Fayette BoE OKs millage rate, but warned revenues are iffy

After being warned of a potential shortfall in local tax revenue, the Fayette County Board of Education on Aug. 15 adopted the 2011 property tax millage rate, set again this year at the maximum rate of 20 mills. You’ll get the bill this fall.

Of interest earlier in the meeting was the notification from Comptroller Laura Brock that local tax revenues could come in $1 million or more under the amount currently budgeted.

Brock in her statement noted that the local revenue portion of the budget adopted in June totals $88 million, yet the total collections based on a 95.5 percent collection rate would total $87.02 million, a difference of approximately $980,000.

The $87.02 million revenue figure is based on current tax digest numbers. Brock explained that the projections are preliminary and are subject to the actual rate of collections.

In some previous years the percentage of collections has been at a higher rate. Yet it remains to be seen what toll the lingering recession and another year of falling tax digest numbers will have on the payment of property tax bills.

But there may be more to the story. Current projected revenue totals for this year also include an estimated collection of $3.5 million in unpaid taxes currently owed from last year.

Brock said the $3.5 million figure was based on the previous year’s collection of unpaid taxes, adding that she had some reservation about whether the entire $3.5 million in back taxes would be collected this year. Anything less than the $3.5 million collected would add to the $980,000 shortfall.

Budgeted collections were based on the adopted maximum millage rate of 20 mills. The 20-mill ceiling can only be exceeded by a public referendum.

A breakdown of local taxes revenues showed $77,118,568 from real property, $6,401,066 from motor vehicle taxes and $3.5 million from uncollected taxes from the previous year.

streetcleaner
streetcleaner's picture
Offline
Joined: 06/13/2009
$9 million in reserves after FYE2012 now looks to drop again

No explanations given by the BOE for spending 60% of reserves this budget year. Now we hear there is somewhere between $980,000 and 4.5 mil that may not be collected. As a citizen I offer my humble apologies to the rank and file teachers and employees who will suffer in the FYE 2013 budget because elected officials and top administrators could not make hard decisions for the last several years to keep us fiscally viable. This will be ugly before it's over!

grassroots
grassroots's picture
Offline
Joined: 02/17/2009
See What Happens When You're Tricked Into Voting SPLOST

They lied about voting for E-SPLOST, that it would offset our property taxes and bonds being paid off. Now they want in our pockets again.

fc1989
fc1989's picture
Offline
Joined: 08/01/2008
Your wrong grassroots....

The SPLOST did offset the millage for bonds. SPLOST funds have been transfered to the bond fund to pay the debt service each year. The bond millage was drastically lowered to the minimum to cover the debt service. The bond millage went from 3.42 to 1.65 two years ago and this year is the same. Part of that decrease is from the SPLOST funds and some from total debt going down. Net taxes are actually going down because the digest is decling and the millage has stayed constant. See five year history at

https://eboard.eboardsolutions.com/Meetings/Attachment.aspx?S=4067&AID=3...

The problem is the BOE did not have the guts to stand up to the teacher organizations concerning the pay restorations. Bottom line is there are less students, less state revenue, less local revenue which all point to less payroll and therefore less teachers and close an elemetary school.