Fulton to increase water rates 15 percent

Conservation reduces county use by 30%
By D.L. BENNETT
The Atlanta Journal-Constitution
Published on: 05/08/08

Fulton County officials praised county water users Wednesday for their success at conservation — then socked them with a 15 percent rate increase for their effort.

The conservation penalty the County Commission adopted Wednesday 6-0 matches the increase Atlanta utility officials asked to impose earlier this year but which the City Council so far has resisted. The average water/sewer bill should increase nearly $9 per month to a total of about $68 per month, water officials said.

The county provides water and sewer service to some areas of north Fulton County. It provides sewer service only in Sandy Springs and south Fulton. The county also has some north Fulton customers who only get water.

All will get the 15 percent hike.

Utility managers said water use has dropped by as much as 30 percent since last year when Gov. Sonny Perdue asked each county to cut usage by at least 10 percent because of the lingering drought. That has Fulton facing potential default on its bonds, said Angela Parker, public works director.

"We just can't swallow this reduction in revenues," Parker said.

She said Fulton one day might roll back the rates if the drought ends and revenues return to pre-drought levels.

Commissioners said they felt Fulton had to raise rates despite the slumping economy.

"I'm deeply concerned about raising water rates, but we have no choice," Commissioner Emma Darnell said. "This is a minor range of situations where a rate increase can be justified."

Economy Jackson of Atlanta protested the action on behalf of Habitat for Humanity, which builds low-cost homes all over Fulton.

"Because people are saving money, they are being charged," she said. "We are doing what you asked us to do. We are opposed to this rate increase."

Atlanta's proposed conservation penalty continues to be stalled in the City Council's utilities committee and does not appear to be headed toward passage.

Atlanta water utility officials began pushing on Tuesday a four-year rate hike plan that includes the money the conservation penalty would have collected. It would bump up the average water/sewer bill 80 percent — from $84.60 a month to $151.92 — during the next four years.

Council members are expected to consider the rate increases in the next seven weeks as they consider the 2008-09 budget, which starts July 1 and has a projected $140 million shortfall.

Atlanta officials seek $750M for repairs

Grants, bonds would be funding sources
By ERIC STIRGUS
The Atlanta Journal-Constitution
Wednesday, December 10, 2008

Atlanta city officials propose using bonds and money from federal and state grants to pay for $750 million in improvements needed on city streets, bridges, sidewalks, vehicles and traffic.

Mayoral adviser David Edwards called the repairs a public safety issue. But he and Public Works Commissioner Joe Basista told Atlanta City Council finance committee members the city needed to find a way to pay for repairs that doesn’t require dipping into the city’s annual operating expenses. The city now faces a $50 million shortfall in its operating funds.

“By allowing your capital to wither on the vine, you are increasing your operating expenses,” Edwards said in an interview.

President-elect Barack Obama has said he plans to give federal funds to the states to improve the nation’s infrastructure and to help boost the economy.Since Atlanta Mayor Shirley Franklin took office in 2002, the city has spent between $50 million and $60 million a year on capital infrastructure projects, city officials reported Wednesday. City officials say Atlanta should raise that annual total to about $100 million.

The city has 18 bridges that need to be repaired or replaced, work city officials say will cost about $162 million. Another $255 million is needed to pave streets, they said. Atlanta also has 1,818 vehicles and other pieces of equipment in use past their intended replacement dates. Replacing the vehicles could cost another $55 million. About $278 million is needed to replace aging facilities, traffic lights, streetlights and sidewalks.

Council members did not action Wednesday on the proposal. Fulton County Taxpayers Foundation Executive Director Barbara Payne argued a bond issue would be unlikely to win the required approval of city voters. She also questioned the idea of turning to the state and federal government for help, noting they also have budget troubles.

“How can we ask Mom and Dad when they don’t have [the money]?” she asked, adding that the city must better control its own spending.

Cousins Properties bearish on residential outlook

By KEVIN DUFFY
The Atlanta Journal-Constitution
Published on: 05/06/08

To those optimists who argue the housing market is about to turn around, one of Atlanta's top developers begs to differ.

"We believe it will be some time — at least the second quarter next year — before we see any substantial recovery in the residential markets," Tom Bell, chief executive officer of Cousins Properties, told shareholders Tuesday at the company's annual meeting.

"We've stopped producing lots in almost all of our projects and are now watching the market closely for the opportunities that inevitably show themselves during tough times," he said.

A Cousins condominium building in Buckhead, 10 Terminus Place, is scheduled to open in three months. Only 25 percent of the 137 units have sold thus far, Bell said.

Two other condo projects — CityPlace at Buckhead and the Premiere at Fox Plaza — were put off because of the soft market. CityPlace was a joint venture with The Related Cos.

Residential development represents 7 percent of Cousins activity. The company focuses more on office and retail projects. But all sectors are hurting in the current economy, Bell told the audience, gathered on the 50th floor of the company's downtown headquarters, the 191 Peachtree building.

"We're seeing office users that are slower to commit or expand, retailers that have significantly pulled back on new locations and residential buyers that are still waiting to see if we've hit bottom," he said.

Terminus 200, the second office building in Cousins' mixed-use development on Piedmont Road, is scheduled to open in August 2009.

It's one of four Buckhead office buildings under construction that is still seeking a first tenant. Those buildings total approximately 2 million square feet.

"Competition in Buckhead's office market — especially among under-construction buildings — is fierce, but Terminus' combination of location, amenities and connectivity to its surroundings should give it the edge," Bell said.

Cousins last week opened The Avenue Forsyth, a retail complex that includes a Barnes & Noble bookstore and AMC Theatres. It's the company's fifth and largest Avenue shopping center in metro Atlanta. The first phase is 70 percent leased.

"Forsyth County has been one of the country's fastest-growing counties for eight years now," Bell said, "and this multi-phase project's long-term future looks to be very bright."

Bell became CEO in 2002, succeeding company founder Tom Cousins. Cousins Properties turned 50 this year. Shareholders were given annual reports that resemble Life magazine, featuring a photo of a young Tom Cousins and a logo that says CUZ, the company's New York Stock Exchange symbol.

Cousins is scheduled to release its quarterly earnings Monday and meet with analysts Tuesday.

Earlier this year Cousins laid off 18 employees, almost 4 percent of its workforce. In its last quarterly statement, Cousins reported a net loss of $1.16 million.