Will Gwinnett tax hike be wave of future?

By Patrick Fox

The Atlanta Journal-Constitution

When he returned to his office after a flurry of television interviews Tuesday night, Gwinnett County Commission Chairman Charles Bannister looked relieved.

Having just presided over the county's first tax rate increase in 13 years, the chairman appeared almost to be recovering from a dose of castor oil. The tax measure will cost the owner of a $200,000 home about $160 more on his annual bill. The 4-1 vote for a 21 percent increase in the county's share of property taxes had not been easy, Bannister said, but he was looking forward to getting on with business.

That business will include an infusion of more than $50 million to sustain core services vital to the county's quality of life, officials say. Even traditional budget nit-picker Mike Beaudreau, who cast the lone dissent, admitted that the 2009 spending plan had been trimmed about as much as possible.

Now, they get to do it all again.

A week from Thursday, Bannister will present the county's 2010 budget at a public hearing.

The lumps commissioners took Tuesday could make paying for that budget less of a battle.

The new millage rate of 13.25 will allow Gwinnett County to accommodate its capital expenses, said Aaron Bovos, county chief financial officer. This means the money will be available to staff three fire stations and the new Hamilton Mill Library built with SPLOST money.

"It really addresses our 2010 needs, but it doesn't go any further than that," Bovos said. "We may be on solid footing in 2011 if we choose not to build anything until 2013 or 2014."

The county is bound to spend SPLOST money for the express purpose voted on by residents, Bovos said. These include fire stations, libraries and roads. One way to delay the operating costs, he said, would be to put off construction of buildings and use the money for roads, which do not need to be staffed.

"That's really what the plan is right now," he said. "That's what we did back in July. We moved all the capital projects that had an operating impact out to 2014."

Gwinnett is not the only place in the metro area facing economic hardships.

Clayton County raised its taxes by 3 mills, about 23 percent, in June to fund its fiscal year 2010 budget, which began in July.

"We pretty much weathered the storm," said Jamie Carlington, Clayton public information officer. "But we put it all out there for the public to see. We've always operated a fiscally conservative county government and for years had one of the lowest millage rates throughout metropolitan Atlanta."

The city of Atlanta also raised its tax rate by 3 mills in June to end furloughing employees -- particularly those in public safety.

DeKalb County CEO Burrell Ellis will present his 2010 budget proposal Dec. 15. A county spokeswoman said it would be premature to discuss prospects for a tax increase until the budget is completed. The county has increased its tax rate by .86 mills, about 5 percent, since 2007.

Cobb County's fiscal year began Oct. 1, so it is already two months into its 2010 budget.

"We can't say for sure what we're going to do at this point," said Cobb County spokesman Robert Quigley. "Our budget is probably just as tight as all the other metro counties'. Revenue does not appear to be increasing, and we don't expect it to."

Quigley said the county has been operating under a hiring freeze for close to three years, which has helped offset some expenses.

"Right now, the revenue and the budget match up," he said.

While Gwinnett residents adjust to a higher county tax rate, some are still steaming over Tuesday night's vote.

Sabrina Smith, who chairs Gwinnett Citizens for Responsible Government, said she has received more than a few calls from angry residents seeking to recall the commissioners who voted to raise taxes. She said she received some calls from members of Engage Gwinnett, the citizens' advisory panel the county formed to provide input on the budget.

"If the commissioners had come out originally and explained, ‘This is what we need to do. We want some input,' it would be different," she said. "People just don't have faith and confidence in the commissioners because of the way it was handled."

GWINNETT TAX INCREASE

Gwinnett County's additional 2.28 mills will generate more than $50 million in revenue for 2009. Here's how the money is to be spent.

$18.7 million: for existing deficit and to offset predicted decline in commercial tax digest

$15.7 million: public safety (includes adding police and fire personnel)

$10.8 million: courts and constitutional offices

$4.8 million: recreation

$2.3 million: corrections, support services and transportation (primarily mowing of rights of way)

$1.8 million: libraries (includes operating all branches from 48 to 52 hours per week)