Government

More News | | | Editor

Excise tax, property tax hike not favored in Augusta budget discussion

Tuesday, Nov. 12, 2013 8:13 PM
Last updated Wednesday, Nov. 13, 2013 12:26 PM
  • Follow Government

More number-crunching, but still no real solutions emerged Tuesday for Augusta’s draft 2014 budget, which shows a deficit forbidden by Georgia law.

The good news – for area taxpayers, including corporate ones – is any new taxes appear off the table, for now.

Only three commissioners – Corey Johnson, Bill Fennoy and Marion Williams – raised their hands in support of millage rate increase at a Tuesday budget work session. However, four commissioners – Alvin Mason, Mary Davis, Bill Lockett and Joe Jackson – were out of the room when City Administrator Fred Russell asked if a property tax hike was in order.

Only one commissioner – Donnie Smith – said he supports charging factories an excise tax to replace $1.5 million lost through a new state exemption for energy used in manufacturing, a move pushed by Russell. Mason, Davis, Lockett and Jackson were not present when Russell asked about this issue.

“We’re willing to tax 90,000 (homeowners),” Smith said, “but we’re not willing to collect money to run the city from 11 (factories)?”

Johnson, advocating for a millage increase to maintain service levels, said the commission is often unfairly blamed for the highest line on most tax bills – the 19.98 mill rate set by Richmond County Board of Education – while city taxes are among the state’s lowest.

“You take any other metropolitan city, they’re going to pay a decent rate,” Johnson said. “We just can’t keep kicking the can down the road.”

A 1-mill hike would cost the owner of a $100,000 home $35 a year but generate an additional $4 million in revenue, according to a city finance department handout.

Without it, an $8.5 million shortfall in the draft budget wasn’t getting smaller, so the group tinkered with other options on an overhead spreadsheet.

Suggestions floated at the meeting included eliminating security at Augusta Municipal Building, which would save $500,000.

Security is no longer required by law since court functions moved out to the new courthouse, Russell said.

Requiring departments to revert to their prior year budgets would save money, but other costs, such as electricity and gas, haven’t remained at prior year levels, he said.

Mason suggested Russell present a balanced budget next time, then lamented the success of SPLOST-funded sales tax projects the city can barely afford to maintain, such as the courthouse.

Other ideas presented Tuesday included charging a fee on sheriff’s office “specials” that use the city’s vehicles, gas and more. A fee, not deducted from the deputy’s payment, could generate $250,000, Russell said.

Eliminating funding for agencies the city isn’t required by law to fund could save $1 million.

A final option, important to the city’s 2,400 staff members, was a $1,500 across-the-board pay increase that costs $3.1 million.

“I just don’t think the timing is there” for the raise, Commissioner Mary Davis said, while Smith said only those who make less than $50,000, two-thirds of staff, need an increase.

Mayor Deke Copenhaver threw out another idea: Install parking meters downtown and use that revenue to fund downtown infrastructure, maintenance and safety.

“It’s a revenue source that we should discuss,” he said.

Commissioner Wayne Guilfoyle, who chairs the commission’s finance committee and has worked closely with Russell on the budget, said the meeting was “a good start” but he and others would continue to meet with city officials to devise fixes that don’t involve tax increases.

The commission by its own rules must approve a budget by Nov. 19, Russell said, but by not adjourning that meeting, can continue to work on the figures a few weeks beyond the date.

IN OTHER ACTION

Augusta Commission committees met prior to the budget session and took action on the following:

• Heard an update from McDonald Transit, which runs Augusta Public Transit, on moving the addition of a route to Fort Gordon to Phase 1 of the company’s unfunded expansion plan. Commissioners and city officials will meet with post leaders next week on the addition.

• Referred draft additions to the city’s secondhand goods ordinance back to the city attorney after a bookseller questioned why he’ll now have to videotape and document all used book transactions.

• Failed to deny or pass implementing for $171,850 a new cable channel, Augusta Government TV. Both votes failed and the matter will go before the full commission.

• Voted, at Davis’ suggestion, to send Utilities Director Tom Wiedmeier’s request to use Heery International as program manager for renovations at the old main library and send it out for bids instead. The $385,911 contract gave several commissioners “heartburn,” they said, while Wiedmeier said he wanted to use Heery as the firm is “already here” and “would open up some doors for some alternate contracting methods.”

Comments (8) Add comment
ADVISORY: Users are solely responsible for opinions they post here and for following agreed-upon rules of civility. Posts and comments do not reflect the views of this site. Posts and comments are automatically checked for inappropriate language, but readers might find some comments offensive or inaccurate. If you believe a comment violates our rules, click the "Flag as offensive" link below the comment.
dichotomy
36187
Points
dichotomy 11/12/13 - 11:00 pm
10
0
"while Wiedmeier said he

"while Wiedmeier said he wanted to use Heery as the firm is “already here” and “would open up some doors for some alternate contracting methods.”

Fine.....have them come back with some reasonable labor rates and explain what the hell a community liaison does and why his labor rate is 4 times the rate of what a made up, do nothing job should be....then we will think about it. And again, I ask the question....who is getting the kickback from these outrageous labor rates. We already know who took the skybox tickets and campaign contributions. Who is getting the cash kickback?

"Phase 1 of the company’s unfunded expansion plan."

Unfunded is the operative word and why are we even talking about it when we have a $8.5 million dollar budget shortfall.

"Failed to deny or pass implementing for $171,850 a new cable channel"

Again....READ MY LIPS.....$8.5 million budget shortfall. Do we REALLY need a cable channel this year? Or is this just someone's idea of being "progressive".

"eliminating security at Augusta Municipal Building, which would save $500,000"

Duh....$8.5 million budget shortfall. Cut it!!!!

"Eliminating funding for agencies the city isn’t required by law to fund could save $1 million."

Double Duh......Cut all of it. The bigger question is why the hell were we ever funding them in the first place?

Cut everything you can cut and then do what you can to give the employees that make $50K or less a decent raise. But THE answer to budget problems is to CUT SPENDING...cut everything that is not absolutely necessary. If feels good to live within your means......and government should try it sometimes.

bubbasauce
22994
Points
bubbasauce 11/13/13 - 01:51 am
6
0
You are so right Dichotomy

You are so right Dichotomy and just like the incompetent congressmen in D.C., they do not want to even talk about cutting budgets. Start cutting!

seenitB4
93490
Points
seenitB4 11/13/13 - 07:31 am
2
0
You need some new blood

and you need it now.

nocnoc
47073
Points
nocnoc 11/13/13 - 07:44 am
3
0
How about TAXing and spending by district.

To avoid having districts taxed many times more than is being reinvested in their district.

Setup Tax Districts.

Example: If a District collects $10 Million in taxes, then 70% of that amount MUST BE SPEND IN THAT District for support, maintenance and infrastructure projects. The 70% to be controlled by a District voter elected team and must be applied by a Predefined set of District Charter Guidelines. The other 30% to be used for the ARC general government operational fund for the courts, jails, sheriff, roads, and etc.. (cited %are examples only, because I like 75% better)

This allows the Districts to be self supporting, Locally control how their Tax $$$$ is spent, and best of all makes Downtown support its own projects.

augusta citizen
9948
Points
augusta citizen 11/13/13 - 07:53 am
2
0
"agencies the city is not required by law to fund"

Of course we should eliminate funding for agencies we're not required to fund! Like dichotomy I wonder why we were funding them in the first place. I would like to go further and ask to see what agencies they are and how much each is receiving from the taxpayer's purse.

Another question is if we are spending $500,000 to provide security at the Municipal Building, where it's no longer needed, how is the required security being provided at the Court House. Did they just hire up a new crew, instead of transferring the personnel over? Sounds to me that it should have been a simple move from one address to the other! Geez....

nocnoc
47073
Points
nocnoc 11/13/13 - 07:56 am
1
0
T-Minus

As of 7:48AM Nov. 13, 2013
132 days
11,404,800 seconds
190,080 minutes
3168 hours
Just about 18 weeks

Sooner or Later ARC voters are going to wise up..
Any Consolidated Government Spends More, therefore it must Tax More.

nocnoc
47073
Points
nocnoc 11/13/13 - 08:18 am
1
0
Is Logic too Hard of thing for a Downtown Politician?

When you and I are faced with a budget issue we work harder, cut back. or do both. We can't demand more $$$ from a boss.

The problem with a Downtown politically focused government, is spending. They don't look 1st to cut, or work harder with what they have. No, they go to a Countywide income source and TELL the taxpayer sources to increase the Governments budget, so they can spend more.

I agree if it is NOT REQUIRED by Law, disband the committee, Advisory group, and/ or Blue Ribbon commission Consulting teams.

Cut Government PORK FAT before again draining our wallets and increasing taxes.

Let's get back to BASIC GOVERNMENT Services and then determine what frills we can afford without another tax.

Love Augusta
21
Points
Love Augusta 11/13/13 - 10:24 am
0
0
Isn't home ownership hard enough these days?

As a homeowner who has been trying to sell for four years, I resent the idea of a property tax increase! I don't care how much of an increase we are talking about! I am drowning here (and I am not the only one)!!!

Shouldn't budget cuts at least be fully explored/executed first?
It seems to me that this is a classic case of Democratic liberal spending vs Republican conservative spending. When I last voted, I was led to believe that we were trying to avoid such bipolar politics in Augusta.

Please have an open mind about budget cuts! If our deficit is breaking Georgia law already, should we really be milking the hard working property owners so that we can continue with unnecessary spending?

Back to Top

Top headlines

Court rules in probation case

ATLANTA -- The Supreme Court issued a unanimous decision this morning concluding that it is legal for local courts to contract with private companies to supervise offenders on probation for minor ...
Search Augusta jobs