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Hiram finance briefing flags revenue risks from state changes and explores a millage option
Summary
City staff briefed the council on reliance on SPLOST and a 1¢ local option sales tax stream that produces roughly $1.3M, rising costs since COVID, and legislative risks (Senate Bill 33) that could reduce revenue; staff said a millage rate could provide predictable income but would require public meetings and council action.
City finance staff presented an exploratory briefing on the city’s revenue mix and the possibility of adopting a millage rate to create a more predictable income stream.
The presentation said Hiram has historically relied on a combination of local-option sales tax (about $1.3 million), occupational taxes (about $600,000) and finance fees (about $500,000), and that the city’s share of some revenue streams is constrained by county allocations (the briefing cited that Hiram currently receives about 4% of a particular sales tax pool while Paulding County receives 85% and Dallas receives 11%). Staff said rising operational costs since COVID — including higher wages and equipment/fleet costs — and changing consumer shopping patterns have reduced the reliability of sales-tax-based revenue.
Staff flagged legislative risk from a recently tracked measure described in the briefing as “Senate Bill 33,” saying that if enacted it could alter eligibility for a replacement distribution and potentially reduce the city’s revenue by about $1.3 million unless alternative sources are found. The briefing noted existing local homestead exemptions (city-level supplements to county exemptions) that protect many homeowners and additional senior exemptions for those over certain ages.
Finance staff framed a millage rate as one option to establish a predictable revenue stream to stabilize budgets, but emphasized that adopting a millage would require public outreach, a series of meetings and formal council action. The presentation stressed that further public review and staff analysis would be necessary before any tax policy change.
Council members asked about public engagement, potential exemptions for seniors and next steps. Staff said the millage discussion is exploratory and that any proposal would return with detailed impact analysis and required public-notice steps.
