Oconee County enjoys and has enjoyed above average prosperity for a small rural Georgia County. However, ‘Fast-Growth’ policies of 2001 through 2007 have overextended……………..……. the Oconee County Taxpayer will be obligated if our water revenue does not pay our part for Hard Labor Creek. Water revenue was overestimated because of overly aggressive population and revenue growth projections. Oconee will be paying for the HLC mistake for a long time…… The future for Oconee can be great. It will take patience, less & wiser spending, less and smarter debt along with visionary & dedicated leadership to overcome these challenges.

AVOC

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January 10, 2011

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Oconee County faces financial and infrastructure challenges in 2011

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By Wendell Dawson, Editor, AVOC, Inc

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Oconee County enjoys and has enjoyed above average prosperity for a small rural Georgia County.   However, ‘Fast-Growth’ policies of 2001 through 2007 have overextended our revenues, water, sewer and roads capacity.   Commissioners are struggling to ‘right the ship’ but it takes much money and time to build road, water, sewer and revenue structures.   These policies have exacerbated the housing crisis in Oconee County.   Vacant houses, dormant subdivisions (PVC Farms), declining tax digest and rising debt are hurting the county’s economy and financial stability.

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During the ‘Fast-Growth’ period (2001 through 2007), Oconee County allowed rapid and scattered growth.   The policies attracted Metro-Atlanta developers that built on the fast track and overloaded our water, sewer, road and school systems.    Much of this should have been foreseen and avoided or minimized.

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FOR A REVIEW OF THE EVENTS OF 2010 AND SOME COUNTY CHALLENGES, SEE THE FOLLOWING LINK:   January 2011 - Oconee County Links for 2010.pdf x

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Parkside Entrance on Mars Hill Road

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HOUSING AND LAND PRICES

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The dormant subdivisions and over abundance of housing and lots has severely impacted land prices.    Housing prices are down.  Oh, we get some expensive houses from time to time, but the county needs average middle-class citizens and homeowners to be a viable community.   They do not come overnight but in a steady and moderate pace.

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An Oconee Subdivision that stalled.

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TRANSPORTATION NEEDS:

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The County has neglected its transportation program.   Projects proposed in SPLOST votes of the nineties have not all been completed.   Funds have been redirected to build a big intersection alignment at GA 53 and Rocky Branch Road- not that the project was not meritorious.   However, should the county have funded it at the expense of our local road projects to the tune of a $ Million or so?   In addition, substantial local resources are being concentrated in the relatively small area of Epps Bridge-GA 316-Inner Loop area before connecting infrastructure is ready.

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OCONEE BANKS –FINANCIAL INSTITUTIONS:

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The land and housing declines have negatively impacted our local financial institutions and may result in losing one or more.   These same declines have also reduced the values on the Tax Digest, even more than the current digest really reflects.   Housing prices are generally lower than the Digest shows.   The declining digest means less property tax revenue for schools and county operations.    Reserve funds of approximately $ 1.5 Million were used last year by the commissioners.   It may be a bigger shortfall this year and the reserves can only cover so much.    Reductions in budgets are needed but there will be some temptation to raise taxes.    Raising taxes will be very unpopular in the current economic climate.

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MYOPIC FOCUS AT EXPENSE OF BIG PICTURE:

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The County seems to be putting a lot of faith in more sales taxes and property taxes from the large shopping center (Epps Centre) planned for the area of GA 316, Epps Bridge Road and the Athens Loop.    Are we putting too many eggs in one basket?   The downside of this project will be more traffic thrown into a rural, two-lane road system.   It will take years to build the four-lane highway to U S 441 and Mars Hill Road to help move the traffic.   Jennings Mill Road will become more and more of a problem.    It has taken more in infrastructure investment and has lowered the priority of other road and sewer projects.   Additionally, significant growth in sales taxes receipts in recent years has not reduced county property taxes.   Our officials always have some “new program” to spend on.

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WATER – SEWER NEEDS:

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County policies (2001 through 2007) have exhausted our limited water and sewer capacities.  It will take years to get more capacity and at a considerable investment.   Our rural road system is not sufficient for the traffic our county is encouraging.

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Hard Labor Creek Reservoir is not the best answer to future water needs.   The better and less expensive alternative would have been to work cooperatively with our Bear Creek Partners where we already have pipelines, treatment facilities and permits.   We could have built another reservoir in Jackson County and expanded the capacity.   Oconee County’s chairman Davis has been Chairman of the Upper Oconee Basin Water Authority for several years.   Davis' leadership would have been better directed to the existing “partnership” and authority rather than striking out on a course involving a minority partner position and high costs.    Claims of the HLC project proponents notwithstanding, the Oconee County Taxpayer will be obligated if our water revenue does not pay our part.  Water revenue was overestimated because of overly aggressive population and revenue growth projections.    Oconee will be paying for the HLC mistake for a long time.

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Economic Development seems to be a “theme song” for some of our county & chamber officials.There is talk of spending more money on this area.   (BOC Minutes 12-13-10 Joint mtg with OCIDA)    Don’t these people know that most industry has moved overseas and is not coming back anytime soon?!?. The best economic development plan would be steady progress on our infrastructure:roads, water, sewer, schools etc.   Smaller businesses bring diversity and stability.   Someday, the Big Box stores will move somewhere else.   Smaller more diverse businesses have a better chance of survival.

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The future for Oconee can be great.   It will take patience, less & wiser spending, less and smarter debt along with visionary & dedicated leadership to overcome these challenges.