Fulton County commissioners unanimously rejected a countywide property tax increase to stave off a possible $40 million budget shortfall next year.
County Manager Zachary Williams lobbied the commission at its Wednesday meeting to start the process for increasing the Fulton County millage rate by .57 mils this fall to ensure the county has the same level of services in 2012. He succeeded only in getting an increase for the unincorporated section of the county and payment started for county bonds for the library construction program.
The only commissioner to vote against a millage increase for unincorporated south Fulton was from north Fulton, Liz Hausmann of Johns Creek.
"I just think it is a hardship on anyone to increase taxes right now," Hausmann said. "People are sitting around kitchen tables making all sorts of hard decisions."
Williams and his staff considered using a quirk in the state law that would allow a county to raise property tax rates without advertising the increase if it didn't change overall tax collections. Most homeowners would not have paid more in taxes because of falling property values and an increase in the county homestead exemption to $30,000.
However, the increase would have meant property owners would pay a higher tax rate on property that had less value, and an increase could have resulted for thousands of business owners, landlords and others who weren't covered by the homestead exemption.
Williams said the commission rejection will mean a projected $20 million shortfall for 2012 that could jump to $40 million if enough property owners who appealtax bills get their current values lowered. He had warned commissioners that, without a millage increase, libraries won't open on Sunday and won't buy as many books, childcare subsidies for county employees will be eliminated, youth and senior programs could be reduced, and longer delays in criminal trials and more jail overcrowding could result.
"It's significant ... it is likely there will be service reduction," Williams said. "They made it clear that we need to find another way to address the challenge."
He also acknowledged the county previously has found other ways to balance the budget without cutting services.
The commission, however, voted to advertise a proposed .810 boost in the property tax rate to avoid a shortfall in unincorporated south Fulton. The commission will hold a special meeting on July 21 for the 80,000 unincorporated residents affected. The meeting also will advertise a new millage tax of .270 to pay for the library bonds.
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