For the second time this week, the Augusta Commission failed to take action on a proposal from the Finance Department that would start the process toward setting this year’s tax rates.
During the board’s second special called meeting Thursday, Commissioner Brandon Garrett’s substitute motion to roll back the millage rate to a state prescribed level that would not entail a property-tax increase failed on a 5-4-1 vote.
Garrett and commissioners Sean Frantom, John Clarke, Al Mason and Catherine McKnight voted for the rollback. Commissioners Ben Hasan, Jordan Johnson, Francine Scott and Dennis Williams voted against it, and Commissioner Bobby Williams abstained.
The main motion to proceed with advertising a tax rate that would raise taxes on properties that have increased in value since last year was defeated when Mayor Hardie Davis Jr. broke a 5-5 tie vote cast a no vote and adjourned the meeting.
The rollback rate calculated by the state would leave the city about a half-million dollars short of what it is budgeted to spend for 2022, Finance Director Donna Williams told commissioners before the votes.
Property values in Augusta-Richmond County have increased about 18% since last year, so the tax bill for a home now valued at $118,000 would increase by $68 per year. The “Urban Services District,” or what once encompassed the old city of Augusta, is taxed differently. The bills would go up $78 on a $118,000 house.
A proposed 8.411 millage rate would generate about $2 million for the general fund which funds most city government operations this fiscal year, such as the sheriff’s office, the courts, recreation administration and elected officials.
“For fire protection, approximately $2.3 million which will be dedicated to the fire department’s capital outlay needs,” Williams said. “As of the present time, fire protection does not have anything that would fund their capital outlay over the upcoming years. They normally are included in SPLOST allocation. They do not have do not have a SPLOST allocation for capital outlay funds in SPLOST 8. That $2.3 million would allow them to begin to address their most pressing capital outlay needs.”
Frantom asked Williams why the city did not budget for a 99 percent tax collection rate instead of the 98 percent rate she’d mentioned previously.
“I believe my answer was, ‘99 percent over time,’” she said. “That goes on out several years as the tax commissioner attempts to collect those funds that have been billed.… You cannot post a revenue that you do not have.”
Frantom asked whether the budget was factoring in an increase in streetlight fees.
“No sir,” Donna Williams replied. “This does not address streetlights at all.”
Garrett asked Donna Williams whether there was a reason there was not a number between the proposed tax rate and the full rollback rate commissioners could look at. He also said she’d previously said that for budgeting purposes, commissioners need to go ahead and approve that because of the rest of the 2022 budget.
“Can you help me understand what you meant by that,” he asked.
“The millage rate you’re setting today supports the 2022 budget to the tune of almost 53.85 million dollars,” Donna Williams replied. “If you don’t set a millage rate, you don’t collect taxes. But there are timing issues that are required for you to get the process done and get your digest approved by the deadline.”
“Why isn’t this millage rate more specifically for the 2023 budget?” Garrett asked. “That’s what I’m trying to wrap my head around.”
“Because that’s the way the law works,” Donna Williams said. “That’s when every governing body in the state of Georgia sets their millage rate after they get their digest for the fiscal year you’re working with. This millage rate generates revenue for fiscal year 2022. This is not a new process.”
Garrett said since the millage deals with the 2022 budget could somebody help them understand how many unfilled positions currently exist.
“I think we have to look at ways we can make some cuts,” he said. “At the budget retreat last week we talked about there’s 26 percent unfilled positions that are out there. So, I think there are areas we could cut as you’re talking about a $500,000 shortfall if we do the full rollback. I just think this is a much bigger conversation than, ‘We’ve just got to get something in the newspaper today.’”
Donna Williams said she never intended the point to be that it had to get in the newspaper.
“That is just part of the process that is required by the Department of Revenue,” she said. “It is a legally regulated process at to the timing of the setting of the millage rates.”
Frantom asked why commissioners couldn’t post two millage rates.
“You have to post one millage rate,” Williams replied. “You can always lower the advertised rate. What you cannot do is increase the advertised rate.”
Mason said they’d approved a 3% salary increase for employees and that while he’d supported it, “The optics does not look good.”
Donna Williams also said she didn’t have the total number of vacancies in the city but that the largest amount, 150 or so, are in the sheriff’s department.
The proposed rates would not be final until a special called meeting on Tuesday, Aug. 30, where the commission would set the final rates after three public hearings.
By state law, the city’s deadline for publishing in the county legal organ the proposed rates as well as a five year history of the local tax digest. The latest date for publishing that information is Tuesday, Aug.16.
