Council amends school budget ordinance to cap millage at first reading amid fund‑balance debate

On May 6 the Oconee County Council held first reading of the school district's fiscal‑year 2025‑26 budget ordinance and approved an amendment that adds a maximum millage figure to the ordinance language.

A council member raised concerns about the school district’s fund balance and prior unadvertised millage increases. The council member said the district had collected $28 million in revenue above budget over the prior three years and reported a fund balance of $37 million (about 27.5 percent), exceeding the district’s 20 percent fund‑balance policy. The council member said the district's proposed budget would require a 4.9‑mill tax increase on top of a 1.4‑mill increase the council had previously absorbed the prior year to avoid an advertised tax increase to residents.

To limit the immediate tax impact, the council member proposed amending section 2 of ordinance 2025‑02 to add language capping the millage “not to exceed 108.6 mills.” The motion to amend was made, seconded and approved by the council during the meeting; the amended ordinance then returned to the main motion and was accepted by the council at first reading. Council members said they intend to continue discussions with the school district about the budget, debt and use of reserves.

Council discussion recorded at the meeting asked the school district to review debt options and use of reserve funds rather than further increasing millage, and one member explicitly proposed the district maintain current millage while using reserves for certain capital needs. The council did not finalize the budget at first reading; the amendment establishes a cap for the current ordinance process and preserves further negotiation between council and the school district.