DeKalb CEO Burrell Ellis unveiled a tax hike of up to 4.5 mills on Tuesday, the equivalent of $93 more a year for the average home in the county.
County commissioners -- who have final say on the budget and tax rate -- reacted as coolly to the proposal as they did the chief executive’s December request for a 2.32 mill increase.
Then, commissioners wanted more cuts. The same holds true now.
“I don’t see the reductions, the reorganization, the reductions to service and, unfortunately, people,” Commissioner Elaine Boyer said. “The public will not stand for that if we’re asking for more money.”
DeKalb ended last year with no cash reserves and underestimated how badly property values would fall this year. Instead of a projected 4 percent drop, values have plunged 13 percent -- creating a $37 million shortfall in the budget.
A tax hike of 3.21 mills is needed to cover that gap, according to the new proposal. The additional increase would pay for items such as filling every vacancy in the police department and covering the cost of cost overruns in departments that have not made the 9 percent cuts the commission requested in January.
Those are some of the priorities that commissioners question, even knowing that other areas such as Atlanta, Fulton and Gwinnett have raised taxes in the past few years. DeKalb last raised taxes in 2006.
Ellis said that his proposal cuts or saves $7.45 million, in part by again asking to close five recreation centers and phase out the cooperative extension office. Other savings would come from abolishing 250 vacant positions and closing the tax commissioner’s satellite office.
“This is not just a millage increase,” Ellis said. “This is a balanced plan to guide us through a tough time.”
If approved at the higher rate, DeKalb’s millage rate would go from 16.86 to 21.36. How the jump affects each homeowner, though, varies.
The December proposal would have raised taxes about $264 for the average home. But at the time, the average home was estimated at $200,000.
With values plunging, the average home in the unincorporated DeKalb is now worth about $155,000 -- creating the smaller increase despite the tax hike being almost twice what was earlier requested.
“If we had passed that tax increase at the same service levels, we’d be in a world of hurt right now,” said Commissioner Lee May, chair of the budget committee. “It’s like putting money in a bag with holes in it. We have to get a new bag and change how we use it.”
Still, the commission is expected to announce the 4.5 mill increase as its advertised rate at the June 14 commission meeting. Once advertised, the county can lower its raise but cannot increase it.
Ellis said that a 4.35 increase would make ends meet, but a spokesman said the CEO would be open to further cuts as well.
The budget committee is expected to take up the matter again after the full commission meeting on June 14. The commission has until July 12 to adopt a final millage and balanced budget.
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