Chatham County adopts 0.94 mill CAT tax after debate over service equity and ferry funding

Chatham County commissioners voted to adopt a 0.94 mill tax rate for the Chatham Area Transit Authority for tax year 2025 during a special-call meeting, approving the county submission forms required by the Georgia Department of Revenue.

The vote followed more than two hours of discussion about areas of the county that pay the transit millage but have had services reduced or cut, the structure of CAT's district and enabling legislation, and a multi-year shortfall in ferry operating subsidies historically expected from tourism stakeholders. Supporters of the 0.94 millage framed it as a compromise to avoid an estimated multimillion-dollar shortfall while seeking commitments from other funders to “true up” ferry and service costs.

Chairman Chester A. Ellis read the board request and resolution language, asking the commission to “adopt the tax year 2025 millage rate resolution for the Chatham Area Transit Authority pursuant to OCGA 48-5-32.1 and board approval of submittal of the tax year 2025 property tax digest” and identified the required state forms PT-35 and PT-32-1.

Commissioners pressed staff and a Chatham Area Transit representative for dollar impacts. The transit representative said cutting the millage to the figure first proposed by one commissioner would “cut in half the anticipated revenue,” and county finance staff reported the advertised figures: at a 1.056 mill rate CAT would levy about $17.6 million; a rollback rate of 1.021 would generate about $16.5 million; and the 0.94 mill rate the board adopted would reduce taxable levies by about $1.94 million compared with the 1.056 figure. County finance staff summarized the 0.94 figure as producing a taxable levy value of roughly $15,709,009 and described that as “close to the $2 million” reduction several commissioners requested.

Debate focused on three themes: (1) residents in unincorporated Chatham County who continue to pay the transit millage despite service cuts there; (2) municipalities that have opted out of the taxing district or receive discounted services; and (3) ferry operations that were intended to be funded by a tourism group known in the meeting as the “Sammy” arrangement. Several commissioners and staff said that city and private partners historically agreed to subsidize ferry operations but that the true-up has not been completed since at least 2021.

Commissioner Dean Kicklighter and others described how portions of the county have been opted out of the CAT district and how those service decisions can shift costs back to unincorporated taxpayers. County counsel (Attorney Martin) explained that counties have supplemental authority over public transportation under the Georgia Constitution and that the Chatham Area Transit enabling act describes CAT’s structure and board composition; he said the local act does not supersede the county’s supplemental powers.

Commissioners discussed remedies short of reducing the county’s overall contribution, including instructing CAT to provide service throughout the established transit district, seeking a legal opinion about whether the county or the state must act to change district boundaries or taxing jurisdictions, and pursuing a written intergovernmental agreement (IGA) to require more complete monthly or bimonthly reporting from CAT. Several commissioners said they will press CAT and tourism stakeholders to “true up” ferry funding so the county is not left covering the operating gap.

After discussion, a motion to adopt a reduced millage of 0.94 mills was moved, seconded and adopted. The board directed staff to submit the certified forms (PT-35 and PT-32-1) and asked the county attorney and manager to provide further legal and budgetary information about the taxing district, municipal opt-outs, and the mechanics of any required true-ups.

The commission’s action references OCGA 48-5-32.1 and the county’s required forms for state approval of millage rates and rollbacks. Commissioners said they expect follow-up reporting from CAT and noted the deadline to submit millage certification paperwork to the Georgia Department of Revenue.

Commissioners and staff said further steps could include additional budget amendments or future action if municipal or tourism stakeholders do not provide the expected funding adjustments.

The adopted resolution, related forms and follow-up legal analysis will be filed with the county clerk and submitted to the Georgia Department of Revenue as required.