Clarkesville city leaders are considering a partial millage rate rollback that could save taxpayers about $90 a year. A full rollback would save them significantly more – around $700 per year – but that option does not appear to be on the table ahead of Monday’s public hearings.
Clarkesville’s proposed 2024 budget is up more than $300,000 over this year’s budget. City manager Keith Dickerson says that’s primarily due to the increase in the cost of petroleum products. Although overall inflation is starting to ease, petroleum prices have not, and that is impacting Clarkesvillle’s bottom line.
“The general fund has to be balanced. The budget I am presenting is balanced,” Dickerson told the city council at their September meeting.
The proposed budget’s general fund of $2,926,452 represents an increase of $316,318, or 12%, over last year’s budget. Most of that increase comes from growth in Clarkesville’s tax digest, which includes 33 new residential properties, 14 commercial properties, and three industrial properties.
Combined, these properties added $15.3 million to the city’s digest. Reassessments for existing properties increased by $36.7 million for a net gain of just over $52 million dollars added to the digest.
Partial rollback
In making his pitch for a partial rollback, Dickerson told the council that for 13 years, the city’s millage rate was 6.350 mills. A couple of years ago, the council rolled back the millage rate to 6.111. Dickerson is recommending a 6.011 millage rate this year.
Dickerson says the partial rollback would save the owner of a $250,000 home approximately $90 over last year’s rate. A full rollback would reduce the millage rate to 5.297, resulting in $700 in savings for the same homeowner.
Dickerson says to have a balanced budget for 2024 and cover inflationary costs, the city needs to collect $1,502.75 in property taxes on a home valued at $250,000. The city of Clarkesville collects taxes at a 100% valuation as opposed to the 40% valuation that the county and other cities use to collect property taxes each year.
Even with a partial rollback, Clarkesville taxpayers will still experience a 22.05% increase in city property taxes due to reassessments, resulting in nearly $300,000 in additional property tax revenue needed to cover the proposed budget increases.
Sanitation and water rate increases
In addition to higher property taxes, Clarkesville residents will pay slightly more for some city services.
Dickerson is calling for a 50-cent monthly sanitation fee increase to offset the higher tipping fees the county has imposed at the landfill.
Clarkesville’s water rates are also going to rise as the city continues to pay down its debt on a $7 million USDA loan used to rebuild the water treatment plant.
When Clarkesville took out that loan in 2019, the city council committed to a 2% annual water rate increase for five years. This is the last year of that commitment. Dickerson told the council that he could not promise that this would be the last year for that increase since it is a 40-year loan.
Even with another 2% increase, he says Clarkesville’s water rates remain comparable to other area water providers, adding that Clarkesville’s water and sewer tap fees are “where they need to be.”
The city is also looking for areas to increase its water customer count.
Clarkesville has secured a $465,000 grant to run a six-inch water line up Alec Mountain Road. Once the line is installed, the city will install a fire hydrant in the area to assist residents with their ISO rating.
The city is also considering installing a two-inch line halfway down Zeb Bryson Road to help residents with shallow wells that run dry.
Budget add-ons
Beyond the standard public safety and operational expenses, other items included in this year’s Clarkesville city budget include:
- A 2% employee pay raise.
- Additional funds to cover expected increases in employee healthcare costs;
- Salary and benefits for a new administrative assistant;
- More part-time firefighters;
- New fire department equipment;
- A generator for city hall;
- Safety Operations software upgrade;
- Three new benches for downtown;
- Six new trash cans for downtown;
- Three cameras to monitor town parking;
- And upgrades to Pitts Park
Public hearings October 2
The Clarkesville City Council will hold three public hearings on the proposed budget and millage rate on Monday, October 2.
The first hearing is set for 10 a.m., the second will be held at 12:30 p.m., and the third and final hearing is scheduled for 6 p.m. at Clarkesville City Hall at 123 North Laurel Drive.
In between the hearings, at 5 p.m., the city council will hold a work session.
All of the meetings are open. The public is encouraged to attend.
