City Council Holds Final Hearing on Controversial Tax Increase

In a recent public hearing held by the Noonan City Council, officials discussed the proposed 2024 millage rate, emphasizing the necessity of adopting a rate that exceeds the rollback rate to balance the city’s budget. This meeting marked the third and final public hearing required by the Taxpayer Bill of Rights, which mandates such hearings when a taxing authority seeks to adopt a millage rate that is not the rollback rate.

Councilman Phillips opened the session by noting that Councilman Thomason was participating via video call, a provision allowed for elected officials up to two times a year. The council is set to consider an ordinance to adopt the millage rate following public comments.

Phillips explained that the millage rate is calculated based on property assessments, with one mil equating to one dollar for every $1,000 of assessed property value. In Georgia, property is taxed at 40% of its valuation. For instance, a property valued at $400,000 would be assessed on $160,000 for tax purposes.

The council has historically adopted the rollback rate in 11 of the past 13 years, but Phillips highlighted the cumulative effects of this practice, particularly following the loss of a significant commercial taxpayer, the cancer center, which resulted in an $800,000 revenue shortfall. He noted that the city has made substantial investments in public safety, successfully filling vacancies in both the police and fire departments.

Additionally, Phillips pointed out a shift in revenue reliance from property taxes to sales taxes, with projections indicating over $12.4 million in sales tax revenue compared to approximately $7 million from property taxes in the upcoming budget. This shift has helped alleviate some financial burdens on property owners, although rising inflation poses ongoing challenges.

The council is expected to finalize the millage rate soon, following community feedback gathered during the hearing.