Property revenue down even more in DeKalb; could lead to 4-mil tax hike

By April Hunt

The Atlanta Journal-Constitution

DeKalb County may have to raise property taxes higher than expected after new calculations revealed Tuesday show property values have plunged even more thananticipated.

The 13-percent drop in property values translates into an estimated $40 million shortfall in the 2011 budget –- and what some county commissioners say could lead to a 4-mil tax hike this summer. The drop in the county's assessed value, down to $20.8 billion, had been projected last week to be about 10.5 percent.

But commissioners, who have the final say on the budget, say they won’t approve any tax increase unless the CEO Burrell Ellis offers up more cuts.

“All I keep hearing from the CEO is that we need a tax increase,” said commissioner Lee May, who heads the budget committee. “What I don’t hear from him is that we have to look at outsourcing, we have to look at restructuring our staff. But we do have to have that kind of comprehensive review.”

The county’s chief financial officer Joel Gottlieb did not offer any proposed millage increase. Commissioners calculated the 4-mil rate based on his announcement that property values have plunged 13.4 percent countywide from last year.

The unincorporated areas were hit even harder, dropping 18 percent.

Ellis, who was not at the budget committee meeting, later said that he would continue to propose reductions beyond the $100-million plus he has cut from the budget since 2008.

But he also noted that commissioners rejected his earlier proposals such as closing five rec centers, shutting down libraries and phasing out the county’s cooperative extension.

“There is a real gap that has to be closed,” Ellis said. “The board has to step up and say they will be willing to cut some non-essential services. So far, we haven’t seen that.”

The budget tension between the CEO and county commission dates back to late last year, when DeKalb ended the year with declining revenue and no cash reserves.

Ellis proposed raising taxes by 2.32 mills to cover the loss, but commissioners voted to make more than $33.6 million in cuts.

A tax increase has become more likely as property value information has come in, showing that even the previous cuts and proposed hike wouldn’t be enough to balance the budget.

Tuesday’s figures, too, are still not final. They do not include personal property appraisals and also do not account for an expected increase appeals from property owners, which could continue to chip away at the tax base.

“I don’t care how comprehensive (any recommended cut) is, you’re not going to get out of it without raising taxes,” said Chief Operating Officer Richard Stogner.

A 4-mil increase would boost DeKalb’s rate from 16.86 to 20.28. The county has not raised taxes since 2006, before the recession started, while neighboring Fulton and Gwinnett have hiked their rates in the last few years.

Gottlieb plans to unveil a proposed millage rate at the budget committee’s June 7 meeting. Ellis will make additional recommended changes for the June 14 commission meeting.

The commission must set a preliminary tax rate at the June 14 meeting and is expected to adopt a final rate on July 12.