Atlanta police overtime costs "dominate" city budget overruns
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Overtime for police officers and increased security at the controversial public safety training center are fueling a projected $100 million budget deficit for the city of Atlanta.
Why it matters: Mo' money, mo' problems.
- No money? You got bigger problems.
Driving the news: Atlanta finance officials told City Council members last week that expenses for the current fiscal year, which ends in June, were projected to exceed the budget by 11%.
- Depending on what the next three months bring, Atlanta could end the fiscal year with an up to $20 million deficit.
Zoom in: Finance staff said the shortfall is decreasing, and they hope 24-7 operations at the soon-to-open training center and this summer's FIFA Club World Cup will buoy healthier-than-projected revenue and close the funding gap.
- They added that extraordinary events — for example, former President Carter's death and two snowstorms — contributed to the cost overruns, and an ongoing review of vacant positions will help.
Zoom out: Mayor Andre Dickens and the finance team note that the city has a Triple-A bond rating and a healthy rainy-day reserve fund.
The intrigue: Six new hotels have opened in the past fiscal year, finance director Mohamed Balla said, and Atlanta's hotel and motel tax revenue is exceeding pre-pandemic levels.
Yes, but: Council member Dustin Hillis told finance officials that large companies — "I'm not going to name examples or whatever," he said — book a block of rooms for roughly three months or more.
- By doing so, they have convenient lodging options — but don't pay as much hotel and motel tax, which is levied only up to 30 days.
- "With large events coming up, that is something that FIFA or the NFL, etc., would do, and so that would leave a large revenue stream that we would not get," Hillis said.
What we're watching: The impact of large-scale federal employee layoffs on metro Atlanta's economy.
What's next: All municipal elected officials, including the mayor, are up for reelection this year, making a property tax increase unlikely.
- If the budget does need shoring up, leaders will likely look toward cutting costs or tapping reserves.