June 04, 2008
www.northfulton.com
ALPHARETTA -- City Council expects to approve a proposed $56.5 million general fund budget that lowers the millage rate by almost a half a mill. However, because Fulton County's property reassessments added $604 million to the city's tax digest, Alpharetta still has to advertise a tax increase. That's even though city still expects the taxes eventually collected will make it a revenue neutral budget.
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Public comment
Alpharetta plans three public hearings and two readings of the budget ordinance and proposed millage rate in City Hall at 2 South Main Street:
June 12, 11:30 a.m., public hearing
June 12, 6:30 p.m., public hearing, first reading of ordinance
June 19, 7:30 p.m., public hearing, second reading of ordinance. |
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City Finance Director Tom Harris said when it heard Fulton County would reassess all commercial property in the county, Alpharetta's staff expected an increase between $150 million and $220 million. But the actual reassement was nearly three times as much at $604 million.
But Harris said the general consensus among municipalities is it is highly likely this year's tax digest will suffer an erosion once all the appeals begin.
City Manager Bob Regus said a week ago more than 4,000 appeals had been filed by property owners in Fulton County.
So Harris, City Manager Bob Regus, Mayor Arthur Letchas and the budget staff proposed a 5.75 millage rate.
"It's still an 8 percent reduction. That's a pretty sizeable reduction, almost half a mill from 6.248 to 5.75," Harris said.
Cutting the millage rate saves taxpayers from paying an additional $2.4 million in taxes.
Regus said the revised millage rate helps insulate the city from an estimated 50 percent loss of value in reassessments once appeals are made by taxpayers.
Cities must advertise tax increases even if the expect the final tax digest after appeals to actually mean a budget with no significant revenue increase.
"Technically, we're not meeting rollback," Regus said. State Code on rollback "doesn't give a hoot about whether those reassessments come in or dont' come in," he said.
If Alpharetta planned to receive the entire amount from reassessments, it runs the risk of having a $1.4 million budget shortfall.
The Homestead Exemption available to Alpharetta property owners on their primary residence rises to $30,000. That cut in assessed value equals a reduction of one mill for the average home (valued at $359,950) with an assessed value of approximately $143,000. Property taxes are assessed on approximately 40 percent of a home's appraised value. (See chart above.)
Public comment
Alpharetta plans three public hearings and two readings of the budget ordinance and proposed millage rate in City Hall at 2 South Main Street:
July 12, 11:30 a.m., public hearing
July 12, 6:30 p.m., public hearing, first reading of ordinance
July 19, 7:30 p.m., public hearing, second reading of ordinance.
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