Special Meeting Called in Avondale for Budget Shortfall

As a result of a property tax plunge, the City of Avondale Estates is facing a budget shortfall of approximately $280,000 and has called a special commissioners meeting for Tuesday night.

At the meeting at Avondale City Hall, the Board of Mayor and Commissioners will discuss the assessments and a possible millage increase. Overall property values dipped 18 percent in the City of Avondale Estates during the past year.

According to information sent to the board by City Manager Clai Brown, the city's real property value dropped by $29.3 million. Based on these preliminary numbers and the city's current budget, the board will need to cut approximately $280,000 from the budget or take other actions, according to City Happenings, the newsletter emailed to residents by Mayor Pro Tem David Million. 

DeKalb County recently mailed some 240,000 assessment notices to homeowners but expects between 50,000 and 70,000 appeals to be filed. The county is limited to collecting taxes on 85 percent of the assessment until the appeal is resolved and the remaining 15 percent may not be collected until 2012.

"Our property values went down, which is about 10 percent of our budget," said Brown. "This was a big surprise. Many cities got a big surprise."

Mayor Ed Rieker said the city has delved into the tax data during the past week and tonight the board will present its findings.

"We'll progress from there," Rieker said. "There is a countywide issue and an Avondale Estates issue."

Avondale has expanded its tax base by annexing the , but the difference it made is not material in terms of adding to the tax base, according to Brown. However, once developed, it could make a bigger impact.

At the recent , Rieker promised no tax increases.

Avondale Estates has said on several occassions that it is on solid financial footing and has a back-up general reserve fund. That's the fund that helped pay for the Lake Avondale improvements and may help pay for upgrades to Willis Park and a possible dog park.

"The city is financially sound," Brown said. "We've got a solid reserve."