Gilmer Chairman Sends Personal Message to County Residents

Chairman’s Report
A Letter to The Citizens of Gilmer County From Board of Commissioners Chairman, J.C. Sanford

I have not given you a report in some time and this will be a lengthy one for there are many important issues facing Gilmer County. We have talked about charter changes for the last six months. These are changes I would normally agree with in some form, but in the sensitive times in which we find ourselves, I cannot and will not support these changes right now. They are on the agenda for this Thursday’s workshop at 2 pm. They are also on the agenda for the public hearing that follows at 5:30 pm, and they will be voted on at the regular meeting at 6 pm. If you are concerned about our county, I would suggest you attend these meetings. It would be a that personal favor to me.

The budget and taxes get more attention than any other part of government and I think it is time once again for some straight talk. What has happened in the past is done … and there is little we can do about the past except live with it.

But you need some history to know how we got to where we are today, so here goes.

These numbers will not be exactly right to the penny, but they are awfully close. In 2004, the county had a 4.293 millage rate with a net advertised tax of $3,884,374.00. This tax was based on a $904,815,812.00 net tax digest. In 2005, the county millage increased to 6.013 mills with a net tax of $6,274,273.00. This was based on a $1,043,451,292.00 net tax digest. This was an increase of $2,389,899.00 in one year or a 61.53 percent increase in county taxes. In 2006, the net county tax increased $575,997.00 and in 2007, the increase was $578,756.00. In 2008, because of the reassessment of property values, to the net digest ,of $1,539,333,626.00, even with a decrease to 5 mill, the tax still increased $267,643.00 to a total net tax of $7,696,668.00. This comes to a net tax increase, in four years, of $3,812,295.00 or 98% from 2005 to 2008. This is not as bad as it sounds; a lot of this increase came from the building boom during this time and all the assets which were added to the digest. This helped with the extra services which were needed for the additional homes and businesses. In 2009-2010 and this year 2011 the net tax increase, for the three years combined, will be $208,171.00 or a total of 3 percent for the three years. This does not come from an increase in tax it comes from new assets added to our digest in the three years and the net tax digest this year is back down to the 2007 level and is still falling. This is a tax relief for most property owners.

In 2005, there was $21.5 million worth of bonds sold. In 2007, there was $30 million worth of bonds sold. In 2008, there was $7.5 million worth of bonds sold. This is a total of $59 million, which with interest over the 25 years, comes to a total of almost $100 million worth of debt for the county in four years.

In 2009, the Splosh Tax and rent income from the College building, which were designated to make the bond payments failed to generate enough income to make that payment by almost $500,000. In 2010 it was short almost $800,000 and 2011 we think it will be close to $1 million in shortfall.

In 2010, the lost tax which is general fund money was down over $1 million since 2007. In 2010, we lost the homestead tax from the State which was a little over $250,000.00. The State and Federal Government pushes more and more back on the County to pay constantly and this list of decline in income goes on and on.

All of this combined is not-is not-what put this county in the hole it is in. What our problem was and is- is too much spending on a day to day bases. I will only go back four years on this one. In 2007 there was $1,344,348.00 more money spent in the general fund than was taken in. I will combine 2008 & 2009 because of the way taxes were collected but the combined expenditures over what was taken in for those two years was $4,785,000.00. In 2010 the deficit or over spending was $1,651,242.00. This brings the total for four years to $7,780,590.00. In 2010 we had Five Million TAN (Tax Anticipation Note) funds available and we had to use the entire amount during the year just too met expenses that were budgeted. The TAN must be repaid by December 31 of each year; this means we began 2011 with no money in reserves. So we began the cycle all over again. And with less money available and more expense we are just digging the hole deeper, unless we can drastically reduce the spending.

Our budget this year $16,389,422.00 compared to 2008 which was $19,841,748.00 is down $3,452,326.00 or 17% if we can stay within this budget, which we must. Our overall budget for this year on the expenditure side is good through July, but our income is once again down about 6% or $800,000.00. With this we have cut the spending in most of the budgets to a level below a point of being efficient, but it appears we will have to make additional cuts because of the continued fall in revenue and additional needs on the expenditure side of our budget which have to be funded. Next year, we will have to pay the cost of a major election which is not in this years budget and with a cost of about $155,000.00, new State required equipment for Probate Court with a cost of $10,000.00 and Health Insurance cost increases for our employees of $140,000.00 and we really should spend $650,000.00 at the Fire Department to maintain the ISO rating which should generate an average savings of $300.00 per year on the insurance of your home plus savings on all insured structures in the county.

None of this money is there but we are looking for it with out additional taxes. We have survived all of this and with God’s help, we will continue to do so.

I would once again ask you to attend the two meetings this Thursday August 11, and the following one on Thursday, August 26. Please be involved.

You may reach me by phone at (706) 635-4361, or send an email to: jcsanford@gilmercounty-ga.gov.