Politics & Government

Public Hearing Monday on Austell Budget with 28% Tax Rate Increase

The Austell City Council will vote on next year's budget, which has been reduced by 7 percent and includes a 28 percent property tax rate increase.

The City of Austell is poised to see its first property tax increase in more than two decades.

Due to a $580,000 decrease of franchise revenue from the Austell Natural Gas system, a 13.8 percent healthcare premium increase and increasing fuel prices, city officials are considering a 28 percent property tax increase.

The property tax rate would increase from 3.123 mills to 4 mills, which would bring in an estimated additional $125,000 in property taxes. A mill is $1 per every $1,000 of assessed value.

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Due to the uncommonly warm weather this year, many people did not use gas to heat their homes, contributing to the large decrease of revenue from the city’s gas system.

Austell Finance Director Denise Soesbee told the Marietta Daily Journal, “This is the biggest hit we’ve had.”

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Along with decreased natural gas usage, the prices of natural gas have decreased as well. The city budgeted to receive $3.5 million in revenue from its gas system, and received only $2.9 million.

for a preferred rate increase of 3.7 percent. This year’s rate increase jumped to 13.8 percent.

The city will continue to use Coventry as its healthcare provider. However, deductibles for individuals will increase from $1,000 to $2,000, which the city will cover.

However, healthcare costs continue to increase each year and so do fuel prices.

“We cut all we can cut,” Mayor Joe Jerkins told South Cobb Patch. “Anything will be an increase.”

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Jerkins said the increase was imperative to avoid layoffs. He plans to reduce the millage rate again as early as 2013-14 fiscal year if possible.

“We’re going to cut them again. I promise that,” Jerkins told South Cobb Patch.

Austell’s city council will hold a second public hearing on Monday at 7 p.m. about the proposed 2012-13 budget, which at 5.72 million is 7 percent lower than last year’s city budget. The complete proposed budget is attached to this article.

Additionally, this year’s budget calls for no hiring for vacant positions, a “substantial reductions in overtime” and cost controls on professional services.

According to a letter from Finance Committee Chairwoman Virginia Reagan to city council members, “Without these actions, the City would most likely face furloughs and decreased services to the public.”

The council will vote and likely approve the budget following the close of Monday’s public hearing, which will be held at Monday at 7 p.m.

The city council will vote on the new millage rate at a later date.


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