For the third time, Augusta Commissioners met to discuss and vote on a millage rate for the 2022 property taxes.
The rate was proposed in a special called meeting, and the meeting on August 23 produced the same results — no decision.
The failure to reach a decision has wide consequences. Augusta Finance Director Donna Williams told the body that without a decision, the city’s efforts to collect this year’s property taxes will now grind to a halt.
Because the commission can’t agree on a property tax rate, the Richmond County Board of Education also cannot collect its taxes as the bills are bundled together when sent to property owners.
Compounding the problem, if the commission eventually decides to adopt any recommended amount other than the rollback-rate suggested by the Georgia Department of Revenue, then three public hearings will have to be held before the rate is adopted.
The city, at this point, cannot advertise any proposed rate, whether that rate becomes the final rate or not, which is required by state law.
At issue is whether to adopt the rollback rate, which would leave taxes pretty much the same as 2021, except for those whose property has drastically gone up in value, or whether to adopt the recommendations of the Finance Department, which would raise the general millage rate from 7.986 to 8.411.
The Finance Department’s recommendation was also to raise the fire services rate from 1.733 to 2.217 to facilitate the purchase of equipment. The Fire Department will not be getting any funding under Special Local-Options Sales Tax 8.
The city has also entered into an agreement to help fund the State Medical Prison for infrastructure and hiring extra guards.
The commission also recently agreed to give bonuses and raises to city employees.
Basically, half of the commission says a tax increase is necessary for the city to meet its budget obligation, and the other half says that the city can meet any shortfall with sales tax funding, which has brought in more revenue this year than last.
Municipalities in Georgia cannot by law run budget deficits, so any major shortfall would have to come from the city’s rainy-day fund or from remaining American Rescue Plan funding.
The commission entertained three motions that included a hybrid of rollback and recommended amounts, one motion to accept the rollback rate and one motion to accept the recommended rate. All of the attempts to set a millage rate have failed on a 5 to 4 vote.
Tuesday’s meeting was held on Zoom, and District 10 Commissioner John Clarke was unable to attend due to a technical glitch, which made it impossible to break a tie.
District 6 Commissioner Ben Hasan, who made the hybrid rate motion, told the body that the commission needed to act on a minor sales tax increase to cover the added raises and other ongoing expenses that were funded with soon to expire ARP money.
“We just gave that (employee) retention rate and, correct me if I’m wrong, but that money is not budgeted for,” Hasan said.
However, other commissioners, such as District 3 Commissioner Catherine McKnight, remain steadfast that they will not vote for a tax increase under any circumstances.
“I am not budging on this; I do not support a tax increase. The people of Augusta are taxed enough,” McKnight said.
