It’s August. ‘Tis the season for local governments’ annual push-and-pull balancing act between revenues and expenses as they set budgets for the coming year.
This particular August, however, the heat has likely just begun. Inflation and price hikes in the economy lie at the core of an uneasiness for citizens and local governments alike.
The cycle started a few weeks ago when the Putnam Board of Tax Assessors released its figures for the county’s property tax digest. The new figures showed total 2021 property values of $1.64 billion rising to $2.1 billion this year—an increase of more than 25 percent, reflecting both growth and sales prices from the past two to three years.
In the last two weeks, two of the three major taxing authorities—county commission, city council, and school board—through press releases and newspaper ads, have announced proposed increases in millage rates for the coming year. The proposed increases are based on budgets proposed by their managers and given to their respective boards for final resolution in the next four weeks or so.
In the unlikely event these proposed budgets are approved without cuts, the county commission’s millage rate would increase by 13.88 percent, resulting in a little over $100 more for a $300,000 residence with homestead exemption.
A particular focus in County Manager Paul Van Haute’s recommended budget would be salary increases, both across the board as cost-of-living allowances, but also in some cases to be competitive with nearby jurisdictions in keeping and recruiting employees.
For instance, the base salary for a new sheriff’s deputy is recommended to rise from $39,000 a year to $45,000 annually. Another example is simply the rising costs for everything from garbage collection (up $600,000 this year) to insurance to fuel. One department last year had used up its budgeted allotment for fuel by mid-summer, Van Haute said.
The Eatonton City Council, with a much smaller budget and tax base, would have a 2.2 mill increase, which amounts to a 23.84- percent property tax increase. In the city’s case, the proposed increase would translate to an extra $244 per year on a $300,000 residence.
With the tax digest growth expected to bring in more funds, Putnam Schools Superintendent Eric Arena was able to recommend a two-mill decrease in the school board’s millage rate.
While property taxes remain a significant source of revenue (roughly half) for each entity’s general fund/maintenance and operations budget, all three have other sources of revenue and other funds. For instance, the school board is projected to receive $14 million from the state and $17 million from the federal government. And both the county and city governments have capital funds from SPLOST and T-SPLOST sales taxes to pay for everything from school buses to road resurfacings.
With proposed millage rate increases come the state’s legal requirements for advertising and public hearings. The county commission will hold its first public hearing at 9 a.m. this Friday (Aug. 5), in the county administration building. This hearing is mainly aimed at departments or funded agencies making their final appeals to the commissioners.
The commission’s second public hearing will be held in conjunction with its mid-month meeting 6 p.m., Aug. 16, with the budget scheduled for approval Aug. 25, which would all but set any millage increase. However, the commission will take public comments again at 9 a.m., Sep. 2, at its first scheduled monthly meeting.
Likewise, Eatonton City Council will hold two public hearings the same day, at noon and 6 p.m., Aug. 25, with both at The Hut (400-A W. Marion St., Eatonton). Additional comments will be heard 6:45 p.m., Sep. 6, during a council meeting at the county administration building.
Since it is not seeking an increase in its millage rate, the school board is not required to hold any public hearings. The board will set its millage rate during its monthly meeting Aug. 15, at the board offices (158 Old Glenwood Springs Rd., Eatonton).