Taking a Look at the City of Atlanta

729 Words Jan 29th, 2018 3 Pages
Revenue Trends
With the continued sluggish economy, Atlanta’s total revenue projections continue to decline from the budget dating back to 2010 when the current mayor Kasim Reed took office. The City’s property tax base is the primary component accounting for 40% of the City’s general fund revenues. Property tax revenues have continued to experience declines associated with decreased residential tax bases, negative reassessments, successful tax appeals and continued weakness in the housing market. The City has demonstrated a measured response by continuing to budget property tax revenue collection conservatively. To meet the projections, the collection rate in the proposed budget was set to rise to 98%, up from the previous year’s collection rate of 96% (Pendered 2013). Public utility, alcoholic beverages and other taxes are the second largest revenue source, at 23% resulting from franchise agreements of the use of the City’s right-of-way in providing public utilities such as telecommunications, gas and electric and from taxes imposed on businesses operating in the City of Atlanta. Sales tax revenue is the third largest share of general fund revenues accounting for nearly 20% of revenue anticipations. Sales tax revenue is extremely flexible due to changes in economic performance associated with disposable income and unemployment levels. Despite still declining revenues, the budget avoids service cuts and property tax hikes, while adding about a million dollars to the…

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