Financial Info
The bustling Town of Braselton faces challenges but remains fiscally responsible with its finances.
Bustling: In Braselton, there is 1 business for every 6.5 residential units (800 business to 5,200 residential). Many of these businesses prefer a location off Interstate-85 on either of Braselton's two I-85 exits. On I-85, the Annual Average Daily Traffic (AADT) exceeds 50,000 vehicles in each direction / day with over 20% being 18-wheeler trucks. The AADT on Georgia Hwy 211 (Exit 126 on I-85) surpasses 25,000, and the AADT on Georgia Hwy 53 (Exit 129 on I-85) surpasses 20,000.
Challenges: This level of business, busyness, and vehicular volume in Braselton also creates challenges.
Public Safety: In 2022, the Braselton Police Dept. attended to over 100,000 police calls (911 reactive calls or officer-initiated calls). In recent years, BPD calls show a rapid increase.
2011 - 13,119 calls
2012 - 13,440 calls
2013 - 16,291 calls
2014 - 15,935 calls
2015 - 17,336 calls
2016 - 15,030 calls
2017 - 15,901 calls
2018 - 16,719 calls
2019 - 22,232 calls
2020 - 41,342 calls
2021 - 95,873 calls
2022 - 100,000+ calls
General Fund: Braselton currently operates on approximately $7.5M in annual revenue for the general fund. Our June 2022 budget proposed approximately $1M in annual savings. Braselton currently carries approximately $30M in debt (serviced by our general fund/SPLOST fund) due to improvements on capital projects and infrastructure.
Public Works: Braselton Public Works currently operates on approximately $9M in annual revenue from customers. BPW currently carries over $35M in debt due to maintenance and expansion of our Public Works operations. We recently invested over $2.5M to repair riverbank storm damage that could impact the safety and productivity of our fresh water wells. Braselton also faces over $25M in upcoming expenses to repair/replace aging equipment in our waste-water treatment, and prepare for long-term growth of the local hospital, commercial, and residential needs. Until our Public Works Dept. becomes debt-free, it contributes no funds toward Braselton's general fund.
Geographic: With Braselton spanning four counties (Barrow, Gwinnett, Hall, Jackson) and with Braselton being on the corners of each county, Braselton often provides mutual aid for each county's public safety department, and Braselton carefully considers the interplay of responsibilities involved with service delivery.
Population Distribution & Sales Tax: While Braselton continues its intentional growth of businesses and tourism, Braselton suffers a likely detriment in the current legislative scheme for sales tax revenue. Three of the four counties generate revenue using a Local Option Sales Tax ("LOST" - Barrow, Hall, Jackson at 7% sales tax), which shares sales tax revenues between city and county governments. Gwinnett charges 6% sales tax with no LOST - no sales tax revenue for Braselton from Gwinnett.
Splitting LOST between the city and county often defaults to a negotiation based on population, not other factors like public safety or infrastructure needs. Presently, there is no direct consideration given for how much sales tax revenue Braselton creates versus how much the county returns.
With a default LOST negotiation solution being population, municipalities that create more business and less population actually support Georgia's business efforts to the city's detriment. Another way of saying this: less business and more population = higher LOST revenues returned to the city; conversely, more businesses with less population = lower LOST revenues returned to the city.
Braselton also faces the challenge of only spending SPLOST revenues in the county that generated the SPLOST revenues. For example, Braselton cannot spend Barrow, Gwinnett, or Hall SPLOST at its wastewater treatment facility in Jackson County.
Population split in Braselton is relativeley even among the counties:
Barrow - 2,007 residents
Gwinnett - 3,906 residents
Hall - 3,254 residents
Jackson - 4,236 residents
Fiscally Responsible: Braselton retains the highest Standard and Poor's bond rating possible without imposing property tax, and Braselton remains a Water First community with an established credit record for lending.
Braselton does this by promoting business and tourism, generating revenue as follows:
22% - Hotel / Motel Tax
15% - General Sales Tax
15% - Franchise Fees
12% - Fines and Forfeitures - Court Fees
11% - Alcohol Beer / Spirit Tax
10% - Licenses / Permits
8% - Insurance Premium Tax
2% - Business / Occupation Tax
2% - Service Charges
3% - Other
Although Braselton derives much less Own Source Revenue ("OSR") than many other municipalies (i.e., approximately $549 of OSR/resident compared to $1,000 or more of OSR/resident), Braselton continues to provide excellent service to its community. Often ranked as the safest city in Georgia, Braselton residents are also very productive - creating one of the wealthiest cities in the state of Georgia. Braselton residents truly contribute to Georgia being the #1 State for business.
Braselton's annual reports and DCA Report of Local Government Finances are available for review.
Braselton intends to continue its focus on building commerce - a bustling municipality. Along the way, we always need to review the best way to be financially responsible.