Columbus, Georgia

Georgia's First Consolidated Government

Post Office Box 1340
Columbus, Georgia, 31902-1340
(706) 653-4013
fax (706) 653-4016

Council Members

2013 State of the City Address

Columbus, Georgia

Introduction





Thank you for allowing me the opportunity to speak with you about the state of

our great City. I have the privilege of serving Columbus, Georgia in

partnership with our esteemed City Councilors, our professional staff (ably

lead by our City Manager, Mr. Isaiah Hugley), our School Board, our State

Legislative Delegation, our brethren at Ft. Benning and in Phenix City, our

Columbus civic leaders, and our engaged citizens. We are each an essential

ingredient in the success of the whole. We are inextricably intertwined, as

they say, and I believe we are most fortunate in that connection.



Where We Have Been And What We Have Accomplished?



The City of Columbus, Georgia stands on the threshold of a new era - one in

which we have embraced again the river that created this Valley Region. For

many years we have seen steady progress in enhanced economic sophistication and

in the quality of life for our citizens. And, yet, in equal measures of

excitement and frustration, we could feel a greater potential bubbled under the

surface of this community. That potential was released metaphorically and

literally with the exploding of the Eagle & Phenix dam in 2012. The citizens

now embrace without hesitation the once skeptical future of being home to the

longest urban Whitewater course in the world and all that it brings with it.

Because that potential has been released, we cannot go back. The new spirit of

the city, that sense of being able to accomplish great things and direct our

course, tastes too good.



Our present state tells us that our time has been well spent strengthening and

broadening the city?s foundation. Our citizens told us twice this year (once in

the passage of the TSPLOST and once in the passage of our new Charter

amendments) that they trust their governing body and they trust their civic

leaders. They told us they are excited about our future. We have seen new

partners emerge in our renewed relationship with the Governor?s Office and in

the newly elected leadership of Phenix City. It is undeniable to me that the

stars are aligning for the great City of Columbus and for this great region. We

can accomplish big things.



Just this year we have:



Unanimously reformed the City?s Employee Pension Plan saving taxpayers some $25

million over 15 years while preserving benefits for employees;

Received an improved City Bond Rating from Aa2 to Aa1 (Moody?s);

Reduced crime to the lowest levels in six years ? down 23% from its height;

and,





Passed the TSPLOST (which means $300 million in additional revenue over 10

years) to fund third-shift and intercity bus service, Buena Vista ?Spider Web?

improvements, interstate access to Benning Tech Park, and completion of our

16-mile River Walk, among other projects.



And, before all that we spent 2011 reforming the Muscogee County Prison, the

Parks and Recreation Department, the Civic Center and the Animal Care and

Control Center. We revamped our Alcohol Ordinances, reduced copper theft by

47%, and completed our Rails to Trails project and the magnificent Ft. Benning

Gateway. We also began construction on our Whitewater course, our new City

Service Center and our 900- spectator Natatorium.

That is real progress. You can look at your neighbor and say, ?Our City works

for us. Our City solves our problems, overcomes our challenges and makes our

lives better.? And, that, after all, is the very purpose of government ? to

accomplish through the collective what is impossible to accomplish alone.

What?s Next for Columbus, Georgia?



Now that we know that we can accomplish great things together, now that we know

that we have an irreversible energy to grasp our potential, now that we know

that our civic leaders are ready for and capable of the hard work necessary to

do these things, what is next for us? At a time of exceptional potential, are

we ready to direct our future, as opposed to letting our future happen to us? I

will tell you that ?yes? we are ready to direct our future. We are ready to set

a vision for what our city can be and lay out a map of how we can get there.



Our vision is clear. In the future, Columbus, Georgia will be a city more

diverse, more densely populated, more sophisticated, safer, more culturally

connected, and more prosperous. Gone are the days where we shutter ourselves

off from the rest of the world. Gone are the days where our economic growth is

dependent on one industry or segment of the economy. Gone are the days where we

separate our community by income, race and opportunity. Gone are the days where

a families? income level determines whether their kids will go to a failing

school or not. Gone are the days where we penalize through taxes newcomers

simply because they desire to buy a house in Columbus, Georgia.



The map to our future, where this vision is well-rooted, lays out three legs of

a journey.



Redevelopment Powers



The first leg of our journey requires our city to adopt the Redevelopment

Powers available under Georgia law. Redevelopment Powers are innovative

financing tools that the State of Georgia has allowed cities to adopt since

1985 in order to revitalize blighted urban areas. Districts of blight and

distress are identified and established by statutory criteria. The development

within those districts is eligible for favorable bond financing, which makes

those blighted districts more attractive for private market investment.



The redevelopment districts are areas where businesses and affluent and

middle-income families have left, leaving in their wake only the economically

immobile ? that is the elderly, the poor, and the disabled. These are places

where the legitimate market is broken, and the illegitimate market of crime is

too common. The schools struggle there because the kids don?t have the

resources or the support they need to come to school ready to learn. We have

seen this type of blight and economic distress in cities throughout the country

and the state; and, we have seen communities beat it.



We have seen this type of blight in our own city. Indeed, the Mayor?s

Commission on Real Estate Investment Initiatives recently found that

thirty-five percent of our precious land resource sits blighted or

under-utilized. While we have had success in revitalizing the Uptown area and

the MidTown area, so much more could be done. We know blight has persisted

along 2nd Avenue, south and east of Bibb City, and in our South Columbus

region, among others. We have watched the disinvestment continue despite

changing the names of these areas and despite well-meaning committees and

organizations. No amount of well-wishing can turn a market around. The State of

Georgia knows this plain economic fact as does some 60 communities throughout

Georgia that have jumped to adopt Redevelopment Powers.



Columbus, however, lags behind. We attempted to adopt Redevelopment Powers in

2007, but when the opportunity went to a citywide referendum it failed narrowly

by 260 votes. Misinformation gripped the issue and not enough of us stood up

and spoke out to stop the spread of confusion and fear where none should have

existed. We missed an opportunity.



Since 2007, too many children in Columbus have grown up in neighborhoods that

were not as stable as they could have been. Through Redevelopment Powers we

could have provided more stable neighborhoods and more opportunities for

families. We could have encouraged development and growth toward our own

under-utilized property, and not beyond our county?s borders. We could have

created more jobs. There is simply no reason to continue to deny Columbus,

Georgia this tool. It would be foolish and unnecessary to do so.



Fortunately, the City Council has asked our State Delegation to allow us (as a

community) the chance to vote to adopt Redevelopment Powers in Columbus,

Georgia. We look forward to our Delegation?s skill in shepherding that request

through the state legislative system. I have asked the Chamber of Commerce to

spearhead the Redevelopment Powers campaign and I call on all leaders of this

community and all citizens to support their efforts. We look forward to a vote

on this important initiative at the earliest date City Councilors feel is

appropriate. Every day that we waste is a day that we needlessly deny ourselves

the effective tools others have access to.



Urban Service Districts



The second leg of our journey will require the new use of our long ago

established Urban Service Districts. You all may know that the city currently

has a handful of Urban Service Districts, the primary two of which distinguish

between our more densely populated, urbanized areas and those areas that are

more rural in nature. Council sets a separate tax rate (known as a ?millage

rate?) for each district. The thought is that areas that are more populated and

active demand more city services than those in less populated areas.

Accordingly, the more populated areas pay a higher millage rate than the less

populated areas.



The Mayor?s Commission on Real Estate Investment Initiatives and the Commission

on Revenue Review have issued reports that were presented to Council and the

public on November 27, 2012. (These reports can be found on the city?s

website). Both Commissions have recommended an allowable and beneficial use of

our Urban Service Districts. Under this use, Council will designate a

distressed area of Columbus, one where population and businesses have fled, as

a new Urban Service District. The concept is that upon application of an

investor, Council will weigh the amount and type of investment and the economic

and community impact of that investment (much like we do now with Enterprise

Zones). Then, pursuant to ordinance criteria, Council can set a lower millage

rate for a particular project for a limited time, thereby lowering its tax

rate. This reduced tax rate encourages investment that would not have occurred

but for the flexibility provided by the new Urban Service District. As a result

of the encouraged investment, the community enjoys improved neighborhoods,

retail shops, jobs, infrastructure and the general economic elevation of the

area. We can see, then, that the reduced millage rate is well worth the

increased investment and growth in the previously blighted district.



Through the Mayor?s Commissions we have had the valuable input of Councilors

Barnes and Huff, as well as Councilors Baker and Henderson, together with a

broad cross-section of community stakeholders. Assuring that this could be done

and determining how best to do it has been time-consuming. Now, we have a draft

ordinance ready to submit to Council for its deliberation and consideration.

Through this concept of taking a fairly unique power that our Charter has

bestowed on the City of Columbus and using it in a way that meets today?s needs

and opportunities, we will be able to meaningfully address economically

down-turned areas like we never have before. It is time. We have the ability to

do it, and I encourage you all to support Council as they consider taking this

next step in the optimization of our city resources of land, people and

neighborhoods.



Sunsetting the Property Tax Freeze



This past year we have been hard at work on the third component necessary for

our bright future. Members of the Mayor?s Commissions, our exemplary city

staff, Columbus State University?s Dr. Benjamin Blair and many others have

labored to see if there is a workable solution to the Property Tax pact we made

with our citizens some 30 years ago. Let me say at the outset, that our

Property Tax Freeze is just that ? a pact. It has been upheld at the ballot box

twice. The Georgia Supreme Court has affirmed it. I believe that those who have

the Property Tax Freeze are entitled to it. It is a commitment we have made and

one we will honor to those who have relied upon it. Accordingly, I do not

support, and would not advocate for, a complete repeal of the Property Tax

Freeze. Such a repeal could have dramatic and unfair effects. As far as I am

concerned that option is off the table.



However, I realize that this tax mechanism conceived some 30 years ago is

fatally flawed. It does not accomplish its purported goals:



The Property Tax Freeze does not cap city budgets. Our budget at the time the

Freeze was instituted was $50 million dollars. Today it is $267 million

dollars. So, if capping the city?s budget was its goal, it has failed.



The Freeze does not protect seniors or any other class of citizens, except

those that have lived in their house for a long time without any improvements.

So, if protecting seniors and modest income families was its objective, the

Freeze has failed.

The Freeze does not help families in tough economic times. The Tax Freeze

actually prejudices our citizens in times of economic downturn, when they need

relief the most. If your property is frozen from upward valuation, it is frozen

from downward valuation, too. Accordingly, if the economic protection of the

citizens was the goal of the Tax Freeze, it has failed us.

The Property Tax Freeze does not enhance economic growth. To the contrary, it

depresses our tax digest and denies much needed funds to our school system and

city, requiring other taxes to be pushed around in the form of higher millage

rates, higher Occupation Tax and sales taxes in order to meet the revenue

demands for essential services. If encouraging growth was its objective, the

Freeze has failed.

The Freeze does not create tax equity. Quite the opposite. We know that

thousands of citizens pay precious little in property taxes while their

next-door neighbors pay many times that amount for precisely the same house and

lot size. So, if tax uniformity was the goal, the Property Tax Freeze has

failed.

The Freeze does not promote fairness. Our Property Tax Freeze creates a

troubling concept known as a ?Welcome Stranger Tax?, meaning that in Muscogee

County the very people we are trying to encourage to come into our community ?

our young people returning from college, the military families we take such

pride in, and the working middle-income families this city was built on ? are

taxed more, much more, than their neighbor, simply because they are new. So, if

fairness was the purpose of the Tax Freeze, it has failed us.



Despite its well-intended genesis, our Property Tax Freeze is in practice

Un-Columbus. It is the anti-thesis of everything we say we are and everything

we want to be. And, so, my challenge as Mayor ? a person who ran for office to

bring you solutions to tough problems fairly and forthrightly ? is to reconcile

how to shed us of this ineffective, unfair, and economically limiting Freeze

while preserving the reliance long-time homeowners have placed in it. I believe

we have found that balance and I pose it here today. I open the floor on this

suggestion for review, analysis and debate.



I propose that our 30-year old Property Tax Freeze be Sunsetted. That means

that on a voter approved date in the future, all those who have the property

tax freeze will keep it, but all new transfers will not re-vest in the tax

freeze. All new transfers occurring after the date approved will vest in a new

property tax system where properties are assessed by the market value and,

therefore, keep pace with inflation. That new tax system will not affect those

vested under the old Freeze system, but the new tax system will be advantageous

for new purchasers, because I am recommending that the new tax system come with

an enhanced Homestead Exemption. That is an increase of the current Homestead

Exemption from $13,500 to $20,000. In other words, I am recommending a $6500

exemption increase - that is nearly a 50% increase in the current exemption.

So, for example, a new transfer on a $200,000 home will have roughly a 10%

property tax decrease on city property taxes alone.



Although the Sunset would apply to all local property taxes, including the

school tax, the school board will have the option of choosing to join in the

proposed $6,500 increased Homestead Exemption for its school tax portion.

Certainly, I would ask them to join us in this tax break because that would

encourage more new transfers, thereby accelerating the process of broadening

our tax base and leveling out the inequities in our current Tax Freeze system.

This proposed property tax break will also begin the process of eliminating our

?Welcome Stranger Tax?, and may well have the effect of bolstering the Columbus

housing market after several sluggish years.



I propose that we take this recommendation to the policy makers and citizens of

our community. In the immediate future, I will convene a meeting of City

Council representatives, to include our Mayor Pro Tem and our Budget Chair; our

School Board representatives; the senior members of our State Legislative

Delegation; our Development Authority representatives; and pertinent members of

our City Staff. Multiple public forums, Council Work Sessions, and School Board

Work Sessions will follow this initial vetting by our Public Policy makers.

Let?s walk through the numbers and see what the effects of this suggested

solution will be. Let?s look at the immediate and long-term effects to our

citizens under the proposed new system (remembering that existing homeowners

will remain under the Freeze they currently have). And, let?s look at the

effect Sunsetting the Property Tax Freeze and offering a significant tax break

in the form of an increased Homestead Exemption will have on our city and

school board revenues.



I can tell you this. I have seen the numbers. This tax break for new transfers

is meaningful, and it eases the transition from the Freeze to a Fair Market

valuation system. This tax break has short-term costs for the city (and for the

school board, should they elect to join in the increased Homestead Exemption);

yet, the long term effects of revenue streams that keep pace with inflation

allow the city and school board to better meet their future needs and will even

allow the city and the school board to consider millage reductions in future

years. The city could also consider other future tax adjustments, such as

Occupation Tax adjustments for businesses that create the jobs that keep our

economy and our families strong.



This is a valid proposal to shed a weight around the neck of our community ?

one that is currently driving families and young people away. I am confident

that once the leaders and the citizens of this community see how this proposal

will work, we will be comfortable in asking our City Council and our State

Legislative Delegation to allow us the opportunity to have an up or down vote

on that which we have never voted before. Yes, the lifting of the property Tax

Freeze retroactively has been voted on and polled several times in the past to

dramatic negative effect. The proposal I make today is not that. The proposal I

make today is something else entirely, and the citizens of Columbus, Georgia

have never voted on anything remotely like it. The proposed Sunset is fair

because it protects those that rely upon the Freeze, and the tax break is an

attractive incentive to all those who will join us in the new tax system of our

future.



The Journey?s Destination



The foregoing proposals rest on sound economic principles. They illustrate

precisely how the local government and the private market should interact.

These proposals are the very essence of Public/Private Partnerships. These

tools are necessary because they eliminate existing market anomalies and allow

the private market to flourish where currently it cannot take hold. These

proposals will make Columbus a destination city for people who are looking for

community and prosperity. These proposals also will enhance the quality of life

and opportunities for our current residents.



With these tools we can restore Ft. Benning Road leading up to the traditional

entrance of Ft. Benning with mixed-use developments of shops, restaurants, and

residential units perfect for military and military-related families. We can

take the depressed area north of the Total Systems campus and south of Bibb

City along our beautiful and exciting River and build a City Village ? one that

supports housing for all income levels and creates an environment for the jobs

of today and of the future.

We can have it all now, if only we can put the pieces of our potential

together; and, I believe we can through the three-pronged approach I have set

out today. We can tackle our blighted areas and turn them around to be vibrant,

safe communities with productive schools. We can reform our tax system to be

more fair and to encourage growth. We can do this because in Columbus, Georgia,

we do big things.



Conclusion



Let me conclude by stating what has been made obvious by now ? the State of our

City is strong. And, yet, it can be stronger and better. This effort, this

journey into our future, will require all of you to be actively engaged in an

effort to inform others and encourage them to join us. These possibilities will

not happen by accident. If we are to be successful, we must have your shoulder

to the wheel of this effort - each one of you. You are going to have to spread

the word to your colleagues and friends. You will have to write Letters to the

Editor, and ?yes?, even Sound Offs. You are going to have to call your City

Councilors and let them know you support these solutions and this effort. You

cannot leave the elected officials out there alone. We are all going to have to

get off our comfortable duffs and do this. But, if you join with us, you will

be amazed at what we can do together.



Thank you for your attention. It is a great privilege to serve as Mayor of such

an exceptional city. We have the fortitude to capitalize on our success and to

meet our potential; and, I look forward to working with you to make it happen.





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