Many Savannah property owners will see a third tax break on their bills next year should the Savannah City Council adopt a recently proposed millage rate that would be the lowest in 35 years. The move follows millage rate cuts by both the Chatham County and the Savannah-Chatham School Board last month.
The city's proposed millage rate of 12.2 mills is the lowest since 1987 and is expected to reduce property taxes for the majority of the 19,000 Stephens-Day exemption qualified households in the city.
The proposed rate is not a true tax cut, as it will generate more tax revenue than the current rate of 12.739 due to increases in the city's overall tax digest. The millage that would produce the same tax revenue, known as the rollback rate, is 11.399 mills,
Georgia law requires the city to advertise the rate of 12.2 as a tax increase as it will result in higher bills on properties that have increased in taxable value. The taxable value is frozen on Stephens-Day qualified properties, which means the lower millage rate will result in lower tax bills for those homeowners.
Rollback vs. increase explained
The current millage rate is considered a tax increase by the state and must be advertised as such because of growth in the city's tax digest. The larger tax base means officials can drop -- or rollback -- the millage rate and still generate the same amount of revenue the current rate has.
Adoption of the 12.2 rate is projected to save taxpayers upwards of $3.2 million, according to city officials.
The proposed rate will also allow the city to remain on sound financial footing during these uncertain economic times, Savannah Mayor Van Johnson said Tuesday during his weekly media address.
"We want to adopt a rate that provides for our community's needs with an eye towards lowering taxes without having to increase them in the future," he said.
Additionally the rate of 12.2 mills would also help pave the way for initiatives needed to attract and retain a highly qualified public safety workforce. Savannah City Manager Jay Melder has proposed pay increases for both the Savannah Police and Savannah Fire departments.
Starting pay for Savannah Police would increase to $50,000 from $44,000 while new firefighters would earn $48,000 compared to $44,000.
Credit: Richard Burkhart/Savannah Morning News
Credit: Richard Burkhart/Savannah Morning News
The goal is "to raise pay for our officers and our corporals and put ourselves, the Savannah Police Department, back on top in the region in terms of starting pay at over $50,000," Melder said in a recent interview with the Savannah Morning News.
Other retention and recruitment strategies that could be on tap for SPD include a signing bonus for new hires, a two-year retention bonus, a lateral entry program and sign-on bonus, and an employee referral bonus program.
The mayor said the new initiatives will ensure that the city maintains the highest skilled and best qualified public safety agencies in the nation.
“We recognize that we are in a bidding war, and the city of Savannah is ready to play... We will also make significant pay adjustments for entry level through middle management to encourage continued career growth within these departments," Johnson said of the planned competitive pay
The law requires three public hearings on the proposed millage rate, the first of which will be Thursday during the regular council meeting at 2 p.m. The final two hearings will be held on July 28 at 10 a.m. and 6 p.m. All of the hearings will take place in council chambers at City Hall at 2 East Bay St.
Katie Nussbaum is the city and county government reporter for the Savannah Morning News. Contact her at knussbaum@savannahnow.com. Twitter: KnussSMN
This article originally appeared on Savannah Morning News: City of Savannah to consider lowest millage rate in decades
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