The Buckhead feasibility study shows the hypothetical Buckhead City having a surplus and no debt. Why do you say that a new city would incur debt, which would result in higher taxes for homeowners?

The feasibility study is flawed in its omission of debt. To be able to operate day one, a new city needs funding. Since a hypothetical Buckhead City won’t have any tax revenue day one, that startup funding must come from somewhere.

The way to raise that funding would be in the capital markets through a bond offering. These costs would likely be high given the obligations that the new city would also have to repay large portions of the City of Atlanta’s existing bonds, and the unavoidable litigation that will be inevitable.

Litigation makes the bond holder’s collateral unstable given that any judgments would have to be paid from the same tax dollars that collateralize the municipal debt.

There is no likely scenario where a hypothetical Buckhead City would not have to issue debt.