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HomeMy WebLinkAboutCALLED MEETING Augusta 11, 2008 CALLED MEETING COMMISSION CHAMBER August 11, 2008 The Augusta Richmond County Commission convened at 12:15 p.m., Monday, August 11, 2008, the Honorable Deke Copenhaver, Mayor, presiding. PRESENT: Hons. Holland, Smith, Mason, Grantham, Hatney, Beard, Johnson, Jackson, Bowles and Brigham, members of Augusta Richmond County Commission. The invocation was given by Rev. J.R. Hatney. The Pledge of Allegiance to the Flag of the United States of America was recited. Mr. Mayor: Everybody ready? I know we’ve got some. We’ll wait for Corey and Al to get in. Cory and Al are here, too, so we’ve got –-- Mr. Grantham: Who are we missing? Mr. Mayor: Cory and Al are both here. Mr. Brigham: Waiting on Corey and Al. I don’t know where they’re at but they aren’t here. Mr. Grantham: Maybe they’re having a meeting. Mr. Mayor: They might be in there with the food. Mr. Grantham: Yeah. Mr. Mayor: Just don’t want anybody to miss this. Okay, the gang is all here so I’m going to go ahead and call to order the Special Called Meeting. And I’ll turn it over to you Mr. Russell. Mr. Russell: Thank you, Mr. Mayor. Would it be given the nature of what’s going on it might be appropriate to have Dr. Hatney have a moment of prayer first though. Mr. Mayor: Excuse me I didn’t even do the, the, please join me in the Pledge of Allegiance and then I’m going to call on Dr. Hatney for our invocation. Thank you for reminding me of that Mr. Russell. Take it away. 1. Discuss Governor Perdue’s action on the Homestead Tax Relief Credit. Mr. Russell: These are the times that require all the help we can get sir. Thank you, Dr. Hatney, for those inspirational words as we continue to move forward and face life as it’s presented to us here. Some of you might have read in the newspaper several, about two weeks ago week and a half ago there was an article in the paper that has a great impact on us as a city. 1 Not only us as a city but the School Board and every other locality or location in Georgia that receives federal money. The Governor in a budget saving exercise has reduced or held back the Homestead Tax Relief Credit, which is a grant that is provided in each city to actually roll back the property tax that’s provided to our citizens. That has a major impact on us, as it is about $3.1 million dollars in our local government and another three million or so for the School Board. That’s $2.2 million in the general fund, $350,000 for the urban fund, $352,000 for the fire fund and $213,000 for the capital outlay fund. By holding back this grant the potential exists that we may not get those dollars. It’s been my understanding after several conversations through the GMA and ACCG and the Association of Tax Commissioners and various other assorted groups that those dollars will be forthcoming. The legislature and our delegation and those people have said that they’re going to work real hard to restore those funds. The dilemma that presents to us immediately is the fact that our tax bills are ready to go out. There are several options available to us in that particular case and Fred Stallings, the Tax Commissioner and I have had several conversations about that and we were both afraid to make any great steps without letting you know what those options were and then giving you a recommendation that we think will be the most prudent and effective way to do that. The first option would be not to include that money, that grant in our tax bill. That would have a very negative impact on our taxpayers themselves. In the suburban area it would cost approximately $84.45 more on a house of $32,500 or greater. And in the urban area that would be $135.94. In addition to that there would be an additional $154.74 it would be included in the school tax. Those totals in my mind are not acceptable and not a way we can afford to do business. It’s also my understanding if we do not add that grant in and tax for the full amount if the grant is reinstated we would not be eligible to get that money back from the state. That would not be acceptable either in my mind. I believe it’s the recommendation of myself and the Tax Commissioner, our Finance staff, Jack and everybody that’s looked at this over the last seven days or so that we go ahead and bill including that grant in our tax bill. It would also be our feeling that we as a group need to formally ask the Governor to rescind that savings amount and make sure that that grant is fully funded this particular year. That would require and act of the legislature from my understanding and we would ask you as a group to endorse that behavior so our legislators know exactly where we stand in this particular area. Two problems that present itself at this particular item, if the money is not reinstated by the legislature we have and approximately $3.1 million dollar hole that we need to fill in our current budget. If the money is reinstated and not paid until after the first of the year as most of you know we’ve got 60 days after the first of the year to close our books for the previous year. So if we did not receive that money in the first 60 days of 2009 we additionally have a hole there. It’s more of a paper hole at that particular point than an actual hole but our budget numbers will reflect the fact that we’re an additional $3.1 million dollars down at that particular point in time. That would be recovered the next year but it would be a debit against our account. You would notice that fairly rapidly when we start looking at those particular numbers. In addition to that my major concern that goes beyond that because I feel pretty strongly based on what I’ve heard and based on what Fred and everybody else has heard that money will be reinstated. The timing we’re not sure of but we think that the legislators will be able to do that is the next year and we need to continue to look forward as we do this. But I have a great concern that next year that money might not be available in a grant and we need to make sure we take that into consideration as we continue to dialog with the legislators and make sure that they know that that’s a valuable aspect of what we do here in this locality. It would then be I guess my recommendation and, Fred, I’ll let you speak for yourself but I think we pretty much decided that 2 what we would like to suggest and recommend is that we go ahead and send those bills out with the grant reflected in there because of the impact on our tax payers. We think we need to be as prudent as we can but I don’t see how we could do it any other way and expect our taxpayers to cough up that additional money without some relief there and move forward with the bills in that particular area. It’s also important I think that we go ahead and notify our delegation of our concern in this matter and the fact that they need to work to move forward with this to make sure that money is reinstated and that they also be cognizant of the fact that we need it next year. The program that was established is one that helps our taxpayers, it helps the people that live in our community and we think it’s a good program but we need to move forward with that. Fred do you want to say anything, add to that or? Mr. Stallings: I think Mr. Russell has expressed it eloquently. We do have our bills ready to go and we just need you to consider this. Mr. Mayor: Okay. Commissioner Brigham. Mr. Brigham: Mr. Russell, I don’t want to rain on your parade but I do have to know. What are the options available to us if the legislature does not fund this? Mr. Russell: In this particular, in this year? Mr. Brigham: Yes. What other options do we have or do we have any options other than taking it out of the fund balance? Mr. Russell: The option would be to attempt to recover that through savings over the next six months which as you know would be very, very tough given the nature of what we’re doing. And the second option would be to take it out of the fund balance or whatever difference there would be based on our savings versus the fund balance. Or, I’m sorry this is something you all got me so I’m afraid to say it too loud. We could send the additional bill to our taxpayers the difference later on in the year to collect that money from them. Mr. Mayor: Commissioner Grantham. Mr. Grantham: Thank you, Mr. Mayor. That was my question, Fred, is what, what length of time do you have after the first tax bill goes out that if you have to send this supplemental bill are we restricted to a time? Mr. Russell: I think at this point we’re probably cutting new cloth. I’m not to sure anybody has the answer for that at this particular point in time. The only answer I would give you it needs to be done in a timely fashion so that we could collect the money prior to the first of March. Mr. Grantham: Excuse me if I could follow up, Mr. Mayor. Point well taken but the reason that I asked that is that is it we’re governed under state statutes as far as the way we send our tax bills out if I’m not mistaken. And we have to report to the state by a certain period of time based on that information that we are collecting. In addition to that you know how would 3 we, how would we go about sending a bill out if we don’t know whether the state’s going to st reimburse us or not based on that grant up until March 1 and then have we lapsed the time to send out that supplemental bill. That’s what my concern is. Mr. Russell: You all know Jack McAdams from the tax assessor’s office. He’s the expert in the area and I’m going to bow out there for a second. Mr. McAdams: The way I understand the law is that the grant was appropriated, the grant was funded, the Governor has exercised his option to realize that when there’s a shortfall that he can postpone funds. It is up to the legislature to tell us that the funds are not there. And that won’t happen until this next session. At this point it looks to me like the only option is to send the bills out as appropriated, as approved in the approved budget. If bills are to be sent out as a result of what the legislators tell us this next session starting in January, February whenever they make a decision on this. At that point they will have to direct us what to do. And I believe they will give us a certain time frame in which to do it. Mr. Mayor: Commissioner Smith. Mr. Smith: Thank you, Mr. Mayor. Fred, have you met with the local delegation and what are they telling you? Mr. Russell: That conversation with Quincy and pretty much that’s all I’ve actually, well I’ve talked with a couple of them. They are as concerned as we are but I really think we need to officially put that on record and tap into that. I would suggest that part of our next meeting with them that be one of the major topics of conversation there because they’re the ones, the ball’s in their court at this point. And while I think they are cognizant of our problem we need to make sure they’re very cognizant of the issue. Mr. Mayor: And with that in mind I think that really today we need two motions. One is to direct staff to proceed in the manner that they’ve recommended. And the second would be for a resolution of support for full funding for the Homestead Tax Relief Credit for this fiscal year and that those funds be released prior to March one. Is that what you’re looking for, Fred? I mean include that as part of the resolution. Mr. Russell: I think we can release them prior to February one. We’re still talking to our auditors about how that would work --- Mr. Mayor: Okay. Mr. Russell: --- but that would be helpful. Mr. Mayor: Okay prior to February one. Commissioner Mason. Mr. Mason: Thank you, Mr. Mayor. I just like to know has there been any contact, any dialog at all with the Governor’s office in reference to this? I know that he’s been spending some time over in China and whatnot but as to my understanding he is back at this point. But 4 has there been any dialog with the Governor himself or the governor’s office in terms of his intent as it relates to this homestead tax. Mr. Russell: It’s my understanding that most of the legislative groups, GMA the, I have not had any contact with them. As a matter of fact when we initially called the tax assessor and the Department of Revenue we were referred to the Governor’s press secretary. But we have not I have personally not had any contact. Mr. Mayor: But, Commissioner Mason, ACCG and GMA, both organizations will be meeting with the Governor’s office and you’re right he was not in town last week but I’m sure that those meetings will probably be taking place this week. And I’ll, as I get information from motion to GMA or ACCG I’ll happily distribute that to the Commission. Okay, can I get a direct staff to proceed upon their recommendation? Mr. Mason: So moved. Mr. Hatney: Second. Mr. Mayor: We have a motion and a second. Commissioners will now vote by the usual sign. Motion carries 10-0. a motion to approve a resolution of support for full Mr. Mayor: Okay, can I get funding of the Homestead Tax Relief Credit program for this fiscal year with those funds st? to be released by the State legislature by February 1 Ms. Beard: So moved. Mr. Holland: Second. Mr. Mayor: We have a motion and second. Commissioner Brigham. Mr. Brigham: While I’m in support of this I’d rather see a written draft of that resolution and I don’t think we ought to be voting on it without this. The concept idea is great but I think we need to have a written draft of the resolution. Mr. Mayor: Well, can we approve. Would somebody like to change the motion? Go ahead, Fred. change the motion to authorize a draft be developed Mr. Russell: May I suggest you to be approved at the meeting next Tuesday. Ms. Beard: So moved. Mr. Holland: Second. 5 Mr. Mayor: If there’s no further discussion Commissioners will now vote by the usual sign. Motion carries 10-0. Mr. Mayor: And before closing I just, once again in our budgeting process I’ve continually reminded the commission that we need to strongly consider what’s going on at the State level because we tend to see the trickle down effect in the form of un-funded mandates. And I agree with Fred this is something that we’re really going to have to take a look at next year. So it’s something we really need to start considering now. If there’s no further business to come before the body we stand adjourned. [MEETING ADJOURNED] Lena J. Bonner Clerk of Commission CERTIFICATION: I, Lena J. Bonner, Clerk of Commission, hereby certify that the above is a true and correct copy of the minutes of the Called Meeting of the Augusta Richmond County Commission held on August 11, 2008. ______________________________ Clerk of Commission 6