 25 213 221

BUDGETSUMMARIES

FUNDSTRUCTURE SUMMARYOFALLFUNDS OPERATINGFUNDS SUMMARYOFPERSONNELCHANGES

33 35 315 327

REVENUEOVERVIEW REVENUEFORECASTSUMMARY MAJORREVENUESUMMARIES 43 45

OPERATIONAL SUMMARIESBRANCHES EXECUTIVEOFFICES CITYCOUNCIL JUDICIALAGENCIESCOURTOPERATIONS JUDICIALAGENCIESPUBLICDEFENDER JUDICIALAGENCIESSOLICITORSOFFICE BOARDS ATLANTACITIZENSREVIEWBOARD BOARDOFETHICS INTERNALAUDITORSOFFICE DEPARTMENTS AVIATION CORRECTIONS FINANCE FIRE&RESCUESERVICES HUMANRESOURCES INFORMATIONTECHNOLOGY LAW PARKS,RECREATIONANDCULTURALAFFAIRS PLANNING&COMMUNITYDEVELOPMENT POLICESERVICES PROCUREMENT PUBLICWORKS WATERSHEDMANAGEMENT NONDEPARTMENTAL 55 521 527 531 537 543 549 555 567 579 585 5101 5111 5129 5147 5161 5173 5185 5197 5209 5223 5231

CAPITALPROJECT STATUSSUMMARIESCAPITALPROJECTSTATUSOVERVIEW BOND/RENEWAL&EXTENSIONFUNDS GRANTSANDOTHERSPECIALREVENUEFUNDS TRUSTFUNDS

63 69 6109 6173

DEBTMANAGEMENTDEBTOVERVIEW MUNICIPALBONDRATINGS GENERALFUND DEPARTMENTOFAVIATION DEPARTMENTOFWATERSHEDMANAGEMENT GENERALOBLIGATION(GO) TAXALLOCATIONDISTRICTS(TADS) 73 74 79 711 713 715 717

APPENDIX GLOSSARY

FIVEYEARPLANSUMMARY BUDGETCALENDAR ACKNOWLEDGMENTS A3 A7 A23 A28

Preface

PREFACE

READERSGUIDE THEHISTORYOFTHECITYOFATLANTA THEHONORABLEMAYORKASIMREED ATLANTACITYCOUNCILMEMBERS COUNCILDISTRICTSMAP HOWTHECITYCOUNCILWORKS CITYOFFICIALS CITYORGANIZATIONALSTRUCTURE

PROPOSED BUDGET FY 2013P-1

READERSGUIDE

TheCityofAtlantasbudgetdocumentisintendedtoprovideinformationinsuchamannerthatthe layreadercanunderstandtheoperationsoftheCity.TheReadersGuidedescribesthestructure oftheFY2013ProposedBudgetBookandoutlinesitscontents.TheFY2013Budgethasoverview sections and detail on the overall revenues and expenses of the City of Atlanta. The entire documentcanbefoundontheCityswebsiteatwww.atlantaga.gov. The Preface provides a brief look into the Citys History, the Mayors Bio, a preview of the Atlanta City Council and how it operates, an overview of City officials, and organizational structure. Messages provides the Mayors and Chief Financial Officers transmittal letters, which presentstheframeworkfortheCitysoperationsandservicesproposedinFY2013. Introduction provides detailed information on the Citys economic and demographic information,andhighlightsoftheCitysperformancemetrics. Budget Summaries provide an overview of the Citys funds, and details information on revenuesandexpenditures;departmentalbudgets;andfulltimepositionstatus. Revenue Overview includes revenue projections and methodology as well as historical trends,andaccountdetailsofmajorrevenuesources. Operational Summaries provides an expense budget summary, personnel information and thekeyperformancemeasuresforeachoperatingdepartment. CapitalProjectsStatusprovidesanexpensebudgetsummaryforcapitalprojects,whichare nonrecurring in nature. This section includes projected expenditures for FY2013 to FY2017 forbonds,grants,trustsandothercapitalprojects. Debt Service provides a summary for the Citys debt obligations, bond ratings and debt coverageratios. Appendixincludestheglossary,fiveyearplansummaryandotheressentialinformation.

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DEPARTM MENTALEXPEN SUMMARI NSE IES Mis sio nSta te m en nt

Belowareillustration nsofthedepa artmentalsu ummariesandanexplana ationofeachsection. E XEC IVE O F FIC ES CUT O ffice m a na ge sd igita lcom m un ication st rou gh e th th eC it yofAtl ta we bsitea tw ww .a tla n tag a.g ov lan a ndviasocial m e diach an ne lssuch asFa ceboo k, a Y eof Twitte ra nd Y ou Tube .Th eM a yorsO ffice C om m un ica ti on sa lso in clu de sthe ope ra tion sof a C ityC ha nn el2 . 26 CityC Channe l26op er ate su nd er th e um bre lla oft eM a yo rsO ffice of th C om m un ica t tion s.C ha nn el2 6provid es 2 4h our pr og ra m m in ngth atisu seful,inform a tiv e nd ea tim e lyforAt lan ta re sid en ts.Ch an ne lco te nt t on includ escov verag eo fM a yora lsp ee che s, , a nno unce m e ntsa nd ev e nts,a swellasl ivea n d tap edb roa dc stsofAtlan ta City C oun ci ca ilm e eting s a ndcom m itt m ee tings.Ina dd ition,th C ity tee he C ha nne l2 6t ea m p rod uce sor igina lco n ten tsuch t a sC ityTalk k,alongf orm a tm onthlyne ws e pr og ra m ,an dn ew sb riefs,p ublicse rv ic ce n a nno unce m e ntsa nd specia lfe a ture son curre nt e ve nts,n eig h rho odha pp e nings,a nd top icsof hbo spe cia lin te re sttoCity of A tla ntar eside ntsa nd e bu sin essow n er s. T heO OfficeofC on stituentSer vice s sprovid es thed ire ctlin kage betw ee nther eside nt sof n At lan ta an dt eM a y or' sO ffice.The Off ice th a ddr esse sre eside ntsconce rn sa nd com p in tsby pla collaborating gwith Citya gen cie sa nd off fersan a ve nu eforre sid e ntstov oice th eirco nc e cern sa nd sugge stion s on im provem e ntsofcity se r vices. e T heO OfficeofE xternalA ffair swa s s estab lishe d dtocre atea nd m a in ta in wo rking re latio nship psw ithsta te,fed er ala nd lo l oca g ove rnm e n nten titie s;consu la ra nd dip lom a tic corps, bilat alcha m be rsofcom m erc nd ter cea interna tion altrad eoff ice sin ord er to m ax im ize m theC ity sop ortun itiesto im pa ctpu bl pp licp olicy , increa ser ev en ue s,a nd foste ritsg row in g v sta tu re asa g loba lcitya nd key pla ye rin trad e a a ndcom m e erce,citize ndip lom acyan d intercultu ra lu nd ersta ndin g. a

The m ission o th e D e pa rtm e nt of E xe c utive of O ffice s is to com m u nicate a nd im p lem e nt the t policy an d pr ogr a a ge nd a of th e M ay or . The am O ffice s a re r espo n nsible for pr ov id ing lea de r rship within C ity gov e rn m en t to e ffect iv e ly a ccom plish n a nd e xe cut e th e l aw s of the C ity . Th rou g it s gh v arious offic es, E x ecutive Off ice s se eks to s de term in e the m o st e fficie nt m an ne r to pr o ide ov qu ality service stot ecitize nsofthe City. th Sum m aryo fOpe r atio ns The D ep ar tm e nt of E xe cutiv e O ffice es is com p rised of th re e m a joroffice s: T heO fficeo the e of M ayo r,the Office of th eC hief of Staff and the O f Office o ftheChiefO perati ingO fficer .Th ese officesin c de clu D ivisions th at p ro ovide op eratio na l su pp ort for t v ariousactivitie s .

Departmenta D alOverview The departm T mental overv view provid des the departments Mission and Summ d mary of Operations. It also provide O es the Organi departments d izational Chart, Performance P Metrics, ry of Summar Accomplishm A ments,andProgramHighlights.

Di visio ns/Of fic es Desc riptio ns T he Office of th C hief of S ta ff p rov ide s ad vice he d a nd g uida nc e to the M ay or on legisla tiv e a nd politica l issue s an d se rv es as liaison to the p ublic d a nd p rivate sect ors. Th e Ch ief of Staff is sup porte dby t he fo ollowin go rg an iz atio ns: T heOffice ofCom m unicationsprovid esstrate g gic coun selonm e ssa g ed evelop m en tfo rthe M a yo or ecial a ndthe City ofA tla n ta;plan san dex ecu te ssp e stha ta dva ncea dm in istra ti v e ev e ntsa n dprojects prioritie s;m a na ge s la tion shipswith doz en sof sre locala ndn atio na lp rint,bro ad casta nd online p m e diaou tlets;orga n ize sM ay or alpress a confe ren ce s,in te rv iew sa n da nno unce m e nts; v pa rtn ersw iththe c citysp ub licinform ationoffi rs ice onp roje cts;a nd le a dsin crisiscom m u nica tion ns. D aily functio nsincl ewriting spe ech es,ta lki g lud in poin ts,m ed ia a dvis sories,pr essre le ase s, com m u nicationspl ns,ce r em on ia ldocum en ts la s, a ndcorre spon de nc onb eh alfofth eM a y or.T he ce

OperatingB BudgetHighl lights Departm ment Summ mary is the total of Personnel&NonPer rsonnelexpe enses Fund D Detail Summ mary is the total of departm ment actual a and budget expenses byfund Personn Count is the total position nel countfor rthedepartm ment

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THEHISTORYOFTHECITYOFATLANTA Atlantawasfoundedin1837astheendoftheWestern&Atlanticrailroadline.Itwasfirstnamed Marthasville in honor of the thengovernor's daughter, nicknamed Terminus for its rail location, andthenchangedsoonaftertoAtlanta,thefeminineofAtlanticasintherailroad.Todaythefast growing city remains a transportation hub, not just for the country but also for the world. Hartsfield Atlanta International Airport is one of the nation's busiest in daily passenger flights. DirectflightstoEurope,SouthAmerica,andAsiahavemademetroAtlantaeasilyaccessibletothe more than 1,000 international businesses that operate in Atlanta and in more than 50 countries thathaverepresentationinthecitythroughconsulates,tradeoffices,andchambersofcommerce. The city has emerged as a banking center and is the world headquarters for 13 Fortune 500 companies. AtlantaistheCapitalcityofthesoutheast,acityofthefuturewithstrongtiestoitspast.Atlantais the soul of the south, and its heritage enhances the quality of life in a contemporary city. In the turbulent60's,Atlantawas"thecitytoobusytohate."Moreover,today,inthe21stCentury,Atlanta isthe"citynottoobusytocare." For more than four decades, Atlanta has been linked to the civil rights movement. Civil Rights leaderswerethevisionarieswhosawanewsouth,anewAtlanta.Theybelievedinpeace,andthey made monumental sacrifices for that peace; and, because of them, Atlanta became a fastpace moderncity,whichopeneditsdoorstothe1996Olympics. In the past two decades, Atlanta has experienced unprecedented growth the official city population remains steady, at about 420,000, but the metro population has grown in the past decadebynearly40%,from2.9millionto4.1millionpeople.Agoodmeasureofthisgrowthisthe everchanging downtown skyline, along with skyscrapers constructed in the Midtown, Buckhead, andouterperimeterbusinessdistricts. Sincethelate1970sdozensofdazzlingskyscrapersdesignedbysuchluminariesasPhilipJohnson, I. M. Pei, and Marcel Breuer have reshaped the city's profile. Twentyfirst century history, in Atlanta,isbeingwritten.

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TH HONO HE ORABLEKASIMRE EED Kasim Reed was inaugurated as the 59th Mayor of t City of A h the Atlanta on y Since taking office, Mayo Reed has hired more than 525 or January 4, 2010. S policeo officers,reo openedallofthecitysrec creationcent tersassafeh havensfor young people and improved co city serv ore vices such as firerescue response s and sanitatio operation He has in on ns. ncreased the citys reserves from e times a $7.4m milliontomor rethan$94 milliondolla ars.Working gwiththeAt tlantaCity Counci and the cit il tys employe unions, he successfull initiated a series of ee e ly a sweepi ingreformst toaddressth hecitys$1.5billionunfun ndedpension nliability. Chairman of the Trans f sportation a and Commu unications Mayor Reed is C ee S. man Regional Tran Commit nsit ttee of the Committe of the U.S Conference of Mayors and Chairm of the R Atlanta R Regional Com mmission. He is a member of the Aspen Institute e eRodel Fello owship Class of 2007, s Leadersh hipGeorgiaClassof2000andLeaders shipAtlantaClassof1998 8.HeservedasaBoardM Memberof boththeN NationalBlackArtsFestivalandMetr ropolitanAtlantaArtsFund.

Mayor Re has rece eed eived numer rous accolad since tak des king office. T Joint Ce The enter for Pol litical and Economic Studies in Washington D.C. honor c n red him in spring 2012 with the L 2 Louis E. Mar rtin Great American nAward,say yinghehera aldsanew a andcreative approachto oleadership. Governing Magazine namedM MayorReedas soneofthet topstateand dlocalgovern nmentofficia alsoftheyea arinNovemb ber2011.

Mayor Re eeds civic le eadership an service al have bee nationally recognized on program such as nd lso en y ms Meet the Press, The Charlie Rose Show, Joh King U.S.A and Andre Mitchell Reports. He has been e hn A. ea featured in publicatio including The New Y ons York Times, The Wall St treet Journal The Atlanta Journal l, tion,TheWa ashingtonPostandBlack kEnterprise. ThomasFrie edman,theP PulitzerPrizewinning Constitut NewYork kTimescolu umnist,called dReedinspi iringandlab beledhimas soneofthebestofthisn newbreed ofleaders s.

Prior to his election, Mayor Ree establishe a track re , ed ed ecord of leadership during his 11 y years as a gia Assembly. He was electe to the Geo ed orgia House of Represen ntatives in member of the Georg General A dservedtwo oterms.From m2002to2009,heserv vedintheGe eorgiaState Senate,wherehewas 1998and Vice Chairman of the Senate De e emocratic Ca aucus and a member of the Judiciar Committe Higher f ry ee, n e, mmittee, Tra ansportation Committee, and State a Local Go and overnment Education Committee Ethics Com Operation nsCommitte ee.

MayorRe eedisaform merpartnerin nthelitigatio onpracticeo ofHollandan ndKnightLLP P,aninternationallaw firmwith hofficesinAt tlanta,where ehespecializedinentert tainmentlaw w.Heisame emberofthe American BarAssoc ciation,theN NationalBarAssociationandtheState eBarofGeor rgia.

MayorRe eedgrewup intheCasca adecommun nityofSouthw westAtlanta a,wherehea attendedUto oySprings Elementa arySchoolan ndWestwood dHighSchoo ol(nowWest tlakeHighSc chool).Heisagraduateo ofHoward Universit tyinWashingtonD.C.,wh hereherece eivedhisBac chelorofArtsandJurisD Doctordegre eesandan honorary yDoctorof Laws.Asan u L undergradua member ofHowardU ate University's Boardof Trustees,he createda afundraising gprogramth hathascontr ributedmore ethan$10m milliontothe eschoolsen ndowment sinceitsi inception.MayorReedw wasappointed dasHoward dUniversity's syoungestGeneralTrust teeinJune 2002and dremainsad dedicatedme emberoftheBoardofTru ustees.

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ATLANTACITY COUNCI MEMBERS N Y IL B

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COUNCILDISTRICTSMAP

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HOWTHECITYCOUNCILWORKS

The Atlanta City Government is divided into three bodies: the legislative, executive and judicial branches.TheCouncilservesasthelegislativebranch.Citydepartments,underthedirectionofthe mayor,constitutetheexecutivebranchandtheCourts,thejudicialbranch. The Legislative body, comprised of the Council, makes the laws that govern the city. It is responsibleforthedevelopmentofpolicies,whichserveasoperationalstandards,andestablishes the parameters for the administration of city government. The Executive body carries out the lawsthathavebeeninstitutedbytheCouncil.Itisresponsibleforthedaytodayoperationsofcity government. The Judicial body has jurisdiction and power to try and punish violators of the City Charter,cityordinances,andanyotherviolationsasprovidedbylaw. THECITYCHARTER: The1974CharterresultedinmanychangesinAtlantaCitygovernment.Priortoitsadoption,the legislative body was called the Board of Aldermen and each alderman was elected citywide. The 1974charterchangedtheBoardofAldermentotheCityCouncil;thevicemayortothepresidentof theCouncil;andestablished12Councilmemberstobeelectedfromindividualdistrictsandsixat largeposts.Theadministrationofthedaytodayoperationofcitygovernmentwastransferredto the executive branch, and legislative authority was vested in the Council. This system allows the Counciltomaintainastrongsystemofchecksandbalances.Anewcharterwasenactedin1996that reducedtherepresentationofCouncilto12districtsandthreeatlargepostsandbecameeffective January1998. ABOUTTHEATLANTACITYCOUNCIL ThepresidentoftheCityCounciliselectedfromthecityatlarge(citywide).TheCouncilconsistsof 15 members, 12 elected from singlemember districts and three elected atlarge. The Council president presides at all meetings of the Council and votes in the case of a tie. The president of Councilappointschairsandmembersofthevariouscommittees,subjecttorejectionbyamajority oftheCouncil.TheCouncilpresidentexercisesallpowersanddischargesalldutiesofthemayorin caseofavacancyinthatofficeorduringthedisabilityofthemayor. CouncilmembersareelectedtofouryeartermscommencingwiththefirstMondayinJanuary.The next Atlanta City Council will take office in January 2014. The members of the Council elect a president pro tempore each year to serve a oneyear term beginning with the first meeting in January.ThepresidentprotemporepresidesovertheCouncilmeetingsinthepresident'sabsence. AtlantaCityCouncilmembersserveparttimeandarepaidanannualsalaryof$39,473.TheCouncil president is paid $41,000 annually. An independent committee of city residents determines salaries.

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CITYOFFICIA ALS

KasimReed KMayor

InterimChief efOperatingOfficer

Duriya aFarooqui

CandaceL.Byr C rdChiefofStaff

J.Anth honyBeard ChiefFin nancialOfficer

CathyHampto C onCityAttorney

MEMBERS CITYCOU SOF UNCILCea asarMitchell Co ouncilPresident CarlaS SmithDistric ct1

Kw wanzaHallDistrict2

IvoryLeeYoungJr.District3 3

CletaWi inslowDistric ct4

NatalynMosbyArchib bongDistrict5

AlexWa anDistrict6 6

HowardShookDistric ct7

YolandaAdreanDistrict8

FeliciaMo ooreDistrict9 9

C.T.Ma artinDistric ct10

Kei ishaBottomsDistrict11

JoyceM.She eperdDistrict12 2

MichaelJul lianBondPost1,At tLarge

Aa aronWatsonPost2,AtLarge P

H.LamarW WillisPost3,AtLa arge

RhondaDauphinJohn nson MunicipalClerk M

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JUDICIALOFFICERSCOURTOPERATIONS PUBLICDEFENDER SOLICITOR CrystalA.GainesChiefJudge

InterimPublicDefender

RosalieJoy

RainesF.CarterCitySolicitor

BOARDOFFICERSATLANTACITIZENSREVIEWDIRECTOR ETHICSOFFICER CITYINTERNALAUDITORInterimExecutiveDirector

ShareseShields JabuSengova LeslieWardCityAuditor

InterimEthicsOfficer

DEPARTMENTOFFICERSAVIATION CORRECTIONS FINANCE FIRE&RESCUESERVICES HUMANRESOURCES INFORMATIONTECHNOLOGY LAW PARKS,RECREATION&CULTURALAFFAIRS PLANNING&COMMUNITYDEVELOPMENT POLICESERVICES PROCUREMENT PUBLICWORKS WATERSHEDMANAGEMENT LouisE.MillerGeneralManager

InterimCorrectionsChief

PatrickLabat

J.AnthonyBeardChiefFinancialOfficer

KelvinJ.Cochran FireChief YvonneYancy CommissionerInterimChiefInformationOfficer

MichaelDogan

CathyHampton CityAttorney GeorgeDusenburyCommissioner

JamesE.Shelby Commissioner GeorgeN.Turner PoliceChiefChiefProcurementOfficer

AdamL.Smith

RichardMendoza Commissioner JoAnnJ.MacrinaCommissioner

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CITYORGANIZATIONALSTRUCTURE

JudicialAgencies Mayor CityCouncil

Court Operations Public Defender

ChiefOperating Officer

ChiefofStaff

ChiefFinancial Officer

CityAttorney

Solicitor Aviation CorrectionsAtlantaCitizens ReviewBoard

Finance

Law

Fire&Rescue Services HumanResources Information TechnologyParks,Recreations& CulturalAffairs Planning&Community Development

EthicsOffice

Internal AuditorsOffice

PoliceServices Procurement PublicWorks Watershed Management

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Message

1MESSAGESTHEMAYORSMESSAGE THECHIEFFINANCIALOFFICERSMESSAGE

PROPOSED BUDGET FY 20131-1

CITY YOFATLANTA

55TRINITYAVE,S.W. 5 ATLAN NTA,GEORGIA30 03350300 TEL(404)3306 6100

TheHonorab bleCeasarC.M Mitchell,Pres sident MembersofCityCouncil Council AtlantaCityC 55TrinityAv ve.SE Atlanta,GA3 30303 entMitchellandMembersoftheAtlanta aCityCouncil: DearPreside s ess ast ars financial posi ition is much improved. h The City has made significant progre in the pa three yea and our f However,continuedprog gresswillnot toccurwitho outfiscaldiscipline.Impro ovingtheCity ysfinancialp positionisa rategyrequir ringproactive edecisionsan ndactionsove ermultipleye ears. longtermstr

Iampleased dtoreporttha attheCityismeetingitsg goalsonstabil lizingcritical lfinancialpriorities.Fore example,the baselinefina ancialmodel indicatesour rplantoincr reasetheCity ysfundbalan ncetomoret than$100mi illionbythe close of fisca year 2012. This increa will ensur the City ca respond to unforeseen events. It is also a key al . ase re an n measurethat texternalbon ndratingage enciesreview andafactorintheCitysc creditworthiness.Inthismanner,the Citysprogre essonfinanci ialstabilityprioritiescan improvefisca aldisciplinew whileexpand dingouraccesstocapital andreducing gthecorrespo ondingfinanc cingcosts.

REVENUES epartmentof Financecont f tinuesasolid dpartnership pwiththeSeligCenterfor EconomicGr rowthatthe TheCitysDe Universityof fGeorgia.Th hisfouryear partnership hasenabled Citymanage ementtogain nimportantindependent economican nalysesaspar rtofourmult tiyearrevenueforecastin ng.Asyouwi illrecognize inthisplan,w wecontinue to face a challenging eco onomic envir ronment as w manage d we declining pro operty tax re evenues in th proposed he getandslowrevenuegro owththereafter.Inadditio on,despiteci itywidecost reductionsov verthepast FY2013budg threeyears,b budgetingfor rthecityrem mainsachallen ngeduetode ecliningtaxre evenue. Miscellaneous REVENUES 700,000,000 Revenue ChargesforServ vices 600,000,000 OtherFinancing g 500,000,000 Sources Miscellaneous Revenue 400,000,000 FinesandForfei itures 300,000,000 ChargesforServ vices 200,000,000 LicensesandPermits 100,000,000OtherTaxes TaxesFY2010 Audited FY20 011 Audited

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FY2012 Forecast

FY2013 Proposed

As depicted in the previous chart, revenues are projected to decline from $552.1MM in FY2010 to $526MM proposedinFY2013.AlthoughthemillageratewasincreasedinFY2010from7.12to10.24mills,thedeclinein propertytaxrevenuesreflectsdecreasesintheresidentialtaxbase,lowerassessedvaluationsandsuccessfultax appeals. The FY2013 millage rate will remain constant at 10.24 mills and assumes a 96% collection rate. However,thedollarvalueofonemillhasdecreasedwhichresultsinlowertaxcollections.Also,itisimportantto notethatforthepasttwoyears,theCityhasbalanceditsbudgetsutilizingunassignedfundbalance.InFY2012, theCitybudgeted$6.9MMinunassignedfundbalancewhile$13.7MMisproposedintheFY2013budget.Thisuse of unassigned fund balance is driven by the need to address specific onetime mission critical capital and maintenanceitems.

The City has allocated $13MM as budgeted reserves. As we move closer to having unassigned fund balance (reserves)equalto20%ofexpenditures,wecanandshouldbegintodecreasethelevelofbudgetedreservesand deploycapitaltowardotherinitiatives.

Tostabilizeitsfinances,theCityshouldcontinuetokeepitsexpensestightlymanagedwhilemovingrapidlyon newrevenueopportunities.Thisincludesrenegotiatingthedistributionoflocaloptionsalestaxrevenues.There isampledatathatshowAtlantaisnotreceivingitsfairshareofsalestaxbasedontheCityssignificantretailbase andpopulationgrowthinthelast10years.ThiswillrequirerenegotiatingtheCityspercentageshareonamore equitablebasiswithFultonCountytoreflecttheCitysstrongretailpresence.

EXPENSES The Citys primary operating fund, the general fund, is mostly comprised of Public Safety departments (Police, Fire and Corrections) and has been the Mayors primary investment area. It is approximately 59% of the total general fund budget. Additionally, over 61% of the FY13 proposed general budget is comprised of personnel expenses,ofwhichthelargestcomponentsarethePoliceDepartmentandFire&RescueServices. Interfund/ Other Interdepartmental FinancingUses Charges 2% 2% Reserves 3% Debt OtherCosts Service 6% 7%CapitalOutlays 0% Supplies 7%

Purchased Services 11%

Personnel Services 62%

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Expenditureshavebeenr reducedasre evenueshave edeclined.Onecanandshouldaskift theCitycanr reducecosts tyofAtlantai isproviding moreservice eswithfewer rresources. Theefficienc cyofservice further.Actually,theCit hileaddressinginitiatives ssetforthby ytheMayor. Iamproudt tosaythatin thecurrent deliveryisa keyfocuswh nvironment,t theFY2013p proposedbud dgetedexpend dituresinclud desseveralo oftheMayorsinitiatives, economicen aswellasoth herenhancem mentstoservicedeliverya aslistedinthi isbudget.

Wewillcont tinuetohaveacomprehen nsivemultiy year,financialplanningpr rocesseachy year.Itprom motesafocus on the long term health of the City, allowing the Atlanta to b e better predic financial ch ct hallenges and persevere d throughtheu unexpected. Sincere ely, J.Antho onyBeard,Ch hiefFinancialOfficer

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Introduction

2INTRODUCTIONBUDGETOVERVIEW ECONOMICANDDEMOGRAPHICINFORMATION ECONOMICOUTLOOK ATLSTATPERFORMANCEHIGHLIGHTS

PROPOSED BUDGET FY 20132-1

BUDGETOVERVIEW Public services provided by the City include: police, fire and rescue, collection and disposal of solid waste, street maintenance and other public works functions; providing the highest quality drinking water and wastewater services, enforcement of ordinances relating to building safety, recreation and parks, community development, housing and aging services, planning,andairports. BudgetResponsibilitiesandFiscalPolicies MAYOR AsExecutiveOfficer,theMayorhasthepower to execute and enforce provisions of the charter, exercisesupervisionoveralltheadministrationof all departments of the city and submit to council therecommendedannualbudget. The mayor shall prepare and submit the proposed annual budget ordinance to the governing body no later than the first regular meeting of the governing body in May, preceding thecommencementofthefiscalyear. CITYCOUNCIL AsgoverningbodyoftheCity,theCityCouncil is responsible for the development of policies, which serve as operational standards, and establishestheparametersfortheadministration ofcitygovernment. At the first City Council meeting in March, each council member may submit his/her budget priorities for the coming year. Such priorities are referred to the Finance/Executive Committee, which shall submit these priorities in the form of a resolution to be adopted by the City Council no later than the second council meeting in March. The Mayor, in conjunction with the Chief Financial Officer, may take these priorities into consideration in the preparation of the tentative budget. Restricted Reserves balances from the previous year are a part of the fund balance for the upcoming year, five percent of the increased difference of the proposed budget shall be added to the overall Restricted Reserves balance. The FY2013 proposed budget revises the amount of requiredreservestoanamountupto2.5%.This only applies after the fund balance is funded at a levelof1520%ofthegeneralfundbudget. Upon completion of the annual external financialaudit,anyunspentoperatingreservewill betransferredtoacatastrophicreservefundand acapitalreserve.Thecatastrophicreservefundis establishedtoprotecttheCityintheeventofany major, catastrophic event. The capital reserve is established to accumulate resources to address deferred maintenance or economic needs of the City. Any unspent operating reserve will be transferred to the catastrophic reserve fund and the capital reserve in the following proportions catastrophicreservefund(75percent)andcapital reserve (25 percent). Once the catastrophic reserve fund is funded at a level equal to 20 percent of the current year's general fund operating budget all unspent operating reserve will be transferred to the capital reserve or economicdevelopmentfund. The City Council holds one or more public hearings on the proposed budget as required by thelawsofGeorgia,noticeofwhichispublishedin a newspaper of general circulation in the city at least seven days prior to the date set for the hearing. The City Council may amend the proposed annual budget, except that the budget as finally amended must provide for all expenditures required by law or by the Charter, including but not limited to debt service, sinking fund, interest on bonded indebtedness and a general fund restricted reserve equal to five percent of the proposed general fund budget which sums shall notbedivertedtoanyotherpurposeandthetotal appropriations from any such fund shall not exceed the estimated fund balance, reserves, and revenuesconstitutingthefundavailabilityofsuch fund.GeneralFundRestrictedReservescannotbe

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expended without prior approval of the City Council. The City Council, by ordinance adopts the annualbudgetforthenextfiscalyearnolaterthan June, preceding the commencement of the new fiscalyear. BUDGETCOMMISSION The Budget Commission annually prepares and files with the City Council, for submission to theMayor,theCitysbudgetrevenueanticipations. Bylaw,anticipationscannotexceed99percentof thenormalrevenuecollectedduringtheprevious year, with the following exceptions: (A) the normalrevenuewhichthecitymaybeexpectedto collect from the taxable property in newly annexed territory may be anticipated; (B) collectionsfromtaxexecutionsonrealestateand on personal property and chooses in actions owned by the city may be anticipated, provided that revenues from such anticipations shall not exceed85percentoftaxexecutionsonrealestate and 50 percent of tax executions on personal property not more than three years old and choosesinactionscertifiedsolventandcollectable by the tax assessor. When such revenue anticipations have been filed, they are binding upon the City Council without any action of approvalordisapproval. CHIEFFINANCIALOFFICER The Chief Financial Officer must furnish each memberofthecouncilacompletedetailedwritten copy of the proposed annual budget five days prior to the meeting at which the budget is submittedtothecouncilforadoption. OPERATINGBUDGETPOLICIES Annual budgets are adopted for the General, SpecialRevenue,andDebtServiceFundswiththe leveloflegalbudgetarycontrolestablishedatthe officelevelbyCityCouncil.TheCityisrequiredto adopt a balanced budget each year and maintain budgetary controls to ensure compliance with legal provisions of the annual appropriated budget approved by the Mayor and City Council. The amounts of anticipated revenues and appropriated expenditures for the annual budget are controlled by the City Charter and various ordinances adopted by the City Council. Appropriationsforcapitalprojectsareadoptedby theCityCouncilprincipallyonanindividualbasis, whentheprojectisinitiallyapproved.

After the initial annual budget is adopted, it may be amended for interdepartmental transfers of appropriations with the approval of City Council. Intradepartmental transfers of appropriation may be initiated by a department head with the approval of the Chief Operating Officer, the Chair of the City Council Finance Committee, and Chief Financial Officer. Total appropriations for any fund may be increased if, during the year, sources of revenue become available to the City in excess of original anticipations, and these amounts are anticipated by the Budget Commission and subsequently appropriatedbyCityCouncil.

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ECONOMICANDDEMOGRAPHICINFORMATION

HISTORY Atlanta was founded in 1837 as the end of the Western & Atlantic railroad line. It was first named Marthasvilleinhonorofthethengovernor'sdaughter,andthenchangedsoonaftertoAtlanta,thefeminine ofAtlantic.AtlantaisthecapitalandmostpopulouscityintheU.S.stateofGeorgia.Itsmetropolitanarea, officiallynamedtheAtlantaSandySpringsMarietta,GAMSA(commonlyreferredtoasMetropolitanAtlanta) istheninthlargestmetropolitanareainthecountry,inhabitedbyapproximately5.5millionpeople.Atlantais thecountyseatofFultonCountyandthefifthlocationfortheseatofgovernmentofthestateofGeorgia. POPULATION Table1summarizesCity,CountyandStatepopulationestimatedasofJuly1stofeachyear. Table1 CITY,COUNTYANDSTATEPOPULATIONSTATISTICS Cityof Atlanta(1) Annual Growth Rate Fulton County(2) 920,581 1,031,813 1,012,219 990,215 963,324 Annual Growth Rate (9.16%) 1.9% 2.2% 2.8% 3.1% DeKalb County(2) 681,893 748,454 741,156 734,024 727,290 Annual Growth Rate (6.55%) 1.0% 1.0% 0.9% 1.4% Stateof Georgia(2) 9,815,210 9,687,653 9,813,588 9,690,277 9,526,642 9,323,575 Annual Growth Rate 1.32% (0.11%) 1.3% 1.7% 2.2% 2.6%

2011 2010 2009 2008 2007 2006

420,003 (12.01%) 477,300 3.3% 461,956 0.1% 461,600 2.2% 451,600 2.1%

(1) CityofAtlantaandCounty2011estimatesnotavailable. (2) U.S.CensusBureauconductsapopulationsurveyevery10years(years2006to2010areestimates). Source: 2010 Preliminary Annual Estimates of the residential population for the United States, Regions, States, and Puerto Rico: April1,2000toJuly1,2000

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INDUSTRYANDEMPLOYMENT Table 2 summarizes the average number of employed and unemployed residents of Atlanta, Fulton and DeKalbCounties.ItalsoincludestheaverageunemploymentrateoftheCity,FultonandDeKalbCounties,the State,andUnitedStates. Table2 ESTIMATEDAVERAGEANNUALEMPLOYMENTAND UNEMPLOYMENTOFRESIDENTLABORFORCE 2010 2009 2008 2011

CivilianLaborForce CityofAtlanta Employed Unemployed Total CountyofFulton Employed Unemployed Total CountyofDeKalb Employed Unemployed Total UnemploymentRates City CountyFulton CountyDeKalb State

2007

2006

2,468,133 2,379,498 2,441,723 2,575,531 2,596,641 2,539,281 242,370 275,215 258,656 169,255 122,735 123,190 2,710,503 2,654,713 2,700,379 2,744,786 2,719,376 2,662,471

408,858 44,145 453,003

426,277 52,146 478,423

437,425 461,396 47,308 31,818 484,733 493,214

463,073 450,175 23,773 23,668 486,846 473,843

333,211 34,574 367,785

337,000 40,233 377,233

345,813 364,763 36,836 24,905 382,649 389,668

373,052 367,939 19,135 19,755 392,187 387,694

9.2% 9.7% 9.4% 9.4%

10.0% 10.9% 10.7% 10.4%

10.3% 9.8% 9.6% 10.4%

5.9% 6.5% 6.4% 8.1%

4.5% 4.9% 4.9% 5.2%

5.3% 5.0% 5.1% 4.5%

UnitedStates 8.5% 9.6% 9.7% 7.6% 4.6% 4.8% Source:GeorgiaEmploymentDevelopmentDepartment,LaborMarketInformationDivisionfortheStateandCounty;U.S.Bureauof Labor,DepartmentofLabor

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EMPLOYMENTBYINDUSTRY

Table 3 summarizes the estimated average annual employment for the City for various employmentcategories.Percentagesindicatethepercentageofthetotalemploymentforeachtypeofemploymentfora givenyear.Forpurposesofcomparison,themostrecentemploymentdataforAtlantaisalsosummarized. Table3 CITYOFATLANTA ESTIMATEDINDUSTRYEMPLOYMENTANDLABORFORCE CityofAtlanta Agriculture,Forestry,FishingHunting NaturalResourcesandMining Construction Manufacturing Trade,TransportationandUtilities Information FinancialActivities ProfessionalandBusinessServices EducationalHealthServices LeisureandHospitality OtherServices Government 2000* 3,244 1,684 120,905 201,744 521,730 109,014 100,078 415,849 172,944 188,720 58,352 271,067 2,165,331 %ofTotal 0.1 0.1 5.6 9.3 24.1 5.0 4.6 19.1 8.2 8.7 2.7 12.5 100.0 20010 1,780 1,020 87,142 140,805 485,188 75,645 94,184 393,354 255,720 218,450 59,862 319,292 2,132,439 %ofTotal 0.1 0.0 4.1 6.6 22.8 3.5 4.4 18.5 12.0 10.2 2.8 15.0 100.0

StateofGeorgia 2010 %ofTotal 24,539 0.7 4,929 0.1 149,265 4.0 343,125 9.0 801,315 21.2 102,847 2.7 149,321 3.9 572,204 15.5 453,378 12.0 373,039 9.9 103,619 2.8 668,834 17.8 3,746,594 99.7

Source: GeorgiaDepartmentofLabor,IndustryMixAnalysis.Thesedatarepresentjobsthatarecoveredbyunemploymentinsurancelaws. Note: 2000represents4thQuarterDatafromGeorgiaDepartmentofLabor *CityofAtlantaisdefinedbyAtlantaRegional,aspertheGeorgiaDepartmentofLabor

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MAJOREMPLOYERS Table4containsalistofAtlantastopten,nongovernmentalemployers.

Table4 CITYOFATLANTAPRINCIPLEEMPLOYERS Employer AlliedBartonSecurityServices InternationalBusinessMachineCorporation TheCocaColaCompany TurnerBroadcastingSystem,Inc. CableNewsNetwork AirServiceCorporation AccentureLLP AT&TServices,Inc. GeorgiaPacificCorporation TenetHealthSystem,Inc. Product/Service SecurityServices TechnologyServices MarketingandManufacturing MediaEntertainment Media Transportation Consulting Telecommunication PulpandPaperManufacturing Healthcare Employees 4,205 3,769 3,608 2,000 1,889 1,665 1,555 1,247 1,170 1,164 %ofTotalCity Employment 2.34% 2.01% 1.92% 1.07% 1.01% .89% .83% .67% .62% .62%

Source:CityofAtlanta,2011ComprehensiveAnnualFinancialReport;DataprovidedbyCityofAtlanta,OfficeofRevenue,BureauofLicenseDivision

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EFFECTIVEBUYINGINCOME Effective Buying Income (EBI), also referred to as disposable or after tax income, consist of money incomelesspersonaltaxandcertainnontaxpayments. Table5summariesthemostrecentavailabletotal effectivebuyingincomeandmedianhouseholdeffectivebuyingincomefortheCity,StateandUnitedStates forthecalendaryears2004through2009. Table5 CITY,STATEANDU.S. EFFECTIVEBUYINGINCOME CalendarYears2005Through2010 PersonalIncome Year/Area 2010 City State UnitedStates 2009 City State UnitedStates 2008 City State UnitedStates 2007 City State UnitedStates 2006 City State UnitedStates 2005 City State UnitedStates

PerCapitaPersonal Income (dollars)

(thousandsofdollars)

$208,107,000 338,001,435 12,357,113,000 $199,746,764 333,996,035 12,174,900,000 $206,462,750 341,530,406 12,391,100,000 $203,961,494 330,425,932 11,912,300,000 $192,460,168 311,855,316 11,268,100,000

$39,360 34,800 39,945 $36,482 33,980 35,888 $38,336 35,217 35,931 $38,721 34,659 34,512 $37,593 33,425 33,157

$179,151,071 292,543,612 10,485,900,000

$36,214 32,157 31,318

Source:U.S.DepartmentofCommerce,BureauofEconomicAnalysis

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RETAILSALES Table 6 sets forth a history of taxable sales, which consist of the Local Option Sales Tax (LOST) and the MunicipalOptionSalesTax(MOST)intheCityofAtlantaforthepastfiveyears.EffectiveOctober1,2004,the City began collecting a 1% MOST for retail sales and use occurring within the incorporated city limits of Atlanta.Inaddition,theCityconvertedfromacalendaryear(2006)toafiscalyear(2007),andthedatain Table6reflectsthischange.Table 6 CITY OF ATLANTA TAXABLE SALES (in thousands) 2008 2009 13,860,466 10,729,012 21,203,763 21,511,679 45,526,111 49,133,103 22,966,264 20,999,282 23,892,003 26,950,720 9,826,768 14,154,504 14,765,126 16,371,246 57,974,754 59,780,542 210,015,255 219,630,088 7,825,435 8,441,492 217,840,690 228,071,580

Apparel General Food Utilities Home Lumber Automotive Miscellaneous Services TOTAL Manufacturers TOTAL ALL OUTLETS

2007*** 8,736,272 17,566,884 39,054,280 16,293,291 23,703,417 12,335,543 10,448,190 46,546,922 174,684,799 5,876,496 180,561,295

2006** 7,243,923 16,418,275 33,597,658 10,965,467 14,175,216 16,389,355 14,474,648 30,094,501 143,359,043 12,685,822 156,044,865

2005 8,926,080 19,633,827 38,489,519 17,741,596 25,361,129 13,461,262 11,938,362 44,547,227 180,099,002 5,852,314 185,951,316

**2006 data represents the 2006 Calendar year ***2007 represents six months of activity, January through June 2007

CONSTRUCTIONACTIVITY Table 7 provides a summary of residential building permit valuations and the number of new units in the Citybycalendaryear.Source: Georgia Department of Revenue, Local Government Division

Table7 CITYOFATLANTA RESIDENTIALBUILDINGPERMITVALUATIONSANDNEWUNITS 2011 Valuation Residential2) TotalValuation NumberofPermits: SingleFamily(3) MultiFamily(4) SubtotalResidential TotalUnits(1)

2010 $71,586,868 $71,586,868

2009 $67,261,931 $67,261,931

2008 $209,999,127 $209,999,127

2007 $290,779,025 $290,779,025

$61.620,910 $61,620,910

136 90 226 226

182 352 534 534

204 19 223 223

741 48 789 789

17254 88 1813 1813

(2) (3) (4)

Inmillionsofdollars."Valuation"representsthetotalvaluationofallconstructionwork. ValuationpermitsissuedforSingleFamilyDwellingsandDuplexes.

NumberofpermitsforSingleFamilyDwellings,DuplexesandPrefabricatedHouses. NumberofpermitsfornewApartmentBuildingsandTownhomes.Multifamilypermitswerenotreportedin2005.

Source:DepartmentofPlanningandCommunityDevelopmentinternalreporting

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PROPERTYTAXLEVIESANDCOLLECTIONS Table 8 City of Atlanta, Georgia Property Tax Levies and Collections Last Six Fiscal Periods(amounts expressed in thousands) Collected within the Fiscal Year of the Levy Taxes Levies for Fiscal Period Ended the Fiscal Year December 31, 2006 June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010 June 30, 2011 $ 6,750,195 179,606,933 182,020,745 198,377,854 264,371,198 240,585,957 Collections in Percentage Subsequent Years Amount(1) of Levy $ 6,750,195 164,976,460 173,030,142 190,475,498 257,062,077 234,894,781

Total Collections to Date Percentage of Levy 100.00% 99.57% 99.37% 98.98% 98.60% 97.63%

Amount

- $ 6,750,195 100.00% $ 13,850,898 91.85% 178,827,358 95.06% 7,843,974 180,847,116 96.02% 5,882,430 196,357,928 97.24% 3,606,439 260,668,516 97.63% 234,894,781

(1) Does not include tax revenues retained by Fulton and Dekalb County for administrative expenses, therefore the collection rate shown is slightly less than actual. Source: 2011 Comprehensive Annual Financial Report

DIRECTANDOVERLAPPINGSALESTAXRATES Table 9 City of Atlanta, Georgia Direct and Overlapping Sales Tax Rates Last Five Fiscal Periods

Fiscal Year 2006 2007 2008 2009 2010 2011

City Direct Rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Fulton County 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%

Source: Sales Tax Rates, Georgia Department of Revenue and the 2011 Comprehensive Annual Financial Report

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ECONOMICOUTLOOK In this section, a projection of overall revenuesforeachofthenextfivefiscalyears, as well as a detailed projection of property and sales tax collections is discussed. The City collaborated with Dr. Jeffrey M. Humphreys, Director, Selig Center for Economic Growth, Terry College of Business, UniversityofGeorgiatodeveloptheeconomic outlook. The Terry Colleges 2012 forecast calls for Georgias inflationadjusted GDP to increase by 1.5 percent annual average basis,whichrepresentsanimprovementover the 1.0 percent increase estimated for 2011. TheannualpercentagegaininthestatesGDP for2012willfallshortofthe1.9percentgain estimatedforthenationsGDP,however.The statesnominalpersonalincomewillgrowby 3.0 percent in 2012, which is below the 4.2 percent gain estimated for 2011. Although nonfarmemploymentwillriseby0.5percent, thesmallupturnisstillnoteworthybecauseit will be the first annual gain since 2007. In contrast, the nation posted positive job growth in both 2010 and 2011 and will see the number of jobs rise by 1.0 percent in 2012,aratedoublethatexpectedforGeorgia. Thestatesunemploymentrateforthe yearasawholewillaverage10.1percent,or about0.2percentlowerthanthe10.3percent rate estimated for 2011. Job growth will be slightlybetterbalancedin2012thaneitherin 201011, but it will be quite weak. In 2012, job growth will occur in professional and business services, leisure and hospitality, educationandhealthservices,manufacturing, trade, and transportation/distribution. By midyear, the information industry will be hiring for the first time in a decade. Heavy job losses will continue in construction,

ECONOMICOUTLOOK

financialactivities,andgovernment,however. The overall pace of job creation will not accelerate too much until construction and financial activities employment begin to recover in 2013. And, thats when Georgias economy will pace the national economy in terms of job growth. Government employment, however, will decline for several additional years, and will be the strongestremainingheadwind. The main reason why Georgias economy will underperform the nations is the states recent heavy dependence on real estatedevelopmentandhomebuildingaswell as closely allied industries such as building materials manufacturing. Prior to the housing bust, Georgia like many other Sunbelt states had become very dependent on a the inmigration of new residents and newbusinessestobegetyetanotherroundof new development that was based in part on servicing the previous round of new development. Not enough of Georgias economic growth was based on innovation, educating its own people, courting emerging hightech industries, and promoting the growth of instate capital markets. The financial crisis and the bursting of the housing bubble caused the inflows of people and businesses to end very abruptly. The sudden drought of new construction and the dearth of new residents precipitated a large and extremely painful restructuring of Georgias economy. The restructuring processhasbeenextremelydrawnout,dueto the weakness of the national and global economies.Deleveragingtakesalongtime. Asofmid2011,twooutofeveryfive ofGeorgiasconstructionjobsaregone.Much of the manufacturing base geared to new constructionisalsogone.Thefinancialcrisis andtherealestatebustalsodidmoredamage toGeorgiasfinancialactivitiessectorthanto

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thenationsfinancialsector.Forexample,by mid2011,statewideemploymentinfinancial activities was 17 percent below its cyclical peak level compared to a drop of only 9 percentfortheU.S.Theoutsizedjoblossesin financial activities reflect overexposure to construction, land development, and commercial real estate loans which caused Georgia to lead the nation in the number of failed banks. Georgia still has an elevated numberoftroubledinstitutions,whichmeans more bank failures lie ahead. Job losses in financial activities therefore will persist throughout2012. Georgia also suffered from restructuring in areas unrelated to the burstingofthepropertybubble.Forexample, the states information industry which is heavily concentrated in Atlanta began restructuring and losing jobs back in 2001 whenthetechnologybubbleburst.Now,one thirdofGeorgiasinformationjobsaregone. As of mid2011, it appears that this massive privatesector restructuring process hasnearlyrunitscourse.Georgiaseconomy therefore will face diminishing structural headwindin2012.Plus,overpricesproperty typeassetshavebeenrepriced.Asthedirect and indirect effects of privatesector restructuringandtherealestatebubblefade, Georgiaseconomicperformancewillbeginto more closely match that of the nation. In 2011, the rates of growth of GA and US GDP convergeddramaticallyby110basispoints. Although Georgias economy will underperform the U.S. economy again in 2012,thedifferentialintheratesGDPgrowth will shrink to only 40 basis points, or 0.4 percent.And,fullconvergenceintheratesof US and Georgia GDP growth is expected in 2013. The last remaining large imbalance bubble is hard to miss its government spending. So, even as the restructuring in Georgias private sector nears completion, much restructuring lies ahead for the public sector. At the thirtythousand foot level, Georgia appears better positioned in this regard than are the vast majority of states. Forexample,inGeorgia,percapitalstateand

localgovernmenttaxburdensarelowerthan they were 20 years ago, and are also low relative to other states. Also, compared to otherstates,Georgiaisnotoverlydependent onfederalspending.Innormaltimes(1985 2005), Georgia received about $1 in federal spending for each $1 Georgia paid in federal taxes.Georgiaranks32ndamongthestatesin termsoffederalspendingreceivedperdollar of tax paid. So, Georgias competitiveness probably will not suffer from the federal budget cuts that are looming. Withdrawal from federal spending should be no more painfulforGeorgiathanformostotherstates. So, unlike the bursting of both the housing and technology bubbles, the bursting of the government bubble should not hit Georgia harder than the nation as a whole. Still, the devilwillbeinthedetails.Forexample,areas of Georgia that are heavily dependent on federal government employment, transfer payments,orcontractswillbemoreexposed to the restructuring of the federal government sector. Federal spending cuts skewed towards domestic military bases couldhitGeorgiaveryhard. With respect to state government spending, it appears that the government restructuring process is already fairly advanced.Itislessadvancedwithrespectto local government spending. And, it has only just begun with respect to federal government spending. Hence, areas of the state with high proportions of federal workerswillbevulnerabletotheburstingof thefederalgovernmentbubble.Overthenext decade there will be substantial cuts in both federal spending and federal jobs, and the pattern of those cuts, which has yet to be decided, will be a significant determinate of regionaleconomicperformance. Despite continuing job losses in construction,information(throughmidyear) financialactivities,andgovernment,Georgias nominal personal income will expand by 3.0 percent in 2012. Thats slower growth than estimated for 2011, but higher growth than was realized for 2010. Personal income growth will exceed the rate of inflation (measured by the change in the deflator for

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personal consumption expenditures) by only 1.2 percent in 2012, however. Consumers therefore should have just enough income to sustain economic growth, but not enough to significantly accelerate the rate of state GDP growth. Should consumers choose to save more boost the savings rate and spend lessoftheircurrentincomethentheeconomy willlapseintorecession. Manyofthepositiveforcesunderlying the forecast for the continuing recoveries of both the Georgia and U.S. economies are the same. Spending for equipment and software willcontinuetoincreaseatarelativelyrapid rate. The global economy will continue to expand at a moderate pace, boosting prospects for Georgia logisticscentered economy and especially Georgias deepwater ports. The dollar will be weak enough to boost prospects for the states export orientedbusinesses.Housingactivitywillbe ontheincreasealbeitfromaverydepressed base.Homepricedepreciationwillnolonger be a headwind. Oil prices will be flat or will trendslightlyhigher,butwillremainvolatile. But, even if a recession is avoided, there will be some very powerful negative forces. Government spending and employment will decline sharply. Heavy job losses are still expected in construction, but the nastiest declines have already taken place. Still tight creditstandardspluslingeringuncertaintyin the financial markets will restrain growth in business spending as well as sales of consumer items typically bought on credit. ThetumultintheEuropeanfinancialmarkets will continue, which creates uncertainty and diminishes confidence. Domestically, credit will become more widely available to credit worthy borrowers, however. Uncertainty regardingthecostsofhealthcarereformwill continue to weigh on job growth in the healthcaresector. SOURCESOFSTRENGTH Fordecades,Georgiahasdependedon agrowthmodelthatwasbasedonhighlevels of inmigration. That growth model stopped working during the Great Recession and has been very slow to restart in the recessions

wake. The Terry College expects population growthwillstillbeadriverofthestatesGDP, butitwillnotbeaspowerfulasithasbeenin the past. A combination of cuts in federal entitlement programs for retirees, smaller private sector pensions, and still weak housing markets will cause significantly largerproportionsofretireestoretirewhere they already live rather than to relocate to sunbelt states. Experienced workers who arehomeownersalsowillbelessmobilethan they were in recent decades. In contrast, young people will be more mobile than ever before.Thatspartiallybecauseyoungadults willbelesslikelytobecomehomeowners.So, their costs of picking up and moving to take advantageofopportunitieselsewherewillbe quitelow. In 2012, Georgias population will grow at a pace that barely exceeds the national average 1.2 percent for Georgia versus 0.9 percent for the U.S. So, the differential in the annual rates of the states and the nations population growth will be only 0.3 percent rather than 0.9 percent or more. The differential will not widen too muchuntilGeorgiabeginstogeneratejobsat apacethatissignificantlyabovethenational average.Jobswillattractyoungadultswhoas indicated above will be more mobile than theywerepriortothehousingbust. Many of the large relocation and expansionprojectsannouncedbytheGeorgia Department of Economic Development will provide a tailwind to Georgias economic growth.Also,thestatehasyettofeelthefull economic impact of some project announced inprioryears. Due to cost, logistics, and tax advantages, Georgia remains very competitive when it comes to landing many types of major economic development projects,butthisadvantagewillnotbeartoo much fruit in 2012. Thats because too few businesses have enough confidence in the economic situation to pull the trigger on expansion or relocation plans. Plus, housing markets are so weak that businesses are concerned about the costs involved in relocating their incumbent employees.

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Growth therefore will depend primarily on the expansion of existing industries or new business formation rather than corporate relocations. Georgia will continue to gain economically from the last round of base closingandrealignments.Thenetgaintothe state will be approximately 4,300 military and civilian jobs. In addition to these direct jobs,thereistheinducedimpactalsoknown asthemultipliereffectthatwilladdanother 2,000to4,000jobstotheoffbaseeconomies ofthecommunitiesthathostGeorgiasbases. Fort Benning, which is located in Columbus, emerged as the largest winner from the announced base realignments, with a proposedgainof11,403civilianandmilitary jobsatthebaseitself. As the economy recovers and expands, Georgias deepwater ports will continue to outperform their peers by tappingdirectlyintothegrowththatistaking place overseas, by diversifying the services that call on Georgias ports, and by taking marketsharesfromotherU.S.ports.ThePort of Savannah is the nations fastest growing container port and alreay moves over 8 percent of US cargo and 18 percent of east coast cargo. Georgias ports not only have fully recovered from the Great Recession, the incoming data bodes well for their expansion in 2012. While containerized cargo shipments will be the main force contributingtothegrowthofGeorgiasports, our deepwater ports are well positioned to succeedinattractingincreasedcargovolume whetherautos,breakbulk,drybulk,orliquid bulk. Portsoperationshelptopreserveand expand Georgias manufacturing base and foster growth of the states massive logistics, distribution, warehousing, and agricultural industries. It should be emphasized, however, that a failure to deepen the Port of Savanna to 48feet will jeopardize many of Georgias portdependent and portrelated jobs. Once the Panama Canals expansion is complete, the utilization of super post Panamax vessels will increase dramatically, forcing shippers to move their largest and

most economicimpact rich operations to portsthatcanaccommodatethelargerships. The bottom line is that the Savannah Harborhastheshallowestdepthofanymajor portintheUS.Thatwasnotamajorproblem so long as the constraints at the Savannah Harbor were similar to those at the Panama Canal. But, the Panama Canal Expansion Project is a game changer. It will be fully operational in 2012. Deepening the harbor therefore is not just about generating larger economic impacts in the future, its also a matterofensuringthattheeconomicbenefits thatwealreadyenjoydonotdecline. PROSPECTSFOR SERVICE PRODUCING INDUSTRIES IN2012 Serviceproducingindustrieshaveled the upturn in Georgias economy that began in mid2009. Although overall service relatedbusinessactivitywillexpandin2012, some service business categories such as information will languish, and still others such as financial activities and government will continue to decline. In general, services businessesthateitherlowercostsorprovide necessities, such as health services, will do better that provide luxuries or are easily deferred.Afterall,thepopulationofpersons with multiple chronic health conditions that require medical care continues to grow rapidly regardless of the ups and downs of the business cycle or the uncertainties createdbyhealthcarereforms. Some businesses categories, such as educationalservices,willbenefitfromstrong secular trends that will be reinforced by the cyclical recovery of Georgias economy. Recent and continuing increases in spending for new equipment and software will underpin higher demand for computer servicesforbusinesses.Becausehigherthan normal proportions of people and organizations will continue to repair rather than replace durable goods during the recovery,repairservicesareexpectedremain busy during the coming year. The economic recovery will bring relief to many consulting firms, but disappointing revenue collections by state and local governments will limit the

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gains for firms with many publicsector clients. In general, budgetary problems will lessen demand for business services that are purchased by government, but those very same financial pressures will create opportunities for agile companies that are able to take advantage of outsourcing, or privatization, of activities that are traditionally performed by governments. Also,asignificantreductioninboththerange andthequantityofservicesprovidedbystate and local governments should create new opportunities for service businesses that move into abandoned niches by providing roughly similar services. Selfreliance born out of economic necessity could continue to hurt demand for personal services that people can do for themselves, such as lawn and garden services, laundry and dry cleaning, house cleaning, and window cleaning. PROSPECTS FOR GOODS PRODUCING INDUSTRIES IN2012 Since peaking in mid1999, Georgia has lost 282 thousand jobs in goods producing industries, which includes manufacturing, construction, natural resources, and mining. This amounts to the loss of nearly four out of every ten goods producing jobs. The state will lose 1,100 good producing jobs in 2012: Manufacturing employmentwillriseby1.5percent,or5,200 jobs, but construction employment will decrease by 6,200 percent, or 5,200 jobs. Miningandloggingwillloseabout200jobs. In2012,thejoblossesinconstruction will stem primarily from the recession in nonresidential construction rather than singlefamily homebuilding, which will begin to recover from a near freefall in activity levels. Georgias prolonged and severe housing bust has run its course. Looking forward, the number of singlefamily home permits authorized for new construction should increase by 3 percent in 2012. Homebuilding therefore will contribute to Georgias economic growth. Thats a very positive development, but it should be

emphasized that the increases in new home permits in 2012 pale in comparison to the plunge in activity that occurred building permitspeakedin2005. Existing home values should stabilize in early 2012, but not all of the destructive macroeconomic effects of the housing recession will cease immediately. Recent home price depreciation will continue to weighheavilyonthepsycheoftheconsumer and on their ability to spend. Consequently, the upturn in the states housing market will not be a very powerful driver of Georgias economic recovery, but at least housing will notpushtheeconomybackward. Conditions in the nonresidential construction industry will worsen through mid2012. Activity in virtually all nonresidential construction subsectors will have contracted dramatically as the pipeline of projects in development emptied out and as the number of new projects declined. Despite federal stimulus money for infrastructure, in many jurisdictions, spendingforpublicallyfundedstructureswill decreasein2012.Despitelowinterestrates, the political climate will discourage many state and local governments from taking on additionaldebttofundconstructionprojects. The bottom line is that nonresidential constructionwillremaininrecessionthrough mid2012. Only in 2013, will Georgias overall construction industry begin to make contributions to the growth of the states GDP. In Georgia, industrial production will advance by about 3 percent in 2012, and manufacturing employment will rise by 1.5 percent. Production of durable goods will advance more quickly than production of nondurable goods. And, production of business inputs and capital goods will grow faster than production of consumer goods. Due to lean staffing levels, job growth also will occur in a significant number of manufacturing subsectors. The best prospectsforincreasesinproductioninclude computer and electronic products, transportation equipment, and industrial machinery. In contrast, decreases in

2-17

production are expected for textiles, apparel, printing,cement,andstructural/architectural metals. Becausethe recessionin homebuildingis over, production and hiring in many lumber and wood products industry will advance in 2012.Theyearoveryearpercentagegainsin logging and wood products production could be large, but only because activity was extremely depressed in 200911. Gains in remodeling activity also will support growth in demand for lumber and wood products. Demand for pallets and crates will improve slowly along with the gain in overall economic activity. Wood pellet manufacturing, biofuels, and cogeneration are emerging sources of demand for timber and wood fiber. Diminishing activity in non residential construction especially government construction projects will subtract from demand for growth of lumber and wood products in 2012. Indeed, the areasofnonresidentialconstructionthatwill see the most growth are not woodintensive (e.g.,utilities). In addition to higher domestic demand,positiveinternationaldevelopments should support Georgias lumber and wood products industry in 2012. The much depreciated value of the dollar will boost exports of U.S. lumber and wood products andlimitimports. In2012,moderatesupportforgrowth in paper and pulp manufacturing will come from the expansion of GDP as well as the weak value of the US dollar, which will restrict pulp and paper imports into the US market and will stimulate exports. New paper mills in China as well as other developing countries will be a major force powering the recovery of global pulp markets,butwillcreatemorecompetitionfor USpapermills. In 2012, equipment producers will benefitfromcyclicalincreasesindemand,but businesses spending for capital equipment will growth more slowly in 2012 than in 2011. The slower rate of growth reflects partial satisfaction of replacement needs deferred during the Great Recession as well

asslowgrowthofmarketsforfinalproducts. Although tight credit will limit many small businesses ability to purchase more manufacturingequipment,manymediumand large companies will have the means to expand their orders for manufacturing equipment due to good internal cash flows and pristine corporate balance sheets. Low shortandlongterminterestratesbodewell for manufacturing equipment sales, but low confidence will limit the positive impact of low rates on actual sales of manufacturing equipment. The low value of the U.S. dollar and economic growth among our trading partners will help to boost exports of manufacturing equipment. The likely bottoming of nonresidential construction in 2012 implies that sales of construction machinerywilltrendlowerin2012.And,the expected upswing in residential construction will be too small to generate new orders given the abundance of existing equipment andmachinery. The new $1.2 billion KIA assembly plant will employ about 3,000 workers, and the multiplier effects associated with those jobs will be unusually large. A simulation based on the most conservative estimate of jobs numbers shows that each job at the Kia plant supports 4.5 jobs outside the plant. Thus, far, major suppliers have announced jobsatsitesinGeorgiathatarewellabovethe estimates promised at the time of the initial announcement. The new VW plant in Chattanoogaalsoissupportingthegrowthof Georgias automobile parts manufacturing industry.Ofcourse,thejobsattheKiaplant will only replace about half of the jobs that were lost at the Ford and GM plants combined. Nationally, the forecast calls for unit salesofbothnewandusedcarstoconsumers to rise in 2012, but the biggest gains will be for models that generate the lowest profit margins. Still, automakers bottom lines will continue to improve in 2012. Automakers should note that both businesses and consumers will increase their purchases of new vehicles in 2012, but governments will not.

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Higher auto sales will help manufactures of original equipment. Also, despitethesuccessoftheCashforClunkers program,manufacturersofreplacementparts shouldenjoymuchstrongermarketsin2012. While it is true that makers of replacement parts have lost some sales because vehicles werescrapped,theTerryCollegeexpectsthat there will be more demand for replacement parts for the growing number of older cars stillontheroad.Itislikelythatsomeneeded automobile maintenance and tire purchases were deferred and will go forward as the economy improves in 2012. Tire manufacturers also will benefit from an expected increase in the number of miles driven, which declined during the recession, aswellasconsumersincreasedacceptanceof highperformanceandotherspecialtytires. Accounting for about one fourth of Georgias manufacturing gross state product, food product manufacturing is the states largestmanufacturingindustry.Thedemand for food products will grow at a moderate pace in 2012. This industry therefore will expanditspresenceinGeorgia,bothinterms ofoutputandemployment. Georgias printing industry is in declineandtherateofdeclinewillaccelerate in 2012. Georgias printing industry faces more competition from digital media and fromprinterslocatedabroad.Evensustained economy recovery will not lessen these two challenges too much. Cyclical increases in commercial and political print advertising will be the most powerful tailwinds for Georgias printing industry in 2012. Depressedlevelsofofficebasedemployment and limited new business formation will continue to curb demand for printed materials, however. Slumping revenue collectionsbystateandlocalgovernmentwill causepublicschools,colleges,andlibrariesto decrease their outlays for printed materials, despite higher enrollments. On top of all thesedevelopmentsthemorewidespreaduse of electronic publishing will ensure that the industrys revenues will grow more slowly thanGDP.Highqualitymachinessuitablefor smallprintingjobswillreduceorganizations

economic incentive to outsource small runs. Productivity gains stemming from new technologies will lead to job losses in the states printing industry. The printing industryalsoischaracterizedbyovercapacity which will cause margin compression. Total profits for many printers therefore will rise moreslowlythantotalrevenues. In 2012, demand for many chemical products will increase in the typical cyclical fashion.Themainopportunitiesforchemical manufacturing will be: the growth of the industrialsectoroftheeconomy;highersales for consumer use; and stable use in construction. The prospects are good for medicines, pharmaceuticals, and agricultural chemicals. Georgias apparel industry suffered some major setbacks in 200611, and it will continuetocontractasopenworldtradeand cheaper foreign labor give a tremendous priceadvantagetomanyimporteditems.The still weak economy will ensure that the industrys sales and profit margins remain under severe pressure. The bottom line is that Georgias apparel and textile manufacturing sector will decline at a deceleratingratein2012. Although the housing recession is over, Georgias carpet and textile industry will be coping with the extremely depressed levelsofhousingactivity.Also,spendingwill continue to decline for nonresidential construction, but automobile sales and spendingonhomerenovationswillberising. The longterm outlook for this industry is betterthanthatfortheapparelsector,butthe industrys prospects are by no means sanguine. By investing heavily in plant and equipment, Georgias textile and carpet manufacturers have become worldclass competitors, but stateoftheart facilities increasingly will be built overseas. Eventually, many foreign manufacturers will be on a more equal footing with those operatinginGeorgia.Productivitygainsalso will help Georgias textile and carpet manufacturers survive, but as the plants become much less labor intensive, total employmentinthisindustrywilldecline.

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PROSPECTSFORATLANTAIN2012 On an annual average basis, the 28 county Atlanta MSA will add 9,000 jobs, a yearoveryear increase of 0.4 percent. Atlanta therefore will account for about half percent of the states net job growth. The areas high concentration of service producingindustries,distributioncompanies, institutions of higher education, health care providers, and life sciences companies will keep the job machine in forward gear. Also, severaloftheprojectsrecentlyannouncedby the Georgia Department of Economic Development were in the 28county metropolitan areas. Major improvements at HartsfieldJacksonInternationalAirportbode well for Atlantas future growth, especially the completion of the new international terminal. One plus for Atlanta is that it is not overly dependent on federal jobs. Only 3.7 percent of the Atlantas areas nonfarm earnings come from federal employment versus 6.9 percent for the state as a whole. Stateandlocalgovernmentaccountsforonly 9.1 percent of earnings in metro Atlanta

versus 11.4 percent for the state. So, public restructuring will be somewhat less problematic for Atlantas growth than for growthelsewhereinGeorgiaorforthenation asawhole. Factors that will restrain Atlantas overallgrowthincludetheongoingrecession in nonresidential construction, festering problems in the banking sector, and the effects of the massive restructuring of homebuilding and allied industries. Atlanta wasespeciallyhardhitbythecollapseofthe housing bubble, and its adverse effects will linger for many years. Atlanta may be less adverselyaffectedthanotherpartsofGeorgia by the lower pace of retiree migration becausesomanyoftheretireeswhomoveto Atlanta do so to be closer to their children ratherthanbecauseofnaturalamenitiessuch as lakes, mountains, or the ocean. And, moving closer to family members may make even more sense in an era of greater self reliance and less dependency on federal entitlementprogramsorpensions.

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ATLSTATPERFORMANCEHIGHLIGHTS ATLStatistheCityofAtlantasperformancemanagementprogramandservestoimprovetheefficiencyand effectivenessofservicesdeliveredtocitizens.ATLStatisbasedontheprinciplethatifyoucannotmeasure something,youcannotmanageit.ATLStatfocusesoncreatingacultureofperformanceandaccountability, whichincludescollaboratingwithcitydepartmentstouseoperatingmetricstodriveimprovedperformance, effectivemanagementdecisionsandreducedrisk. ThroughATLStat,theCitysetsperformancegoalsandtracksperformanceagainstthosegoals.Performance targetsaresetduringthebudgetprocesstoensuretargetsarerelatedtoresourceallocationdecisionsand operationalinitiatives. PERFORMANCEMANAGEMENTOBJECTIVES ATLStatsobjectivesare: DevelopadefinitivesourceofinformationontheCitysoperatingperformance; Create a culture of performance and accountability by setting performance targets and holding managersaccountableforachievingthem;and ProvideapublicwindowintotheoperationoftheCity. TheCitypublishesstrategiclevelperformancedatathroughtheATLStatwebsite,whichisavailablethrough the Citys website at http://www.atlantaga.gov/index.aspx?page=133. The City is committed to public transparencyandaccountability.ThewebsiteincludesperformancehighlightsoftheCitysATLStatSessionas wellasperformancescorecardsfordepartmentandofficesparticipatinginATLStat. CITYWIDESTRATEGICPERFORMANCEMEASURES ThefollowingisasummaryoftheCitysperformanceforFY2011.TheCitywillpresentFY2012datainthe AnnualATLStatreportinAugust2012,andwillbeincludedintheFY13adoptedbudgetbook. TheCitybegananew3n1 SolidWasteCollectionscheduleinAugust2011. 3n1providescityresidents threecollectionservices(householdgarbage,recycling,andyardtrimmings)inoneday.TheCityincreased thegarbagecollectionrateinFY11to98%,animprovementfrom96%inFY10. ParksMaintenancemadeoperationalimprovementsinFY2011tomeetitstargets.Thedepartmentreduced itsscheduledparkmowingcyclefrom11daysto10days.AttheendofFY2011,itmetthisschedule92%of thetime,belowtheperformancegoalof95%.ByJuneFY2011,thedepartmentalsoremovedlitterandlimbs ontime97%ofthetime,aboveitstargetof95%. Public Streets were maintained at high levels in FY2011. In June FY2011, DPW completed asphalt point repairs within 30 calendar days 98% of the time, above the 90% target. At the close of FY2011, DPW completed76%ofallpotholerepairswithin72hours,shortoftheirtargetof90%,butanimprovementover theFY10completionrateof65%.DPWcompleted98%ofallemergencytrafficsignalrepairswithin12hours ofreporting,aboveitstargetof90%. WaterandSewagemadesignificantprogressintheareaofbillingofFY2010.InFY2011,only1%ofbills were estimated compared to 5% at the beginning of the fiscal year. Resolving meter leaks is a priority. However,71%ofmeterleakworkorderswerecompletedwithin7daysofcreation,belowitstargetof80%. InJune2011,thecompletionrateforworkorderscompletedin3daysreached69%.

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PublicSafetyoperationsimprovedinFY2011,withcrimeratesreducingintheCitytohistoriclows.From 2003to2011,crimeratesforviolentandpropertycrimesdeclined36%and20%,respectively.Whileviolent crimeisdown36%since2003,violentcrimeincreasedover2010,ahistoricallylowyear.TheAtlantaPolice Department (APD) recruited 205 officers, 20 beyond the annual target of 180 officers, which increased its ranks to 1,796 sworn officers. In FY11, AFR responded to 2,249 fire incidents. An average of 63% of fire incidentsmetthenationalstandardinFY11,upfrom58%inFY10. TheAirportserviced90.95millionpassengers,up2%fromJune2009toMay2010,andabovethetargetof 88.36 million for the same period. HJAIA averaged 81 delays per 1,000 flights, less than the target of 105 delaysper1,000flightspermonth. The 911 Call Center met the 90% answer rate for calls answered in 10 seconds, an increase from 82% in FY2010.Theanswerrateforcallsansweredin20secondsincreasedto93%,justshortofthe95%goal. Building Permits increased 4% in FY2011 over FY2012. The City issued 21,165 permits in FY11, a 4% increasefrom20,413permitsinFY10.ThemediantimetoissueNewResidentialBuildingPermitsinFY11 was 32 days, a 7day improvement over the 2010 median time of39 days. The median time to issue New CommercialBuildingPermitswas106days,6daysabovethetargetof100days. Sustainability participation levels increased in FY2011. An average of 17.3% of recyclable materials producedbythecitywasdivertedtorecyclinginFY11,abovethesettargetof15%.

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Budget Summaries

BUDGET SUMMARIESFUNDSTRUCTURE SUMMARYOFALLFUNDS OPERATINGFUNDS SUMMARYOFPERSONNELCHANGES

PROPOSED BUDGET FY 20133-1

FUNDSTRUCTURE The City uses funds and account groups to report its financial position and the results of its operations. Fund accounting is designed to demonstratelegalcomplianceandtoaidfinancial management by segregating transactions related tocertaingovernmentfunctionsoractivities.The fund types established by the City are described belowandthroughoutthisdocument. GOVERNMENTALFUNDSThe Governmental Funds group is one of three fund groups in the City's budget. The funds in this Fund group, account for those transactions that are supported by general taxation, intergovernmental grants, special assessments, and other sources that arenotrestrictedtoenterpriseoperationsorheldin atrusteecapacity. TheGeneralFundistheCity'sprimaryoperating fund.Itaccountsforallfinancialtransactionsof the City, except those required to be accounted forinanotherfund. TheDebtServiceFundisusedtoaccountforthe accumulation of resources and the subsequent disbursementofsuchresourcestopayprincipal andinterestonlongtermdebtoftheCity(other thancertificatesofparticipationandthedebtof the tax allocation districts funds and enterprise funds). Bond ordinances require the City to accountfordebtservicetransactionsinseparate funds, to restrict the flow of cash between such funds, and to comply with various other covenants. The Special Assessment Fund accounts for the accumulation and expenditure of resources for variouspublicimprovementssuchassidewalks, curbs and gutters, which are financed through assessmentstoindividualpropertyowners. TheSpecialRevenueFundsaccountforactivities carried out by the City under the terms of certainintergovernmentalgrants.Itaccountsfor theproceedsofspecialrevenuesourcesthatare legally restricted to expenditures for specified purposes. from providing, producing, and delivering goods services in connection with a proprietary fund's principalongoingoperations.Operatingexpensesfor enterprise funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as nonoperatingrevenuesandexpenses. Enterprise Funds are designed to be selfsupporting. The Department of Watershed Management (DWM) Fund accounts for all activities associated with the provision and management of clean water, wastewater and storm water systems, and water pollution control services to individuals, organizations and other governmental units within and around the City. The Department of Aviation (DOA) Fund accounts for the activities of the William B. Hartsfield Maynard H. Jackson Atlanta International Airport. Other enterprises fundsincludeParksFacilitiesFund(Cyclorama), UndergroundAtlanta,SolidWasteServices,Civic Center,andthenewBuildingPermitsfund. The Internal Service Funds account for the activitiesofMotorTransport(Fleet)Services,as well as group insurance transactions related to the provision of life, accident, and medical insurance benefits through outside insurance companies for permanent employees and retireesoftheCity.

FIDUCIARYFUNDS

PROPRIETARYFUNDSProprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result

FiduciaryFundsareusedtoreportassetsheldin trust or agency capacity for others and therefore, cannot be used to support the governments programs. The Trust Fund accounts for activities in which the City acts as trustee for an individual or organization. Additionally, these funds account for pension trust funds, which accumulate resources for pension benefit payments to membersoftheplansandtheirbeneficiaries. The Agency Fund is a nonbudgetary fund and accounts for various taxes and other receipts held in escrow for individuals, outside organizations, other governments and/or other funds.

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CITYWIDEFUNDSTRUCTURE

FUNDS

GOVERNMENTAL

PROPRIETARY

FIDUCIARY

GeneralFund GrantFunds BondFunds BondSinkingFund SpecialAssessmentFund

AviationFunds BuildingPermitsFund CivicCenterFund FleetServicesFund GroupInsuranceFund ParksFacilitiesFund SolidWasteFunds UndergroundFund Water&WastewaterFunds

TrustFund AgencyFund

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SUMMARYOFALLFUNDS FY2013GOVERNMENTALFUNDSActual FY2011 539,426,339 539,426,339

Adopted FY2012

GOVERNMENTALFUNDS

Proposed FY2013539,779,852

550,620,362 GeneralFund 550,620,362

SubTotal

539,779,852

SpecialRevenueFunds14,437,981 15,008,385 33,567,545 269,615 9,641,945 3,791,187 1,195 11,371,570 10,952,311 205,628 2,099,566 4,186,189 23,598,809 148,575 151,087 113,877 65,385 42,929,134 746,350 173,286,334 15,835,991 8,986,838 40,571,782 619,805 7,778,479 11,398,350 53,728,715 109,508,130 13,923,641 8,587,925 56,184,781 44,278,907 2,499,453 1,689,449 1,263,355 262,306 41,789,216 800,000 419,707,123 Emergency911Fund CommunityDevelopmentBlockGrantFund IntergovernmentalGrantFund EmpowermentZoneFund JobTrainingGrantFund HomeInvestmentPartnershipsProgramFund RentalRehabilitationFund AtlanticStationTADFund WestsideTADFund NWAtlantaTADFund PrincetonLakesTADFund EastsideTADFund Eastside TAD Fund AtlantaBeltlineTAD CampbelltonRoadTADFund Hollowell/M.L.KingTADFund MetropolitanParkwayTADFund StadiumNeighborhoodsTADFund Hotel/MotelTaxFund Rental/MotorVehicleTax 15,922,500 10,074,815 25,834,858 113,340 7,926,831 7,205,237 21,720,315 102,554,720 14,175,264 3,862,110 61,059,255 30,634,861 2,521,911 1,938,494 1,296,108 171,920 46,618,648 750,000 354,381,187

SubTotal

CapitalProjectsFund 1,200 2,300 34,930 5,249 1,200 350 (1,496) 169,707 84,588 1,946 43,609 9,749 20,946 87,190 1,013,089 11,190 242,846 168,688 855,578 286,431 578,591 AnnualBondFund 1987BondProjectFund 1989BondProjectFund 1990BondProjectFund 1991BondProjectFund 1992BondProjectFund 1993SchoolImprovementBond 1993BondProjectFund 1994ReferendumG.O.BondFund 1994BondProjectFund 1995BondProjectFund 1996BondProjectFund 1996G.O.PublicImprovementBondPartB 1997BondProjectFund 1997G.O.PublicImprovementBondFund 171,422 20,960 1,014,425 856,914 578,978

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SUMMARYOFALLFUNDS FY2013GOVERNMENTALFUNDSActual FY2011 Adopted FY2012 GOVERNMENTALFUNDS CapitalProjectsFund1,200 1,200 5,820 2,450 (20,965) 10,556 1,200 45,055 1,412,586 194,619 7,093,348 662,594 11,998,531 8,758,290 3,279,291 609,453 12,476,655 46,575,616 73,252 13,428 237,334 11,837 1,520,123 534,885 499,934 9,346 1,407,583 1,188,556 1,117,477 7,145,656 15,921,710 1,342,150 8,060,260 84,544,616 18,341,187 23,650,279 2,063,303 187,199 171,444,263 1998BondProjectFund 1999BondProjectFund 2000BondProjectFund 2000ParkImprovementBondFund 2001BondProjectFund 2001QualityOfLifeFund 2002BondProjectFund 2003GoBondProjectFund 2004BondProjectFund 2004QualityOfLifeFund 2005BGoProjectFund 2005AParkImprovementBondFund 2005A&BAFCRABondFund PublicSafetyFacilityFund 2007ABondProjectFund 2008AQualityOfLifeImprovement 2008A Quality Of Life Improvement 2009GORefundingSeries ParkImprovementFund GeneralGovernmentCapitalFund CapitalFinanceFund CapitalAssetFinanceFund 2002TrafficCourtFacilityBond 11,844 138,051 201,954 3,317,159 15,921,710 1,591,183 84,544,616 18,363,310 19,806,006 9,181,179 330,274 187,383 156,237,368

Proposed FY2013

SubTotal

DebtServiceFund27,470,135 27,470,135 25,415,477 BondSinkingFund 25,415,477 25,415,477

SubTotal

25,415,477

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SUMMARYOFALLFUNDS FY2013GOVERNMENTALFUNDSActual FY2011 Adopted FY2012 GOVERNMENTALFUNDS SpecialAssessmentFund 1,370,768 SpecialAssessmentFund 1,370,768 1,396,195 1,396,195

Proposed FY2013

SubTotal

786,758,424

1,168,557,993

GRANDTOTALGOVERNMENTALFUNDS

1,077,210,079

FY2013GOVERNMENTALFUNDS

SpecialRevenue Funds 32.9%

GeneralFund 50.1%

CapitalProjects Fund 14.5%

DebtServiceFund 2.4% SpecialAssessment Fund 0.1%

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SUMMARYOFALLFUNDS FY2013PROPRIETARYFUNDSActual FY2011 Adopted FY2012 PROPRIETARYFUNDS AirportFunds417,352,802 339,079,664 3 316 103,047,975 5,952,266 1,324,128 14,990,263 8,155,412 11,773,274 23,056,786 177 845 221 177,845,221 15,871,424 36,699,160 248,833,634 544,626,506 1,948,608,834 406,395,572 596,568,459 614,857,248 13,061,995 3,008,953 47,269,658 17,878,637 17,961,632 65,108,882 385 206 048 385,206,048 16,660 129,815,696 201,332,763 6,065,782 2,504,547,985 AirportRevenueFund AirportRenewal&ExtensionFund 1990AirportFacilityRevenueBondConstructionFun 1994BAirportFacilityRevenueBondConstructionFu AirportPassengerFacilityChargeFund 2000AirportRevenueBondFund 2004AirportRevenueBondFund 2004AirportPFCBondFund 2004AirportRevenueBondFundFK 2004AirportPFCBondFundFK ConracCustomerServiceFacilityCh AirportFacilityRevenueBondSinkingFund Airport Facility Revenue Bond Sinking Fund 2006AirportConracBondFund 2010ABondGeneralAirportRevenue 2010BBondPFC&SubLienGeneralRevenue 2010BRefundingBond 2010A/BAirportCommercialPaperSeries SubTotal 483,507,358 347,896,288 610,962,941 7,711,862 1,140,894 43,555,343 8,336,998 52,184,687 519 460 858 519,460,858 1,160,636 530,588 91,475,478 2,167,923,931

Proposed FY2013

WaterandWastewaterFunds551,527,119 65,678,723 7,247,214 26,040,979 109,974,996 228,951,196 (3,750) 119,270,750 1,108,687,227 513,493,717 215,514,712 392,376 704,784 2,897,177 46,683,738 99,569,710 106,000,000 237,889,525 104,278,611 193,356,239 126,885 1,520,907,474 WaterandWastewaterRevenueFund Water&WastewaterRenewal&Extension 1993Water&WastewaterBondFund 1997Water&WastewaterBondFund 1999WaterAndWastewaterBondFund 2001Water&WastewaterBondFund 2004Water&WastewaterBondFund Special1%SalesAndUseTaxFund Water&WastewaterSinkingFund 2008Water&WastewaterBondFund Series2009AWater&WastewaterRevenueBondFun Series2009BWater&Wastewater SubTotal 544,780,949 219,289,591 392,376 704,784 2,897,177 6,868,381 24,876,310 113,000,000 453,898,421 32 80,639,011 15,169,303 1,462,516,335

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SUMMARYOFALLFUNDS FY2013PROPRIETARYFUNDSActual FY2011 Adopted FY2012 PROPRIETARYFUNDS ParksandRecreationFacilitiesFund 494,753 997 495,750 474,836 ParksFacilitiesRevenueFund ParksFacilitiesRenewal&ExtensionFund 474,836 SubTotal 476,953 476,953

Proposed FY2013

SolidWasteManagementFacilitiesConstructionFund3,774,255 3,774,255 2,382,373 SolidWasteManagementFacilityConstructionFund 2,382,373 SubTotal 1,840,345 1,840,345

FY2012ProposedDESCRIPTIONOFFUNDS

PermitFund PermitFund P i F d SubTotal 7,501,420 7 501 420 7,501,420

InternalServicesFund 31,619,549 31,619,549 32,390,335 InternalServicesFund 32,390,335 SubTotal 32,368,886 32,368,886

UndergroundFacilitiesRevenueFund 10,554,862 10,554,862 11,223,117 UndergroundAtlantaRevenueFund 11,223,117 SubTotal 11,223,117 11,223,117

2006A&BDowntownParkingProjectFund1,616,931 1,616,931 2006A&BDowntownParkingProjectFund SubTotal

DowntownDevAuthRefundingFund54,749 54,749

DowntownDevelopmentAuthorityRefundingFu SubTotal

SolidWasteFund 46,179,404 48,261,974 SolidWasteServicesRevenueFund 4,000,000 SolidWasteRenewal&ExtensionFund

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47,992,189 13,394,066

SUMMARYOFALLFUNDS FY2013PROPRIETARYFUNDSActual FY2011 46,179,404

Adopted FY201252,261,974

PROPRIETARYFUNDSSubTotal

Proposed FY201361,386,255

CivicCenterRevenueFund1,793,094 1,793,094 1,748,110 CivicCenterRevenueFund CivicCenterRenewal&ExtensionFund 1,748,110 SubTotal 1,770,884 1,770,884

3,153,384,655

4,125,936,204

GRANDTOTALPROPRIETARYFUNDS

3,747,008,126

FY2013PROPRIETARYFUNDS

SolidWaste ManagementFacilities ConstructionFund 0.05%

ParksandRecreation FacilitiesFund 0.01%

WaterandWastewater Funds 39.0%

PermitFund 0.2%

InternalServicesFund 0.9%

AirportFunds 57.9%

UndergroundFacilities RevenueFund 0.3% SolidWasteFund 1.6%

CivicCenterRevenue Fund 0.05%

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SUMMARYOFALLFUNDS FY2013FIDUCIARYFUNDSActual FY20111,537,225 115,532,165 13,488,534

Adopted FY20126,832,067 108,156,968 32,252,382

PROPOSED FIDUCIARYFUNDSSection108LoanTrustFund GroupInsuranceFund TrustFund

FY20131,525,801 121,977,062 42,280,382

130,557,924

147,241,417

GRANDTOTALFIDUCIARYFUNDS

165,783,245

FY2013FIDUCIARYFUNDS

TrustFund 25.5% GroupInsurance Fund 73.6% Section108Loan TrustFund 0.9%

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OPERATINGFUNDS Thecitywidefundstructurecanbedividedintotwoareas:operatingandcapital.Theoperatingbudget is definedastheannualbudgetforroutine,ongoingactivitiesofanorganizationalunit.Whilethecapitalbudget is typically established for specific projects, such as capital projects, grand funded projects, and other activitiesofanonrecurringnature. OPERATINGFUNDSTRUCTURE The General Fund is the principal operating fund oftheCityandisusedtoaccountforallactivities of the City not otherwise accounted for by a specified fund. It is also the largest of the Citys funds, and is comprised of mostly general tax revenues that provide basic city services, such as Police,Fire&Rescue,andParksservices. Enterprisefundsaredesignedtobeselfsupported by user charges or fees. The Department of Aviation, Civic Center, Parks and Recreational Facilities (Cyclorama), Solid Waste Services, and Water & Wastewater Management are accounted for as enterprise funds. Separate fund accounts withineachoftheenterprisefundsarerequiredto be maintained in accordance with various bond ordinances. The Aviation Revenue fund accounts for the accumulation of income and disbursement of funds associated with the operation and constructionoftheHartsfieldJacksonAtlanta International Airport. These funds generate income primarily from leases and use agreements with airlines and with various concessionaires within the terminal facility andparkingoperations. The Building Permits fund accounts for the collection of income and disbursement of funds associated with the operation of the buildingpermittingfunction. TheAtlantaCivicCenterfundaccountsforthe collection of income and disbursement of funds associated with the operation of the BoisfeuilletJonesAtlantaCivicCenter.These funds generate income primarily from ticket sales(surcharges),buildingandlandrentals. The Parks Facilities fund was created to support the Cyclorama restoration project, andissupportedbyuserfees. RevenuesgeneratedfromSolidWasteservices are from user fees or charges for specific services provided. This fund should be self su