Suwanee Proposes $11.9 Million Budget

A proactive approach to budgeting and urban planning has helped Suwanee to a promising situation as it prepares its 2012 budget. The initial proposal: $11.9 million, a 5 percent increase over fiscal year 2011.

City planners anticipated the revenue downturn that would come with the services dispute with Gwinnett County, and the resultant loss of income from the inability of police to use radar and laser to enforce speeding laws.

Also, the city's 75 percent population growth in the past decade, spurred somewhat by the Open Space Initiative that led to the development of several parks, will mean some extra census-based income.

"We've got a solid base," City Manager Marty Allen told some City Council members at a work session on the budget recently.

Suwanee officials will hold more work sessions and public hearings on the FY 2012 budget. City Council is expected to vote on the final draft in June and it would take effect in July.

Planners adjusted revenue downward by 35 percent in October 2010, knowing that police would be unable to use radar and laser as an enforcement tool come Jan. 1, 2011. So far, it has meant a 15 percent drop in revenue -- but about $60,000 more money than the worst-case revision.

Also, Suwanee's census population of 15,355 should mean almost $229,000 more in FY 2012. Excise taxes on insurance premiums written by companies doing business in the city are funneled to the city based on current census data. The 2012 figure is estimated at $1.58 million. Looking way back at 2002, the figure was below $1 million.

Other financial pluses:

-- Banks collecting on delinquent mortgages. This has meant an additional $170,000 in "prior year collections" for 2011.

-- The city is getting additional income in building permits, as the economy slowly improves. The biggest ticket: $50,000 from the HP data center on Satellite Boulevard, as it expands.

Because of the positive picture, the city may decrease the millage rate on property taxes from 5.70 to 5.65 for 2012.

Also, Suwanee may change medical providers for its employees, from Blue Cross Blue Shield to Humana. This could save about $100,000, though officials say several factors could change that amount.