The Tax Increase: Myths and Misconceptions
The Gwinnett County Commission has again proposed a millage rate increase to fund the restoration of most services that were slashed from the budget in June when taxpayers revolted against a 35% hike. The second proposal, slimmed down but still substantial, will come up for a vote on December 1 after three public hearings.
Gwinnett taxpayers are in no mood for a tax increase. Little has changed from the summer when hundreds of citizens rallied in Suwanee to denounce it.
Over the next two weeks, I plan to analyze various aspects of the tax hike proposal– how we arrived at this place in time; what is included in the increase and what is not; what is right about it and what is wrong.
If you’re totally against a tax increase, you face an uphill battle. The reality is that there are already enough votes to pass the tax hike as proposed. Chairman Bannister has signaled that he will support it, as has Kevin Kenerly, who isn’t running for reelection. Shirley Lasseter is a sure second vote for Bannister; Bert Nasuti is also a lame duck but is open to reason. Only Mike Beaudreau is expected to oppose it.
There is, however, plenty about this proposal to criticize. As I will explain, the increase could be reduced by 32% and still fund the full restoration of service levels for this year.
Our best bet, then, may be a reasonable compromise, which may not be a bad thing. For example, the increase will fund 58 police officers at a time when the headlines speak of drug cartels and home invasion robberies. I am ambivalent, on the other hand, about whether the recreation items should be restored; ballfield lights aren’t “essential” except, maybe, for ensuring Kevin Kenerly’s support of a compromise.
The first public hearings on the tax hike proposal are planned for November 23 with a vote scheduled for December 1. We have a couple of weeks to begin steering this in the right direction, but it can only happen with your involvement.
Do this now: forward this article to your neighbors or send your Gwinnett contacts a quick email referring them to the subscription form at www.bobg.biz/u/subscribe . This series of articles will likely be the only source of detailed info on the increase that isn’t published by the county. You and I have influenced the Commission to do the right thing in the past, and we can do it again.
Myths and Misconceptions
Since I tend to be a bit long-winded, I plan to break this topic into several digestible chunks. The first chunk– dispelling several misconceptions about county finances, taxes and spending that tend to prevent intelligent conversation from occurring.
`The Stadium Helped to Put Us in this Hole`
Actually, the Gwinnett Braves’ stadium has virtually no relationship to this millage increase proposal. The stadium’s construction was financed from three funding sources– a draw on the Recreation Fund balance (reserves); a draw on the General Fund balance (reserves); and the sale of bonds to generate additional capital.
Further, the stadium essentially pays for itself through the lease by the Braves, parking, a rental car tax and more. No property tax dollars have been used to support the stadium.
`My Taxes Keep Going Up`
It may be true that your property tax bill has increased over recent years, but it isn’t because of the county property tax. The county portion of the total millage rate has actually decreased every year since 2003, a net total of 3.98 mills since 1996. In 2008, the county tax rate was the lowest it has ever been.
“But my assessed value keeps rising,” you might counter. On your primary residence, however, a higher assessed value has no impact on your tax bill. The Value Offset Exemption (VoE) increases each year by the same amount that your assessed value increases. In other words, you are paying county taxes on the same assessed value as the year when you bought your home, unless you have improved it.
If your tax bill has increased over the past five years, it is most likely because the VOE does not apply to your assessed value for school, city or state property taxes or because your city tax rate has increased (if you live in a city).
Also, for this year the state did not fund the Homeowners Tax Relief Grant which, in years past has decreased your total tax bill by $250 to $300.
`The Sanitation Dispute`
The county’s fumbling on the sanitation plan, while unfortunate and maybe even evidence of incompetence, has no bearing on the proposed tax increase.
`The Commission Has Wasted Tax Money on Unnecessary Land Buys at Inflated Prices`
The Commission has generated controversy recently regarding several recent land deals to the point that a special Grand Jury has been authorized to investigate.
The purchases were made not with property tax dollars, however, but with money from the Special Purpose Local Option Sales Tax (SPLOST) fund which can be used for such purposes. There is no direct connection between this tax hike and the recent land buys.
`The Budget Is Full of Pork… Cut More!`
Contrary to popular perception, Gwinnett County has an exceptionally lean budget for a county of its size. Over the past year, drastic cuts have been made in anticipation of difficult economic times.
`Back office` staffs (administration) has been cut to the bone. Subsidies to non-profit community organizations represent a miniscule fraction of the total budget. The county has fewer employees per capita than most comparable counties in the Atlanta area and beyond.
As a side note, the Commissioners’ salary ($50K for the Chairman, $25K for District Commissioners) represents 0.00016808606 of the 2009 operating budget. If the Commissioners were to forego their salary this year, you would save a whopping forty-one cents on your property tax bill.
There may be ways to trim costs and the Engage Gwinnett committee (of which I am a member) will be looking at those closely over the next five months. For 2009, however, the budget is as lean as it can be. The task now is figuring out how to pay for it.
`Chairman Bannister’s Incompetence Has Created This Crisis`
That isn’t a myth; that is true, in my opinion. The County Commission under Bannister could have easily mitigated the current financial crisis. However, focusing on the causes doesn’t solve today’s problem.
Your Homework Assignment
Our county government has put an incredible amount of information online about the budget and tax hike proposal. You will find much of it linked from the “Resources” page at www.SaveGwinnett.com. The web site for the Engage Gwinnett committee (www.engagegwinnett.com) takes you to additional info.
Be sure to check out the presentations by county Finance Director Aaron Bovos and Director of Economic Analysis Alfie Meek linked at http://www.engagegwinnett.com/topics.htm . If you can muster the energy, watch the video of the presentations as well.
Finally, watch the video from the presentations by various department heads to the county’s Budget Committee: http://bobg.biz/u/budgetvid . Pay particular attention to the presentations by the District Attorney and other law enforcement and court officials.
While you’re at it, follow SaveGwinnett on Twitter (www.twitter.com/savegwinnett) or find SaveGwinnett on Facebook. Be sure to bookmark TalkGwinnett.net and TalkGwinnett.com.
Your Feedback Needed
You are invited to send your questions and comments to me at bobg@talkgwinnett.com. You can also submit questions through SaveGwinnett.com or to questions@savegwinnett.com . You can contact the Commissioners through SaveGwinnett.com as well. This and future articles will also be published at SaveGwinnett.com where you can register for a free user account and post your comments.
