The passage of HB 36, which eliminated the three-mile limit on the creation of new cities, authorizes municipal incorporation in areas where it would have been prohibited previously, explains Hayes. "For example, the franchise fee revenue would be significant in a county incorporation, but the potential for long-term negative impacts on the existing cities or any future cities within the county could be substantial."
John O'Looney performed the DeKalb County analysis, which examines the potential fiscal and non-fiscal costs and benefits of incorporation and consolidation. "The study also made use of the Institute's Georgia Economic Modeling System to identify the total economic impact of the theoretical incorporated county's ability to collect franchise fee revenues," notes O'Looney. "The study also noted that there is a potential for changes in the way that utilities raise franchise fee revenues that would have a substantial impact on which groups of residents ultimately pay these fees and therefore on the fiscal benefits of incorporation."
The continuing interest in some alternative forms of governance is not just a Georgia phenomenon, Hayes notes. "Two small counties in North Carolina recently held votes on incorporating the unincorporated portions of their counties. The vote in Currituck County failed while the vote in Camden County passed. The creation of a new government, whether it is a new city or a city-county consolidation, should be approached with thoughtful consideration of the long-term implications."
Earlier this year, the Institute also provided analyses for incorporation study groups in North Fulton County and the Dunwoody area.
