The DeKalb County Commission’s Budget Committee has been making some tough decisions trying to prepare the 2024-25 county budget, but with the looming issue over the proposed judicial center that is needed to replace the outdated DeKalb County Jail, many other budgets are finding that new funds are hard to come by. The county is already facing another property tax increase, which would be the second time in as many years with an increase.
The budget committee met at the DeKalb County Courthouse bottom-floor meeting room on Tuesday, June 4. A main issue was raises for teachers and staff, something school officials say is needed in order to retain educators who might otherwise move on to better paying districts like Rutherford and Wilson Counties.
According to the proposed school budget, a $2,000 pay increase would go to school employees with up to nine years of service (155 employees); $5,000 for those with 10-19 years (104 employees); and $6,000 to staff with 20 or more years (108 employees).
After some back and forth between committee members, the budget committee eventually voted 4-2 to settle on a tax levy of $2.61 cents per $100 of assessed value to present to the full county commission for consideration when the proposed consolidated budget is up for adoption in a few weeks.
The 61-cent hike would be on top of the 27-cent increase just last year. Then, the rate was $1.7308 cents. Budget committee members voting in favor were Tom Chandler, Mathias Anderson, Tony Culwell and Glynn Merriman. Chairman Jeff Barnes and Sabrina Farler voted no. Susannah Cripps was absent.
In the increase, voted on at the June 4 meeting, 51 cents would fund debt service for the construction of the judicial center or jail, with the additional 10 cents going to schools to help fund the proposed new school budget. Altogether, schools would be getting $620,000 from the tax increase, and another $370,000 contribution from the local purpose fund, a fund set up to fund school construction and maintenance. The extra $370,000 would put the annual contribution from the local purpose fund for schools at $1,910,000, but in a meeting on Thursday the committee backed off from that commitment.
Originally, schools would be around $720,000 short of fully funding the $1.72 million cost of the pay raises. On Thursday, the budget committee vote 4-1 to take back the $370,000 portion of what it had voted on Tuesday, saying that money would be needed to secure bonds for a future new school construction. Voting in favor were Chairman Jeff Barnes, and members Glynn Merriman, Tom Chandler and Sabrina Farler. Tony Culwell voted against the move. Mathias Anderson and Susannah Cripps were absent from the meeting.
The proposed 10-cent property tax increase for schools was left in place, and would generate $620,000 in new money for schools with the balance left for the school board to fund through their $10 million reserve.
Committee member Glynn Merriman said he believes the school board still has a healthy fund balance or reserves of up to $10 million and that pay raises could be funded for at least one year. He also pointed out that the board of education had not asked for any specific amount of new local money in its proposed budget.
The budget committee also voted unanimously to inform the county commission that in order to fund a judicial center/jail a bond resolution is needed, not to exceed $65 million. Budget committee member Tom Chandler said that this vote is not a recommendation from the budget committee, but only a statement of what is needed for the full county commission to consider. The committee pointed out that the recommendation is only up to $65 million and not that the full $65 million would necessarily be needed. The funds could also be used for certain projects a new fire truck and ambulances, etc.
In addition, the budget committee voted 5-0 to recommend to the full county commission that a resolution be adopted to have a public referendum on the ballot in the November election asking DeKalb County voters if they would support a $100 wheel tax for debt service to fund construction of a judicial center/jail.
Members said that if approved, a wheel tax would offset the proposed 51 cent property tax increase for debt service and allow the county to eventually lower the proposed property tax increase, as much as 19 cents.
Committee member Merriman said, “I have been praying about this budget fervently and I hope that each of you has as well. I don’t take this lightly. I know none of the commissioners wanted this on their plate but yet here we are. Our backs are against the wall on this”.
“I am not for putting the tax burden just on property owners,” said Merriman. “I think we need to step back and rethink what we are doing and how this will affect so many people who are already struggling to stay afloat”.
“In 2022 my property taxes at the rate of $1.7308 was $1,628. In 2023 at the rate of $2.000, it was $1,881 which is a difference of $253. If we pass the $2.61 tax levy it will be $2,455 which is $827 more since 2022. This is only one of my properties that I am referring to. This does not include my business which I pay county and city taxes plus the county and city business tax,” he explained.
Merriman said he has heard that many residents are in favor of a wheel tax over a large property tax hike, because with a wheel tax, more people share the tax burden. “Even if you are a renter, your rent will go up with a tax increase because the property owner will pass that along to you,” said Merriman. “We need to have a $100 wheel tax which would average $8.34 per month per vehicle and would generate about $2 million in revenue per year. If we earmark, it only for the judicial center then when it’s paid off, we could drop the wheel tax without a major property tax increase,” said Merriman.
“We need to get this message out to the property owners of the county. It is very important that if you (property owners) don’t want this tax burden just on your property then please help us by passing a wheel tax so that everyone can contribute,” said Merriman.
During the public comment period Thursday night, Jerry Adcock, a former county commissioner, spoke out against the proposed tax increase saying, “Smithville had a population a couple of years ago at 5,059 and an average household income of $30,526. The poverty rate in Smithville is 34.8 percent and you guys are doing a property tax on these people.”
“You say a wheel tax. I don’t know who or how many you have talked to, but I guarantee there is not a person that wants a wheel tax if you go out there and really talk to them. Wheel taxes never die. And when you say we’ll raise the property tax that gets the renters. The renters are already going to be hit because when the man (landlord) has to pay a property tax increase he is going to charge his renters for the increase. He will not absorb that himself,” he explained.
“Four years ago, I asked the county when we were getting all that ARP money to put radars in all these police cars. Did you know that DeKalb County could raise money for a building fund? I don’t know how much money from the tickets they give, maybe 5, 10, or 15 dollars from the sheriff’s department, city police, and highway patrol. Everybody argued with me on putting more radars in police cars at that time. We bought four radars with that money. What has that done for our building fund? Zero,” said Adcock.
The budget now will have to be approved by the full county commission. The new property tax rate levy would be as follows:
County General: $1.2583
Highway/Public Works: $0.0326 cents
General Capital Projects: $0.0733 cents
Debt Service: $0.6160 cents (an increase of 51 cents from the current debt service tax levy of $0.1060)
General Purpose Schools: $0.6298 (an increase of 10 cents from the current General Purpose Schools tax levy of $0.5298 cents)
TOTAL PROPOSED COUNTY TAX LEVY: $2.61 per $100 of assessed value.
