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Politics & Government

DeKalb Headed for a Train Wreck, Says CEO Ellis

DeKalb CEO tells Tucker Business Association that commission budget cuts will keep county from offering reasonable services.

When Burrell Ellis became DeKalb County CEO in January 2009, the Great Recession was already ravaging both the job and real estate markets. Soon, government revenues would also plunge and Ellis was forced to preside over the downsizing of DeKalb’s government. Many cutbacks later, the county’s fiscal challenges are not over.

Ellis appeared at the Hampton Inn Northlake yesterday at a Tucker Business Association monthly meeting. Starting off with the economy, Ellis told TBA members, “Many of you are still standing and should applaud yourselves.” While noting the economy’s current improvement, he said that DeKalb County was still dealing with the recession’s impact of lower property tax revenue.

Ellis touted the size of DeKalb’s cuts in 2009 and 2010 of over $100 million out of a total budget that was as high as $636 million in 2008. In fact, those cuts were higher than Cobb, Gwinnett and the City of Atlanta, according to a recent Atlanta Journal-Constitution article, both in terms of dollars and percentages.

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However, if the DeKalb Board of Commissioners has its way, Ellis will have to find another $33.6 million in cuts for the $530 million 2011 budget. Ellis would have preferred a millage rate increase and visibly expressed his unhappiness with the commission.

“There are some services that we’ve got to deliver to our constituents,” said Ellis. “This is not sustainable. We’re headed for a train wreck.” He also decried the commission’s periodic habit of reducing cuts because of phone calls from residents.

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“All this is making the bond rating agencies nervous,” added Ellis. “They want us to have enough liquidity.” He was referring to Standard & Poor’s and Moody’s recent county credit rating downgrades. Tax anticipation notes, which carry the county over to the end of the year, and upcoming water and sewer capital bonds would be more expensive, noted Ellis.

Ellis explained that other DeKalb County budget pressures include:

  • The incorporation of the City of Dunwoody, which deprived the county of $18 million in revenue
  • DeKalb’s pension and health insurance obligations
  • The county’s small commercial tax base, relative to residential
  • A reserve budget that is near empty
  • A census count that was about 50,000 short of an Atlanta Regional Commission estimate, which could affect future resources

In closing, Ellis struck a hopeful note with his TBA audience, “We have laid the foundation and will be well-poised for the economic recovery.” He was referring to the overall government downsizing of 2009-10, early retirements of county employees, a revenue enhancement commission seeking non-tax revenue sources and strategic planning.

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