The atmosphere was tense at the Gilmer County Court House as the Board of Commissioners gathered for a hastily called special work session Tuesday to discuss a possible millage rate increase. If passed, part of the increase, .75 mils, would go to the reactivation of six fire houses needed to maintain the county’s I.S.O. rating of 7, allowing homeowners to pay less in insurance.

Chairman J.C. Sanford set the stage for the meeting by outlining a dire budget deficit. He went over several line items that have put the 2011 budget in the red and emphasized the challenge will likely get worse in the year ahead. For example, some of the shortfalls include:

-$156,000 to hold 2012 elections
-$140,000 for health insurance increases for county employees
-$10,000 to buy camera equipment to comply with a new Georgia mandate
-$650,000 to reactivate six fire stations

Post 1 Commissioner Will Beattie and Post 2 Commissioner Danny Hall questioned the $650,000 increase for the fire department’s budget. Director of Emergency Management and Fire Chief Tony Pritchett said the figure includes salaries for 12 employees and utility and other expenses to support the six stations. Pritchett also acknowledged his department had to have the money to reactivate the six stations, which would maintain the county’s ISO rate. That rate is tied to homeowners saving an estimated $500 in insurance benefits. Even still, Hall seemed wary of raising taxes in a recession.

“The only way I would agree to this (raising the millage rate) is if someone goes and proves that every fire station is where it needs to be, so we meet the I.S.O. rating
(of 7).”

-Danny Hall
Post 2 Commissioner
Gilmer County

Pritchett assured the Commissioner the fire stations were built on locations recommended by the Insurance Services Office (I.S.O.). When the discussion grew heated, Beattie stepped in, reminding Pritchett the board wasn’t criticizing the Fire Chief, they feel he has done a good job. Beattie went on to say Pritchett has done everything possible to address the situation.

Mid-session, Financial Officer Faye Harvey noted the increase would not be a fire tax per se and that revenue from the increase would also be allocated to other line items in the budget, such as health insurance for county employees and various voting expenditures. In addition, the increase would include a proposed 1 mil increase, which would pay-down the county’s general obligation bond.

“In order for this to work, we will need a tax collection rate of 84% on December 31, 2010. This is something that is not ordinarily achieved (even in good economic times).”

-Faye Harvey
Gilmer County Chief Financial Officer

Last year’s collection rate by December 31 was only about 70%. Commission Chair J.C. Sanford said the county would be able to pay its bills for the remainder of this year and next year. However, without the millage increase, in 2013, the county would come up $608,000 short.

At the end of the day, if the measure does in fact pass, Gilmer residents would pay an estimated 7.33 millage rate. According to Harvey, this rate includes the current rate and the proposed increase. Commissioners were not able to reach a consensus before the work session adjourned. The one thing commissioners did agree upon is time is of the essence. FYN expects to learn Friday if the commission intends to schedule a special meeting. Otherwise, commissioners will meet as scheduled on July 28 at 1 p.m. in the Jury Assembly Room at the Gilmer County Courthouse.

FYN also wants to address one final issue: With property values down by as much as 30 percent, many homeowners are expecting to pay less in property taxes since their homes have lost value. What the commission is discussing is a rollback, which would raise the millage rate for property owners to pay as much or more on their homes that have lost value. The chart below illustrates this point. FYN will continue to follow this story and post updates as soon as the facts are available.