Will Savannah residents see a property tax hike this year? Despite its appearance, it isn't.

City of Savannah residents should not experience a property tax hike this year as the date nears for council to adopt the millage rate. Last year council rolled the rate back to 12.739 mills, which they are considering adopting again next month.

The proposed 2021 rate is technically considered a tax increase because the city's property tax digest has grown by 2.73% and the 12,739 mills will produce more total revenue. However, only property owners who see an increase in their assessed value — and who aren't eligible for the Stephens-Day exemption — will pay more in 2021.

Alderwoman Alicia Miller Blakely said during a mid-year budget workshop it was important for residents to understand that the language was nothing more than a formality required by the state.

“We're not changing anything. We're just going to maintain the way it is,. but it's going to sound like (an increase) when (the notification) goes out,” she said.

According to state law, council must also consider a rollback rate of 12.401 mills, which would bring in the same amount of revenue as the prior year.

“I think maintaining the current budgeted millage rate is an effective way to combat some of those inflation forces out there to make sure that we can still tread water,” said Alderman Nick Palumbo.

Looking at the city’s digest, Senior Director of Financial Services David Maxwell told the group gathered at the Savannah Civic Center on Tuesday that the city has experienced modest growth over the last six years.

“One of the things that we've seen over the last couple of years, especially in 2020, and 2021, is the value of new construction has gone up,” Maxwell said, pointing to the Eastern Wharf project on the east end of River Street and the Plant Riverside District on the western end. Together the projects represent about $900 million in investment.

“So we've seen those things begin to come on to the digest now as they're being completed. So we’ve had about 4.28% average growth since 2013.”

Mayor Van Johnson voiced support for the plan to keep the 2020 millage rate for 2021.

“We don't want to increase that millage, but with that, we can't afford to decrease either,” Johnson said.

The public will get a chance to weigh in on the millage rate during three upcoming public hearings. Council will have the second reading and set the rate after the final hearing on Aug. 12.

The first two hearings will be held on July 22, the first during council’s workshop session at 4 p.m. with the second to follow at 6:30 p.m. during council’s regular meeting. The final hearing will be at 2 p.m. during council's meeting on Aug. 12.

Katie Nussbaum is the city and county government reporter for the Savannah Morning News. Contact her at knussbaum@savannahnow.com. Twitter: KmartSMN