The Augusta Commission might not raise millage next year, but there's still a chance tax bills could be hundreds of dollars higher.
In putting together 2009's budget, City Administrator Fred Russell managed to trim $3.1 million from the general fund and $3.4 million from law enforcement to stave off a tax increase, but he also assumed that the city would get its share of the state homeowner grants frozen by Gov. Sonny Perdue.
"We don't know yet," Mr. Russell said, "and I don't want to cut services yet until we know what's going to happen."
Mr. Perdue said in August that he wants to scrap the $428 million tax-relief program, started by his predecessor, Roy Barnes, to help make up a state budget deficit of between $1.4 billion and $2.2 billion.
Augusta's portion of the grants is $3.1 million, which this year reduced most urban taxpayers' bills by $292.72 and most suburban bills by $241.19.
Outrage from local governments has Republican legislators vowing to override the governor. By all indications, the grants should go out after the General Assembly reconvenes after the first of the year, but that will likely be the last time they will be available.
The issue is especially vexing for Augusta because its fiscal year, which runs from January to December, differs from the state's, which runs from July to June. Cities such as Macon and Columbus-Muscogee County, whose dates are in line with the state's, still have time to collect the money for the current year and make adjustments in time for their 2009-10 budgets.
Augusta, though, still hasn't gotten the money to make up for the reductions in 2008 tax bills. If it comes through within two months of the year's end -- by Feb. 28 -- it could still be applied to this year's finances, Mr. Russell said. Otherwise, it could be rolled forward into 2009.
How Mr. Russell plans to plug two $3.1 million holes with a single $3.1 million payment is a matter of accounting -- banking on the city's coming in under budget in 2008 or 2009, or both.
Next year's budget already has cut funding from museums, the Augusta Arts Council and the Recreation and Public Works departments, and it has eliminated the Human Relations Commission. Mr. Russell said he expects to eliminate 20 positions citywide next year.
Cutting another $3.1 million to spare homeowners the shock of higher tax bills next year would have involved more drastic program cuts and job eliminations, something Mr. Russell said he didn't want to do. Instead, he'll work to keep spending to a minimum.
"We budgeted assuming we're going to get the $3.1 million," Mr. Russell said. "I'm going to manage assuming we won't."
Mr. Russell suggested that, if the city can't give taxpayers the discount next year, the note on bills giving the governor and the General Assembly credit for the reductions could be reworded to pin the increase on them.
Augusta Commission and Finance Committee member Joe Bowles said the likelihood of a $3.1 million loss next year should have been accounted for. His plan to close 20 community centers could save $1.5 million to $2 million, and more could be saved by cutting out state travel and nonmandatory continuing-education classes, he said.
"It's unfortunate," Mr. Bowles said, "but the exemption was put in place to relieve taxpayers, and all it's done is grow government."
Reach Johnny Edwards at (706) 823-3225 or johnny.edwards@augustachronicle.com.
A government subsidy?
In freezing homeowner grants, Gov. Sonny Perdue contended that they've done little to lower taxes and have only fattened local governments.
City Administrator Fred Russell said, however, that he views them as a subsidy to taxpayers, not governments. The city sets its tax rate based on budgetary needs, he said. The millage is applied to home values to calculate tax bills; then the state's discount is subtracted from the total.
With the tax relief program now in limbo, the city has an uncollected $3.1 million to account for, Mr. Russell said: After nearly 10 years of tax help, homeowners have become accustomed to lower bills, so seeing them raised to the full level of the mill rate could come as a shock.
Options to spare them that shock next year include coming in under budget in 2008 or 2009, or both; making further cuts to services; and further dipping into the reserve fund, Mr. Russell said.
Comments
Amen, dickworth1, Fred Russell is always crying about not enough money. I can't stand the sight of his picture. Who gave him this job anyway ? He was in law enforcement before he became city administrator. The economy is in the pitts and this snake in the grass is always crying, fire him and get someone who knows how to use the taxpayers money wisely.
Everyone has to budget themselves to live and FRED wants to get more money.
Disgusta is and always will be the laughing stock of Georgia if we keep people like FRED in office.
When the total digest of taxable property is prepared, Georgia Law requires that a rollback millage rate must be computed that will produce the same total revenue on the current year's new digest that last year's millage rate would have produced had no reassessments occurred.
If the county elects to set their millage rate higher than the rollback rate, they will be required to hold three public hearings, place notices of the increase in the paper and issue press releases.
• Notification of Tax Increase With Three Public Hearings
The levying authority must hold three public hearings allowing the public input into the proposed increase in taxes. Two of these public hearings may coincide with other required hearings associated with the millage rate process, such as the public hearing required by O.C.G.A Section 36-81-5 when the budget is advertised, and the public hearing required by O.C.G.A. Section 48-5-32 when the millage rate is finalized. One of the three public hearings must begin between 6:00 PM and 7:00 PM in the evening.
What gives this man qualifications to be a city Administrator ?
Bio:
Mr. Frederick L. Russell was employed as Deputy Administrator, Public Safety Portfolio, in January 2002. Mr. Russell has a Master of Science in Criminal Justice from Nova University and a Bachelor of Science from Virginia Tech. He attended the FBI National Academy, 150th Session. Some of the former positions he has held include: Deputy Chief, Richmond, VA Police Department; Executive Director, VA State Crime Commission; Chief of Police, City of Bedford, VA.
Good Grief people!! Fred is an employee just like everyone else and can't spend a dime that the Commissioners do not approve.
At least call a spade a spade!!
You are absolutely right "Only the Truth," however, Fred Russell continues to advocate tax increases at every turn. Never have I heard him make a statement about decreasing the size of the county government nor mention a delay in building stadiums, parks, etc. until the county CAN AFFORD them. I live on a very strict budget and struggle to continue to pay the taxes we already have. What is Richmond county trying to do other than increase the burden on those of us who did not move to Columbia county? Enough is enough. Cutting expenses should be top priority instead of increasing taxes yet again.
Well, whatever the situation with Russell and the commmissioners, they need to remember that the taxpayer is hurting as much, or more, than the county. We are not a bank for them to draw from to support their incompetence. Between millage rate increase and property re-valuations my taxes have gone up 50% in the last three years. These people have lost their friggin' minds and we need to throw them all out of office. They are corrupt, incompetent, and stupid. I have lived many places in this country and Augusta has the worst local government I have ever seen. We have a high tax rate and we get nothing for it. The same goes for our local school board. They waste tons of money, much of which goes to lawyer fees to defend themselves in court for their stupid decisions and corrupt personnel practices. What a bunch of goof balls the fine people of Augusta have elected to represent them. And Russell, all he does is sit and shake his head up and down like a toy dog in the back of a Puerto Rican's car. Some administrator. Of course, if he really acted like an administrator the commission would fire him so I understand why he doesn't discharge his responsibilities properly.
glad I work for myself and don't report taxes. you repubs must be sweating
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