Residents of unincorporated South Fulton got an update Oct. 18 of the county’s finances at a budget hearing at the Stonewall Tell Annex. The current economic downturn may result in a $37.6 million difference in expenditures over revenues. The outlook for the new Special Service District (SSD) Fund, those monies generated and spent in the county’s only remaining unincorporated area, is projected at $913,943 in expenditures over revenues. The good news is that transferable Fund 300 monies total $27.5 million.

Fulton County Budget Division Director Hakeem Oshikoya said projected revenues for the General Fund budget were $602,902,832 with $447.87 Million in real estate taxes, $40 million in local option sales taxes (LOST) and $115 million in other revenues. Mid-year projected expenditures total $620.2 million along with another $20.3 million appropriated to Grady Hospital. Those figures show $37.6 million in expenditures over revenues. The General Fund beginning fund balance was $141.2 million with a projected ending balance of $103.6 million, or $37.6 million in expenditures over revenues. Among the challenges facing the General Fund revenue stream were the impact of LOST taxes due to recent municipal incorporations, relatively flat property tax values due to the housing market crisis and the loss of intangible tax and real estate transfer tax from the General Fund due to the incorporations.

On the Special Service District, Oshikoya referenced the “old” and “new” district. The old SSD and its accompanying budget represented all unincorporated areas of Fulton County. The new SSD, representing only the remaining unincorporated area of south Fulton, is projected to have $913,943 in expenditures over revenues for the fiscal year, Oshikoya said. Revenues total $45.43 million while expenditures total $46.34 million. Economic conditions similar to those impacting the General Fund are also evidenced in the SSD budget, Oshikoya said.

Pertinent to the operation of the SSD is the ability to transfer monies in from Fund 300. Questions over the amount of money still available in the fund and whether additional monies can be used to replenish the fund arose at the meeting. The amount of money remaining in the fund, from both the old and new SSD, totals $27.5 million and can be used to transfer into the new SSD, said county manager Tom Andrews. Fund 300 will eventually be depleted since the only revenues that can be used to re-supply it come from past due taxes, Oshikoya said.

The fiscal year 2008 budget is scheduled for adoption Jan. 16.

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