Berkeley Lake is looking to raise its property tax rate by 33 percent to help pay for repairs to its deteriorating dam.
The proposed tax hike, from 3.687 mills to 4.9 mills, comes as the Gwinnett County municipality of 2,000 awaits FEMA's final word on how much the agency is willing to pony up to fix the city's 85-foot-high dam, which showed two cracks after September's deluge.
For months, city leaders have locked horns with the Federal Emergency Management Agency over the extent of damage caused by the 500-year storm. As of Thursday, FEMA approximates the flood-related damage at $1.7 million, and it will pay 75 percent, or $1.3 million, of that. That's well below the city-estimated repair bill of $4 million. The city is preparing an appeal.
Next Thursday, the City Council will hold two public hearings on the proposed tax increase. The council will hold a third public hearing and vote on the matter June 11.
A 1.2-mill increase would equate to an extra $242 on a $200,000 home and would provide an annual boost of $117,000 to the city's coffers.
"This will come as a big shock to people," said Mayor Lois Salter, who noted that taxes have gone down every year but one since she was elected in 1999. "But we certainly can't repair this dam without raising taxes. We have a citizens finance committee that has turned this every way but loose."
Salter is sending letters to homeowners this weekend explaining the increase. In addition to the dam, a dip in the tax digest factors into the bump, she said.
Berkeley Lake joins a growing number of Gwinnett cities that are weighing tax increases, albeit for different reasons. Grappling with a $2 million budget deficit, Duluth is considering its first tax increase in 26 years. And faced with a $1.2 million budget shortfall, Snellville is mulling a 50 percent tax rate hike to avoid axing services or slashing its work force by 20 percent.
To help pay for the repair bill on the dam, Berkeley Lake applied for funding under the federal water and energy bill. The city was turned down last week, Salter said.
City Administrator Tom Rozier said the city is making preparations to borrow money, possibly in the form of a bond. The length of the loan would determine the city's future tax rate, Rozier added.
"I do think all the numbers speak for themselves," Rozier said.
Kitty Dales, who moved to Berkeley Lake in 1965, said she doesn't relish a tax increase, but she thinks the city may be out of options.
"We're going to have to pay for the dam some way," said Dales, 91. "If it's got to be [taxes], it's got to be done."
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