TAX NEWS - June 2010

Atlanta Tax: Snellville approves tax rate hike

With little public fanfare, Snellville city leaders approved a 42-percent tax rate increase on Monday night.

The Snellville City Council's decision, by a 4-2 vote, raises the tax rate on property from 4.15 mills to 5.9 mills -- a move to help stem a $1.2 million budget shortfall for fiscal 2011.

"Enough is enough," Mayor Jerry Oberholtzer told a crowd of nearly 30 people at City Hall. "We've got to draw the line in the sand that we protect the services we pay for."

The increase equates to an additional $105 a year on a $150,000 house. The Gwinnett County municipality has more than 6,000 households.

To balance Snellville's $9.7 million operating budget, which will be adopted June 21, the council also is looking to reduce the police force by six through early retirement; eliminate a court clerk position; shut down the public works facility one day a week, and dissolve the positions of parks director and recreation program supervisor, which are currently vacant.

In addition, for the third straight year, the city's 94 employees won't receive cost-of-living increases.

Monday night's vote didn't stir much opposition from residents. However, for Suzanne Krieger, the tax increase didn't sit well.

"There's more cuts that need to be made to the budget," Krieger told council members after she presented slides showing how city taxes and fees have skyrocketed since 2007. "You need to consider the full impact."

Resident Kurt Schulz noted the city can't afford to slash much more.

"This budget is barely hanging on," Schulz said after the public hearing. "We need to do this, good Lord."

The $1.2 million deficit comes as the city grapples with a 10.8-percent decline in its tax digest and a substantial drop in its big revenue sources, from building permits to fines and forfeitures.

"It's a tough pill for all of us to swallow," Mayor Pro Tem Barbara Bender said of the tax hike. "But it's the right decision."

Snellville isn't the only city turning to a tax increase to shore up finances. On June 28, Duluth and Berkeley Lake are expected to vote on hikes in their millage rates.