Fulton tax hike moves forward

Fulton County edged one step closer to a legal showdown Wednesday, formally proposing the county’s first countywide property tax increase in 23 years in defiance of state law.

By a 5-2 vote, commissioners agreed to advertise a 17 percent property tax increase that would cost the owner of a $275,000 house an extra $140 a year. They also schedule public hearings to solicit public input next month, with a final vote on the tax hike set for July 16.

Opponents denounced the proposal as illegal and unnecessary. They said the proposal violates a state law that prohibits Fulton from raising property tax rates until next year. And they said Fulton should cut spending instead of raising taxes. Commissioners argue the General Assembly overstepped its legal authority when it approved the property tax cap last year.

“You’d rather not do the heavy lifting of cutting costs,” Michael Fitzgerald, co-founder of the North Fulton & Friends Tea Party, told commissioners during a public comment period. “You’d rather turn to the poor taxpayers to dig you out of your dilemma.”

Opponents of the tax increase have threatened to challenge any increase in court.

Supporters say the tax hike is needed to protect services such as libraries and senior services that have suffered as Fulton has struggled to balance its budget.

“It is not the concern of the Republican-controlled state legislature to (dictate) to our county how to raise taxes,” said Roswell resident Phil Lunney. “They complain when the federal government does it to them.”

Chairman John Eaves said Fulton officials are searching for spending cuts and new sources of revenue to help close a $48 million hole in the county’s $625.4 million general fund budget, which pays for countywide services.

County Manager Dwight Ferrell already has implemented a limited hiring freeze. And property tax collections may come in higher than estimated, giving the county additional breathing room.

A majority of commissioners said they want updated revenue and expense projections before they vote on the tax measure.

“If I can avoid an increase in the millage rate, I will avoid it,” said Commissioner Bill Edwards. “We’re going to do what we’ve supposed to do. Everybody’s blowing this out of proportion. Let’s see what the mid-year budget’s going to say, and we might not have no problem.”

Under state law, commissioners cannot approve a tax rate higher than the one advertised, though they can approve a lower increase or decide not to raise the rate at all.

Opponents say cuts are what commissioners should concentrate on.

“Fulton County for the last few years should have done a more prudent job of managing our expenses, and we wouldn’t be here right now,” said Commissioner Liz Hausmann. She and Commissioner Robb Pitts voted against the proposal.

But it’s unclear whether the county can find enough new savings and revenue to offset the budget gap. County Finance Director Patrick O’Connor told commissioners that, without a tax increase, the county would have a difficult time repaying some of its debts.

“We’d be in a credit crisis,” he said.

Fulton County wouldn’t be the only local government to raise property taxes in recent years. As real estate values plummeted in the wake of the Great Recession, Cobb (16 percent), DeKalb (26 percent) and Gwinnett counties (21 percent) also raised tax rates to generate more revenue.

But Fulton County’s budget has drawn closer scrutiny. North Fulton residents have long said they pay most of the property taxes but get little for their money. An Atlanta Journal-Constitution investigation last year confirmed north Fulton residents don’t get their fair share of some key services, though the county has taken steps to more fairly distribute services.

Another AJC investigation found that, while Fulton spends roughly the same as other metro Atlanta counties on most services, there are some that it spends more on.