Faced with rising health care costs and lower revenue from the city-owned Gas System, Austell Mayor Joe Jerkins tried to be optimistic in his annual “State of the City” message to the Austell Business Association.
“It’s not good news, but we are surviving,” he hold the crowd on Jan. 15 at the city-owned Threadmill Complex.
While the city raised its millage rate to four mills for the coming year, Jerkins said that city taxes were still a bargain. He noted that in the first 11 years of his 24 years in office “we cut taxes by one quarter mill each year to 3.12 mills.” The tax rate stayed the same for many years but was raised this fall. “This is the first time we needed to do that to make it our budget balance,” he said.
Jerkins explained that lower revenues from the Gas System, coupled with increases in health insurance costs forced the increase.
“With natural gas prices low and the mild winter,” Jerkins said that revenues were half the normal rate bringing in only $26 million in gas sales.
But the biggest cost has been healthcare. City employees have not received a pay raise for the past five years and the city is averaging paying out $400 a week per employee for family health care costs insurance is also expected to go up another 30 percent this year. “Healthcare is taking all of our money,” he said.
“We’ve still got real cheap taxes, even though the millage rate went up,” Jerkins said he explained that a three mill discount from this County due to duplication of city County services the city rate at an effective one mill.
The city’s Police Department handled 4704calls in 2012, handled 278 accidents and wrote 4241 citation. “We appreciate the revenue,” Mayor said.
Austell’s two fire stations each have three firefighters on duty at all times. Last year they handled 1,278 emergency calls with an average response time of 4.8 minutes. The city also operates its own 911 system.
After the 2009 floods, the city lost some 700 housing units. Since then 25 have been bought out at a total cost of $1.96 million. The city paid $294,000.
Jerkins said that the city now has the approval to buy out an additional 47 homes at a cost of $5.75 million. Some 75 percent to be paid in federal money, 10 percent state and 15 percent local. Despite the approval, he said the city may not have the funding for the complete by, but would negotiate with homeowners.
A new project includes a Frisbee golf course to be built in Louise Suggs Park in the Douglas County portion of the city beginning in the spring. Also, a 90 foot tall flagpole will be erected at the Park on Veterans Memorial Hwy.
Highlights of the past year include the completion of a 25,000 square-foot building remodeling ptoject behind the Threadmill that the city will soon have ready to be rented. In addition, the Threadmill is 95 percent occupied. The city received a new $450,000 fire truck last summer that is now in operation. The city completed the downtown streetscape improvements in December.
The city receives $4.6 million in SPLOST funding some of which will funds improvements at the city’s 911 center.
“The sales tax is a very good thing the city of Austell. Jerkins said with revenues of about half a million in taxes, “it would take us nine years to collect that much money.” I support the sales tax for the city.”
The mayor also urged Austell Gas customers to check the box to donate $1 or $5 each month to assist those in need. These donations raised $100,000 last year and Jerkins said that with the city’s 55,000 customers each donating one dollar it would be a great help.
From the February 2013 issue of The Bright Side, Cobb County Georgia’s Newspaper covering Smyrna, Vinings, Mableton and Austell, GA.