Georgia local government finances, 1983: an overview

GA
C495 .Sl F509 1983

Georgia Local Government Finances, 1983
An Overview
Received FEB 0G1986 DOCU fv'l ENTS UGA L BRAH1ES Prepared by
Georgia Department of Community Affairs
Jim Higdon, Commissioner
Intergovernmental Assistance Division
40 Marietta St. Atlanta, Georgia 30303
December, 1983

ACKNOWLEDGEMENTS
The Georgia Department of Community Affairs gratefully acknowledges the cooperation of city and county officials in returning the survey fo rms from which the data in this repo rt was derived . The Department also expresses its appreciation to the follow ing organizations and agencies, which contributed to the report design , or to the collection , analysis, and processing of financial data :
Area Planning and Development Commissions
Association County Commissioners of Georgia
Bureau of the Census, U.S. Department of Commerce
Georgia Depa rtment of Audits
Georgia Department of Education
Georgia Department of Human Resources
Georgia Department of Revenue
Georgia Municipal Association
Georgia Society of Certified Public Accountants
Office of Revenue Sharing , U.S. Department of Treasury
University of Georgia, Carl Vinson Institute of Government

TABLE OF CONTENTS

Introd uct ion Reader's Guide H ighIights County Government Finances Mun icipal Government Finances Appendix A - Data Categories Appendix B - Local Government Financial Data

Page 1
3 5 9
23 37 41

INTRODUCTION
Perhaps no issue facing governmental officials is both as volatile and as misunderstood as local government finance. While matters of international concern , or even statewide interest may leave many cit izens unfazed , increased property taxes or reduced garbage service wi ll usually bring out strong opinions.
Georgia Local Government Finances, 1983: An Overview cannot make city and county revenues, expenditures, and debt less controversia l. However, up-to-date information can help state and local leaders better understand the problems and potentials inherent in local government finance.
As late as 1979 Georgia was one of just three states with no laws requiring cities and counties to conduct audits or prepare financial reports. In 1980 the Georgia General Assembly enacted the Local Government Financ ial Management Standards Act (Act 1405, Georgia Laws 1980, p. 1738) placing financial management requ irements on localities and requiring the Department of Commun ity Affairs to prepare an annual report on local government finances. This, the second annual report, has been presented to the Governor, the Speaker of the House of Representatives, and the President of the Senate (Lieutenant Governor) by December 1, in conformance with provisions of Act 1405.
The information used to prepare Georgia Local Government Finances,1983: An Overview was collected through a comprehensive survey of every city and county government in the state (only general purpose local governments are surveyed , exclud ing such entities as school boards). The survey is the result of a cooperative agreement between the State of Georgia and the U.S. Bureau of the Census. In addition to being used to prepare this report, survey results are provided to Census for its nationwide reports on local government, and to the U.S . Department of the Treasury, Office of Revenue Sharing. Survey data is used by Treasury to establish annual levels of Revenue Sharing fund ing for local governments during the follow ing year.
The annual survey of local finances obtains data for the most recent fiscal year ending between July 1 of the previous year (1982, for this year's report) and June 30 of the current year (1983). Thus the data reported does not conform to a specific 12-month calendar per iod , as local governments have varying fiscal years. Survey responses are not audited responses, necessitating a degree of caution in the analysis and interpretation of results. Also, local governments use different accounting systems. Consequently, certain data requested in the survey may not be obtainable from local accounts and records.
1

This year, as last, the response of city and county officials to the su rvey of local fi nances was exceptional. AII159 cou nty govern ments completed and returned their survey forms (the Columbus-Muscogee Consolidated government is classified as a city , however, in keep ing with Census Bureau classifications) . Of the 534 municipal ities sent survey forms , 505 completed surveys and are included in this analysis. Every city with a population over 1,000 is included.
Since the 1982 survey and report, a number of refinements were made in the entire process of data collection, data processing , and reporting . At the suggestion of the Georgia Mun ic ipal Association , the finances of local government utility systems are distinguished from general purpose finances in this report. Expanded data on city and county debt provides a clearer picture of local borrowing than in the past. Georgia's eighteen Area Planning and Development Commissions (APDCs) assisted their constituent local governments in completing and submitting survey forms. For data processing , the Department of Community Affairs contracted with the Carl Vinson Institute of Government at the University of Georgia. Not only did this provide DCA data processing support at a reasonable cost, but the University system is given access to a valuable information base for fiscal research .
Georgia Local Government Finances, 1983: An Overview is the first report being produced by DCA from 1983 local government fiscal data. It is a " broad brush " document. Inearly 1984, the Department will publish a more deta iled report, examining city and county government finances according to population size group. This report will enable local officials to compare their financial structures with peer groups, localities of similar size.
Upon request, local and state agencies will be afforded access to the data base of local fiscal information maintained by the Department, allowing otherwise unpublished data to be made available.
2

READER'S GUIDE TO THIS REPORT
Statistical reports usua lly make for ponderous read ing. To make th is report as useful as poss ible for people who don 't have time to wade through a thick report, each chapter can be read by itself without the support of the others.
For a brief comparison of cit ies and counties on major aspects of finance, the following chapter is best. Highlights shows the strik ing differences in revenue sources, expenditure patterns, and borrowing practices. It becomes clear that any particular state-level action concerning local finance is likely to affect cities and counties very differently.
The two most in-depth chapters are County Government Finances and Municipal Government Finances. Both chapters are structured the same. Major top ics covered , in order are:
General Revenues Ut ility Revenues General Expenditures Util ity Expenditu res Debt
Graphics in the two chapters show the whole " pie", such as general revenues, first. Then the slices of the pie are pulled out and exam ined in more detail- such as the intergovernmental slice from general revenues .
For questions of what comprises a certain category (such as health and human services expenditures or service charge revenues) turn to Appendix A. The categories and sub-categories of data collected from local governments are listed.
Data tables containing statistics for counties, cities , and local governments combined appear in Appendix B. These figures are subject to some change in the fu ture as survey data is further examined .
3

HIGHLIGHTS
This chapter highlights major features of local government finance in Georgia, particularly pointing out the sharp contrast between city and county. Since much information is presented as cents per one dollar, this is sometimes abbreviated as /$ . One star preceeding a highlight means revenue highlight, two stars means expenditure, and three stars means debt.
* Local governments raised $3 billion in revenue during the fiscal year. Of every dollar of revenue, 59 went to municipalities and 41 to counties.
* Counties get more revenue from general revenue sources (non-utility revenues) than do cities. However, municipalities get seven times as much as do counties from utilities.
* For every municipal revenue dollar, 46 is utility revenue. Only 9 of every county revenue dollar comes from utilities.
* For all local governments (cities and counties combined) the revenue dollar breaks down into: utility revenue (31), property taxes (25), intergovern mental revenues (17), and sales and excise taxes (12) . An additial14 comes from a variety of smaller sources, including interest on investments and service charges (each about 4).
* The three leading revenue sources are the same for both cities and counties. In fact, the three combined contribute about the same amounts - 74 for counties and 70 for cities. But the distribution among those revenues is drastically different. The three and their contributions to the city and county revenue dollar:
Property taxes: Counties (42) , Cities (12) Intergovernmental: Counties (23), Cities (12) Utility Revenues: Cities (46), Counties (9)
* Intergovernmental revenues totalled 1/2 billion dollars for all local governments. Counties get 58 of every intergovernmental dollar, cities 42.
5

* For cities, 83 of every outs ide dollar coming in is from Wash ington. Conversely , counties get 62 on the intergovernmental dollar from the state. Federal cu tbacks have more direct effect on cities than counties, although counties would lose indirectly by cutbacks in federal funds to states, passed through to counties.
* Only 6/$ of local government revenue comes from the local option sales tax . Counties depend on the local option sales tax a bit more than cities, 8 vs. 5 on the revenue dollar.
* The local option sales tax netted $191 mill ion for all local governments, of which counties derived $102 million . This excludes $108 million in MARTA tax collected by Fulton and DeKalb counties.
* Of the 5 types of utilities, counties are involved only in water and sewer systems (97% of county ut il ity revenue) . Mun icipal uti lit ies are more diverse . More than 400 cities report water/sewer system revenues, which contribute $307 million of to municipal revenues . Electric and gas revenues add $229 million and $195 mill ion . Municipal airport and transit revenues are less significant overall , though Atlanta's $74 million in airport revenues is of considerable local significance.
** Altogether local governments spent $2.7 billion during
the fiscal year.
** Almost half of the total local government dollar is spent
on the combination of utilities (31 c) and public safety and corrections (18), Adm inistration costs 12, public works 7 and highways 6.
** For the county dollar, 25 is spent on health and human
services, 21 on public safety and corrections , and 14 on highways. These three account for 60 of every county do llar spent.
** For cities, uti lit ies account for 48 of every do llar spent,
fo llowed by public safety and corrections at 18.
6

*** Outstanding debt at the end of the fiscal year totalled $2.2 billion for all local governments, of which 2/3 was municipal debt.
*** Both cities and counties have more revenue bond debt outstanding than general obligation debt. Cities have a larger portion of revenue debt, though - 80/$ vs. 69/$ for counties.
*** During the fiscal year counties both incurred and retired 8 times as much short-term debt as cities. Cities incurred 5 times as much bonded indebtedness, and paid off 11 times as much as counties .
*** County debt activity was mainly short-term debt - 88/$ incurred. New bonded indebtedness accounted for 81 /$ of municipal debt.
7

COUNTY GOVERNMENT FINANCES
Georgia's counties raised $1.249 billion in the past f iscal year from all revenue sources. County spending for purposes other than debt service totalled $1 .193 billion . New debt incurred outstripped debt retired by $24 million, while interest paid on debt amounted to $51 mill ion.
Flow of County Finances

~ "7 GENERAL
REVENUES $1.249 bil.

<8 ~,\'\4 M

UTILITY

0 DO
0 DO

GENERAL
EXPENDITURES $1.193 bil.
UTILITY

COUNTY REVENUES
County revenue consists of 1) general revenues and 2) utility revenues. The two are addressed separately because proceeds from ut ility operations, although a part of total county funds , are typically restricted to use within utility operations, thus unavailable for other purposes.
General Revenues
Far and away the leading county revenue source is the property tax accounting for almost 43% of total county income. Reported property taxes were $529 million, an increase of $36 million over the prev ious year, despite property tax "rollbacks" in counties having adopted a one percent local option sales tax.

9

Other General Revenues
$174 Million

County Revenues
Utility Revenues $114 Million

Property Tax $529 Million

Intergovernmental Revenue
$293 Million

Sales, Excise, and Special Use Taxes $139 Million

Real and personal property taxes constitute 80% of all county property tax collections and 1/3 of total county revenues. Real and personal property tax collections were $423 million, a 7% increase over 1982 . Motor vehicle taxes and public ut ility taxes combined accounted for 14% of property tax revenues ($40 million and $36 million, respectively) .
Intergovernmental revenues, funds from other than local sources , are the #2 source of county funds. Revenues from state , federal, and other local governments added $293 million to county treasuries during the fiscal year, an increase of less than one percent from 1982. However, state funds to counties rose $180 million, while federal funds dropped to $107 million from $120 million . Local intergovernmental reyenues amounted to just $5 .6 mill ion . Perhaps an early ind ication of "New Federalism", the rise in state support for county government co incided with the decline in federal transfers. For the fiscal year state intergovern mental revenues rose to 62% of all such revenues , as the federal share dipped to 37% from 42% the previous year.

10

Property Tax Revenues as Percentage of Total County Revenues

33.9%

Real and Personal Property $423 Million

Motor Vehicle Taxes $40 Million
Public Utility Taxes $36 Million
Other Property Taxes $30 Million

Intergovernmental Revenues as Percentage of Total County Revenues

Local $6 Million

0.5%

Federal $107 Million

8.5%

State $180 Million

14.4%

11

The largest reported categorical revenues from other governments were health grants (from the state: $117 million) ; road and bridge funds (state: $21 million) ; fuel oil and mileage allocations (state: $10 mil lion) ; and Commun ity Development Block Grants (federal: $6 million ).
Sales , excise, and special use taxes contributed $139 million to county revenues. Together they comprise 11% of total county revenue. The local option sales tax was collected by 127 counties by July, 1983, up from 111 the year before. Collections rose to $102 million from $92 million. Alcoholic beverage taxes contributed $23 million. Insurance premiums taxes , though relatively insignificant, more than doubled to almost $8 mi llion.
Sales, Excise and Special Use Taxes as Percentage of Total County Revenues

1.0% Other Taxes $14 Mil.

Alcoholic Beverage $23 Million

Sales Tax $102 Million

The three leading revenue sources - property taxes , intergovernmental revenues, and sales, excise, and special use taxes contribute more than 3 out of every 4 dollars of county revenue. All increased from 1982 to 1983, with combined increases totall ing over $54 mill ion .

12

Other General Revenues as Percentage of Total County Revenues
Miscellaneous $25 Million
Fines and Forfeitures $50 Million
Use of Money and Property $38 Million
Service Charge $38 Million
Licenses & Permits $24 Million
Other categories of general revenue declined from the prev ious year, with the exception of licenses and permits revenues ($24 million , up $5 mill ion). Service charges dipped 19% to $38 million, due in large part to a $12 million drop in hospital charges. Six counties discontinued operation of public hospitals during the year, relinquishing responsib ility to authorities or private firms.
Change in County Revenues, 1982 to 1983

25.7% 13.5%
24.1%
Sales, Excise, Special
Use

Use of

Money Fines &

Service

&

Forfei-

Charges Property tures

-21.3% -23.4%

13

Use of money and property revenue, mainly interest on investment of idle funds , netted counties $38 million . This figure represents a decline from $50 million in 1982, due in part to declin ing interest rates.
Fines and forfe itures brought in $50 million, down from $66 mill ion the prev ious year.
Utility Revenues
Utilities include 1) water and sewer systems; 2) electric system ; 3) natural gas systems; 4) airports; and , 5) transit systems.
Ut il ity revenues comprise about 9% of total county revenues, amounting to $114 million in 1983. Water and sewer systems are the dom inant county-operated utiliti es in terms of the number of counties invo lved and total revenues. Water and sewer ut il ities had revenues of $110 million , 97% of all county utility income.

Utility Revenues as Percentage of Total County Revenues

Water and Sewer $110 Million

Other Revenue $4 Million
0.2 %

County-operated airports were a minor portion of county utility revenues at $2.4 million.
14

Overall , county ut il ity revenues were up $23 mill ion (26%) during the year , reflecting increased water and sewer rates imposed by numerous counties.

COUNTY EXPENDITURES

County expenditures consist of 1) general expenditures and 2) utility expenditures. Debt service - payment of both principal and interest on borrowed money - is addressed separately from expenditures under the head ing of County Debt.

County Expenditures

Utilities $111 Million

Other $140 Million

County Administration $177 Million

Courts $99 Million

Health, Human Services
$269 Million

Highways $168 Million

Public Safety $229 Million

Expend itures for general and uti lity purposes were 91% and 9% of total expenditures, respectively, the same percentage split as county revenues. General expenditures, totalling $1 ,081 billion , were up 12% from 1982. Utility expenditures were $111 million, down 25% from the previous year.

General Expenditures
Health and human service constitute the lead ing expend iture item, accounting for $269 million , or almost 23% of total county spending . Expenditures for health and human serv ices increased $44

15

Health and Human Service Expenditures as Percentage of Total County Expenditures
Public Welfare $15 Million
Public Health $171 Million

Ambulance Service $19 Million
Hospitals $64 Million
million since the previous year, mo re than half of the ove rall inc rease in county spending . Both the level of spend ing and increase over the past year belie the fact that six counties d ivested themselves of hospital operations du ring the year , resulting in a $12 million drop in hospital revenues .
Public Safety Expenditures as Percentage of Total County Expenditures

5.5%

Sheriffs' Departments $65 Million

Police Departments $59 Million

4.8%

Fire Departments $58 Million

Corrections/Jails $47 Million

16

Public safety and corrections are the second leading county expenditure category, at $229 million (19% of county spending) . More than half of public safety and corrections spending is for county sheriff and police departments, one fifth for jails and correctional institutions, and one quarter for fire departments. Public safety and corrections expenditures increased almost 13%, from $203 million , since 1982.
County administration costs ranked 3rd at$177 million, or 15% of all county spending. Comparisons with the previous year are not possible because of definitional changes on the survey of local government finances between the two years , 1.982 and 1983.
Fourth among expenditure categories is spend ing for highways. Spending here in $168 million , an inc rease of 1% over the previous year. Highway expenditures constitute about 14% of total county spending .
It is interesting to note the relationship between spending and intergovernmental revenues for health and human services, on the one hand , and highways, roads , and bridges, on the other. Of total spending for highways, roads, and bridges, 18% was derived from earmarked intergovernmental revenues (almost entirely from the state). For health and human services, however, earmarked intergovernmental revenues amounted to 97.5% of all county spending for this purpose ($262 million revenues vs. $269 million expenditures).
All other general expenditures comprise 12% of total county expenditures, or $140 million. Included here are leisure services, public works (excluding highways and utilities) , housing and community development, and miscellaneous general expenditures.
Miscellaneous general expend itures are actually attributable to just a few counties. These counties assign certa in costs to this category, rather than to specific line items.
17

"Other" Expenditures as Percentage of Total County Expenditures

Housing, Community Development $12 Million
Public Works $36 Million Leisure Services $45 Million

Other General $47 Million

Change in Expenditures, 1982 to 1983

Health,

Human

45

Services

19.6%

40

35
~ 30
oz 25
3 20
:E 15

Courts 40.0%

Public Safety
12.6%

10

1.0%

5

Highways

o

o

5

10

15

20

25

30

35 -25.5%
40 Utilities

18

Utility Expenditures
With expenditures of $111 million, county ut ilities comprise slightly over 9% of total county spending . Water and sewer systems account for $107 million.
Utility Expenditures as Percentage of Total County Expenditures
Other Utlities $4 Million
Water/Sewer $107 Million
Water and sewer system expenditures dropped sharply from the previous year. In 1982, expenditures were $144 million (13% of total county spending) . The decrease to $107 million in 1983 (a 26% reduction) reflects a decl ine in spending for water pollution control facility construction.
All other utility expenditures amounted to just $4 million , or less than 1% of overa ll county spending.
COUNTY DEBT
County debt consists of 1) bonds, 2) long-term debt other than bonds, and 3) short-term debt.
At the end of the most recent fiscal year, counties reported total debt outstanding to be $730 million. Bonds outstanding accounted for 95% of this debt, or $691 million . Long-term debt added another $6 million (1%) and short-term debt another $33 million (4%).
19

Debt Outstanding at End of Fiscal Year

Long-Term $6 Million
0.9%

Short-Term - - - - - - $33 Million

94.6 %

Bonds consist of 1) general obligation bonds and 2) revenue bonds. At the end of the fiscal year, general obl igat ion bonds amounted to 30% of bonded indebted ness, revenue bonds about 70%. Revenue bonds are used primarily to fund water and sewer systems. General obligation bonds are generally used for pro jects unable to generate direct revenues to payoff the bonds.
Bonds Outstanding at End of Fiscal Year

Revenue $477 Million

General Obligation $214 Million

Despite the dominance of bonds in terms of debt outstand ing , activity during the fiscal year consisted mainly of short-term debt. Short-term borrowing comprised 3/4 of borrowing during the year ($166 million) and 86% of all debt retired . New bond debt was $52
20

million , 24% of total borrowing . Long-term debt, both incur red and retired , was mi nor, amounting to lessthan $2 mill ionandconstituting less than 1% of both new debt and debt retired.
Overall , new debt incurred du ring the year topped deb t retired by a $23 mill ion marg in, $219 mi llion to $196 million. Bonded indebtedness was solely responsible for the gap - twice as much was incurred in new bonds ($52 million) as was ret ired ($26 mill ion). More short-term and long -term debt was reti red than incurred.

Debt Incurred During Fiscal Year

Short-Term $166 Million

23.6 %

Bonds $52 Million
Long-Term $1 Million
0.6 %

75.8 %

Debt Retired During Fiscal Year

Bonds $26 Million

Long-Term $2 Million
0.9%

Short-Term $168 Million

85.8%

21

Interest paid on debt totalled more than $51 million. Interest on bonds made up more than 3 out of every 4 dollars of interest paid ($39 million); interest on short-term debt 22% ($12 million) ; and on longterm 1% ($0.5 million).
Interest Paid on Debt During Fiscal Year
Short-Term $12 Million
22.4% Long-Term $0.5 Million
1.0% t-===========::::::::==J
76.6%
Bonds $39 Million
Note: The Georgia Constitution prohibits local governments from having short-term debt outstanding beyond the end of any calendar year. The data reported here is based upon county f iscal years. Only 71 count ies have a fiscal year coincident with the calendar year. Therefore , short-term debt at the end of a fiscal year does not violate the ban on short-term debt carryover in more than one half of Georgia's counties.
22

MUNICIPAL GOVERNMENT FINANCES
Georgia's cities raised $1 .773 billion during the fiscal year from all revenue sources. Spending for all purposes other than debt service was $1 .602 billion . Debt retired exceeded new debt incurred by $14 mill ion, wh ile interest paid on debt totalled $93 million .

Flow of Municipal Finances

GENERAL ,r

000000 00 0

o REVENUES SS9 A4

0

2 t M $1.773 Billion

:\ 4

o 0 ~~ UTILITY

Prior to any analysis of Georgia's mun icipal finances, it is important to acknowlege the dom inance of the City of Atlanta. Of the 505 municipalities responding to the survey of local government finances and included in this analysis, Atlanta accounts for 36% of total municipal general revenues , 27% of general expenditures, and 23% of utility revenues. For most items of both revenue and expenditure, Atlanta is in the range of 25% - 35% of all municipal activity. Where Atlanta accounts for far more or far less than this percentage or any given item to be examined, this divergence will be pointed out.
MUNICIPAL REVENUES
Municipal revenues consist of 1) general revenues and 2) util ity revenues. The two are addressed separately because proceeds from utility operations, although a part of total municipal funds, are typically restricted to use within utility operations, thus unavailable for other purposes.
During the fiscal year general revenues were $959 million , or 54% of total city funds, whi le utility proceeds were $814 million .

23

Municipal Revenues

Other General $294 Million

Sales, Excise and Special Use $236 Million

12.2%

Property Tax $217 Million

45.9%
Utility Revenues $814 Million

12.0%

Intergovernmental Revenue
$212 Million

General Revenues
Municipal general revenues were derived from several leading sources, with no single dominant generator. General revenues accounted for 54% of total city revenues, down from 58% in the previous year. The sing le largest source were sales, exc ise, and special use taxes, which raised $236 million . Property taxes ($217 million) and intergovernmental revenues ($212 million) were second and third among general revenues . A var iety of other, smaller sources , accounted for $294 million , or more than any individual category of general revenue.
Sales, excise, and special use taxes were derived from several sources. The local option sales tax raised $88 million of city revenues , or 5% of total mun icipal funds (inc luding ut ilities ). Other significant sales , excise , and special use taxes were franchise payment taxes ($61 million) , alcoholic beverage taxes ($8 million) , and insurance premiums taxes ($31 million) . The hotel-motel tax , also a local option tax , netted just $8 million . As a group , sales , excise , and specia l use taxes were up 9% over the prev ious year. Leading gainers were franch ise payment taxes (up $7 million , 13%)

24

Sales, Excise, and Special Use Taxes as Percentage of Total Municipal Revenues
Local Option Sales Tax $88 Million
Franchise Payments Taxes $61 Million
Alcoholic Beverage Taxes $48 Million
Insurance Premiums Taxes $31 Million
- -.....- 0.4% Hotel-Motel Tax
, ~~~~~~;;;;;;;;;;;~~~~~~0.:0%~Miscellaneous$8TaMxiellsion $1 Million

and local option sales taxes (up $9 million . 11%) . In July , 1982 ,306 municipalities were collect ing local option sales taxes . By July. 1983 , this number had risen to 342 (of 505 mun icipal it ies included in this report).
The #2 source of municipal general revenue is the property tax , accounting for $217 million (12% of city revenues). The dominant property tax is the real and personal property tax ($195 mil lion , 11% of city revenues). Despite property tax rollbacks as local option sales

Property Tax Revenues as Percentage of Total Municipal Revenues

39.6%

Real and Personal Property
$195 Million

Motor Vehicle 1.8% $9 M illion

e~: :"--~~~~~~~~~3-1.0% P$u5blMiciUllitoilnity

1.40110

O

t

he $8

r Property Million

25

taxes were implemented, property taxes rose 14% during the year, a $27 million increase outstripping all other ' general revenue increases.
Intergovernmental revenues contributed $212 million to city income (12% of total revenues) , down from $220 million in 1982 . Federal funds comprise more than 80% of intergovernmental revenue for municipalities. Federal intergovernmental income was $175 million, up $1 million over last year. Meanwhile revenues from the state fell from $34 mill ion to $27 million , and transfers from
Intergovernmental Revenue as Percentage of Total Municipal Revenues
Federal $175 Million
State +----$27 Million
o Local 0.6 Vo $10 Million
other local governments dropped $2 million from almost $12 million in 1982. From this information it would appear that Georgia's municipalities have averted the drop in federal funds which hit county goverments in the past year. However, the City of Atlanta, wh ich accounted for 35% of all intergovernmental revenues during FY 83 (and 39% of federal transfers) experienced an inc rease of $20 million in federal funds over last year. All other c ities combined suffered a drop of $19 million in federal funds , to a 1983 level of $106 million . Thus it appears that the fiscal pol icies of the New Federalism have, for most jurisdictions, caused a drop in federal funding.
The largest reported categorical revenues accruing to municipalit ies were both from federal programs: $63 million from Community Development Block Grants and $45 million from Revenue Sharing funds.
26

Due to the balance among several revenue sources , a number of additional sources contribute notably to municipal revenues . Use of money and property revenues (primarily interest earned on investment of city funds) accounted for $106 million (6% of total city inco me). The importance of this source to most cities, however, is less than would appear - the City of Atlanta, alone, earned more than $77 million from use of money and property, almost 3/4 of total municipal revenues from this source. Service charges for other than utility services - mainly charges for garbage service - netted $87 million . Service charge revenues jumped 38% from their 1982 level. Other general revenues were derived from licenses and permits ($52 mil lion) , fines .and forfeitures ($27 mill ion) , and miscellaneous general revenues were derived from licenses and perm its ($52 million). fines and forfeitures ($27 million). and miscellaneous general revenues ($22 mill ion) .
Other General Revenues as Percentage of Total Municipal Revenues

Service Charges $87 Million
Use of Money and Property $106 Million

Fines and Forfeitures 1.5% $27 Million

01 Miscellaneous Other

1.3 / 0

$22 Million

Utility Revenues
Ut ilities include 1) water and sewer systems; 2) electric systems; 3) natural gas systems; 4) airports; and , 5) transit systems.
27

Utilities are an important part of municipal operations in Georgia. Utility revenues accounted for 46% of total city revenues during the fiscal year, up from 42% in 1982. Increases of $188 million , or more than 30% from the prevous year, comprised 2/3 of the increase in total municipal revenues.
Water and sewer revenues of $307 million led all utilities. Alone, water and sewer revenues exceeded sales, excise, and special use taxes by $70 million and property tax revenues by $90 million. Of the 505 municipalities included in this repo rt, 415 reported revenues from water and sewer systems.
Utility Revenues as Percentage of Total Municipal Revenues
0.7%
Airport $80 Million
Gas $195 Million

Electric $229 Million

Water and Sewer $307 Million

Electric util ity systems brought $229 million to 50 cit ies reporting electric revenues. Gas utilities produced revenues of $195 million for the 80 municipalities reporting distribution revenues. Airport revenues , though significant at $80 million , were collected primarily by the City of Atlanta ($74 million) , although 19 cities gleaned airport revenues . Five municipal ities collected a total of just $3 million from public transit operations operated directly by the cities .

28

Together the three leading utilities accounted fo r more than 4 of every 10 dollars of total mun ic ipal revenu e during the f iscal year . In 1982 the three (water and sewe r, electric, and natural gas ) accounted for just 36% of city inco me. Large inc reases, both in do lla r amo unt and percent age, affected all three fro m 1982 to 1983. Water and sewe r revenu es increased almost42%, electr ic utiliti es 26%, and natural gas syste ms 33%.

Change in Municipal Revenues, 1982 to 1983

180 +30.0% 160 140 120 100 80 60 40 20
0
Ut ili ty Revenues

I I 1+14.2% 1 1+37.8% 1 1+258%1

+9 .0%

Property Ta xes

Serv ice Charges

Use 01 Money and Property

Excise, Sales and
Special Use

+1 0 .8 %
Licenses and
Permits

+1 2 .1%

+6 .5 %

Fine s Miscella-

and

neous

Forfeitures General

0
-3.6 % 20
Inter-
govern- 40
m e nta l
Revenues

MUNICIPAL EXPENDITURES
Mu nicipal expend itu res con sist of 1) general expend itu res and 2) utility expend it ures. Deb t service - payment of bo th princ iple and interest on bo rrowed mon ey - is addressed sepa rate ly f rom expe nditures under the head ing of Municipal Debt.
Expend iture levels for mun icipal general purposes and for ut ilities we re simila r. General expend it ures were $803 mill ion (52.3% of total city spending) ; ut ility expenditu res $732 million (47.7%).
Total municipal expend itu res were $1.535 bill ion , up 11.2% over 1982 spend ing of $1 .380 billion.

29

Municipal Expenditures

Other $106 Million

Public Safety and Corrections
$261 Million

Utilities $732 Million

Municipal Administration
$159 Million

lIIIIIIII. . .

. . . . .",~LLeisure

Housing/ Services Community $60 Million Development $58 Million

General Expenditures

Public Works $159 Million

Municipal general expend itures for the year were $803 million . Comparisons with 1982 expenditures are possible for certa in expenditure items, but not others , due to differences in parts of the finance survey in 1982 and 1983.

Public safety and corrections expenditures lead all municipal general expenditures. Included in public safety and corrections are police, fire , and jail spending . Spending for public safety and corrections was $261 million , about 17% of total city spending and 1/3 of general expenditures. Expenditures increased by 4.5% from 1982.

Municipal administration spending was $159 million , about 10% of total spending . Public works expend itures, also $159 million , com prised mainly expenditu res for garbage and trash collection and landfill operations.

Leisure services spending was fourth among general expenditures at $60 million. Leisure services consist of parks , recreation , and libraries. Leisure services spending declined nearly 12% ($8 million) from 1982.

30

Spending for housing and community development was $58 million , an increase of just 1% from 1982. More than 3 out of 4 dollars spent for housing and community development was funded through Community Development Block Grants ($45 million , as discussed in Municipal Revenues section of this report) .
Other general expenditures accounted for $1 06 million , or 6.9% of total city spending . Health and human services expend itures were $16 million , education (d irect spending by munic ipalities, excluding school board expenditures) was $11 mill ion and courts expenditures $5 million . Seventy-four million dollars were reported in a " miscellaneous expenditure" category. Of this, $43 million was reported by the five largest cities (over50,OOO population). The majority of expenditures reported as miscellaneous are not of an unusual nature. Rather, accounting practices in some cities make it impossible to mesh local accounting practices with expenditure items on the finance survey.

Utility Expenditures

Utility Expenditures as Percentage of Total Municipal Expenditures

Airports $55 Million

Public Transit $9 Million

Gas Systems $180 Million

Electric Systems $200 Million

13.0%

18 .8%
Water and Sewer $288 Million

31

With spending of $732 mill ion , excluding interest paid on debt, mun ic ipal util ity spend ing comprises almost 48% of total city ex pen dit ures.

Wate r and sewe r sys te ms accounted for $288 milli on , nearl y 4 of every 10 do llars spen t on ut il it ies. Elect ric system sp ending was right at $200 millio n, gas util ities $180 mi lli on . T hese th ree utilities combined for almost 44% of all money spent by cit ies du ring t he fiscal year.

Municipal airport expenditures totalled $55 million , but 87% of this amount ($48 mill ion) was spen t by the C ity of Atlanta at Hartsfie ld Internatio nal Ai rport.

T rans it exp end it ures we re less than $9 milli on (l ess than 1% of total city spend ing ).

Change in Expenditures Selected Items: 1982 to 1983

12 -

10 +4.5%

~8
ozen 6

::::i 4
..J
~2
o Public

1+19.2%1 +1.1%
Education Housing

+7.3% Courts

Safety &

and

Corrections

Community

Development

-11.8 %
Leisu re Services

o
2
4
6
8
-41.9 % 10
Hea th , 12 Human Serv ices

MUNICIPAL DEBT
Mu nicipal deb t consists of 1) bonds, 2) long-term debt ot her than bo nds, and 3) sho rt- term debt.

32

At the end of the most recent fiscal year, cities reported total debt outstanding to be $1.482 bill ion. All but a small fract ion of this debt was in the form of bonds outstand ing . Bonded indebtedness stood at $1.466 billion , or 98.9% of total debt outstanding . Neither long-term debt other than bonds or short-term debt exceeded 1% of total debt outstanding.

Debt Outstanding at End of Fiscal Year

Long-Term 0.7% $10 Million

0.4% Short-Term $6 Million

98.9 %
Bonds $1.466 Million
Bonds consist of 1) general obligation bonds and 2) revenue bonds. At the end of the fiscal year, general obligation bonds constituted just 20% of bonded indebtedness, revenue bonds 80%. Education accounted for 42% of all general obligation debt outstanding at the end of the fiscal year, more than any other specific category of general obligation debt. Water and sewer systems were the leading contributor to revenue debt outstanding , accounting for 44% of all revenue bond indebtedness.
Overall , more debt was ret ired during the fiscal year than was incurred , $134 million to $121 million . Although bonds constitute close to the ent ire amount of debt outstanding at the end of the fiscal year, short-term debt comprised a sign if icant share of debt activity during the fiscal year . Short-term borrowing was 17% of all borrowing and short-term debt retirement was 15% of all debt retired during the year.
33

Long-Term $2 Million

Debt Incurred During Fiscal Year
Short-Term $21 Million
~--'"T"""--_

81.3%
Bonds $98 Million

Long-Term $2 Million

Debt Retired During Fiscal Year

Short-Term

$20 Million ~_ _- .

_

83.3% Bonds $112 Million
Interest paid on debt was close to $94 million. Interest on bond debt amounted to $92 million, or 98% of interest paid on all debt comb ined.
34

Interest Paid During Fiscal Year

Long-Term $0.6 Million
0.6%

Short-Term $1 Million
1.1%

98.3%
Note: The Georgia Constitution prohibits local governments from having short-term debt outstanding beyond the end of any calendar year. The data reported here is based upon municipal fiscal years , many of which do not coincide with the calendar year. Therefore, short-term debt at the end of a fiscal year does not violate the Constitutional ban on short-term debt carry-over where the fiscal year is other than a calendar year .

35

APPENDIX A DATA CATEGORIES

Appendix A is a list of revenue , expenditure, debt and asset items requested of local governments by the DCA financial survey. In effect, Apend ix A is a "skeleton " of that survey, from which the data in this report was derived . Using this Append ix the reader will better understand the structure of local government finances used in this report and the terminology employed.

MUNICIPAL GENERAL REVENUES

Property Taxes Real and Personal Property Tax Publ ic Utilities Taxes Motor Vehicle Taxes Mobile Home Taxes FIFA, Penalties, Interest, Cost Intangible Taxes Railroad Equipment Tax
Sales, Excise, and Special Use Taxes Local Option Sales Tax Insurance Premiums Tax Hotel-Motel Tax Franch ise Payment Tax (Public utilities) Alcoholic Beverage Taxes Miscellaneous Other Taxes
Service Charge Revenues Parking Facilities/Parking Meters Garbage/Trash Collection Charges Landfill Fees Parks and Recreation Charges Ambulance Charges Hospital Charges Fire Service Subscription Fees Cemetery Fees Other Service Charge Revenues
Licenses and Permits Revenues Business Licenses/Occupational Taxes Alcoholic Beverage Licenses Build ing Permits Qua lifying Fees Other Licenses and Permits

Intergovernmental Revenues, by Type Payments in Lieu of Taxes General Public Purpose Grants (State) Capital Outlay Grants (State) Road and Bridge Funds Crime Control Grants, LEAA CETA Grants Community Development Block Grants Public Welfare Grants General Revenue Sharing Physical and Mental Health Grants Real Estate Transfer Tax Other Intergovernmental Revenue
Intergovernmental Revenues, by Source State Other Local Governments Federal
Use of Money and Property Revenues Receipts from Real Property Sales Interest on Investments Rents and Roya lties
Miscellaneous General Revenues Other Revenues Special Assessments

37

MUNICIPAL UTILITY REVENUES

By Purpose Water and Sewer Sys tem Electric Supply System Gas Supply System Airport Publ ic T rans it

By Type of Revenue Operating Revenue Other Revenue

MUNICIPAL GENERAL EXPENDITURES

City Administration Financial Administration General Administration General Mun icipal Bu ild ings General Insurance Employee Benefits
Courts Municipal Court

Public Works Streets/ D r a inage Garbage/Trash Collection Landfill Park ing Faci lities/Mete rs
Housing and Community Development Housing and Community Development Bu ilding Inspection and Regu lat ion

Public Safety and Corrections Pol ice Department Ja il Fire Department
Health and Human Services Mun ic ipa l Hospital Payments to Other Hospitals Social Serv ices Pub lic Health Public We lfare Ambulance Service

Leisure Services Parks and Recreation Li braries
Education Non-School Board Expend itu res

MUNICIPAL UTILITY EXPENDITURES

By Purpose Water and Sewer System Electric Supply System Gas Supply System Airport Public Trans it

By Type of Expenditure Current Operations Purchase of Equipment, Land , and Structures Construction Depreciation Interest Expense

COUNTY GENERAL REVENUES

Property Taxes Real and Personal Property Tax Pub lic Utilities Taxes Motor Vehicle Taxes Mobile Home Taxes FIFA, Penalties, Interest, Cost Intang ible Taxes Tax Collection Fees Other Property Taxes

Service Charge Revenues Garbage/Trash Collection Charges Land fill Fees Parks and Recreation Charges Ambulance Cha rges Hospital Charges Fire Serv ice Subscription Fees Cemetery Fees Other Serv ice Charge Revenues
38

Sales, Excise, and Special Use Taxes Alcohol ic Beverage Taxes Local Option Sales Tax Insurance Premiums Tax Hotel-Motel Tax Miscellaneous Other Taxes
Licenses and Permits Revenues Business Licenses/Occupational Taxes Alcoholic Beverage Licenses Building Permits Qualifying Fees Other Licenses and Permits
Intergovernmental Revenues, by Type Payments in Lieu of Taxes General Public Purpose Grants (State) Fuel Oil, Mileage (State) Road and Bridge Funds County Board of Health Revenues Crime Control Grants, LEAA CETA Grants Community Development Block Grants Development Authority Revenues Public Welfare Grants General Revenue Sharing Real Estate Transfer Tax Physical and Mental Health Grants Other Intergovernmental Revenue

Intergovernmental Revenues, by Source State Other Local Governments Federal
Use of Money and Property Revenues Receipts from Material/Equipment Sales Receipts from Real Property Sales Interest on Investments Rents and Royalties
Other General Revenues Special Assessments Other Revenues

COUNTY UTILITY REVENUES

By Purpose Water and Sewer System Electric Supply System Gas Supply System Airport Public Transit

By Type of Revenue Operating Revenue Other Revenue

COUNTY GENERAL EXPENDITURES

County Administration Financial Administration Tax Commissioner Tax Assesso r/Appraiser General Adm inistration Courthouse and General County Buildings General Insurance Employee Benefits

Courts Superior Court State Court Juvenile Court & Small Claims Court Probate Court Clerk of Courts

39

Public Safety and Corrections Sheriff's Department Police Department Correctional Institute Jail Fire Department

Health and Human Services County Hospital Payments to Other Hospitals Public Health Public Welfare Ambulance Service

Housing and Community Development Housing and Community Development Building Inspection and Regulation

Leisure Services Parks and Rec reat ion Libraries

Highways Highways, Roads , and Bridges

Public Works Natural Resou rces (Forestry , etc .) Garbarge/T rash Collection Land fill

COUNTY UTILITY EXPENDITURES

By Purpose Wate r and Sewe r System Electric Supply System Gas Supply System Airport Public Transit
MUNICIPAL DEBT

By Type of Expenditure Current Operations Purchase of Equ ipment, Lands, and Structu res Construction Depreciation Interest Expense
COUNTY DEBT

Bond Debt, by Purpose Water System Gas System Electric System Industrial Revenue Bonds Educat ion Trans it Other

Bond Debt, by Purpose Water System Gas System Electric System Industrial Revenue Bonds Educa t ion T ransit Other

Bond Debt, Outstanding at End of FY General Obl igation Revenue

Bond Debt, Outstanding at End of FY General Obligation Revenue

Debt Issued, Retired, Interest Paid , and Amount Outstanding at End of Fiscal Year Bonds Long-Term, Other Than Bonds Sho rt-Term

Debt Issued, Retired , Interest Paid, and Amount Outstanding at End of Fiscal Year Bonds Long-Term, Other Than Bonds Short-te rm

MUNICIPAL CASH AND INVESTMENT ASSETS

COUNTY CASH AND INVESTMENT ASSETS

Cash and Depos its Federa l Securities Federal Agency Securit ies State and Local Government Secu rities Other Securities
40

Cash and Deposits Federal Secu rit ies Federal Agency Secu rities State and Local Government Securities Other Securities

APPENDIX B
LOCAL GOVERNMENT FINANCIAL DATA FY 82-83

(All Amounts in Dollars)

A pp end ix B con ta ins sum to ta l fi gur es fo r co unt ies, municipa lit ies, and bo th comb ined , as repo rted to the Depa rtment of Commun ity Affai rs on the 1983 Su rvey of Local Gove rnmen t Finance. Listed here are selected items of interest.

Item (1) Ge neral Revenues
Ut ility Revenues Total Revenues
General Expenditures Ut ility Expenditures (2) Total Expend itures
Revenue Items Property Tax (1) Sales , Excise & Special
Use Taxes Intergovern mental Use of Money and
Property Licenses and Permits Service Charges Fines & Forfeitures Misc. General Revenues
Federal Intergovernmental
State Intergovern mental Other Local Intergovern-
mental
Water & Sewe r Electric Gas Airport Transit
Local Option Sales Tax Alcohol ic Beverage Taxes Franchise Payment Taxes Insurance Premiums Tax

Counties 1,132,767,059
113,535,133 1,246,303,992
1,081 ,188,071 111,043,467
1,192,231 ,538

Cities 959 ,362,678 813 ,953,425 1,773,316,103
803 ,034,402 732,076,284 1,535,110,686

529 ,013,984
138,562,495 291,649,639
36,370,283 24,255 ,645 37,891 ,351 50,435,616 24,588,046

216 ,772,931
236,254 ,311 212,039,540
106, 4 4 0 ,564 52,025,100 87,069,279 27,353,472 21 ,407,481

106,523,999 179,515,056

174,994 ,186 27,189,826

5 ,610,584

9,855,528

110,461,701
633,045 2,431,498
8,889

306,716,857 229 ,032,537 195,118 ,567
80,139 ,880 2,945,584

102,222,936 23,320,901
7,916,609 41

88,424 ,078 47,647,048 61 ,192,275 30,601,250

City %
45.9 87 .8 58 .7
42.6 86.8 56.3
29.1
63.0 42.1
74.5 68.2 69.7 35.2 46.5
62.2 13.1
63.7
73.5 100.0
99.7 97.1 99 .7
46.4 67.1 100.0 79.4

Combined 2,092,129,737
927,488,558 3,019 ,620,095
1,884,222,473 843,119,751
2,727,342,224
745,786 ,915
374 ,816,806 503 ,689,179
142,810,847 76,280,745
124,960,630 77,789,088 45 ,995,527
281 ,518,185 206,704,882
15,466,112
417 ,178,558 229 ,032,537 195,751,612
82,571,378 2,954,473
190,647,014 70,967,949 61 ,192,275 38,517,859

Expenditure Items
Publ ic Safety and Corrections
Public Works Administration Leisure Services Housing, and Community
Development Health and Human
Services Education Courts Highways Misc. Expenditures

Counties
228 ,931 ,179 35 ,593,069
176,937,607 44 ,939,514
11 ,993,466
268 ,891,431
98 ,512 ,770 168,227,904
47 ,547 ,175

City

Cities

%

261 ,272,987 159,100,289 159,106,444
59 ,669,047
58 ,329,539
15 ,511 ,879 10 ,734 ,032
4 ,938,818
74 ,371 ,367

53.3 81 .7 47.3 57 .0
82.9
5.5 100 .0
4.8 0 .0 61 .0

Combined
490 ,204 ,166 194 ,693 ,358 336 ,044 ,051 104 ,608,561
70 ,323,005
284 ,403 ,310 10,734,032
103,451 ,588 168 ,227 ,904 121 ,918 ,542

Water & Sewer Electric Gas Airport T r a n s it
Debt Items
Total Debt Outstanding, End of FY
Bonds Outstanding, End of FY
Long-Term Outstanding, End of FY
Short-Term Outstanding, End of FY

106 ,993,466 592 ,168
3 ,374,465 83 ,368
730 ,039,032 690 ,735,502
6,447,460 32 ,856,070

288,450,802 200 ,363,789 179 ,643,084
54 ,781,638 8 ,836 ,971

72 .9 100.0
99.7 94 .2 99 .1

1,482,319 ,973 1,465,894,144
10,478,654 5,947 ,175

67 .0 68 .0 61.9 15 .3

395,444 ,268 200 ,363 ,789 180 ,235 ,252
58 ,156 ,103 8,920 ,339
2,212,359 ,005
2,156,629 ,646
16,926 ,114
38 ,803 ,245

G.O . Bonds Outstanding , End of FY
Revenue Bonds Outstanding , End of FY

213 ,905,038 477 ,330,464

300 ,558 ,707 1,165 ,335,437

58.4 70 .9

514,463 ,745 1,642,665 ,901

Bonds Issued Bonds Retired Bond Interest Paid

21 ,203,647 10,433,338 25 ,986,260

97,920,551 112 ,300 ,648
91 ,835 ,961

82.2 91 .5 77.9

119 ,124,198 122 ,733,986 117 ,822,221

Long-Term Debt Issued Long-Term Debt Retired Long-Term Debt Interest
Paid

1,281,178 1,771,448
501,186

1,848 ,635 2,182 ,168
563,134

59 .1 55.2
52 .9

3,129 ,813 3,953 ,616
1,064,320

Short-Term Debt Issued Short-Term Debt Retired Short-Term Debt Interest
Paid

166 ,102,599 167 ,676,785
11 ,524 ,587

20 ,670,707

11.1

20 ,386,533

10.8

1,022 ,911

8.2

186 ,773,306 188 ,063,318
12,547,498

Total Debt Issued Total Debt Retired Total Interest Paid

188 ,587 ,424 179 ,881 ,571
38 ,012,033

120,439,893

39.0

134 ,869,349

42.8

93,422,006

71.1

309 ,027,3 17 314 ,750 ,920 131,434,039

(1) Excludes $108,501,692 in MARTA sales tax collected by Fulton and DeKalb counties (2) Excludes interest expenditures
42

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