Mayor proposes property tax hike in new budget

Macon-Bibb County Mayor Robert Reichert is proposing a property tax increase for the fiscal 2018 budget.

The $148 million general fund budget presented Tuesday includes a recommended 3-mill tax increase that the mayor said resulted from no longer being able to cut expenses.

It would be the first millage increase for former Bibb County residents since 2012 and the first for former city residents since 2005.

There was a similar tax increase in 2012 when the millage rate for residents of unincorporated Bibb County jumped 2.5 mills, from 12.152 to the current rate of 14.652.

The 3-mill increase would mean about $99 more a year for property valued at $100,000. The new tax revenue would pay for increased costs associated with staffing new fire stations and recreation facilities, as well as help cover lost revenue, Reichert said.

The proposed balanced budget is about a 2.7 percent increase from the current $144 million budget. The 2017 fiscal year ends June 30.

Macon-Bibb has faced deficits of $6 million and $8 million within the last couple years. The county cannot afford to further dip into its reserve balance because of declining revenues, Reichert said.

The county got “blood out of the turnip” after achieving a 20 percent reduction mandate under the consolidated government measure, he said.

“The 3-mil tax increase will restore the revenue stream and allow us to plan for our continued growth and vitality,” he said during Tuesday’s presentation.

But before any spending plan is approved, commissioners will spend time examining the figures and debating a potential tax increase. Public hearings would be held if officials decide to move forward with the tax increase.

Commissioner Mallory Jones said he’s typically against any tax increase, but he wants to dig deeper into the budget to see what’s financially viable.

Commissioner Al Tillman said a millage rate increase is a hard sell, and it would be up to officials to explain the rationale. There’s a need for a more unified effort among commissioners to increase the tax base by encouraging people and businesses to relocate in Macon, he said.

“Those are drastic measures when you’re asking for a millage increase,” Tillman said. “Have we really tried all our options, because that to me would be our last option.”

Commissioner Bert Bivins said he proposed cutting the 20 percent mandate in half in order to avoid the financial issues Macon-Bibb is now facing. That change would have needed approval from the state Legislature.

“I think if we had done that we wouldn’t be in this position, because we could have built up a bigger reserve and it would have taken care of all these things we have a problem with now,” Bivins said after Tuesday’s meeting. “I’m going to have an open mind to (the budget), but right at this moment I’m not inclined to support it.”

But Reichert said that budget-reduction mandate — reached a year earlier than required — is not what has led to problems. Some of it is the $20 million decline in property tax revenue after the elimination of double taxation — removing the former city property tax.

Overall, Macon-Bibb’s general fund revenues have dropped from $160 million in fiscal 2014 to $139 million in fiscal 2017.

In efforts to save costs in recent years, Macon-Bibb offered a retirement package that played a major role in having about 300 fewer employees than before consolidation. Further staffing reductions could affect the level of services offered to residents, Reichert said.

One option in future years could be an additional penny of sales tax. It would be up to Macon-Bibb voters to decide on that tax, but it could bring in about $30 million in yearly revenue. It could also result in a rollback of about 7 mills, Reichert said.

The issue with Macon-Bibb is not “exorbitant spending,” and the only avenues for now are property tax or sales tax increases, Reichert said.

“Those are the only two options I’ve been able to identify, and only one (millage rate) is available in time to help us this year,” he said after Tuesday’s meeting. “We can’t have another problem like last year. It would put us in financial peril.”

This story was originally published May 9, 2017 at 2:14 PM with the headline "Mayor proposes property tax hike in new budget."