New Millage Rate Options Considered By Cherokee Commission

CANTON, GA — The Cherokee County Board of Commissioners will consider a revised budget and millage rate presentation Wednesday that reflects no tax increase.

“We heard the residents’ concerns and took an even deeper look at the fiscal year 2021 budget,” County Manager Jerry Cooper said. “Both options presented include the use of reserves, resulting in no increase to the combined millage rate.”

The Board of Commissioners will consider the newest proposal and hold the last public hearing at 6 p.m. on Wednesday at the Cherokee County Administration Building and Conference Center, 1130 Bluffs Parkway, Canton. Commissioners are expected to adopt a millage rate following the public hearing.

“Since the first two public hearings, we’ve set our sights on a zero net tax increase,” Commission Chairman Harry Johnston said. “With some spending cuts and using about 8 percent of the county’s reserve fund, we can get there. I’m comfortable doing that since it looks like we’ll end up with a surplus in the current budget year. We can still deliver 80 percent of the proposed market pay raises for first responders in the upcoming budget. And we believe we can fund the remainder the following year. It’s a win-win.”

"Thanks to our county manager and staff for preparing several additional options for us to consider this week,” District 3 Commissioner Benny Carter said. “We will continue to work toward addressing the needs of our public safety and other county employees while minimizing the impact on taxes."

“We listened to what the taxpayers told us during the public hearings, and I appreciate the county manager and staff’s work to support the county’s biggest asset – our employees,” District 2 Commissioner Raymond Gunnin said.

Both District 1 Commissioner Steve West and District 4 Commissioner Corey Ragsdale chose to wait until after Wednesday’s public hearing to comment.

The updated presentation shows a $946,000 decrease in general fund expenditures and $215,000 decrease in Fire Fund expenditures. Revenue changes included a $500,000 increase in TAVT in the General Fund and a $75,000 decrease to the state grant indigent defense. It also shows an additional $500,000 of Insurance Premium Tax being transferred to the Fire Fund.

The county’s reserve balance stands at $31.1 million in the General Fund and $8.7 million for the Fire Fund.

One scenario includes an 8 percent market pay raise for public safety and 4 percent for non-public safety employees. It also includes a 10 percent increase to employee contribution for health insurance premiums, a start date change for 11 new firefighters to Jan. 1, 2021, elimination of new computers and a $300,000 general expenditures reduction. County staff is presenting two options at this level.

Option 1 includes the use of $2.46 million of General Fund reserves and $500,000 Fire Fund reserves with proposed millage rates of 6.331 for Maintenance and Operation (M&O), 2.173 for the Fire Fund and 0.461 for the Parks Bond, resulting in a combined millage rate proposal of 8.965 mills. The impact on a home valued at $285,100 would be a decrease of $5.60.

Option 2 includes the use of $2 million of General Fund reserves and $500,000 Fire Fund reserves with proposed millage rates of 6.372 for M&O, 2.173 for the Fire Fund and 0.461 for the Parks Bond, resulting in a combined millage rate proposal of 9.006 mills. The impact on a home valued at $285,100 would be a decrease of $1.12.

The second scenario includes a 7 percent market pay raise for public safety and 3.5 percent for non-public safety employees. It also includes the same overall reductions in expenses.

Option 1 includes the use of $1.54 million in General Fund Reserves and $500,000 in Fire Fund reserves, resulting in proposed millage rates of 6.367 for M&O, 2.138 for the Fire Fund and 0.461 for the Parks Bond for a total millage rate of 8.965 mills. The impact to a $285,100 home would be a decrease of $5.71.

Option 2 accounts for using $2 million in General Fund reserves and $500,000 in Fire Fund reserves. The proposed millage rates are 6.326 for M&O, 2.138 for the Fire Fund and 0.461 for the Parks Bond, resulting in a total millage rate of 8.924 mills. That option would result in a decrease of $10.20 for a home valued at $285,100.

Learn more at cherokeega.com.