Commissioner Rader Digest

Bond Ruling

The law's the law, whether it's convenient or not. That was the message from the Georgia Supreme Court in a recent ruling that directly affects taxpayers in DeKalb County.

Last year, the county administration, under former CEO Vernon Jones, decided that specific legislation passed by the Georgia Assembly was not fair, therefore the county did not need to abide by it.

The county wanted to issue a $4.3 million bond to cover cost overruns on construction of a new performing arts center. The problem was the county wanted to circumvent the required public referendum by having the bond issued by its own development authority.

Using a development authority to issue bonds has been a legal loophole in the past to finance construction or renovation of county facilities. But in 2007, the Georgia Assembly passed legislation (HB 181) that closed the loophole. The county administration felt the legislation was discriminatory because it applied only to large, metropolitan counties such as DeKalb.

When the county's proposed bond came before the Board of Commissioners last summer, I was the only commissioner to vote against it, based on my understanding of the state legislature's intent. I explained my reasoning in detail in my August 12, 2008 update (link at the end). Simply, my position was the taxpayers have the ultimate say in whether the county will assume the debt from a bond.

My fellow commissioners and the county administration, both ill-advised by the county legal staff, chose to challenge the state law in the judicial arena. The proposed bond was subsequently ruled invalid last November by a DeKalb Superior Court judge.

Still, the county administration elected to press forward with its case to the state Supreme Court. This legal case cost the county money in legal fees, all of which will be paid with money from you and your fellow taxpayers.

Read my previous discussion of this issue:
http://www.commissionerrader.com/news/news200.html

Health Benefits

Approximately 80 percent of DeKalb County's operating budget is spent on wages and benefits for its employees. That includes health care benefits for current and retired employees.

The county, just like rest of the nation, has seen its health care costs rising faster than other economic indicators. This year, the county's health insurer proposed to raise premiums 50 percent for those county retirees who participated in the Medicare Advantage program. Medicare Advantage is an alternative to Medicare that reduces the need for supplemental insurance.

After negotiation with the Board of Commissioners' Employee Benefits Committee (I'm a member) and others, the insurer settled for a 30 percent increase instead. Much of the proposed increase was attributed to federal program changes, but the commission was concerned to see so much change after only one year with the program.

There are no magic prescriptions to reduce health care costs. The county's system uses negotiated rates, a wellness program, and cost sharing to reduce its expenses, and will have the same tools to deal with next year's costs. Because the county is self-insured, with insurance for catastrophic coverage, it is directly impacted by the costs and benefits of its approach to health care.

The challenge for next year is to maintain health care coverage at a comparable level of service and cost-sharing arrangement. The county pays for 70 percent of health care costs with the remaining costs borne by the employees. Health care benefits, along with retirement benefits, are important tools for the county to compete against the private sector for quality employees, but every assumption needs to be tested if the county is to balance next year's budget without a tax increase.

The employee benefits committee remains impaneled for this year because of concerns about the long-term sustainability of the county benefits programs, including health care. With the current health care reform discussion in Congress, there is the potential for profound change that would alter the way the county pays for employee health care in the coming years.

Housing Program

As part of the federal stimulus package, DeKalb County accepted $1.8 million for a program to prevent or alleviate homelessness. The Homelessness Prevention and Rapid Re-Housing Program (HPRP) provides rental assistance to those at risk of becoming homeless, and assistance to those who are homeless.

In order to put the federal dollars to use, DeKalb's Community Development department put together partnerships with long standing, proven civic organizations that have provide comparable services. Those partnerships were formally approved by the Board of Commissioners.

This is a positive example of translating complex federal programs into tangible programs for the benefit of vulnerable citizens. The Community Development department deserves kudos for its efforts on this project.

Land Use Proposal

The Board of Commissioners accepted withdrawal of an amendment, proposed by the county planning staff, to DeKalb's comprehensive plan. The amendment would have assigned the Town Center designation to the area surrounding the intersection of North Druid Hills and Briarcliff Roads (30329), currently classified as primarily a Neighborhood Center.

The recommendation by the planning department was the outgrowth of its research started last year when a development proposal, subsequently approved, was under consideration for the Executive Park office complex in the same neighborhood. In the intervening time, my office, with the cooperation of the county administration, was able to secure a Livable Centers Initiative grant to develop a detailed master plan for future development along North Druid Hills Road. For information about that LCI, read my March 22, 2009 update (link below).

Therefore, the commissioners felt it would be premature to make a decision about the land use proposal until the LCI study is complete. The county finally signed the LCI contract in September, followed by a kickoff meeting in October. The heart of the study is soliciting public feedback on its long-term vision for the area under review.

Read about the North Druid Hills LCI:
http://www.commissionerrader.com/news/news244.html

(Commissioner Jeff Rader represents District Two on DeKalb County's Board of Commissioners. He was elected to the position in 2006 for a four-year term.)

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