Decline in sales tax revenue hurts city, Morrow says
by MATTHEW W. QUINNStaff Writermquinn@griffindailynews.com
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Griffin Mayor Dick Morrow gave a state of the city address to members of the Kiwanis Club of Griffin Wednesday afternoon.

After a short introduction in which he pointed out people like former Spalding County Board of Commissioners member Johnie McDaniel and Griffin Board of Commissioners member Doug Hollberg, he began describing Griffin’s situation. He said the closure of Springs Industries marked the end of Griffin’s long history as a textile town. Furthermore, Springs Industries was the largest water customer for the city. He also said although the city had budgeted for a decline in sales tax revenue of 3 percent, sales tax revenue has dropped 8 percent. Property tax revenue has also flat-lined.

“We have some very serious financial challenges,” he said.

He said his own business is suffering, as are the businesses of people he knows. He said he knows of only one friend who is doing well - a bankruptcy attorney.

He said government services such as police, fire and infrastructure cost $24 million per year to fund but sales taxes and property taxes only account for about $8 million. The city has to collect the other $16 million somehow, through franchise fees, fines and forfeitures and other means.

“Kenny (Smith, the city manager) and his team are always doing more with less,” he said.

He recounted how they managed to find a $1 million fire truck for $327,000 on the Internet before describing the various means the city government has tried to save money. He said when he first took office, the city was losing 6 percent of its electricity due to outdated, poorly maintained equipment. Hugo Hodge, who was then director of the electric department, saved $250,000 alone by finding bad meters.

He said the solid waste division used to lose $800,000 to $1 million per year, but under Director Phill Francis, who saved money by various means, including making money by recycling rather than paying money to dump garbage in a landfill, it is now making a profit of $1,400,000. He then described how, due to a combination of increasing the yard waste fee and using inmates instead of paid employees, yard waste has reduced its losses from between $600,000 and $700,000 to $250,000.

However, there will be some bad news. Morrow said due to the loss of Springs Industries and the need of the city to pay off its bonds, water rates will increase.

Morrow then described how he believes Griffin, once a mill town, is destined to become a college town. He said he was told in 10 years’ time, there will be 9,000 students at the University of Georgia-Griffin campus.

“You put 9,000 students in here, you’ll get a different town,” he said. “The best days are ahead of us,” he said.
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