Appeal filed as BOC and BOE discuss Tax Assessors issue
Featured Stories, News August 20, 2022
GILMER COUNTY, Ga. – Both the BOC’s special meeting and the BOE’s monthly work session saw discussion after falling median sales ratios in the Tax Assessors Office could set the county up for another state consent order and penalties in fees.
Chief Appraiser, Theresa Gooch stated that if the county’s median falls below a 38, the first consequence comes as the possibility of losing some public utility money or tax revenue. This number comes from the state’s Department of Audits and Accounts (DOAA) studies that occur annually. This means the Audit will look at samples of sales in the year and look at the sale value and compare that to what the county Tax Assessors assessed the value at. Since the state expects the assessors to set there evaluations at 40 percent of the property’s value. The optimum ratio, according to the state, is set between 38 and 42 percent so that there is no major variations.
However, to “pass” the audit, a term presented by BOE Finance Director Trina Penland, the assessed evaluations must fall between 36 percent and 44 percent, allowing for a 4 percent margin of error on either side as some might say. The report of the test samples for 2021 in Gilmer County fell to 35.88 percent, according to Penland’s report.
The study lags, however, according to Gooch who explained that the Department uses 2021 sales to set 2021 values while the county must use 2020 sales to anticipate and set expected 2021 values. The time lag also comes as the county has to have its values set by January 1, 2021. The state, however, comes later as Gooch said in the August 2022 meeting that the county just received the study results. Since the county’s and the states values are at odds, the discrepancy arises. The difference is so stark this year with the rising inflation and market values in just the course of one year.
There is no immediate consequence this year as the county is not under an official review year, Gooch said that will take place next year with regards to the 2022 assessments currently in their final stages. The Tax Assessors will use this information to set the expected 2023 values, but the state will wait until the end of 2023 to set those values based on actual sales.
With the current issue, she urged the county to formally file an appeal to have their concerns on record that Gilmer is “not happy with the findings.” Additionally, Gooch noted that the county could rise up again and make the requirement by next year’s review, but she has concerns if the state continues studies with the time difference allowing major influences to change market values drastically between the county’s anticipatory values from 2022 and the states actuals from 2023.
Not meeting the state required study median causes a fine, County Chairman Charlie Paris noted $174,000. The option is going under a consent order. Paris also noted that the last time the county was under a consent order, “it cost us more than paying the fine.”
In addition to those, Penland reported to the BOE that the Tax Assessors will also have to change their ratios for the digest in coming years, further reducing the money collected for both the Board of Education and the Board of Commissioners budgets.
Gilmer County is not the only county going through this issue currently as Penland showed reports from 2019, 2020, and 2021 audits with more and more counties falling out of compliance each year. In the 2021, the majority of North Georgia along with counties all over the state are facing this same issue of being out of compliance.
Gooch reported that the last time Gilmer County was out of compliance, with a median percentage below 36, was “prior to 2010” and the last time it was out of optimal range, with a median percentage below 38, was 2013.
County advertises Rollback Rate for 2022 Millage Rate
News July 28, 2022
GILMER COUNTY, Ga. – With a special called meeting today, July 28, 2022, the Gilmer County Board of Commissioners advertised their Rollback Millage Rate at 5.541 mills.
This is down 0.681 mills from last year’s 6.222 mills. According to calculations from Gilmer’s Finance Department this represents a growth of $1.3 million that the rollback rate covers.
The five year history of the digest shows that the millage has decreased since 2018 when the millage rate was kept at 6.983 from the previous year. Post Commissioner Hubert Parker voiced an opinion to provide a further decrease past the Rollback Rate in the Special Called Meeting.
Gilmer County’s Five Year History of the Tax Digest and Levy
With a motion from Chairman Charlie Paris seconded by Post Commissioner Karleen Ferguson, discussion opened for the commissioners to discuss the topic. Parker proposed the further decrease siting inflation as a real issue that citizens are facing. Paris responded that the county has also been feeling the pressure of inflation noting several increases the county is already dealing with through changes from prices originally bid to the county in January and its new solid waste management company, Waste Pro, currently under renegotiations of their contract due to rising costs of gasoline. Ferguson agreed with Paris saying that this was also her thinking when considering the rollback rate.
Paris noted that further reductions past the Rollback could see the county using its operational reserves as rising prices are continuing to grow. Paris noted that even with the Rollback Rate he has concerns over creating the 2023 budget and funding the county’s services. The 5.541 mills is estimated to levy $11 million in property taxes from the $2 billion 2022 Net Digest. This Net Digest has nearly doubled since 2017 when it sat at $1.2 billion. Even with the 5.541 mills Rollback Rate, the county is estimating over $600,000 added to the county budget.
Calculation of the Rollback Rate with the 2022 Tax Digest for Gilmer County.
Yet, the county is already looking at rising costs affecting the current 2022 budget. Chairman Paris stated, “I’m very much concerned that we’re going to have to dip into our reserves in our 2022 budget, nevermind the 2023.
Not reaching a full consensus, the board said that advertising at 5.541 mills would be the first step, but they could decrease it at a later date before the final approval. The only thing they couldn’t do is increase it before then. With that they unanimous approval came for the Rollback Millage Rate. The Board of Education will hold a meeting to approve advertisement of their Millage Rate and then another Special Called Meeting will see the school give final approval of their rate before the county approves their own and the school’s millage rate together.
Currently, the county said they are expecting to hold their meeting for final approval of the rate on August 15, 2022, at 2 p.m. with the assumption that the Board of Education will hold their meeting for final approval on August 11, 2022.
Board lowers Bond Millage with final approval of rates
News August 25, 2020
ELLIJAY, Ga. – A unanimous vote on Monday, August 24, 2020, saw the Gilmer County Board of Commissioners follow up on statements from last year where they discussed lowering the Bond Millage Rate in the county.
While they did not approve lowering the rate in 2019, many citizens have continued discussing and pushing for the reduction this year. A few have very vocally called for the reduction of the “extra half mill” that was put on the Bond Millage rate raising it from 1 to 1.5 mills. Additionally, the viral outbreak and subsequent shutdowns of counties and states cast a dark shadow on local economies and doubt for the financial future of Gilmer.
The Commissioners halted capital spending and major projects as they watched and waited to see just what kind of impact it would have, even delaying their pool project that has been underway for over a year now. The pool was closed at the beginning of May in 2019.
However, the last two months have shown quite the difference. Despite the cancellation of major events in the county and increasing numbers from the virus, recent reports show an increase in collections from tourism and SPLOST.
Whether this played a role in their decision, the commissioners did not say, but they did approve a drop in the bond millage rate by .25 mills, taking it from 1.5 to 1.25 mills.
The School-Board-approved millage rate of 13.963 was approved to be implemented by the Board of Commissioners. This is the Rollback Rate calculated for Gilmer County Schools as they have advertised over the past month since the July meeting. The Board of Education approved this rate last week during their regular August meeting.
They also moved forward with approval of the county’s M&O (Maintenance and Operations) Millage Rate of 6.783 mills. This is also a Rollback Rate calculated for the Board of Commissioners and advertised for the past month since their July Meeting.
BOE approves Millage Rate and Budget
News August 21, 2020
EAST ELLIJAY, Ga. – The second month of posting and readings for the Millage Rate from Gilmer’s Board of Education saw no public comments before Thursday night’s meeting.
With no comment, the board continued forward with a recommendation from Superintendent Dr. Shanna Downs to adopt the Rollback Rate dropping the Millage Rate from 14.248 to 13.963. Advertised since last month’s meeting, the board spoke on finances with the Millage Rate, this month, alongside the budget meetings after delays from the state due to COVID-19.
This week also saw the board‘s last public comments meeting for the 2020-2021 budget, also with no comments from the public. No longer needing monthly spending resolutions, the board will finally be moving forward with the remaining 10 months of the fiscal year with an established budget as the item received unanimous approval during Thursday’s meeting.
Discussions have gone on over the last few months over this budget and Millage Rate, the board has discussed needs and funding in the budget with cuts, changes, and shortfalls coming from the state funding. Some in the public expected increases in the Millage Rate to make up for the difference in the state funding.
This week saw the rollback rate agenda item return with very little discussion from the board and short review of the tax history. The board moved to adopt the rollback to keep in line with collections.
The budget also slightly decreased through its estimate compared to June’s Financial Summary that saw the final month of the FY 2019-2020 budget with expenditures at $44,732,231. The tentative budget that has now been approved as the 2021 Budget indicates and estimation of $41,575,332 total expenditures.
The budget is set for the school system, but the Millage Rate will now move on to a special called meeting of the Gilmer County Board of Commissioners who are currently expected to approve the Millage Rate as approved by the school along with their own Rollback Rate Monday, August 24, 2020. Being held at 10:00 a.m., the Board of Commissioners are also considering a rollback to their Debt-Service-paying “Bond Millage Rate” by 0.25 mills.
While the Bond Millage is expected to provide a reduction in many citizens property taxes, Tax Assessments are individual to the property. Rollback Rates also look to collect the same taxes as the entity, be it the county or the school system, did last year despite increases in property values.
Board of Education advertises Millage Rate
Board of Education, News July 27, 2020
EAST ELLIJAY, Ga. – Gilmer County’s Board of Education presented advertising for their 5 year Tax history and a Tentative Millage Rate to seek final approval in August.
Looking back over recent years and comparing to 2020, the digest saw an overall 4.6 percent increase countywide. According to Director of Finance Trina Penland, the county’s exemptions increase by 3 percent as well. Part of the increase came from a senior’s exemption increase of roughly 10 percent.
According to Penland, Gilmer is the only county that has unlimited senior exemptions in the tax digest. But because that exemption is a local exemption, the school still pays taxes to the state on the funds not collected due to the exemption.
The current millage rate sits at 14.248 mills for the Board of Education. As they look at the calculated rollback rate to prevent them from collecting any more that last year, Penland presented the Rollback Rate to the board at 13.963 mills.
If the board does not accept the Rollback Rate, Penland stated they would be collecting an additional $351,000.
Superintendent Dr. Shanna Downs presented her recommendation that the board accept the Rollback Rate, and with a motion and second, the board unanimously approved the rate.
Gilmer County Board of Education’s Director of Finance Trina Penland
Additionally, Board Member Jim Parmer, stated that he appreciated the work that the finance staff and Dr. Downs put in. He went on to say, “Honestly, If we were going to do furlough days, I would say let’s keep our rate. But ya’ll have said you’re not doing that…”
Through additional discussions, Penland stated that the Rollback should collect just over $17 million. But adding in a look at the history, Penland stated, “If you look back at the history. When you look back in 2009, that was before the first recession, the school collected $24.7 million in property tax revenue. We have cut back. We have cut programs, benefits. We have cut everything to be as close as we can on the budget.”
She also noted several rollbacks including one that rolled back more than the recommended rate.
The Rollback Rate will go through the advertisement process and see final approval in August before sending the rate to the Gilmer County Board of Commissioners for their approval alongside their millage rate and implementation into the new tax year.
Commissioners advertise Millage Rate and Bond Millage
News July 27, 2020
ELLIJAY, Ga. – Gilmer’s Board of Commissioners discussed their Millage Rate in a Special Meeting this July without one of its members.
Having contracted COVID-19, the board’s third commissioner, Karleen Ferguson, was absent from the meeting for health and safety. The two remaining commissioners discussed accepting the rollback rate versus not accepting it.
Very early, Gilmer Commission Chairman Charlie Paris voiced his opinion to accept the rollback rate saying, “My personal position would be that we should take the rollback rate. It’s not going to hurt us terribly and I don’t think this is the year to be trying…”
Post 1 Commissioner Hubert Parker agreed saying that he was good with the Rollback as well.
The worksheet showing the preparation of the 2020 Digest and formula calculating the Rollback Rate for Gilmer County.
However, additional discussions turned to the Bond Millage Rate for the county. With discussions last year on reducing the rate, the Commissioners ultimately decided against it, keeping the 1.5 mills, but promising to revisit the idea in 2020. Now, Parker and Paris began discussions by immediately moving to a debate on whether to reduce it by .25 or .15 mills. Paris noted that work still needs to continue in capital projects and expenditures coming in the Road Department as well. Having the Bond Millage pay off part of the bond debt service allows more SPLOST funds for those expenditures.
Parker offered his opinion on the Bond Millage saying, “I would be fine going with .25.” However, he did mention a desire to look at it again later. Looking at the decreases, Paris said he didn’t have a problem with reducing it by .25 mills to a Bond Millage Rate of 1.25 mills.
The rates were approved by two separate motions as Paris made a motion to approve advertising, it came to accept the Rollback Rate of 6.783 mills. The rate was approved by the two present commissioners.
Then came another motion from Paris to have “the Bond Millage Rate be reduced from 1.5 mills to 1.25 mills.” The rate was approved by the two present commissioners.
Moving forward, the Commissioners are looking for another Special Called meeting towards the end of August to formally adopt the Millage Rate. They have to wait for the Board of Education to adopt their rate in August before the County can formally adopt both rates.