Roswell’s recent vote on taxes to help fund its $101 million budget barely raised an eyebrow among most residents here because they won’t pay a penny more than last year.
But, critics in North Fulton’s second largest city contend the vote was nothing more than a tax hike in disguise because property taxes should have been lowered.
To some, it’s just semantics. To others, it’s about $1.7 million dollars that should have been rolled back to residents or, at least, discussed openly at public forums.
Mayor Jere Wood bristles at any charge of a tax hike, proclaiming the overall tax rate on property — or millage rate — has not increased in 10 years, and he doesn’t anticipate it going up anytime soon.
“I have a different perspective than some folks,” he said. “I look at the combined millage rate rather than the separate millage rates.”
Roswell’s tax rate of 5.455 mills has two parts and generates about $25 million.
One part, about 1.4 mills, pays on bonds approved by voters to fund specific projects, like roads, parks and fire stations. This portion of the mill levy will drop by about .4 mills, roughly $1.7 million, next year because the city will retire some of its old bonds.
The other part of the mill levy will rise by the same amount. This portion, currently 4 mills, pays for operations, the day-to-day working of the city.
State law defines this as a tax increase, and the city published a legal notice to that effect, even though overall tax rates will remain the same.
What’s got some residents steamed is that the projects they voted to pay extra taxes for are now paid off, and they are due a rollback.
“The city did not retire the millage they promised to retire,” resident Lee Fleck said. “They are setting a precedent by rolling debt service money into general operations.”
Roswell is not alone.
Alpharetta’s proposed 2014 budget calls for doing the same thing on a much smaller scale. The city is also anticipating a reduction in its debt for the coming year and has proposed transferring about $180,000 collected in taxes from debt service to general operations.
A final vote on the Alpharetta budget is expected June 17.
Roswell’s City Council voted 3-2 Wednesday in favor of its spending plan.
Kent Igleheart, one of the two dissenters, said he thinks the city risks losing credibility with voters the next time it proposes a bond referendum for special projects.
He recommended the city cut spending to reduce the overall mill levy by 2.7 percent, the same amount the debt service levy is falling.
“I think we are doing a tax increase by moving millions that were intended to pay for bonds and specific capital projects and using it to pay for maintenance and operating expenses,” he said. “To me, we’re using taxpayer money for things other than what it was intended.”
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