1. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. Tax and Fee Affordability February 25, 2003

2. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATL 2 community partners briefing final Agenda  Overall affordability  Taxes and fees  Summary

3. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATL 3 community partners briefing final Total cost of living components HousingFoodTransportation Misc. goods and services Health care  Rent  Purchase price  Mortgage  Utilities (electricity, telephone, etc)  Home repair costs  Groceries  Restaurant / dining out  Commuter fare  Auto maintenance  Gasoline  Haircut  Dry cleaning  Clothing  Entertainment  Liquor  Hospital room costs  Office visit costs  Prescription drugs Taxes and fees Examples :

4. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Atlanta’s cost of living without taxes and fees is slightly below average for benchmark cities Note: Economist Intelligence Unit also ranks Atlanta average at 68 out of 134 worldwide cities Source: ACCRA (American Chamber of Commerce Researchers Association) Cost of Living Index, February 2003 Average

5. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 1a: Local government taxes and fees per capita on Atlanta residents (by recipient) (84-02) Local option sales tax initiated ‘Education’ sales tax initiated

6. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 1b: Local government taxes and fees per capita on Atlanta residents (by source) Local option sales tax initiated ‘Education’ sales tax initiated

7. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Taxes and fees per capita paid to the City of Atlanta through 2002 Note: Assumes zero population growth after 2002. Note: Property tax increases in 2003 and 2004 are due to assumed increases in home value appraisals. No changes in millage rates are assumed. (84-02) Local option sales tax initiated

8. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 2: Taxes and fees per capita paid to the City of Atlanta through 2004 Note: Assumes zero population growth after 2002. Note: Property tax increases in 2003 and 2004 are due to assumed increases in home value appraisals. No changes in millage rates are assumed. (84-02) Local option sales tax initiated

9. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 3: Ratio of total local government taxes and fees to income Average Local option sales tax initiated ‘Education’ sales tax initiated

10. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 4: Comparison to other cities: 2000 state and local tax burden Note: Tax burden is property, income, and sales taxes plus auto taxes and fees paid by citizens. Cities selected from benchmarking study dated 3/21/02. Source: Government of the District of Columbia: Tax Rates and Tax Burdens In the District of Columbia- A Nationwide Comparison-2000

11. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 5: Comparison to other cities: 2000 local tax burden (proxy) Note: Burden is local portion of taxes paid by citizens. Local tax burden is a proxy because this analysis assumes that all property taxes go to municipality. Source: Government of the District of Columbia: Tax Rates and Tax Burdens In the District of Columbia-A Nationwide Comparison-2000

12. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 6: Property taxes per capita paid by Atlanta residents

13. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 7: Breakdown of total property tax increase (1992 vs. 2002)

14. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 8: Breakdown of total property tax increase (1998 vs. 2002)

15. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATL 15 community partners briefing final Figure 9: City of Atlanta residents’ property tax millage rates Note: The state has had a constant $0.25 charge. Included in each millage division is the general levy and the bond levy for that entity. Parks have maintained a $0.50 levy which is included within the City of Atlanta. Source: City of Atlanta Revenue Department, Fulton County Local option sales tax initiated

16. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 10: Appraised house value growth rates segmented by house value ranges Note: Only five representative deciles shown so as to prevent the graph from becoming cluttered Source: Fulton county appraisal data

17. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 11: Percent of property taxes paid segmented by house value ranges Source: Fulton county appraisal data

18. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATLcommunity partners briefing final Figure 12: Percent increase in house values (2002 vs. 2001) Source: Fulton county appraisal data

19. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATL 19 community partners briefing final Some key factors influencing level of taxes and fees Tax and fee levels Age of infrastructure Crime rate Poverty level Level of tourism and conventions Percent of MSA (density) Efficiency of government operations Government policy Economic development Macro-economic influences (e.g. economy) Amount of parks and greenspace One time “events” Multiple other factors

20. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATL 20 community partners briefing final Density of metro area benchmarks Source: U.S. Census Bureau (2000)

21. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATL 21 community partners briefing final Poverty level benchmarks 17% Source: U.S. Census Bureau (2000)

22. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATL 22 community partners briefing final Crime rate benchmarks Source: FBI, Crime in the United states (2000) 7.9K 1.3K

23. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATL 23 community partners briefing final Adjusted personnel per 100k Residents for roughly comparable services/departments ~

24. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATL 24 community partners briefing final Things to consider to keep Atlanta affordable  Carefully monitor, benchmark, and manage all elements of tax bill over-time  Continue improvement in efficiency, effectiveness, and financial stability  Continue development and execution of long-term plans for infrastructure  Focus on economic development  Focus on housing, density, and development patterns  Influence state and federal policies

25. This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent. ATL 25 community partners briefing final Summary  Overall cost of Living in Atlanta is slightly below average of benchmark cities  Tax and fee levels for City residents are also slightly below average  The portion of annual income consumed by local taxes of all types has increased by 1.5 points over 20 years  Average annual growth in local government taxes in fees has been 3.4%. City of Atlanta growth has been 1.6%  Recent growth in property taxes driven primarily by increasing home values  Alternatives need to be considered to maintain affordability in the future