Complete Cvi Study

7/29/2019 Complete Cvi Study

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Revenu e and Expend itu re

Estimates for a P rop osed C ity of Broo khaven

November 2011


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TableofContents

Introduction.............................................................................................................................1

I. Revenues............................................................................................................................3

II. Expenditures.................................................................................................................... 17

AppendixA StudyAreaMap..............................................................................................32

AppendixB TownBrookhavenDevelopment....................................................................33

AppendixC MiscellaneousRevenues.................................................................................37

AppendixD UnincorporatedCountyRevenueFiguresandDataSources........................40

AppendixE HotelsintheStudyArea................................................................................42

AppendixF HOSTCalculationsandCountyCertificationLetter........................................43

AppendixG CDBGDataTables..........................................................................................50

AppendixH ParksData......................................................................................................55

AppendixI CapitalDataTables.........................................................................................57


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Introduction

See

AppendixAforamapofthestudyarea

See


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3See.


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I. Revenues

TheFiscal

ImpactonDeKalbCountywithPossibleIncorporationofDunwoody,Georgia

Revenue and Expenditure Analysis of a Proposed City of

Dunwoody

SeeAppendixBforfurtherexplanation

Table1:StudyAreaRevenueEstimates

RevenueSource DataSource Amount


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SeeAppendixC.

SeeAppendixDforcountyrevenuedatadetail.

TotalRevenueEstimate $23,810,619 $28,528,983


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Table2:2010PropertyValuesinStudyAreaandUnincorporatedDeKalb

StudyArea UnincorporatedDeKalbCounty

PercentStudyAreato

Unincorporated


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ThesearelistedinAppendixE


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Table3:2010PopulationFiguresforStudyAreaandUnincorporatedDeKalb

StudyArea UnincorporatedDeKalbCounty

PercentStudyAreato

Unincorporated


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Appendix F contains these two separate calculations using the


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spreadsheetutilizedbytheGeorgiaDepartmentofRevenueaswellasthemostrecentcounty

certificationletter.

ThedatausedforthesecalculationsisshowninAppendixG.

4 see


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Table4:CityandFiscalYearBudget Revenue PerCapita

StudyAreaRevenueEstimate $149,040

See


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7See

.


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Table5:2010DemographicProfileofStudyAreaandPrimaryComparisonCities

StudyArea JohnsCreek Dunwoody


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Table6:SummaryofExpenditureEstimates

TotalOperatingCosts $21,311,237

TotalAnnualExpenditures $25,083,242

DeficitBasedonRevenueEstimatesUsing2010PropertyTaxes $1,272,623SurplusBasedonRevenueEstimatesUsing2011PropertyTaxes*** +$3,445,741


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CityandFiscalYearBudget Dept.Budget

StudyAreaEstimate$215,093

CityandFiscalYearBudget Dept.Budget PerCapita

StudyAreaExpenditureEstimate $408,260


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StudyAreaExpenditureEstimate $2,035,399






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CityandFiscalYearBudget LeasedSpaceSq.Ft. PerCapitaSq.Ft.

StudyAreaEstimateofSquareFootageNeeded 30,005

CityandFiscalYearBudget Dept.Budget PerSq.Ft.



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SeeAppendixH.


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Table7:StudyAreaParkAmenities

CityandFiscalYearBudget Dept.Budget Acres CostPerAcre


See


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2010DemographicProfileStudyAreaandSmyrna

StudyArea Smyrna


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CityandFiscalYearBudget Dept.Budget LaneMiles CostperLaneMile





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SeeAppendixI


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CityandFiscalYearBudget Budget CostPerOfficer



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CityandFiscalYearBudget Budget PerCapita


$3,077,847

$827,342

$3,905,189

Amortizedover5yearsat2.5%interest $831,682


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Appendix


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BackgroundofTaxAbatementTransactions


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TownBrookhavenTaxAbatementStructure

17 The bond-lease transaction approved for Town Brookhaven consists of five separate series of bonds. The fiveseries were validated in the same validation proceeding in an aggregate principal amount not to exceed$244,000,000. Typically, the aggregate amount of the bonds will reflect the total amount of expected constructionand other development costs for a project.18 For example, initial bonds would be issued to acquire the land, and as improvements are constructed, additional

bonds are issued to acquire those improvements.


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TownBrookhavenPILOTAgreements

19 Since the bond structure technically consisted of five separate series of bonds, there are five separate, butsubstantially identical, PILOT agreements one for each series of bonds.


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RevenueSource

Methodology StudyAreaEstimate

DataSource

TotalMiscellaneous $13,743


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Department of Recreation, Parks and Cultural Affairs

Brookhaven Scope Questions

1. The age and square footage of the recreation centers in Briarwood Park and

Lynwood Park?

Briarwood Recreation Center

History

The center was built in 1964. It is unknown if the property was either purchased or donated.The origin of its name is unknown.Building Features - less than 10,000 square feet to include:

x Gymnasium 5205 sq. ft. Multi-purpose room 1200 sq. ft.

x classroom 525 sq. ft.(estimate) office 90 sq. ft. (est.)

x mechanical room 60 sq. ft. (est.) hallway 32 sq. ft. (est.)

x snack area 464 sq. ft (est.) kitchen 70 sq. ft. (est.)

x x-room 44 sq. ft. (est.) restrooms each @ 296 sq. ft. (est.)

Lynwood Recreation Center

History

x Lynwood Recreation Center originated from the Lynwood Park School.

x The school was built in the early 40s for the African-American communitystudents in grades 1-12

x When integration took place in the mid-60s the school closed.

x The county purchased the land for $1.00 and redeveloped the recreation center inthe early 70s.

Building Features - 15,000 square ft. The building consist of a game room 38x 28 ,art/weight room 28x 24,

2. The annual revenue collected from the reservation fees for picnic shelters in Blackwood

Park and Murphey Candler Park?

The department only charges a fee to rent a picnic shelter at Blackburn and its estimated annualrevenue is around 1,500 dollars annually.


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3. The total annual revenue generated by the pools in Briarwood, Lynwood, and Murphey

Candler Parks?

Briarwood pool = pool closed due environmental issuesLynwood Pool = $800 dollars annually

Murphey Candler = 31,000 annually

4. The total annual revenue generated by the tennis courts in Ashford, Blackburn,

Briarwood, Lynwood, Murphey Candler, and Skyland Parks?

The Department only charges a fee at Blackburn tennis center and it brings in an estimated$16,600 dollars annually.

5. The annual costs for operating these parks, pools and recreation centers?

x It costs the County approximately $113,000 annually to operate the Lynwood and

Briarwood Recreation Centers.

x Annual costs to the County to operate Murphey Candler, Lynwood and Briarwood pools:

Murphy Candler:o $25,000 for personnelo $9,000 chemical costo $3,000 supplies

Briarwood and Lynwood are the same due to volume of people attending:o 16,000 for personnelo

5,500 chemical costo 3,000 supplies

Annual costs for operating Ashford, Blackburn, Briarwood, Lynwood, Murphey Candler, andSkyland Parks:

o $331,040 per year


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Supplemen tal P ropo sed C ity of Brookhaven

P r op er ty T ax An alysis

January 2012


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SupplementalProposedCityofBrookhavenPropertyTaxAnalysis

AttherequestofStateRepresentativeMikeJacobs,thissupplementalanalysiswasundertaken

to determine the potential property tax revenue that would be derived under two hypotheticalmunicipalmillageratescenarios.Utilizingthesamedatausedtopreparetheprimaryreport,Revenue

andExpenditureEstimatesforaProposedCityofBrookhaven ,theamountofpropertytaxrevenuethat

would be generated by a hypothetical municipal millage rate of 3.35 mills and 3.221 mills with a

homestead exemptionof $20,000 was calculated. Because residential homestead property owners in

DeKalbCountyenjoythebenefitofapropertytaxrollbackoncountytaxesbyvirtueoftheoperationof

theHomestead Option Sales Tax, identical millage rates imposedby thecounty andcities within the

county have a different impact in thedollar amount duetheapplicable government fromresidential

homesteadpropertyowners.

Theprimary study estimatedexpendituresat$25,083,242andrevenuesof$28,528,983based

onthe 2011 preliminary tax digest and current county special district millage rate of 6.39 mills. This

revenueestimateisbaseduponanestimationof$9,927,881inpropertytaxrevenueand$43,207in

property tax penalties currently being collected in the DeKalb County special district. The estimated

revenues other thanthe property tax related revenues are $18,557,895, meaning that for estimated

revenuestomatchestimatedexpenditures,$6,525,347wouldneedtobegeneratedbypropertytaxes.

Asdemonstratedinthetablebelow,themillageratenecessarytogeneratethatamountofpropertytax

revenue is 3.221. A municipal millage rate of 3.35 mills would generate $6,786,928, which exceeds

estimatedexpendituresintheprimarystudyby$261,348.

Table1:RevenueGeneratedbyHypotheticalCityMillageRates andDeKalbSpecialDistrictMillageRate

CityMillageRateof3.221millswith

$20,000homesteadexemption

CityMillage Rate of 3.35 mills with

$20,000homesteadexemption

DeKalbCountyMillageRateof6.39

mills with existing homestead

exemptions and HOST factor of

47.3%

$6,525,580 $6,786,928 $9,927,881


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Supplemen tal P ropo sed C ity of Brookhaven

Airport Area Revenue Analysis

March 2012


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SupplementalProposedCityofBrookhavenAirportAreaRevenueAnalysis

Thissupplementalanalysiswasundertakenat therequestofStateRepresentativeMikeJacobs

to determine the estimated potential tax and fee revenue value that could be derived from a small

portionoftheareaoriginallyincludedinthestudyareaintheprimaryreport, RevenueandExpenditure

EstimatesforaProposedCityofBrookhaven .Utilizingthesamedataandmethodologyusedtoprepare

theprimaryreport,theestimatedamountofrevenuethatwouldbegeneratedbythesocalledairport

areawascalculated.1

Itshould benoted that much ofthis area ispart ofPeachtree DeKalb Airport and thus being

publicproperty,wouldnotgeneratetaxrevenuetoamunicipalcorporation.Becausethereisverylittle

residentpopulationintheairportarea,therevenueestimatemethodologiesprovidedinthereportthat

aremostheavilydependentoncommercialpropertywereutilized.Includingpropertytaxes,removalof

theairportareawouldreducetheoverallrevenueestimatebyapproximately$126,000.Fordetermining

thepropertytaxportionofthisestimate,apropertytaxmillagerateof3.35millsandthe2011property

taxdigestvalues,whichwerelowerthan2010values,wereused.

The following table demonstrates the changes in the ratios of residential, commercial, and

industrialareasofthestudyareatotheunincorporatedareaofDeKalbCountywiththeAirportArea

removed.

RatioComparisonsPrimaryReportStudyAreaWithandWithoutAirportArea

OriginalStudyArea (including

AirportArea)

StudyAreawithoutAirport

Area

ResidentialAV 14.67% 14.66%

CommercialAV 12.41% 12.10%

IndustrialAV 1.40% 1.31%

A previous supplemental analysis, Supplemental Proposed City of Brookhaven Property Tax

Analysis,indicatedthatamunicipalmillagerateof3.35millsinthestudyareawouldgenerateanoverall

revenueestimatewhichexceedsestimatedexpendituresintheprimarystudyby$261,348.Subtracting

the estimated revenue loss resulting from removal of the airport area from this figure, results in an

anticipatedsurplusof$135,348,beforetakingintoconsiderationanypossiblereductioninexpendituresthatmightresultfromremovaloftheairportarea.

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Complete Cvi Study