The city of Peachtree Corners recently awarded grants to 11 non-profits that serve residents of the city. Many may be confused as to what the city can do with that money. Peachtree Corners Magazine has compiled this brief explainer.
On March 11, 2021, the American Rescue Plan Act was signed into law. It allocated $1.9 trillion in a state and local fiscal recovery fund to aid states, counties, and cities in responding to the COVID-19 pandemic and its impacts “on the economy, public health, state and local governments, individuals, and businesses.”
For 2021 and 2022, the fund has allocated over $4.8 billion to the Georgia state government and $3.5 billion to local governments in the state. That is more than $2 billion for Georgia counties, $1.4 billion for Georgia cities, and $861 million for “non-entitlement” municipalities (governments serving populations of under 50,000).
Cities, such as Peachtree Corners, can use that money to:
Support public health expenditures.
Address the negative economic impacts caused by the public health emergency.
Replace lost public sector revenue.
Provide premium pay for essential workers; and
Invest in water, sewer, and broadband infrastructure.
Cities have until December 31, 2024, to disperse funds and until December 31, 2026, to spend funds.
On Tuesday, November 4, we will have municipal elections here in the City of Peachtree Corners for three council seats. [And] for the first time since 2013, there will be a state-wide election on the same day as our city general election.
The state-wide election is to fill two seats on the Public Service Commission, which regulates Georgia Power and other utilities.
For the PSC election, the Gwinnett County Board of Elections will have all 156 county precincts open on November 4. Historically, Peachtree Corners has had a single voting location for city elections — at City Hall.
If we do the same this year, citizens who want to vote in both the PSC and the City Council elections will need to go to two places to cast their ballots.
A few years ago, I convinced the County Board of Elections to remove their prohibition against the Gwinnett Elections Department managing city elections. (Every county surrounding Gwinnett already offered this service to their cities.)
This means there is the potential of adding our city council elections to the county ballot.
I would like to hear your thoughts on the pros and cons of combining our city council races with the county’s for this year’s elections.
For the eighth year in a row, the City of Peachtree Corners has been esteemed with the Distinguished Budget Presentation Award. This award was presented by the Georgia Finance Officers Association (GFOA) for the City’s Fiscal Year 2025 budget submission.
The award represents a significant achievement by the entity. It reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting. To receive the budget award, the entity had to satisfy nationally recognized guidelines for effective budget presentation. These guidelines are designed to assess how well an entity’s budget serves as a:
policy document
financial plan
operations guide
communications device
Budget documents must be rated “proficient” in all four categories and in the fourteen mandatory criteria within those categories to receive the award.
Certificate of Recognition
When a Distinguished Budget Presentation Award is granted to an entity, a Certificate of Recognition for Budget Presentation is also presented to the individual(s) or department designated as being primarily responsible for having achieved the award.
“Congratulations to the entire finance team on receiving this award,” said City Manager Brian Johnson.
“This recognition is a testament to our team’s hard work, professionalism and commitment to excellence.”
There are over 1,700 participants in the Budget Awards Program. The most recent Budget Award recipients, along with their corresponding budget documents, are posted quarterly on GFOA’s website.
Award recipients have pioneered efforts to improve the quality of budgeting and provide an excellent example for other governments throughout North America.
About the GFOA
The Government Finance Officers Association (GFOA) advances excellence in government finance by providing best practices, professional development, resources and practical research for more than 21,000 members and the communities they serve.
About the City of Peachtree Corners, Georgia
As the heart of what is being called #SiliconOrchard in the metro Atlanta region, Peachtree Corners is a vibrant municipality that’s home to more than 45,000 residents and an innovation hub that houses some of the world’s most disruptive technology companies.
As the United States’ premier smart city powered by real-world connected infrastructure and 5G, Peachtree Corners serves as the model for how government and private industry can better collaborate to create a better future for society and business.
From the world’s first deployment of teleoperated e-scooters to fully autonomous shuttles being utilized by actual residents, and from a solar roadway to the largest electric vehicle charging hub in the region, Peachtree Corners is where the most future-forward Internet of Things (IoT) and sustainable technologies come to life for the benefit of its people and the world.
Some people lament paying taxes. They don’t understand that taxes allow us to live in a more civilized manner, helping and protecting us all along. That’s why I don’t mind paying reasonable taxes for the safety of everyday living.
Many don’t recognize it, but you are often paying a small tax without realizing it as you go about your everyday business….but it’s not called a tax.
It’s called a “fee.” Each time you pay your power or utility bill and cable bill, your insurance premium, when you rent a hotel room or car…and other ways…you are providing a few cents or dollars to help fund mostly local government.
The newly-minted City of Mulberry (and previously Peachtree Corners) will run its government without taxing property owners paying a tax to fund its operations. How so? Entirely from fees.
Let’s visit what the other city without property taxes, Peachtree Corners, is doing.
Salley
We talked with Cory Salley, who is the finance director for Peachtree Corners. He sent along a graphic which shows where Peachtree Corners gets its funding, as well as how it is spent. (See graphic.)
For the most part, Peachtree Corners is funded by fees. The biggest comes from Georgia Power Company, paying $2.8 million in fees for the city for 2025. Other utilities include $450,000 from Atlanta Gas Light Company; $250,000 from Comcast; $70,000 from Direct TV; and $42,000 from AT&T. (That last figure was interesting, in effect, showing how few people have land-line telephones anymore.) Altogether, utility fees brought in $4.3 million in Peachtree Corners for 2024.
Another bucket of fees include $3.8 million in insurance fees. This comes in one check from the Department of Revenue, which collects insurance fees for all cities.
Each business in Peachtree Corners pays an occupational business license tax. With lots of professional offices in the city, these businesses contribute $4.4 million to the city coffers.
Other fee collections for 2024:
Alcoholic licenses and sales: $1 million.
Zoning and land development permits: $1.4 million.
SPLOST funds on sales within Peachtree Corners: $10 million.
Automobile and vehicle purchases: $1.7 million. This is interesting: no matter where you buy an automobile in Georgia, part of the sales tax reverts to the city where you live.
Then there are other funds coming to the city; stormwater fees, grants, solid waste, etc. Altogether, it added up to approximately a $40 million income to run the city.
Some specifics and the way they are figured:
Real estate transfer taxes: This tax is imposed at the rate of $1 on the first $1,000 and 10 cents on each additional $10 on any conveyance of real property when the value of the interest transferred exceeds $100.
Distilled Spirits—up to 22 cents per liter on package sales and up to 3 percent of the sale price of a drink on sales to the public;
Wine—up to 22 cents per liter; and
Malt Beverages—up to $6.00 per bulk container (no more than 15.5 gallons) to be paid by the wholesaler and up to 5 cents per 12 ounces when sold in bottles, cans or other containers.
A municipality may levy a business license tax on depository financial institutions (such as a bank.) The maximum rate of this tax is 0.25 percent.
Hotel-motel tax: a municipality may levy a hotel-motel tax at a rate of 3 percent or less or at a rate of 5, 6, 7, or 8 percent. (Yes, let the out-of-towner pay!)
Perhaps this gives you an idea of how a city, like Mulberry in the future, can operate without property taxes.
This material is presented with permission from Elliott Brack’s GwinnettForum, an online site published Tuesdays and Fridays. To become better informed about Gwinnett, subscribe (at no cost) at GwinnettForum.