RevenueandExpenditureAnalysis

ofa

ProposedCityofDunwoody

Preparedby

CarlVinsonInstituteofGovernment TheUniversityofGeorgia

January2008

Introduction
Thisreportprovidesabriefoverviewoftheestimatedrevenuesandexpendituresanewly incorporatedCityofDunwoodycouldanticipatereceivingandspendingtoprovide municipalservicesforasinglefiscalyear.Therevenuesarebaseduponactualrevenues collectedfortheunincorporatedareabyDeKalbCountyinfiscalyear(FY)2006aswell asprojectionsforfranchisefees,theHomesteadOptionSalesTax,andtheCommunity DevelopmentBlockGrant.Expenditureestimatesareprimarilybasedonthecostsfor servicesinthenewNorthFultoncitiesofJohnsCreek,Milton,andSandySprings.There areafewcostestimatesforservices,discussedlaterinthisreport,thataredeveloped usingothercriteriaduetoservicespecificationsordataavailability.Becausethe estimatesgiveninthisreportarebasedontaxleviesandservicelevelsforacitynotyet created,theycannotbeviewedascertain,butrathertheyprovideaninformationtool fromwhichstakeholdersinDunwoodysincorporationcanassessthedesirabilityofsuch anactoccurring. Asanoverview,thisreportprovidesthefinalrevenueandexpenditureestimatesandonly brieflydescribesthemethodologyusedtocalculatethosefigures.Ifthereaderwould liketolearnmoreaboutthemethodologiesandcalculations,pleaseseeourcompanion MethodologyReport.Finally,pleasenotethatthisreportandtheanalysisthereindonot constituteapositioneitherfororagainsttheestablishmentofaCityofDunwoodybythe CarlVinsonInstituteofGovernment(CVIOG).

SummaryofRevenueandExpenditureEstimates
Table1summarizesthetotalestimatedrevenuesandexpendituresfortheproposedCity ofDunwoody.Whentotalrevenuesandexpendituresareestimated,thereissurplusof nearly$279,000annuallywhichcouldbeusedtoofferhigherlevelsofservice.The summaryofexpendituresincludesstartupcosts(interestonthetaxexpenditurenote, contingencyfund,purchasingfacilitiesownedbyDeKalbCounty)thatweestimateas beingeliminated5yearsafterincorporation.Theseexpenditurestotalover$630,000and canbeappliedtootherserviceneedsinthefuture. Thisreportutilizesafiscallyconservativemethodologyintwoimportantways. First,revenueswerecalculatedusingdatafromFY2006whileexpendituredata arenearlyallbasedonFY2007andFY2008budgets,meaningthatanticipated revenueincreasesforFY2007areexcludedfromthisanalysis.Forexample, 2

DeKalbCountysSpecialTaxDistrictDesignatedServicesrevenuesincreased 3.74%fromFY2005toFY2006andtheCountybudgetedanadditional10%in revenueforFY2007(overFY2006).1IfoneassumesDunwoodysrevenues increasedbythemoremodestgrowthof3.74%thatwouldequatetoanadditional $702,000inrevenueavailablefortheCityofDunwoody. Second,CVIOG,inconsultationwithCitizensforDunwoody,Inc.,didnotincludeany additionalHOSTrevenuethatcouldbeforthcomingtoDunwoodyundera2007 amendmentoftheHOSTlaw(i.e.,HB264).Thedecisiontonotincludethisrevenueis duetotheamountbeingdependentuponcapitalfundingdecisionsbyDeKalbCounty andthereforetherevenuespotentialvariability.TheHOSTprovisionfoundinHB264 willbenefitDunwoodyinthatadditionalHOSTrevenuewilllikelybeforthcomingbut theamountsaresubjecttochangeannuallybasedondecisionsmadebytheCounty. Table:1SummaryExpenditureEstimates foraCityofDunwoody TotalAnnualRevenues PerCapitaRevenues CityCouncil CityManager Finance GeneralOperations LegalDepartment CityClerk CommunityDevelopment FacilitiesMaintenance MunicipalCourt ParksandRecreation Police RoadsMaintenance StormWater TourismBoard NonDepartmental SurplusforFundBalance/ ContingencyFund
1

$18,777,904 $505.41 $113,000 $396,062 $924,392 $3,770,759 $329,928 $267,509 $889,467 $503,701 $448,820 $329,374 $2,782,008 $2,537,990 $1,070,407 $425,317 $300,000 $482,839

DeKalbCounty2007budget.Pg.83.

TotalOperating AnnualCapital TotalAnnualExpenditures PerCapitaExpenditures DifferenceSurplus PerCapitaDifferenceSurplus

$15,571,573 $2,927,542 $18,499,115 $497.90 $278,789 $7.50

Revenues
TherevenueestimatesoutlinedbelowincludeallmajorrevenuesourcesaCityof Dunwoodywouldhavecollectedhaditbeenacityin2006andassessedtaxesandfeesat ratessimilartoDeKalbCountyinthatsameyear.Incalculatingtheseestimates,our primarygoalswereto1)befairandaccuratetotheextentpossibleand2)applymetrics usedinpriorresearchthatwereacceptedbyDunwoodyincorporationstakeholders.To accomplishthesecondgoal,thisreportusessimilarrevenueestimationmethodologiesas thoseprovidedinGeorgiaStateUniversitys2007report,TheFiscalImpactonDeKalb CountywithPossibleIncorporationofDunwoody,Georgiatotheextentpossible.We alsohopethatbyapplyingsimilarrevenueestimatingmethodologies,therewillbe improvedconsistencyinrevenueestimationovertime.Themethodfordetermininghow muchrevenuewasassignedascomingfromtheDunwoodyareaisdescribedinTable2. Likewise,weusepopulationestimatesforDunwoodyof37,154and620,131forthe CountysentireunincorporatedareawhicharethesameasthoseusedintheGeorgia StateUniversitysreport.

Table2:DunwoodyRevenueEstimatesFY2006 RevenueSource
RealPropertyTaxes PropertyTaxesPenalties PersonalPropertyTaxes PersonalPropertyTaxesPenalties MotorVehicles

DataSource
TaxCommission TaxCommissioner Ratioofassessedvalueofcommercialpropertyin DunwoodytoDeKalbunincorporatedarea Ratioofassessedvalueofcommercialpropertyin DunwoodytoDeKalbunincorporatedarea RatioofpopulationinDunwoodytoDeKalb unincorporatedarea Percentofpenaltiespaidforpropertytaxesto propertytaxespaidinDunwoodytimestotalmotor vehiclespenalties Ratiosofassessedvalueofutilityorindustrial propertyinDunwoodytoDeKalbunincorporated area,respectively Ratioofassessedvalueofresidential&commercial propertyinDunwoodytoentireunincorporatedarea Ratioofassessedvalueofcommercialpropertyin DunwodytoDeKalbunincorporatedarea Ratioofassessedvalueofcommercialpropertyin DunwoodytoDeKalbunincorporatedarea

Amount
3,309,014 245,560 416,826 27,106 205,941

MotorVehiclesPenalties

15,283

Utility/HeavyEquipmentTaxes Intangible BeverageTaxExciseTaxes Hotel/MotelTax

69 188,386 730,618 772,515

InsurancePremiums BankSharesTax FranchiseFeesCable FranchiseFeesOther HomesteadOptionSalesTax BusinessLicenseBeverages BusinessLicenseGeneral BusinessLicensePolice CommunityDevelopmentFees andPermits ChargesforServices:Recreation, PublicWorks,andFingerPrinting ChargesBrookRunSkatePark2 CopyingFeesGeneralFund SaleofPrintedMaterialPolice StateHomesteadTaxCredit StateGrantCommunity DevelopmentBlockGrant Fines&Forfeitures Miscellaneous InvestmentIncome LawEnforcementConfiscated MoniesFund Hotel/MotelTaxFund(restricted) DevelopmentFund StormWaterFund

RatioofpopulationinDunwoodytoDeKalb unincorporatedarea RatioofpopulationinDunwoodytoDeKalb unincorporatedarea RatioofpopulationinDunwoodytoDeKalb unincorporatedarea Estimatesfromtherelevantelectric,naturalgas,and telecommunicationsutilities1 2006valueofHOSThomesteadexemptiongivento qualifiedDunwoodyhomeowners Ratioofassessedvalueofcommercialpropertyin DunwoodytoDeKalbunincorporatedarea Ratioofassessedvalueofcommercialpropertyin DunwoodytoDeKalbunincorporatedarea Ratioofassessedvalueofcommercialpropertyin DunwoodytoDeKalbunincorporatedarea Ratioofassessedvalueofresidential&commercial propertyinDunwoodytoentireunincorporatedarea RatioofpopulationinDunwoodytoDeKalb unincorporatedarea FeesandadmissionsforCityofAshevilleSkatePark RatioofpopulationinDunwoodytoentireCounty RatioofpopulationinDunwoodytoDeKalb unincorporatedarea 2.04millsx8,000x9,916homesteads Averagerevenuefrom20GeorgiaCitiespopulation rangebetween21,00057,000for5years RatioofpopulationinDunwoodytoDeKalb unincorporatedarea RatioofpopulationinDunwoodytoDeKalb unincorporatedarea RatioofpopulationinDunwoodytoDeKalb unincorporatedarea RatioofpopulationinDunwoodytoDeKalb unincorporatedarea Ratioofassessedvalueofcommercialpropertyin DunwoodytoDeKalbunincorporatedarea Ratioofassessedvalueofresidential&commercial propertyinDunwoodytoentireunincorporatedarea RatioofpopulationinDunwoodytoDeKalb unincorporatedarea

1,600,814 36,622 303,192 2,540,329 1,394,888 225,738 2,261,675 138,988 20,094 13,924 22,000 9,958 18,550 161,829 188,371 954,061 10,196 5,013 68,456 425,317 1,295,106 1,171,464

TotalRevenueEstimate PerCapitaRevenue

$18,777,904 $505.41

1.ATTprovidedrangeof$50,000$200,000forannualfranchisefeepayments.Inordertoprovideone figure,thisreportusesthemedianvalueof$125,000.

2.DatafromDeKalbParksandRecreationDepartmentwasnotreceivedbythetimethisreportwaswritten.

TheprimarybasesusedforestimatingDunwoodysportionofDeKalbCountyrevenues aregiveninTable3.AstheunincorporatedareaofDeKalbCountydevelops, Dunwoodysproportionofcommercialpropertyrelativetotheentireunincorporatedarea hasdecreased.In2004,theDunwoodyareacontained21.71%oftheunincorporated areasrealcommercialproperty,nowitcontains16.31%.Thischangehaslikely occurredbecausethelandareainDunwoodyisalreadydevelopedwhileotherpartsofthe Countystillhaveundevelopedland.However,Dunwoodysproportionofresidential propertyincreasedslightlyfrom2004to2006from11.31%to11.55%.Thischangemay beduetoresidentialpropertiesintheDunwoodyareaincreasinginvaluerelativelymore thaninotherpartsofunincorporatedDeKalbCountyorredevelopmentoccurringin Dunwoodythathasincreasedthedensityofhousing(e.g.,condominiumsreplacing singlefamilyhomesonlargelots). Table3:RelevantPercentagesforDunwoodytoDeKalbCounty,20061 DunwoodyPctofAssessedValue(AV)toUnincorporated DeKalb(realpropertyonly) 11.85% DunwoodyPctofRealCommercial(AV)toUnincorporated DeKalbRealCommercialProperty 16.31% DunwoodyPctofRealResidentialProperty(AV)to UnincorporatedDeKalbRealResidentialProperty 11.55% DunwoodyPopulationPctofUnincorporatedDeKalb DunwoodyPopulationPctofCountywide 5.99% 5.23%

Source:PropertytaxdataDeKalbCountyTaxCommissionerandGADeptofRevenueConsolidated TaxDigest.PopulationGeorgiaStateUniversity.2007.TheFiscalImpactonDeKalbCountywith PossibleIncorporationofDunwoody,Georgia.

OperatingExpenditures
MethodologySummary
Themunicipalservicesincludedinthisreportfocusonthosecurrentlyprovidedby DeKalbCountywithintheUnincorporatedSpecialTaxDistrictplusstormwaterand tourism.SeetheMethodologyReportforthelistofservicesthatCVIOGassumes DeKalbCountygovernmentwillcontinueprovidingtoresidentsandbusinesseslocated withinaCityofDunwoody.

OperatingCostEstimatesforServices ToestimatetheexpendituresofanincorporatedDunwoody,CVIOGusedthethree recentlyincorporatedcitiesinNorthFultonCountyasaguide.Morespecifically,we createdaveragepercapitacostsbasedonthosecitiesannualdepartmentaloperating budgetsforthefollowingservices: CityManager FinanceDepartment LegalServices GeneralOperations(includes:HumanResources,InformationTechnology,Public InformationandCallCenter,CityOperations/ProgramManagement,andsome Nondepartmental) CityClerk FacilitiesMaintenance MunicipalCourt PublicWorksRoadMaintenance NonDepartmental Thebudgetsusedare:SandySpringsFY2007andFY2008;JohnsCreekFY2007 (annualizedfor12months)andFY2008,andMiltonFY2008.Formoreexplanation abouttheselectionofthebudgetsandonetimeexpendituresthatwereexcluded,please seetheMethodologyReport. BecausethecostestimatesrelyonNorthFultoncitiesFY2007andFY2008budgetdata andDunwoodyrevenueestimatesarebasedonFY2006DeKalbCountycollections, CVIOGsanalysisappliesaveryfiscallyconservativemeasureforviability.Inother words,thiscomparisonofrevenuestoexpendituresdoesnotaccountfortheadditional revenuesDunwoodywouldreceiveifthisreportreliedonrevenuedataforFY2007. PopulationestimatesforthenewNorthFultonCities SandySprings:86,698 JohnsCreek: 72,988 Milton: 19,861 Forexplanationonhowtheabovepopulationfiguresweredetermined,pleasereadthe MethodologyReport. RemainingMunicipalServices

Theremainingmunicipalservicesarecalculatedwithdatafromsourcesotherthanthe newNorthFultoncities: Police CityCouncil ParksandRecreation CommunityServices StormWater TourismBoard Pleasereadthecompanionreportforinformationaboutthemethodologiesanddataused tocalculatetheexpendituresfortheseservices.

OperatingExpenditureEstimates NorthFultonCitiesPerCapitaMethodology
CityManagersOffice Forallthreeofthenewcities,theCityManagerispaiddirectlybythecityandis thereforeconsideredacityemployee. CityandFiscalYearBudget Dept.Budget JohnsCreekFY07 657,409 JohnsCreekFY08 839,000 MiltonFY08 365,784 SandySpringsFY07 625,744 SandySpringsFY08 659,777 AveragePerCapitaExpenditure DunwoodyExpenditureEstimate PerCapita 9.01 11.50 18.00 7.20 7.59 $10.66 $396,062

TheCityofDunwoodymightalsowanttoconsiderhiringanindividualdedicatedto contractmanagement.ThispersoncouldassisttheCityManagerinensuringthecity receivedtheservicesfromitscontractorsatthelevelspecifiedinthecontracts.This personcouldalsodevelopmetricstoincludeincontractswithserviceprovidersandeven actasanassistantcitymanager.Thecostofsuchapositionwouldlikelyapproximate $100,000$125,000forsalaryandbenefits. FinanceOffice AllthreeNorthFultoncitieshavetheirownfinancedirector(titleisTreasurerinMilton) butstaffsupportingthefinancedirectorareCH2MHillOMIemployees.

CityandFiscalYearBudget Dept.Budget JohnsCreekFY07 1,398,000 JohnsCreekFY08 1,577,200 MiltonFY08 751,832 SandySpringsFY07 1,965,345 SandySpringsFY08 1,989,710 AveragePerCapitaExpenditure DunwoodyExpenditureEstimate GeneralOperations

PerCapita 19.15 21.61 38.00 22.67 22.95 $24.88 $924,392

SeetheMethodologySummaryaboveforalistofservicesincludedunderGeneral Operations. CityandFiscalYearBudget Dept.Budget JohnsCreekFY07 6,672,404 JohnsCreekFY08 6,050,120 MiltonFY08 2,148,212 SandySpringsFY07 9,749,801 SandySpringsFY08 9,770,647 AveragePerCapitaExpenditure DunwoodyExpenditureEstimate LegalServices AllthreeoftheNorthFultoncitiescontractwithprivatelawsfirmsforlegalservices. Dunwoodycouldalsochoosethismethodofserviceprovisionorapplytheestimated expenditurestohireitsowninhouselegalcounsel.Thecityattorneycouldalsoserveas thecityssolicitoronthosedaysthecityholdsmunicipalcourt. PerCapita 91.42 82.89 108.00 112.46 112.70 $101.49 $3,770,759

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CityandFiscalYearBudget Dept.Budget JohnsCreekFY07 724,800 JohnsCreekFY08 569,000 MiltonFY08 180,000 SandySpringsFY07 766,000 SandySpringsFY08 766,000 AveragePerCapitaExpenditure DunwoodyExpenditureEstimate CityClerk

PerCapita 9.93 7.80 9.00 8.84 8.84 $8.88 $329,928

UnderGeorgialaw,theCityClerkmustbeamunicipalemployee.However,all expendituresandstaffthatsupporttheworkoftheCityClerkcanbecontractedoutto privatecompanies.ThisblendofdirectmunicipalandCH2MHillOMIcontract expendituresisseeninallthreeofthenewcities. CityandFiscalYearBudget Dept.Budget JohnsCreekFY07 224,280 JohnsCreekFY08 449,000 MiltonFY08 448,558 SandySpringsFY07 182,313 SandySpringsFY08 179,904 AveragePerCapitaExpenditure DunwoodyExpenditureEstimate
2 Facilities

PerCapita 3.07 6.15 22.59 2.10 2.08 $7.20 $267,509

Duetodataavailability,thisserviceonlyfocusesonthefacilitiesandbuildingscostsfor SandySprings.3Toestimatebuildingmaintenancecosts,wesubtractedthebuilding
2

Dunwoodymightbeabletodosoaswell,inlieuofleasingcommercialproperty.Totalavailablespace fromofficebuildings,maintenance,andtheatreexceeds32,000squarefeet.Thesebuildingsareolderthan thoseusedbythenewNorthFultoncitiessotheabovefacilitymaintenancecostscannotbeappliedtothem noraretheactualfacilitymaintenancecostsknown.Therefore,spacefromBrookRunisnotusedforthis report.BecausetheSpruillArtCenterfacilityismanagedbyanonprofitorganizationandtheDonaldson ChesnutFarmisclosed,nofacilitymaintenancecostsarebudgetedforthesebuildings. 3 MiltonsfacilitymanagementcostsareincorporatedintoitsPublicWorksbudget.CVIOGcouldnot verifytheleasecostsforJohnsCreeksgeneralgovernmentandpoliceandmunicipalcourtbuildingsand

Currently,DeKalbCountyutilizesfacilitieslocatedatBrookRunParkforstaffandmaintenance.

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leaseexpendituresfromthefiscalyears2007and2008budgetsandthencalculatedaper capitacostestimate.

thussegregatebuildingleaseexpendituresforageneralbuildingmaintenancebudget.

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CityandFiscalYearBudget SandySpringsFY07 SandySpringsFY08 AveragePerCapitaExpenditure DunwoodyExpenditureEstimate

Total Dept.Budget 1,003,452 1,343,472

Dept.Budget LessLeaseCost 406,718 395,272

PerCapita 4.69 4.56 $4.63 $172,023

Wethenaveragedthethreecitiesleasedbuildingspace(squarefootage)fornonpublic safetyservicestodeterminethebuildingspaceneedsforDunwoody.Thesquarefootage wasmultipliedbythecostpersquarefootpaidbySandySpringsforFY2007. Sq.FtLeasedSpace: Sq.FtSpace City Nonpublicsafety PerCapita JohnsCreek 36,000 0.49 Milton 23,000 1.16 SandySprings 62,000 0.72 AveragePerCapitaLeasedSpace 0.79 DunwoodyLeaseSpaceSquareFeet 29,352 CostpersquarefootFY2007 $11.30 DunwoodyExpenditureEstimateLeaseSpace $331,678 Bothgeneralfacilitiesmaintenanceandleasespacearecombinedfortotalfacilitiescost estimate. TotalCostFacilities:$503,701 MunicipalCourt Forallthreecities,theCourtClerkispaiddirectlybyeachcityandistherefore consideredacityemployee.Thecitiesalsodirectlyhireparttimejusticesandsolicitors; however,supportservicesarepaidfromthecitiesrespectiveCH2MHillOMIcontracts. CityandFiscalYearBudget JohnsCreekFY07 JohnsCreekFY08 MiltonFY08 Dept.Budget PerCapita 402,181 5.51 593,000 8.12 448,565 22.59

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SandySpringsFY07 SandySpringsFY08 AveragePerCapitaExpenditure DunwoodyExpenditureEstimate

847,112 1,250,514

9.77 14.42 $12.08 $448,820

4 PublicWorksRoadMaintenance

ThePublicWorksdepartmentalexpendituresforthenewNorthFultoncitiesinclude stormwatermaintenanceservices.Becausethespecificcostallocationforpublicworks isconsideredproprietarybyCH2MHillOMI,CVIOGcannotremoveactualstormwater expendituresfromthenewcitiespublicworksbudgets.However,CVIOGseparately accountsforstormwaterusingDeKalbCountyFY2006expenditures(seepage15).To avoiddoublecountingstormwaterexpenditures,wedeductDekalbCountyspercapita stormwatermaintenanceexpenditure(FY2006)fromthenewcitiesaveragePublic Worksbudgets. CityandFiscalYearBudget Dept.Budget JohnsCreekFY07 7,378,968 JohnsCreekFY08 6,639,500 MiltonFY08 1,753,254 SandySpringsFY07 8,947,788 SandySpringsFY08 8,846,920 AveragePerCapitaExpenditure DeKalbCountystormwaterFY2006 NetPerCapitaEstimate DunwoodyExpenditureEstimate NonDepartmentalCostsfromnewNorthFultonCities Unlikemoreestablishedcitieswhosecashflowshavelongsincebeenstabilizedthrough fundbalances,thenewcitiesfacedimmediateexpendituresyethadtowaitmonthsbefore receivingpropertytaxrevenues.Inordertopaythebillsontime,thecitiesissuedtax
Forcomparison,wealsocalculatedservicescostsusingacostpercenterlanemilemethodology.Data camefromJohnsCreekandSandySpringsFYS2007and2008budgetsandtheDepartmentof Transportation.Withthismethodology,theestimatedcosttoDunwoodyequaled$2,622,481,a3% differencetotheestimateusingpercapitacosts.Therefore,CVIOGconsidersthepercapitaestimatetobe reasonable.
4

PerCapita 101.10 90.97 88.28 103.21 102.04 $97.12 $28.81 $68.31 $2,537,990

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anticipationnotes(TAN)andDunwoodyshouldanticipatehavingtoacquireaTANas well.MiltonsFY2008interestexpenditureforitsTANis$150,000andweestimatea similarinterestcostforDunwoody. Otherthaninitialstartupequipment(computers,generalofficefurniture,etc.)which CH2MHillOMIleasedonbehalfofthenewcities,thenewNorthFultoncitieshave madepolicydecisionstopurchasetheirownequipmentinordertosavemoneyonsales taxes.However,muchoftheequipmentthenewcitieshavebudgetedforincludeitems forpublicsafetywhichthisreportaddressesseparately.Therefore,CVIOGexaminedthe remainingnonpublicsafetyitemsthenewcitiesbudgetedforpurchaseinFYS2007and 2008andbasedonthoseitems,estimates$150,000annuallyfornonpoliceequipment.

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NonDepartmental TANInterest GeneralEquipment TotalNonDepartmental

150,000 150,000 $300,000

NonNorthFultonCostEstimateMethodologies
Police ThisreportassumesDunwoodywouldmanageitsownpolicedepartmentratherthanrely onintergovernmentalagreementswithanexistingcity.CVIOGbaseditsestimateson budgetarydataandinformationsuppliedbyrepresentativesfromSandySprings(for salaries)andMilton(forequipmentandsalaries).Sincebothofthesecitiesestablished theirownpolicedepartmentswithinthelasttwoyears,thecostsprovidedbelowshould bebothaccurateandcompetitive.Toestimateongoingadministrativecosts,weusedthe ratioofoperatingandmaintenancecoststopersonnel(salariesandbenefits)fortheCity ofAlpharettaforFY2007.CVIOGassumesDunwoodywillpurchasetheNorthPrecinct fromDeKalbCountyandthecostforthisbuildingisshownunderCapitalonpage16. NumberofOfficersandPersonnelCosts Forthisanalysis,CitizensforDunwoody,Inc.requestedthatCVIOGcalculatethe numberofofficersneededtostaffapolicedepartmentassumingfourpatrols.Tosatisfy thiscriterion,theShiftReliefFactormodelwasusedbecauseitcentersontheofficers neededtofullystaffonepatrolratherthanonthenumberofcallsreceived.Themodel startswiththenumberofdaysapatrolwillfunction(i.e.,365)andthensubtractsthe numberofdaysanofficerisunabletostaffthatpatrolbasedonhoursworked,vacation, sickleave,training,etc. ModelAssumes:officerswork58hourshiftsperweek,10vacationdays,12dayssick leave,9holidays,and10daysoftrainingwhichresultsinaworkshiftratioof1.66.5 Changesintheseassumptions,suchasmorevacationleavewillaltertheworkshiftratio andthenumberofofficersneededperpatrol. 1.66officerspershiftx3shiftsperpatrol=4.98or5officersperpatrol 4patrolstimes5officersperpatrol=20patrolofficers
MikeSwanson.1995.StaffandOperationsStudyToccoaPoliceDepartment.CarlVinsonInstituteof Government.
5

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BasedontheofficerhiringcriteriaofthenewNorthFultoncities,thisstudyassumes patrolofficersarealreadytrainedandhavemorethanoneyearofexperience.Ofthe20 patrolofficerscalculated,thisreportassumesapproximatelyonethirdwillbesenior officers(i.e.,severalyearsexperience).

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ThereportassumesthatthePoliceDepartmentwillneedanadditional8officersfornon patrolfunctions. 1PoliceChief 1LieutenantOperations 3SergeantsShiftSupervisors 2Detectives 1CommunityOutreachOfficer Number Officers 14 6 3 2 1 1 1 28 Ave.Position Salary $40,000 $48,000 $61,100 $54,300 $54,300 $68,700 $105,000

Position PatrolOfficer SeniorPatrolOfficer Sergeants Detectives CommunityOutreach Lieutenant PoliceChief1 Total SalaryandBenefits

TotalSalary 560,000 288,000 183,300 108,600 54,300 68,700 105,000 1,367,900 410,370 $1,778,270

Benefits30%ofsalaries

1.ICMAsalarysurveydata2007SouthAtlanticRegionWeightedMaximum

OvertimeandHolidayPay Inordertocompensateofficersforworkingonholidaysandsomeinevitableovertime, thisestimateincludesanadditionalallocationforsalariesandbenefits.InFY2008,the CityofSandySpringsratioofregularsalariestoovertimesalariesforitsPolice Departmentequals8.69%.Asemployeesearnadditionalwages,employersmustalso contributemoreforbenefitssuchasSocialSecurityandretirement.Therefore,this estimateincludesanadditional8%allocationtobothtotalsalariesandbenefits. $1,778,270regularsalariesandbenefitsx8.0%=$142,261 OneTimeOfficerCosts Initsinitialyear,Dunwoodywillneedtomakeasignificantinvestmentinrecruitment, uniforms,andofficerequipmenttoproperlyoutfittheaboveofficers. 27Recruitment(excludesChief) 18 $18,968

28Uniform,weapon,vest@$3,050 28Radios@$3,800 28Technology@$3,000 TotalOneTimeOfficerCosts

$85,400 $106,400 $84,000 $294,768

OngoingOfficerCosts Likeallpolicedepartments,Dunwoodyshouldanticipateturnoverofofficersand thereforewillincuraportionoftheabovecostsannuallywhenhiringnewofficers.This reportassumesa10percentannualturnoverwhichislowerthanthenationalaveragebut consideringtheestimatedsalariesandbeinganewdepartment,webelievetheturnover rateisreasonable.Therefore,Dunwoodywillneedtoretain10percentoftheabove recruitmentanduniformcostsinitsongoingbudget.Inaddition,weassumetheradios andtheofficetechnology(e.g.,computers)haveafouryearlifespan.Therefore,one fourthofthesecostsareincludedintheongoingbudget. Recruitment Uniform,weapon,vest@$3,050 Radios@$3,800 Technology@$3,000 TotalOngoingOfficerCosts $1,897 $8,540 $26,660 $21,000 $58,097

OngoingAdministrative Likeanyoffice,thePoliceDepartmentwillincuradministrativeexpensessuchas professionaldevelopment,utilities,supplies,vehiclemaintenance,etc.Toestimatethis cost,weusedtheratioofgeneraloperating(lessequipment,uniforms,buildingrent)to salariesfortheCityofAlpharettasFY2007PublicSafetybudget.Thatratioequaled 18%. DunwoodyAdministrative:$1,778,270(regularpersonnel)x.18=$320,089 Vehicles Approximately85percentofAtlantametropolitanpolicedepartmentshaveavehicletake homepolicy,6requiringDunwoodytofollowasimilarpracticeinordertobea competitiveemployer.Vehiclescantypicallybedrivenfor5years.Followingthe practiceofthenewNorthFultoncities,weassumea5yearleasepurchaseagreement.

InterviewwithChristopherLagerbloom,ActingCityManagerforCityofMilton.October30,2007.

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28vehiclesat$35,0007pervehicle=$980,000 Annualcostwithinterestrateof4.5%=$204,820 OfficeEquipment Dunwoodywillalsoneedtopurchaseofficeequipment.Againweassumea5yearlease purchaseagreementwith4.5%interest Totalcostforofficeequipment$200,000 Annualleasepurchasecost=$41,800 CrimeUnitInvestigationsandSpecialForces LikeothersmallcommunitiesacrossGeorgia(e.g.,Milton),Dunwoodycanutilizethe expertiseandresourcesofthestatescrimelabandcrimesceneinvestigatorswhen necessary.Inaddition,weassumethatDunwoodywillparticipateininterlocal agreementswithneighboringjurisdictionsforuseofSpecialForces,suchasaSWAT TeamorAntiTerrorismUnit.Duetotheirlimitedandunpredictableuse,nocostsare specificallybudgetedforSpecialForces. ContingencyBudget Afterthefirstyear,thePoliceDepartmentmaywanttoapplysomeofthefirsttime officercosts(i.e.,fromuniforms,radios,technology)toadatamanagementsystem.This reportincludes$200,000fordatamanagementorothercontingencyneedsasanongoing expenditureafteryearone.Thiscontingencybudgetcouldalsobeusedtorepaya neighboringjurisdictionifasituationoccurredinDunwoodythatrequiredSpecialForces suchasAerialSupport,BombSquad,SWAT,orAntiTerrorismUnit. Jail Becauseprisonerhousingagreementsbetweenacountyssheriffandcitieswithinthat countydiffersubstantiallyacrosscounties,CVIOGlookedatjailcostsforcitiesin DeKalbCounty.ThiswasdoneunderthebeliefthattheDeKalbCountySheriffwould likelydevelopaprisonerholdingagreementwithDunwoodythatresemblestheother DeKalbCountycitiesthatdonotoperatetheirownjail. DecaturdoesnothaveajailtohouseprisonersandthereforereliesontheCountysjail facilities.ToreimbursetheSheriffforprisonercosts,theCitygivestheSherifften
7

CostforvehicletakenCityofMiltonsFY2008budget.Twonewpolicevehiclesbudgetedat$69,487.

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percentofitsfines.In2006,thisexpenditureequaledjust$50,895or$2.81percapita. WeassumethatDunwoodywouldacceptasimilararrangementwiththeSheriff, assessingasurchargeoftenpercenttopayforjailexpensesandthusberevenueneutral. TotalEstimatedPoliceDepartmentExpenditures LineItem RegularSalariesandBenefits OvertimeSalaries&Benefits Recruitment Uniforms RadiosandTechnology Administrative Vehicles OfficeEquipment Contingency EstimatedDept.Budget YearOne $1,778,270 $142,261 $18,968 $85,400 $190,400 $320,089 $204,820 $41,800 0 $2,782,008 Ongoing $1,778,270 $142,261 $1,897 $8,540 $47,660 $320,089 $204,820 $41,800 $200,000 $2,745,337

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CityCouncil ThecostsbelowreflecttheexpendituresallowedunderSB82. Mayorsalary Councilmemberstotalsalary 6members@$12,000 Payrolltaxes,workmans compensation,andbondinsurance ExpensesforMayorandCouncil TotalExpenditure CommunityDevelopment CommunityDevelopmentservices(e.g.,buildinginspections)aregenerallybudgetedon afeeforservicebasisandthereforeshouldberevenueneutral.Inotherwords,higher levelsofserviceswouldalsoresultinhigherfeesandrevenues.Thoughactualservices levelsareunknown,CVIOGdecideditwasmostappropriatetoestimatecommunity developmentcostsusingDeKalbCountysDevelopmentFundandPoliceCode EnforcementbudgetsbecausethisreportreliesonDeKalbCountyrevenueestimatesas well.DeKalbCountysDevelopmentFundincludesexpendituresforplanning,zoning, andinspectionswhilethePoliceDepartmentprovidescodeenforcementservices. Unincorporate d Population 620,131 620,131 16,000 72,000 2,000 23,000 $113,000

DeKalbFY2007

Budget

PerCapita 20.96 2.98 23.94 $889,467

DevelopmentFund 12,998,426 PoliceCodeEnforcement 1,846,654 TotalPerCapitaExpenditure DunwoodyExpenditureEstimate

Source:DeKalbCounty2007budget,pgs.316and236

ParksandRecreation ThisreportassumesDunwoodywillpurchasethefollowingparksandrecreation propertiesfromDeKalbCounty:

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BrookRunPark,DunwoodyPark(naturecenterandathleticfields),Windwood HollowPark,DonaldsonChesnutFarm,andtheSpruillArtCenter8 Totalacreageforparksandfacilities DeKalbCountyMaintenanceCostsperAcreAnnuallyFY2007 ParksMaintenance SkateParkatBrookRunFY2008budget CostestimatebasedoncomparableskateparkinAsheville,NC TotalParksBudget: StormWater CVIOGcalculatedthepercapitastormwaterexpenditureforallunincorporatedDeKalb Countyresidentsusingthestormwaterfundstotalexpendituresanddividingitbythe unincorporatedareaspopulation.Wethenmultipliedthatpercapitacostbythe populationofDunwoody.Dataarefor2006.9 $17,864,716/620,131=$28.81 $28.81x37,154=$1,070,407annualstormwaterexpenditureestimate TourismBoard TherevenuesestimatedfromDeKalbCountysHotel/MotelTaxFundmustbededicated topromotingtourism.UnderSB82,theDunwoodyTourismBoardwouldbeanon profitorganization. Estimateofcontract:$425,317 $329,374 157 $1,582 $248,374 $81,000

SurplusforFundBalance/ContingencyFund
Asanewjurisdiction,Dunwoodywillneedtosetasiderevenuesforcashmanagement withinitsgeneralfund.Thisfundbalanceisalsocriticallyimportantasareserveduring timesoffiscalstress.Standardpracticeistokeepafundbalanceequaling16%(2
8 9

AssumesDeKalbCountywillcontinuetooperatethelibrary DeKalbCountyFY2007OperatingBudgetpg.431

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months)oftotaloperatingexpenditures.Oncethisfundbalancehasbeenreached,theset asideswouldnolongerbenecessaryandthisrevenuecanbespentonotherservicesor capital.FollowingapolicysimilartoMilton,weassumethisreservewillbebuiltup over5years. Totalestimatedoperatingexpenditures:$15,088,734x16%/5years=$482,839 surplusdedicatedtocontingencyfund

CapitalExpenditures
PurchasingParklandandNorthPolicePrecinct ThisreportassumesDunwoodywillpurchasethefollowingpropertiesfromDeKalb County: BrookRunPark DunwoodyPark(naturecenterandathleticfields) WindwoodHollowPark SpruillArtCenter DonaldsonChesnutFarm NorthPrecinctPoliceStation. SB83aspassedbytheHouseGovernmentalAffairsCommitteeinthe2007dictatesthe amountofmoneyDunwoodywouldhavetopayDeKalbCountyinordertopurchase culturalproperties.Thatamountis$100peracre.Theparksandculturalfacilitiestotal acreageequals157,resultinginatotalcosttoDunwoodyof$15,700.Weassume Dunwoodywillacquirealoantopurchasetheparksandfacilitiesat5%interesttobe repaidover5years.ThiscostestimatedoesnotincludeDeKalbCountysunspentbond proceeds(ifany)dedicatedtoBrookRunwhichwouldberemittedtoDunwoodyupon thatcitysacquisitionofthepark. Thetotalannualpaymenttopurchasetheparksequals:$3,555. BasedoncorrespondencewithCitizensforDunwoody,Inc.,ratherthanapplyingthe $5,000purchasepricefortheNorthPrecinctasstatedinSB83,thisreportusesan estimateof$800,000fortheprecinct.Weassumea25yearbondwith5%interest. TotalannualpaymenttopurchasetheNorthPrecinct:$40,000 OngoingCapitalBudget

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Toestimatethecostsforroadconstruction/capitalprojects,weusedaverageannual spendingofexistingcities.Tolearnwhatexistingmunicipalitiesannuallyspendonroad construction,weexamined20citiesacrossGeorgiawithpopulationsbetween21,000and 57,000(2005population)fortheyears20012005.10Theaveragepercapita highway/roadcapitalspendingoverthefiveyearsforthese20citiesequaled$37.25.For Dunwoody,thatequatestoanannualcostof$1,383,987. CitizensforDunwoodyaskedthatthisreportincludeanadditional$1,500,000dedicated toanOtherCapitalSpendingcategorybecauseforseveralofthelastfiveyearsDeKalb Countyhasawardedasimilaramountforcapitalprojectslocatedwithinthecentral Dunwoodybusinesscommunityarea(PCID)fromHOSTcapitalfunds.Thisamount exceedsthe$1.4millionCVIOGestimatesaCityofDunwoodywillreceiveinHOST funds(usingFY2006data). TotalCapital Parks/CulturalFacilities NorthPrecinct Roadsgeneral OtherCapitalSpending Total 3,555 40,000 1,383,987 1,500,000 $2,927,542

Costswereadjustedforinflation(CPI)to2006dollars,BureauofLaborStatistics,SouthUrban.Dataon annualspendingandpopulationcomefromtheGeorgiaDepartmentofCommunityAffairs.
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