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1 1 (January 19, 2022)

handle is hein.amenin/aeiaefm0001 and id is 1 raw text is: Key Points x A movement in do neighborhood of Bucknead, _ section of Atlanta, Georgia, seeks to de-annex and reincoor te the area as a new, independent municnpality, a change without precedent in a rnajor US city. AthNug numerous cites in Georgia and other states have been established from unincorporated territory, no area has succe.sfuly de-ainnexed fOnm a core city. A Any amicable divorce involving uckhead and the city of Atlanta will have to Con- ier nme rous facto inc ui n legac -cost obligatiors, education, aid the provision a ctive and vilale public e i assers. Shis moort add esses t ree additinal egac -c'st projections: debt service, pensions, and retiree heaIh car css, adding hern to p vious estirnaes f :'he f nancia feasibil- ity of Ickhead CiEty. These tre lgacy costs will likly add Os'm $55 millior to an annual ?,ua.<head budget, over and abo e P$89 milion that has been esmnated as its operating bude A Buckhead y woud, meHnowever, sil have the financial ca--city to cover these costs. T ;o the extent hat the Bucki ea de-annexation and reincorporation might serve as a tenpiate for similar movements elsewhere, this report is n-e-ant to underscore the imporrance and complexity ofrdeterrnining leqacy--cost obligations. The grovtd of American cities has long been idifa- enced by a combination of economics and politics, Practi ally speaking, the theory of acornomies of scale has long influenced the consohation of metro gcvermrents. A more centralized city gov- ernent was viewed as a justification to prvinde basic services and consolidate revenue more ef11- ciently for residents, For example, the lief that a larger metropolitan stilc government would be more efficient led to the consolidation of New York City's five boro g'Us into one government. In recent years, however, concern about ti pow r of special-interest groups in. large cities leading to higher costs has led some to question consolida- don, as have concerns about the quality of public seiiCes provided by big-city governments, Nine-eenfh-century suburban areas sougt'ii to combine with core cities to gain. access to water and sewer systems and what were Shen viewed as ighe r-Tality public sd ools. Some local leaders sought t expand city boundaries simply to be ranked as larger cities, while others used state law to annx bordering areas to increase their local tax

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