Most Gwinnett County property owners would see a tax increase while some would see a tax cut under a proposed 2013 budget unveiled Tuesday by County Commission Chairwoman Charlotte Nash.
Because of changes resulting from the settlement of a lawsuit between the county and its cities, residents in unincorporated Gwinnett would see their county tax rate rise nearly 6 percent to an estimated 13.75 mills, while Loganville residents would see their rate drop 34 percent to an estimated 8.59 mills.
Residents of 15 other Gwinnett cities also would see tax increases or decreases, depending on where they live and what county services they use.
A resident of unincorporated Gwinnett who owns a $160,000 house would pay about $39 extra in taxes annually under the proposal. A Loganville resident with the same house would pay about $239 less.
Nash said the changing rates won’t mean more property tax revenue for the county, but will merely shift the tax burden among residents to comply with the terms of the lawsuit settlement reached earlier this year between Gwinnett and its cities. The litigation centered on city complaints that their residents pay for county services like police and fire protection that they don’t use.
As a result of the settlement, the county’s single tax rate will splinter into four rates that depend on what county services each city receives.
Nash said tax hikes are needed to maintain county police and other services in those areas that receive them.
“Am I excited about this? No,” Nash said Tuesday. “This is not my dream budget.”
Steve Ramey of the Founding Fathers Tea Party Patriots said he doubted any tax increase is needed.
“I certainly don’t want my taxes going up,” Ramey said. “The taxes already are too high. There are a lot of expenditures that could be reduced.”
The issue of paying for county services long has been a sore point with Gwinnett’s cities. Nine cities, for example, have their own police departments, but residents in those cities pay county taxes to support the county police department.
Last February the county settled the lawsuit and agreed to establish separate funds to pay for various services. The new police fund is supported by taxes paid only by residents who receive county police protection (including residents of seven cities). The county also established separate funds for fire protection and planning and development services.
The result: proposed tax increases for residents who receive those services and proposed tax cuts for those who don’t.
Nash said the county isn’t scaling back police and other services despite a decline in property tax and other revenue brought on by the poor economy.
“I feel like the safety of the residents is so important, I could not bring myself to impose the kind of cuts that would be needed” to make up for declining tax revenue, she said.
Gwinnett last raised its property tax rate in 2009, when it jumped 21 percent. The tax rate fell slightly last year.
Nash ran for commission chairwoman in 2011 on a pledge not to raise taxes through this year. But when the lawsuit was settled in February, she said taxes could rise for some residents in 2013.
The tax hikes and cuts are the key feature of Nash’s proposed $1.3 billion 2013 budget, which would see total county spending decline 8.5 percent. Capital spending would fall 25 percent to $385.3 million, while operating expenses would rise about 1 percent to $922.8 million.
The uptick in operating expenses is due mostly to an increase in debt payments in the county water and sewer department. Cost increases brought on by various changes in state law — including the district attorney’s office having to boost staffing in drug court and other courts — also contributed to the increase, Nash said.
Under the budget proposal, Gwinnett would freeze vacant positions in the police and fire departments to save money, and employees would see no pay raise. The county also would cut library spending $1 million.
Though it’s up to the library board to manage its own budget, Nash said she will recommend the board reduce spending on new materials. Last year the board cut library hours in response to county budget cuts.
The public will get a chance to comment on the proposed budget at a Dec. 10 hearing. Commissioners will approve a final budget Jan. 3. They won’t approve new tax rates until next summer.
At least one commissioner — former Suwanee City Councilman Jace Brooks — said he thinks Nash’s proposal for varying property tax rates has merit.
“I believe this is the way we should have been doing it for quite some time,” he said.
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