The Augusta Commission’s delay in approving a new millage rate has had a ripple effect on other governments within Richmond County, including the school system.
Board of Education trustees approved a millage rate of 17.650 mills on Aug. 16. That is 1.662 mills lower than the 19.312 mills set last year.
That information is sent to the tax assessors office, which also receives millage rates from other governments within Richmond County, such as the school district and city of Blythe.
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The next step would be for the tax assessors office to sent the information to the Georgia Department of Revenue to review. That couldn’t happen until the Augusta Commission adopted its rate.
“When the tax commissioner sends out the bills, it’s got everybody on there. So, if you live in Blythe you’ve got your city taxes, your school taxes, your Richmond County taxes. That one tax bill has everybody’s rate on it, and everybody is billed for whatever governing body,” said Bobby Smith, the school system’s CFO. “So that’s why they have to have all the rates because they don’t do separate tax bills for everybody. They’re all one single bill with all whatever district you’re in all your taxable amounts on that. So that’s why they have to wait.”
District 1 Commissioner Jordan Johnson, who is the commission’s liaison to the school district, said commissioners understand the impact the delay has.
“If we don’t do the business of the people, if we don’t choose the rate, we’re not collecting, the school system is behind. And then we can’t deliver on services that we budgeted for the year,” he said.
Smith said the county has been granted an extension to Oct. 1 to send all the millage rates to the department of revenue for approval. If approved, the tax commissioner will prepare the tax bills and mail them to property owners.
Smith said when there has not been a delay in getting the state approval the district normally begins receiving tax payments in late September and early October. He said they have sufficient reserves to cover expenditures, including payroll, until the payments begin.
However, the district has the option of taking out a tax anticipation loan if income is delayed until November.
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“We have done that before, so it’s not unusual. And it’s basically because of the timing of the tax bills, because obviously you budget, your fiscal year, those tax dollars to pay that and the funds don’t come in until the middle of your fiscal year. That’s when you just issue a tax anticipation note,” Smith said.
The last tax anticipation notes for the school district were for $15 million on Aug. 21, 2018 and $17 million on Aug. 27, 2019
Smith said those loans had been used when the district’s reserve cash was low. He said they have been able to increase reserve cash over the past few years.
Commissioners approved a millage rate during a special called meeting on Aug. 30. Final approval is expected at a called meeting on Sept. 8.
Dana Lynn McIntyre is a general assignment reporter for The Augusta Press. Reach her at dana@theaugustapress.com
