Gwinnett commission taps tax hike proceeds to balance 2010 budget

By David Wickert

The Atlanta Journal-Constitution

The Gwinnett County Board of Commissioners Tuesday approved a revised 2010 budget that taps money from last December’s property tax increase to make ends meet.

The county will use $18 million generated by the tax increase to make up for lower-than-expected tax receipts.

Finance director Aaron Bovos acknowledged it’s a temporary budget fix. He said the county must overcome a $31 million shortfall as it begins to put together its 2011 budget.

The revised 2010 budget is the latest sign that Gwinnett County continues to struggle financially.

Last year the commission eliminated nearly 300 jobs, delayed construction projects and cut other costs as the recession took a toll on the county budget.

In December it voted 4-1 to raise the county property tax rate by 2.28 mills, or 21 percent. It was the county’s first tax rate increase in 13 years and added $160 to the tax on a $200,000 home.

County officials said the tax hike prevented deeper cuts in services like public safety, recreation and libraries. It also generated an extra $54.2 million that the commission divvied up Tuesday.

The commission used $18 million of the money to cover a deficit in the $486 million general fund brought on by less-than-budgeted property tax and other revenue.

The commission also voted to use $5 million for a commitment to support the Gwinnett Hospital Authority, $10 million to pay debts and $21.2 million to pay for retiree pension and health care costs.

While this year’s budget is balanced, next year’s spending plan already is $31 million in the hole. In a recent interview, Bovos said that could grow as declining property values continue to erode tax receipts.

Bovos said the county is looking for savings as it begins to prepare the 2011 budget.  Chairman Charles Bannister will unveil his budget proposal by Dec. 1.