Cost Cutting Measures

Ahead of the curve: Gwinnett began cutting costs in 2008

Did you know that Gwinnett County government operations in 2011 will cost $32 million less than in 2010? Capital improvements will cost about $217 million less. Unfortunately, harsh financial realities still face local governments – and Gwinnett is not immune.

Property taxes provide the primary source of revenue for general county government operations and are based on the assessed value of all taxable property in Gwinnett, known as the tax digest. The digest fell nine percent in 2010 and forecasters expect another nine percent drop in 2011 and another likely contraction in 2012. This translates into less revenue for the provision of services such as police and fire protection, courts and sheriff, planning, parks and recreation, and libraries.

Gwinnett County has held triple-AAA credit ratings since 1997, a mark of financial stability and sound management shared by only about three dozen other counties in the nation. Much of Gwinnett’s success was fueled in the past by strong population growth and a voter-approved sales tax program that helped build much of the infrastructure – roads, fire stations, police precincts, parks, libraries, etc. – needed to meet the needs of residents and business. The natural growth in the economy also allowed the Board of Commissioners to roll back taxes for many years.

However, County officials read the signs early on that growth was slowing and the economy softening. Even with the county’s conservative budgeting practices and already-lean workforce, officials recognized that greater efficiency in core local government services would be essential to manage through this period and emerge from it an even stronger organization. Starting in mid-2008, elected officials and staff began taking a hard look at the cost of government and have implemented many measures to bring those costs down – and Gwinnett County has been ahead of the curve in that respect.

Gwinnett County is now continually evaluating internal processes, necessary service levels, and the value of outsourcing to improve efficiency and effectiveness. Keep reading or click on the timeline below to learn about all the ways Gwinnett County has cut costs, encouraged innovation, realized efficiencies, outsourced services, sought public input, acquired grants, raised user fees, and increased other revenues leading up to and throughout this economic downturn.

2011: Filling this year’s $18 million gap and beyond

March 15, 2011
Higher revenue estimates (fees, strong investment returns)
The County’s revenue estimate for 2011 was increased by $1.66 million due to new judicial fees and stronger than expected returns on County investments.

The budget actions taken on this day officially close the $18 million shortfall in the 2011 budget, but commissioners reminded staff and constituents that 2012 and beyond will bring similar budget challenges in light of projected declines in the property tax digest.

March 15, 2011
Temporary budget stabilization reserve established
Commissioners approved the establishment of a temporary budget stabilization reserve funded by County revenues, which exceeded expenditures and planned use of fund balance by an estimated $9 million in 2010. The County will be able to draw up to $3 million each year to help fund operations.

March 7, 2011
Creating partnerships, automating manual processes
County staff found two creative ways to encourage community partnerships and increase internal efficiencies, leading to the commissioner’s acceptance of a donation from an athletic association and approval of a software purchase:

Six soggy ballfields at Bay Creek Park have caused the Grayson Athletic Association to cancel baseball and softball games, so the group raised and donated $9,000 to renovate all six infields.
Gwinnett is automating many manual processes as it seeks to cut costs and operate more efficiently, so a new automated software testing tool will let staff in the County’s IT and other departments test new software programs and upgrades without hiring more staff or consultants to do the work.

March 1, 2011
Employee furloughs
Approximately $2.1 million will be saved in the general fund ($2.8 million overall) by counting four of the county’s eight remaining annual holidays as furlough days and not paying employees for those days off.

March 1, 2011
Voluntary departmental budget reductions
Multiple departments made voluntary budget reductions totaling $847,000 in general fund savings, $1.36 million in total. These cuts eliminate at least seven vacant positions and the advertising budget for employee recruitment and also reduce part-time salaries for non-sworn positions in the police department.

March 1, 2011
Reduce contributions to risk and fleet funds
Careful management of risk exposure and the elimination of about 250 vehicles will allow the County to reduce contributions to its Risk Management and Workers’ Compensation funds and Fleet/Equipment Capital Project Fund, which will generate $4 million in savings in the general fund ($5 million overall).

March 1, 2011
Intent to realign millage rate, reallocate revenue
Commissioners announced the intention to realign the 0.23 millage rate associated with the 2002 general obligation bond by redirecting the tax levy to general operations. This change will reallocate approximately $4.8 million to the general fund but will not increase the existing millage rate.

February 22, 2011
Minimum mandatory 90-day vacancy for all positions
Departments must leave all vacant positions open for a minimum 90 days. This initiative is expected to save at least $2.2 million, with the general fund saving $1.8 million of the total. New vacancies that occur during the year will result in further savings.

February 15, 2011
Donations accepted from community partners
The County accepted donations from two organizations to fund services, one that will help with transportation needs for seniors and persons with disabilities and another that brings an interactive learning exhibit to Gwinnett County.

The Friends of Gwinnett Senior Services donated $39,371 to be used for the Transportation Voucher Program to support a limited number of seniors and persons with disabilities with the cost of essential trips to places such as medical appointments.

The Gwinnett Environmental and Heritage Center Foundation, in partnership with Holtkamp Heating and Air Conditioning, Inc., presented a $12,840 check to fund the Gwinnett Environmental and Heritage Center’s Your House, My House exhibit that guides visitors to understand how geography, climate and culture shape the way people live around the globe.

February 1, 2011
Increased emergency medical transport fee
Gwinnett County added $1.5 million in revenue per year by raising emergency medical transport fee from $750 to $975 per trip. The sale of right-of-way to the Georgia DOT for the State Route 316 project generated $302,590 in one-time revenue.

January 4, 2011
Adopted 2011 budget (16 percent lower than previous year)
Commissioners adopted a 2011 budget that is 16 percent lower than the previous year’s budget overall and charged staff with taking another hard look at operations with the goal of eliminating an $18 million deficit. The budget preserves core services where possible:

Adds no new services:
Voluntary departmental reductions of $5.7 million
$2.3 million in service reductions (15 percent reduction to libraries and a 50 percent reduction in subsidies to some external agencies)
Only increases due to state and federal mandates

The 2011 budget was prepared with input from citizens who served alongside elected officials and staff on a budget review committee. It is based upon departmental business plans and incorporates many recommendations from the Engage Gwinnett citizens committee.

Property tax is a vital source of revenue for Gwinnett County that funds operational expenses for services such as public safety, courts, libraries and parks. The tax digest declined almost nine percent in 2010, is forecast to contract by another nine percent this year, and will likely shrink again in 2012. Lower property values mean less available tax revenue for service delivery.

2010: Year of stimulus, valuable citizen input

December 14, 2010
Issued recovery zone facility bonds for economic development
Commissioners approved the County’s Development Authority to issue $30 million in Recovery Zone Facility Bonds, designed to fund certain private facilities in “recovery zone” areas to further economic development. Gwinnett received $61.8 million in federal stimulus funds from the U.S. Treasury after the Board designated the entire county a recovery zone in September 2009.

December 1, 2010
2011 budget proposal adds no new services
Gwinnett County published a proposed fiscal year 2011 budget that preserves core services but adds no new programs. The budget was prepared with input from citizens, based upon departmental business plans and incorporated many recommendations from the Engage Gwinnett citizens committee. The proposed operating budget is a decrease of $32 million from the 2010 revised budget, while the proposed capital budget represents a $216.6 million decrease. Gwinnett has not been immune to declining real estate values which, combined with a tough economy, have created budgetary challenges for local governments.

November 17, 2010
New trees reduce mowing, irrigation costs at park
Gwinnett County Parks and Recreation announced it will plant more than 1,900 new hardwood trees on three acres at Graves Park to reduce mowing and irrigation costs. The project follows Engage Gwinnett citizens committee recommendations, which suggested the County use SPLOST funds to make park renovations that will lower operating costs like mowing and irrigation.

November 10, 2010
Gwinnett earns top credit ratings
Three major credit ratings agencies reaffirmed Gwinnett County’s overall credit rating as AAA with a stable outlook, citing conservative financial management policies and practices as key factors. The County planned to refinance $200 million in revenue bonds for water and sewer improvements for a present value savings of $6.7 million and restructure Civic and Cultural Center expansion financing to convert $57.4 million in outstanding debt from variable rate to fixed rate to take advantage of favorable interest rates.

October 5, 2010
Citizens serve on budget review committee
Six Gwinnett residents agreed to serve on the Chairman’s budget review committee to help set priorities and seek ways to prioritize spending in county government operations and capital improvement plans for fiscal year 2011. Each County department and agency presented its business plan and necessary financial resources to elected officials, the citizen review committee, and designated County staff members during the first week of October. Decreases in revenues for the County were projected for the coming year.

September 29, 2010
Energy audit results in annual savings
The County announced that an energy audit initiative is expected to produce ongoing savings of over $500,000 for the year. A consultant was hired by Gwinnett County in April 2009 to analyze its electricity accounts and recommend ways to reduce the $22 million it was spending to power its offices, courtrooms, water and sewer systems, traffic and street lights, computers, sports fields, the jail, the prison and other County facilities. Other results of the initiative:

Found one-time refunds of $75,000
Identified 36 initiatives to reduce annual costs by $1 million
Obtained a $7.3-million federal stimulus grant to fund these initiatives

August 17, 2010
Revised 2010 budget does not include more service cuts
Commissioners approved a revised 2010 budget that was based on declining property values that produced a $31 million revenue shortfall but did not result in additional service cuts. This reconciliation budget:

Carried unspent capital project balances forward from 2009
Cut capital plan by $49.4 million due to lower SPLOST revenues
One-time revenue from 2009 millage rate increase provided:
- $18 million to help reduce 2010 deficit (recommended by Engage Gwinnett)
- $21.2 million to reduce accrued liabilities
- $10 million to pay outstanding debt
- $5 million to complete commitment to Gwinnett Hospital Authority

August 16, 2010
Artificial turn field cuts down on maintenance costs
The County installed an artificial turf field made from recycled tires at Duncan Creek Park in northeast Gwinnett to save annual field maintenance costs and allow increased use for a variety of sports. The multi-purpose field, which opened in August following a March contract award, is part of a pilot project along with Cemetery Field in Norcross. SPLOST sales tax dollars funded this capital project.

July 20, 2010
Grant helps inmates transition to society after release
Gwinnett County received a Workforce Investment Act grant of almost $118,000 from the Atlanta Regional Commission that will allow inmates at the correctional facility to continue to get job training and help transitioning back to society. Gwinnett is the only county in the state that gets these funds for its inmate programs. Most of the inmates who participated were gainfully employed during the 12-month period following their release from prison, according to Corrections officials.

June 23, 2010
2010 millage rate remains unchanged
Gwinnett commissioners left the 2010 millage rate unchanged from the previous year’s final rate of 13.25 mills, which reflected a modest tax increase to restore core services such as public safety, despite the five-year millage rate history showing a $3.2 billion decline in the 2010 gross digest. Due to the decline in commercial and residential property values, the 2010 millage rate was expected to generate about $31 million less in property tax revenue compared to 2009.

The County restated its commitment to continue public outreach and education efforts regarding future services and service levels to include fully exploring recommendations from the Engage Gwinnett citizens committee.

April 28, 2010
Engage Gwinnett presents recommendations
After six months of study and debate, Engage Gwinnett presented its final recommendations to the Board of Commissioners. In all, the group offered 73 recommendations for a status quo scenario, 40 recommendations for a declining digest, and nine general recommendations. The group was made up of 30 stakeholder group representatives plus 10 self-selected citizen representatives. Commissioners welcomed the report, acknowledging that it provides guidance on how citizens want county government to balance the need for basic government services against the ability to pay for them during difficult economic times.

April 6, 2010
Opportunity zone designation encourages job creation
Gwinnett County received state approval for an Opportunity Zone at Jimmy Carter Boulevard and I-85. Any lawful business in the zone now qualifies for state tax credits of $3,500 for each new job it creates. This designation should help maximize efforts to attract new businesses and redevelopment to the area.

March 9, 2010
Water customers save 54 million gallons of water a year
Gwinnett residents are now saving 54 million gallons of water annually thanks to a rebate program for homeowners who replace old, inefficient toilets. About 5,000 toilets have been replaced in the two years the program has been in existence.

January 27, 2010
Judges take furlough days
Gwinnett County judges agreed to additional furlough days in 2010. A total of 21 Gwinnett judges have taken voluntary furloughs.

January 5, 2010
Adopted 2010 budget emphasizes public safety, still lower
Commissioners adopted a 2010 budget of $1.33 billion, down from $1.71 billion in 2009.

Adds 58 police officers
Re-establishes Quality of Life Unit with 10 new jobs
Allows Fire Stations 18, 29 and 30 to open fully-staffed and operational
Adds 10 new positions at the E-911 call center

2009: Reduced staff and expenses

December 21, 2009
Energy management controls save money
Gwinnett County implemented energy management controls expected to cut the water system’s annual electricity cost by about $400,000, a 10 percent reduction.

December 15, 2009
County outsources collection of outstanding taxes, fees
Gwinnett County hired a contractor to help identify businesses or individuals that owe business occupation taxes, alcohol excise taxes, E-911 fees and cable television franchise fees and collect outstanding revenue.

December 10, 2009
Proposed 2010 budget down $387 million
The Gwinnett County 2010 budget proposal outlined a countywide budget of $1.323 billion, down $387 million from the $1.71 billion budget adopted last March for fiscal year 2009. The proposed budget, based on the same millage rate of 13.25 mills adopted for 2009, was fiscally responsible, conservative, and reflective of the dramatic cuts in departmental budgets that occurred throughout this year.

December 7, 2009
Reduction in force cuts 12 jobs
Gwinnett County made further workforce reductions by cutting 12 staff positions in Tax Assessor's Office and outsourcing commercial real estate and personal property assessments. These actions will save $310,000 in personnel services, following the County’s overall plan to gain efficiencies and save money in back office departments in order to focus resources on core mission areas such as public safety. With these staff cuts, the County remained on track to eliminate a total of more than 250 jobs in 2009.

December 1, 2009
Millage increase restores key services
The Board of Commissioners raised the raise property tax rate by 2.28 mills in order to restore some key services that were cut earlier this year, stabilize specific services such as police, fire, sheriff, courts, libraries, parks and transportation (mowing rights of way), and keep the correctional facility open.

After holding three public hearings, the final decision to increase the millage rate was made on December 1. The final millage rate of 13.25 was still lower than the 1996 levy of 14.95 mills.

The increase restored the services mentioned above but did not fund the 2030 Unified Plan nor did it restore the $6.8 million cut by internal support functions earlier in the year. In addition, the Engage Gwinnett citizens committee continued to study service levels and funding options in order to make recommendations to the Board of Commissioners in 2010.

November 20, 2009
Federal stimulus supports transit
Federal stimulus funds helped support Gwinnett Transit operating costs in the amount of $970,512, or 10 percent of the total $9.4 million transportation-related American Recovery and Reinvestment Act grant the County received. This funding allowed Gwinnett to continue meeting the needs of citizens who rely on public transportation.

October 29, 2009
Reduction in force cuts 19 jobs
Gwinnett County continued to trim its workforce by 19 staff positions through a reduction in force in the Planning and Development Department.

October 23, 2009
Proposal would restore some services
Gwinnett County officials outlined a proposal that would restore some of the spending reductions made earlier this year to the county’s public safety, parks and recreation and social services programs. The new proposal would be funded by a 2.28-mill increase in county property taxes.

Commissioners were to consider the proposal at a special called meeting on December 1 following three public hearings. Said one commissioner, “Especially in retrospect, I have been troubled by the drastic service cuts that were necessitated by our earlier budget decisions – and I am not convinced that they reflected the will of a majority of citizens and taxpayers. I am growing concerned that many of the cuts we already made or are planning to make will severely diminish our community long term.”

The proposal would not restore cuts made within the County’s internal support functions and also would not fund the Unified Plan, which was designed to better manage growth, public safety, quality of life and economic development over the next several decades. The Engage Gwinnett Committee would continue to study service levels and funding options in order to make recommendations to the Board of Commissioners in 2010.

October 6, 2009
Gwinnett’s excellent credit ratings reaffirmed
The three credit rating agencies reaffirmed Gwinnett County’s credit as triple-AAA, which was anticipated to result in $3.1 million in interest savings on the refinance of $260 million in revenue bonds. The Standard and Poor’s report said, “The stable outlook reflects our expectation that the county’s good financial practices coupled with expenditure reductions and revenue raising strategies should continue to support strong finances despite a contracting local economy.”

October 6, 2009
Tax allocation districts will revitalize communities
Commissioners approved five tax allocation districts to help revitalize older areas of the county. Counties can issue development bonds for specified redevelopment areas to be paid back from increased tax revenues from those areas as they are improved. TADs could produce 8,700 housing units, 1,500 hotel rooms, and three million square feet of new retail with a total market value of $4 billion.

September 16, 2009
Citizen-led Engage Gwinnett committee members selected
The members of the citizen-led Engage Gwinnett committeewere announced, including 10 members selected from among fellow citizens who attended a public forum and 30 appointed representatives from as many stakeholder groups. The group, led by two co-chairs, would hold its first meeting in October. They continued to meet over six months to learn about how the county budget works and to share their views on how government should prioritize county services and spend tax dollars. This group’s recommendations were presented to the Gwinnett County Board of Commissioners in early spring 2010.

September 15, 2009
Federal stimulus funds energy audits, other green projects
Gwinnett County obtained $7.3 million in federal stimulus funds through the U.S. Department of Energy for energy audits, energy-efficient equipment retrofits, conversion of traffic signals to LED lights, and a methane gas waste-to-energy project.

September 1, 2009
Elected, constitutional officials cut budgets
Gwinnett County adjusted the budget again after elected officials and constitutional officers agreed to $1.9 million in budget cuts within their departments. Additionally, Probate Court worked with HR to offer a retirement incentive program that would save $59,295 in 2010. Commissioner cautioned staff and constituents that another $11 million in cuts would be needed for next year.

September 1, 2009
Aggressive efforts to obtain stimulus pay off: $120 million
So far in 2009, Gwinnett County’s aggressive efforts to obtain federal funding under the American Recovery and Reinvestment Act have paid off with stimulus grants totaling $120 million coming through various federal and state agencies:

$81.3 million from U.S. DOT for shovel-ready road improvements like McGinnis Ferry Road
$21.8 million from the U.S. Department of Housing and Urban Development (HUD)
$16.7 million from the Georgia Environmental Facilities Authority
$9 million from the Federal Transit Administration
$7.3 million from the U.S. Department of Energy
$2.4 million through the U.S. Department of Justice
$1.7 million from HUD to prevent homelessness

August 26, 2009
GJAC building closes on weekends, holidays to save money
The Gwinnett Justice and Administration Center began closing on weekends and holidays and at 10:00pm most weekday evenings. The action taken to close the county government headquarters and courthouse building was necessary due to reduced revenues and increased operating expenses.

August 25, 2009
More than 200 employees take retirement incentive
The County announced that 202 of 316 employees will retire under an incentive offer. The move could save more than $55.2 million over next three years at a cost of $4.7 million. The savings represent a 1:10 return on investment but resulted in the loss of more than 4,400 combined years of service and institutional knowledge.

In response to the public’s desire to cut services rather than raise taxes, the Gwinnett County Board of Commissioners approved a series of reductions to the 2009 budget and the five-year financial plan earlier in 2009. In order to achieve the savings needed to bring the budgets into balance, departments modified their business plans to emphasize core services. Staff reductions were a key part of most of the plans.

August 25, 2009
Federal stimulus supports three major wastewater projects
Gwinnett County again received federal stimulus funding with $18.5 million in support for three major wastewater construction projects aimed at improving efficiency and sustainability:

The three-mile No Business Creek Tunnel will transport and manage wastewater flows to one of two modern reclamation plants as part of an overall plan to improve wastewater service in the older part of the county by retiring old, inefficient facilities.
A Gas-to-Energy generator at the F. Wayne Hill Water Resources Center will use methane gas byproduct from the wastewater system to generate electricity that will help power the treatment plant.
Also at the Hill Plant, a receiving facility for fats, oils, and grease (FOG) will accept waste from restaurants and commercial food processors, providing them with a more economical, environmentally sound disposal option for waste removed from grease traps. The waste will be used to help produce more methane gas to power the plant’s new electric generator.

August 20, 2009
Engage Gwinnett: Committee on the Future of Gwinnett takes shape
The Gwinnett County Board of Commissioners and the Gwinnett Chamber of Commerce launched a community initiative called Engage Gwinnett: Committee on the Future of Gwinnett County.

August 19, 2009
Federal stimulus, state grants fund various programs
Gwinnett County received $4.5 million in federal stimulus dollars and state grants to help fund various services, county operations, and construction of a senior services center.

$3.3 million for energy audits, weatherization and appliance repairs to make an estimated 461 homes of elderly, low income, and handicapped residents more efficient and affordable
$1.1 million to help build a “green” Senior Services Center
$69,411 to provide meals to frail and homebound seniors
$61,430 for new hazardous materials suits and reference books
$25,000 to replace equipment on the Search and Rescue truck.

August 5, 2009
Public safety gets support from federal stimulus, state grant
Gwinnett County Police accepted more than $500,000 in grants and will share $1 million in federal stimulus funds with other public safety and court agencies. A Georgia Homeland Security grant for $452,807 was designated to purchase explosive disposal equipment. The Justice Assistance stimulus grant funded programs to reduce crime and improve public safety or buy law enforcement equipment or technology in support of law enforcement activities. And another $19,000 grant from the Georgia Emergency Management Agency went to support the Citizens' Corps

July 21, 2009
Deep spending cuts include eliminating 250 jobs
Commissioners made $39.3 million in future spending cuts, warning that the service reductions would “ripple through” the County budgets for many years to come as the County continues to find ways to bring rising expenses in line with decreasing revenue forecasts. The effects of these new deep budget reductions will be:

250 jobs eliminated by year-end
Fire and police staffing cut (police to 2003 levels)
No employee raises in 2010
Internal support offices cut staff by 15 percent, costs by 10 percent
Parks and recreation cut staff cost by nine percent

Constitutional and elected officials asked to reduce their 2010 budgets

Transit operations cut 21 percent; express service reduced by six percent
Corrections to be eliminated by July 2011

July 21, 2009
Fuel purchasing co-op to save money
Gwinnett started a fuel purchasing co-op with 15 other local government agencies. The program is expected to save about $65,000 per year in gasoline and diesel fuel costs.

July 21, 2009
Federal stimulus funds help expand traffic monitoring system
Gwinnett County expanded its traffic monitoring system using federal stimulus funds. The $2.58 million project added fiber optic traffic signal controls to Buford Highway and Sugarloaf Parkway, increasing the miles monitored by Gwinnett’s Traffic Control Center. The equipment helps Gwinnett DOT move traffic, spot congestion or malfunctioning signals, and monitor detours.

July 16, 2009
Gwinnett becomes ENERGY STAR partner
Gwinnett County further demonstrated its commitment to environmental sustainability by becoming an ENERGY STAR Partner with the US Environmental Protection Agency. Leading companies realize that energy efficiency is not only the first step in being green, but it is also smart business. Businesses, organizations, and governments that are leaders in energy efficiency use about 30 percent less energy than their competitors.

June 16, 2009
First in series of deep spending cuts announced
Commissioners approved the first in a series of service reductions to balance the 2009 budget and the five-year financial plan. The cuts responded to the public’s desire to cut services rather than raise taxes and affected nearly every area of county government operations:

Cut spending by $81 million to balance the 2009 budget
Cut more than 100 vacant positions
Cut all Board of Commissioners initiatives

The numbers in the list of June 2009 budget cuts add up to an amount larger than the 2009 gap because some of the reductions were intended for subsequent fiscal years to help cover the gap in the County’s five-year budget program.

June 2, 2009
With property tax increase off the table, deficits loom
Following a decision not to raise property taxes, the Board directed County staff to immediately balance the 2009 budget while preserving core services and then to work on closing the looming budget deficits in 2010 ($60 million), 2011 ($45 million), and 2012 ($44 million).

May 6, 2009
Enviromental Sustainability promotes energy savings goals
In an effort to be green and save green, Gwinnett County announced the Gwinnett Environmental Sustainability Program. This comprehensive effort to promote environmentally sustainable policies and practices involves initiatives in transportation, air quality, recycling, waste reduction, water conservation, energy efficiency, green building, and more. The County’s two main areas of focus are energy efficiency and water conservation.

One of the energy efficiency goals calls for a 10 percent reduction in energy consumption. Estimates show this will equate to a reduction of 20 to 30 million kilowatt-hours of energy usage, a savings of $1 million to the County’s utility budget, and 15,000 to 20,000 metric tons of greenhouse gas emissions being kept out of the atmosphere.

Measures will be taken to further reduce water consumption by 15 million gallons, resulting in approximately $100,000 in its annual water utility billings.

March 3, 2009
Water and sewer base rates increase
Water Resources received a green light to raise water and sewer base rates slightly ($7.30 to $7.50) starting in July 2009. This was the first base-charge adjustment since 1999 and the first base charge for sewer. Base charges, which cover operating expenses such as utilities, chemicals, fuel, maintenance and labor, must occasionally increase to match rising costs.

March 3, 2009
Final 2009 budget adopted, anticipates millage increase
The Board of Commissioners adopted the final 2009 budget at $1.71 billion. With an emphasis on public safety, this budget replaced the interim budget approved in January and anticipated a millage rate increase.

Cut 108 positions and added 172 new jobs, mostly in police and fire, for a net addition of 64 positions
Incorporated $40 million worth of SVR initiatives (cost reductions and revenue enhancements) included in the interim budget
- Nearly 100 adjustments include everything from not replacing vehicles to reducing pool hours to dropping the annual 4th of July fireworks show

February 3, 2009
Fire supplies inventory system upgrade results in savings
Gwinnett County Fire and Emergency Services announced a $96,000 savings in 2008 by upgrading the supplies inventory system. A new process that includes a computerized inventory system allowed the department to cut items in stock by 54 percent while providing more efficient delivery of needed items. It’s worth noting that this efficiency project began before the economic downturn began.

January 21, 2009
Water revenues hold their own despite lower water usage
Even with lower water usage, revenues did not decrease at the same rate. Due to drought conditions and state water restrictions, Gwinnett residents and businesses cut their water use by 17.2 percent in 2008 compared to the previous year, but revenues were down only 5.4 percent.

Department of Water Resources staff took steps early on to mitigate the effects of the anticipated reduction through improved collection rates, an updated fee structure, and implementation of a summer surcharge required by the North Georgia Water Planning District.

Planned rate increase in January 2008 raised an additional $11.1 million
Reinstituting late fees brought in $7.4 million
Other fees – including the summer surcharge, an account activation fee, and other billing adjustments – made up the rest of a $24.4 million total of new revenues in 2008

The County received only $9.4 million development-related revenue in 2008, a drop of 73 percent since 2006.

January 20, 2009
Rebate offered to residents who replace inefficient toilets
Gwinnett County extended a rebate offer to residents who replace old, inefficient toilets with new, conservation models. The amount of water saved by replacing more than 1,500 old toilets will be almost nine million gallons annually once the new fixtures have been in use for a year.

January 6, 2009
Interim 2009 budget includes $26 million in reductions
The Board of Commissioners adopted an interim budget for 2009 but warned of more changes ahead. The interim budget included additional cuts of almost $26.2 million compared to the original budget proposal and delayed decisions on another $10.5 million in program modifications:

Cut 115 full-time positions
Postponed adding 88 new courts and public safety positions
Continued hiring freeze
Raised revenue by total of $1.2 million through increase in ambulance fees and slight increase in credit card transaction convenience fees
Reduced many health and human services subsidies by 10 percent (most were restored later in the year)
Reduced vehicle purchases
Lowered County support for economic development efforts
Delayed expansion and renovation of Juvenile Court and One Justice Square buildings
Trimmed costs by about $1.6 million through staff pay adjustments

2008: Planning for the road ahead

September 24, 2008
Service-Value-Responsibility project finds $40 million
County Administration announced the Service-Value-Responsibility project, a comprehensive services review and cost management project. It involved 70 employees on nine evaluation teams led by senior management and facilitated by a consultant. This initiative had a $40 million positive impact on the adopted 2009 budget, with $33 million in cost cuts and $7 million in revenue enhancements.

August 8, 2008
Rating agencies reaffirm Gwinnett’s financial stability
Gwinnett County retained the highest AAA credit rating from Standard and Poor’s, Fitch Ratings, and Moody’s Investor Services. At the time, Gwinnett was among only 22 other U.S. counties to have triple-AAA bond ratings. These excellent credit ratings result in significant interest savings on bonds the County holds and are solid evidence of the organization’s financial strength and stability even during difficult financial and economic conditions.

August 7, 2008
Hiring freeze starts
Gwinnett County implemented a hiring freeze that will save about $4.5 million over 12 months. It will last until further notice with continuous reviews of its impact. (March 2011: The freeze remains in effect.)

June 17, 2008
Commissioners lower property tax rate
The Board of Commissioners lowered the property tax rate slightly from 11.08 mills to 10.97 mills, reducing the county government portion of the tax bill for the typical home by about one percent. This move was made in order to offset increased revenue from property reassessments as had been the practice for many years.

Overall, the millage rate decreased 27 percent between 1996 and 2008. The only increase in that time was for a voter-approved bond issue for an expansion of the Pre-Trial Detention Center (jail).

2007: AAA credit and millage reductions

August 7, 2007
Gwinnett announces 10 years of triple-AAA credit ratings
All three bond rating agencies – Fitch, Standard & Poor’s, and Moody’s – reaffirmed AAA credit ratings for Gwinnett County for the 10th straight year.

According to Fitch, “The County’s financial position is strong, as general government financial operations continue to benefit from strong taxable property growth, prudent financial management and healthy reserve policies.”

Moody’s stated, “Gwinnett County’s financial position remains strong given current fund balance levels, sophisticated financial management and a history of stable trends.”

Standard & Poor’s reported, “The County maintains very strong financial operations.”

June 19, 2007
Commissioners lower millage rate
The Board of Commissioners lowered the millage rate slightly, reducing the county government portion of the tax bill by 1.9 percent and offsetting increased revenue from property reassessments. The millage rate went from 11.30 to 11.08 mills, and the typical homeowner saw the County’s share of the tax bill go from $1,024 to $1,004.

The millage rate decreased 26 percent since 1996 with the only increase during that time coming from a voter-approved bond issue to expand the Pre-Trial Detention Center (jail).

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