Reichert: Financial challenges loom after banner year for economic development

Macon-Bibb County Mayor Robert Reichert said 2017 was a banner year for economic development, but the county must also address looming budget problems in the near future.

Reichert gave his annual State of the Community address Thursday before about 500 people who filled the Edgar H. Wilson Convention Center. After outlining many of the county's positive developments during his 30-minute speech, the mayor also spent time detailing some tough financial decisions that need to be made.

"The state of our community is emerging," Reichert said. "That has a physical and a psychological component. We are moving in the right direction, but we have not arrived at our destination. Our physical infrastructure is not complete, and we still have naysayers and nonbelievers. But we are on the right track and signs of progress are undeniable. "

Reichert advocated for a new 1 percent sales tax he says would alleviate much of the financial strain the county will face in the coming years.

The consolidated government lost about $20 million in yearly revenue when it eliminated the double taxation of the former city of Macon residents. And despite reducing general fund expenses from $169 million to $145 million, the county has dealt with large deficits the last several years.

Also, a post-employment benefit fund that had $32 million in it is becoming depleted, and health care costs are rising as well.

If passed, the new sales tax would result in a millage rate rollback and a partial freeze on homestead values on residential properties.

The tax is also a fair way to generate revenue because a high percentage comes from people who live outside of Macon-Bibb, Reichert said.

But if Macon-Bibb voters don't approve a tax referendum in November, the other options are "draconian cuts" to the budget or raising property taxes again, he said.

“We’re no longer trying to trim fat, so additional cuts would be to the bone and fiber and muscle to the community,” he said during a question-and-answer session. “We would have to do something as dramatic as close the recreation centers that we just built and upgraded. What a travesty that would be."

He added, "Unless you want to go back and ask the people for another millage rate increase in their ad valorem taxes, which is paid only by people here in Macon-Bibb County."

Banner year

Reichert highlighted some of the accomplishments during 2017 in the areas of medical, education, jobs and local government.

There was the return of regular air service out of the Middle Georgia Regional Airport. Also, millions of dollars were spent on capital improvements, including building new fire stations, thanks to proceeds from the special purpose sales tax, the mayor said.

It was a "banner year" on the economic development front with the announced expansions of Star Snacks and Tyson Foods, Amazon’s plan to open a fulfillment center, and a $350 million investment being made for the new Irving Consumer Products plant, Reichert said.

"Those represent employment opportunities that bring thousands of people into this community on a daily basis."

Reichert said Macon continues to make its mark as a hub city with expanding entertainment options, including this summer when the baseball franchise Macon Bacon plays an inaugural season in a renovated Luther Williams Field.

Construction also is underway on the major overhaul of the Interstate 16 and 75 expansion that will improve safety along the corridor and features mitigation work in the Pleasant Hill neighborhood.

"We see and realize the need to continue to invest in our future and build the infrastructure and programs that need," Reichert said. "Not just to be a hub city, but also to be one of the 100 best places in America to live."

This story was originally published January 18, 2018 at 3:55 PM with the headline "Reichert: Financial challenges loom after banner year for economic development."