The Gwinnett County Board of Commissioners is proposing to hold the county’s general fund property tax rate steady at 6.95 mills for the fifth year in a row.
Keeping the rate unchanged would bring in nearly $11 million, or 3%, more than commissioners anticipated in January when they adopted the budget, Buffy Alexzulian, the county’s finance director, told commissioners during a recent briefing. The tax rate needed to collect the general fund revenue budgeted earlier this year would be 6.5 mills, but Alexzulian recommended against lowering the rate, saying the county needs to maintain adequate reserves.
Credit: Natrice Miller / Natrice.Miller@ajc.com
Credit: Natrice Miller / Natrice.Miller@ajc.com
“It’s a one-year decision you make, but it has a long-lasting impact on that revenue you’re going to lose going forward,” she said. “If you roll it back, you’re going to be forced to make some serious decisions with the budget next year or you’re going to have to raise the millage rate. I mean, the math is the math.”
The board will hold three hearings for residents to comment on the proposed tax rate. Two will take place Thursday, at 10 a.m. and 6:30 p.m. The third will be July 16 at 11 a.m., and the board is scheduled to vote on the rate at 2 p.m. that day. All hearings and board meetings will be at the Gwinnett Justice and Administration Center, 75 Langley Drive in Lawrenceville.
Online comments will be accepted on gwinnettcounty.com until 9 p.m. on July 15.
Commissioners will also set tax rates for the police, fire and emergency services, development and code enforcement, recreation and economic development funds. In recent years, the rate for all those funds combined has been 14.71 mills for residents in unincorporated Gwinnett.
“By maintaining this stable tax rate, we can maintain a stable government that supports well-being and quality of life for all Gwinnett residents, businesses and visitors,” County Commission Chairwoman Nicole Love Hendrickson said in a news release.
Although assessed values have risen sharply in the last four years, about 70% of residential properties in Gwinnett have a “value offset exemption” that freezes the taxable value on the first Jan. 1 that a homeowner lives in the home. For example, someone who bought a house three years ago and lives there would have the same assessed value as Jan. 1, 2022 and pay the same amount to the county government if the tax rate stays the same. The exemption does not apply to school or city taxes.
Gwinnett County also anticipates a $4.4 million revenue increase from interest rates compared to the budgeted amount in January, said Alexzulian.
However, the county needs to spend $6.6 million more than anticipated in this year’s budget, she said. Like last year, the increased costs are primarily for indigent defense and employee salaries to stay competitive in the hot job market.
If the county maintains the current tax rate, it can cover the additional needs and still lower the planned use of reserve funds from $39.2 million to $30.7 million this year, Alexzulian said.
The board has an internal policy to keep three months of operating reserves on hand, but Gwinnett really needs about five months to tide it over until local taxes are collected in October, she said.
“That’s one of the things that rating agencies love about us, is that we have always kept sufficient reserves,” she said.
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