HomeMy WebLinkAboutCalled Commission Meeting August 25, 2014 (Sec
CALLED MEETING COMMISSION CHAMBER
August 25, 2014
Augusta Richmond County Commission convened at 12:00 Noon, Monday, August 25,
2014, the Honorable Deke Copenhaver, Mayor, presiding.
PRESENT: Hons. Lockett, Guilfoyle, Mason, D. Smith, Williams, Fennoy, Johnson,
Hasan, Davis and G. Smith, members of Augusta Richmond County Commission.
The Mayor called the meeting to order.
2.LEGAL MEETING
A.Pending and potential litigation
B.Real estate
C.Personnel
Ms. Davis: I move that we go into a legal meeting.
Mr. Williams: Second.
Motion carries 10-0.
[LEGAL MEETING]
Mr. Mayor: Okay, I’ll go ahead and call the meeting back to order. Mr. Brown.
3.Motion to authorize execution by the Mayor of the affidavit of compliance with
Georgia’s Open Meeting Act.
Mr. Brown: We ask for the execution of a closed meeting affidavit.
Mr. Lockett: So move.
Mr. D. Smith: Second.
Mr. Mayor: We have a motion that’s been made and properly seconded. Mr. Brown.
Mr. Brown: We need to indicate that in the closed meeting we discussed potential
litigation and personnel. No real estate matters were discussed.
Mr. Mayor: Does the maker of the motion agree to amend their motion?
Mr. Lockett: Yes. Approve as stated.
Mr. Mayor: Okay. We have a motion that’s been made and properly seconded.
Commissioners will now vote by the usual sign.
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Motion carries 10-0.
Mr. Mayor: Madam Administrator, I believe we have one other item on the agenda.
1.Discuss Energy Excise Tax. (Requested by the Administrator)
Ms. Allen: Mr. Mayor and members of the Commission, during our Commissioner and
Mayor retreat that we had we discussed the Energy Excise Tax and the process and the deadlines
that we’ll have to implement in order for it to take effect January 1 of 2015. At that time we also
discussed some ways of delegating those funds. In order for us to begin the process the city will
actually have to send the letter out, notification to Blythe and Hephzibah today. This does not
mean that you’re approving today for this to, but it does state that we will go ahead and start the
process. We’ll have to come back to the Commission for actual approval.
Mr. Mayor: Commissioner Guilfoyle.
Mr. Guilfoyle: Thank you, Mr. Mayor. Tameka, as far as the city of Hephzibah and
Blythe, if they don’t comply with it, where do we go from there? If they don’t approve –
Ms. Allen: The city of Augusta can still proceed with it without the commitment as I
understand it from Blythe and Hephzibah.
Mr. Guilfoyle: Okay.
Mr. Mayor: Okay, do we have any further questions? Yes, sir, Commissioner Smith.
Mr. D. Smith: Given, Tameka, what Mr. Guilfoyle just said, so if there is a business that
meets, that’s a manufacturing business within the city limits of Hephzibah and I certainly know
there’s not one in Blythe but there may be one that’s coming to Hephzibah or in Hephzibah those
businesses would be exempt from this excise tax?
Ms. Allen: No, sir, not as I understand it. Everyone will have to abide by the
implementation of the actual taxes itself however this does not stop it because they don’t agree
with it. We just have to have that as part of the record as to whether or not Hephzibah and
Blythe actually approve the process.
Mr. D. Smith: Well, under home rule how can we impose a tax within the city limits of
Hephzibah when we don’t have jurisdiction within the city of Hephzibah? How does that work?
How do we impose a tax on them that they don’t agree to because in SPLOST they have to agree
to the SPLOST Memorandum of Understanding? Ms. Williams, I see you standing back there in
the back.
Mr. Mayor: Ms. Williams.
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Ms. Williams: The tax itself is imposed countywide. The Memorandum of
Understanding discusses the distribution of the percentage that the various entities get.
Mr. D. Smith: Okay. All right, thank you.
Mr. Mayor: Ms. Davis.
Ms. Davis: Thank you, Mr. Mayor. Ms. Allen, did we do this process last year as well?
Did we start a process to go down this timeline last year?
Ms. Allen: No, not that I recall.
Ms. Davis: Well, Ms. Williams is saying something –
Ms. Allen: We discussed it previously, we have discussed it and I think it was actually
discussed about the actual meeting but I’m not sure if the meeting ever took place. We did?
Mr. Mayor: What’s that?
Ms. Williams: Yeah. You met with the two mayors in the cities of Hephzibah and
Blythe at least once I believe –
Mr. Mayor: For –
Ms. Williams: To discuss the energy excise tax.
Mr. Mayor: Now, I’ve not met with –
Ms. Allen: That was SPLOST.
Ms. Williams: Okay, I’m sorry –
Ms. Allen: That was SPLOST.
Mr. Mayor: That was SPLOST.
Ms. Williams: So we did send the letters out prior. We started the process at least once
and maybe twice.
Mr. Mayor: Okay.
Ms. Davis: Okay, thank you. So this is a typical process, I mean just normal process
that, do most counties do this without – Ms. Williams is nodding her head. I mean this is just
normal course of business –
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Ms. Williams: This is the process that is outlined in the guidelines that allow you to
impose the Energy Excise Tax and this is the timetable.
Mr. Davis: And you would, Mr. Mayor, and you would do this annually each –
Ms. Allen: No, ma’am.
Ms. Davis: This doesn’t come up every year?
Ms. Allen: No, ma’am.
Mr. Mayor: Okay, Commissioner Guilfoyle then Commissioner Williams.
Mr. Guilfoyle: Thank you. Administrator, Interim.
Ms. Allen: Yes.
Mr. Guilfoyle: This is to implement the 2% energy tax on the top ten that we’re just
trying to recapture the 2%, is that correct? This is the start of it?
Ms. Allen: This is just the start of the process, yes, sir.
Mr. Guilfoyle: Okay. What just happened about 30, 45 minutes ago by passing the
millage rate it endured, caused them, the top ten, $1.2 million dollars in property taxes alone.
Now if we implement this 2% that’s going to be additional $4 million based, put on to the top ten
industries we have here locally. What’s the total of the, once the energy tax is implemented,
what’s the –
Mr. Mayor: Ms. Williams, do you –
Ms. Allen: Keep in mind now those same top ten will save that 4% that’s been, that the
legislation because of House Bill 386 has alleviated from them paying so they’re still getting an
overall savings as it relates to the energy excise.
Mr. Guilfoyle: Okay.
Ms. Allen: They are actually saving.
Mr. Guilfoyle: But if you look at the opportunity to attract new industry into the area,
this is actually a tool to use where other counties that had implemented this tax, the doors are
shut. Would you agree to that?
Ms. Allen: Not necessarily. Augusta also offers two other incentives that other agencies
do not offer that actually are, I guess intriguing, to hopefully bring other businesses to Augusta.
So we do what we can to bring businesses to Augusta.
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Mr. Guilfoyle: What are the two that you’re speaking of?
Ms. Allen: What’s the other two, Donna, that the -- Amendment 65 and Amendment 74,
is it?
Mr. Guilfoyle: Would you please go into detail on that?
Mr. Mayor: Ms. Williams, you want to – we discussed these at the retreat though.
Mr. Guilfoyle: This will give the companies a tax break on property tax as well as the
employees payroll through the state, is that correct? Two or more employees, they get a
deferred.
Ms. Williams: Those two amendments had to do with the taxable value of the assessment
on the property itself and, I’m sorry, I mean I can give you the copies of those amendments as
well as the information that was discussed before that eliminates the one that was in the former
urban service district was any tax value over $100,000. The one that was a countywide
amendment is in excess of a million dollars and so they pay no taxes on those for a period of five
years.
Mr. Guilfoyle: Okay, I thought it was prorated, the first year was zero, the second year
they only paid 20%, the third year 40. No? Okay, thank you, Mr. Mayor.
Mr. Mayor: Commissioner Williams.
Mr. Williams: Ms. Williams, before you leave, those businesses that move in the district
that we specified, if this tax is passed, what would that do for the enterprise areas because I think
the enterprise don’t pay any tax for ten years, is that right? Zones?
Ms. Williams: Zones, I’m not sure how those work in the –
Mr. Williams: And my question is what would this do though if we got an enterprise
zone and we’ve got several areas that have been blighted, we finally got people to move into,
businesses to move into so we tax exempt them for ten years where they’re building a new home,
where they hire so many employees, where they buy a business in that area, you don’t know
about this? If you build a house and when I say buy, I’m to be corrected, you build a house of a
certain value in the enterprise zone then you’re tax exempt for ten years.
Ms. Williams: It does not affect that. The energy excise tax only applies to
manufacturing businesses. It does not apply to homeowner, it does not apply to a retail
establishment. The only businesses that stopped paying taxes just on the energy they use, just for
example their electric bill. If Proctor and Gamble has a million dollar a year electric bill then
they were exempted from six of the eight percent of sales tax that they paid on that million
dollars. A retail establishment still pays the exact same sales taxes on their electric bill as does a
homeowner. This was only applied to the manufacturing community.
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Mr. Williams: My other question is Blythe and Hephzibah we’re talking about sending
these letters to. If they don’t participate and we just notify them, will any of the businesses that
we’re talking about in that area be affected or none affected? Does it matter whether they buy
into it or not I guess is that I’m asking as long as we notify them? If a business came to that area,
bought some land in Hephzibah and moved next door to Mr. Guilfoyle, what would this tax do if
that took place? Would it affect them if they was providing a service or we talked about they
made something? I’m just trying to figure out by being in Hephzibah at that location does that
make a difference once we pass it? That’s what I’m asking.
Ms. Williams: It is my understanding that it is a countywide tax.
Mr. Williams: So whether they participate or not, they still will be affected. Okay, that’s
all, Mr. Mayor.
Mr. Mayor: Commissioner Fennoy.
Mr. Fennoy: If the cities of Blythe and Hephzibah choose not to participate and there is a
manufacturing in one of these municipalities and we implement the excise tax, do they
automatically get, even though they opted out, do they receive greater benefits from the fund
than we receive?
Ms. Williams: Making sure that we have our facts right. If they do not opt in, then they
would not get a portion of the proceeds.
Mr. Fennoy: All right.
Mr. Mayor: Mr. Mayor Pro Tem then Commissioner Donnie Smith.
Mr. Johnson: Thank you, Mr. Mayor. Donna, also with the excise tax now it’s phased
out in 2016, correct?
Ms. Williams: No, sir. It’s fully phased in in 2016.
Mr. Johnson: It’s fully phased in in 2016 meaning –
Ms. Williams: We’re currently, what the legislature did is they phased it in 25% at a
time.
Mr. Johnson: Um-huh.
Ms. Williams: So we are currently in 2014 it is 50% phased in. Next year it will be 75
and in 2016 it will be 100% phased in, the exemptions for, that the manufacturers are paid.
Mr. Johnson: That’s what I said. They will be fully exempt –
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Ms. Williams: I see what you’re talking about. Yes, sir, they would reap the full benefits
of the entire 6% reduction. Currently they are getting half.
Mr. Johnson: Right, right. Now if the state legislators don’t make any changes in this
upcoming year then it will be phased in completely and no changes, so that means the funding
will stop at that point. The collections will stop after 2016, well, in 2016. So the funding will be
phased in so you’re saying that we’ll be paying the whole 6%.
Ms. Allen: No, sir. They’ll be paying the 2% if this city decides to proceed with the 2%
limitation of the energy excise tax.
Mr. Johnson: Because we adopted that on a local –
Ms. Allen: Exactly.
Mr. Johnson: Okay, and that’s our option to do that.
Ms. Allen: Yes, sir.
Mr. Johnson: So at that point they will continue to pay that throughout the years to come.
Ms. Allen: Yes.
Mr. Johnson: Okay. That’s what we need to get, because there’s a big disparity of
whether or not this is going to be completely phased out and it won’t even be an option for this
city to even implement it. Now I know we talked about it last year and I know Donnie was
saying let’s go ahead and do that now because we’re losing monies, yeah, Donnie, you said it,
but anyway I know he talked about that in detail about that’s an option as far as a revenue source,
if you will, to pick up those dollars that we were losing and it will be phased out by 2016 so what
I’m trying to figure out is I know as far as the state concerns, the state has said okay, we’re done.
It’s up to the counties or cities to implement that. And that’s the point that I’m trying to make
here. If the city decides that they’re not going to impose it after 2016 or even period, then it will
not be imposed on manufacturing, right? And that will put us at a disadvantage for those
counties or cities who completely chose not to implement that, whether it’s 1%, 2% or whatever,
correct? And the state of Georgia.
Ms. Williams: I think there’s some disagreement as to whether or not implementation of
the energy excise tax locally puts you at a competitive disadvantage. Chatham County
immediately implemented it. Our neighboring Columbia County passed it the first opportunity
they had. We continue to get updates from ACCG as to the number of counties that have passed
this and I forget the total right now but it was on one of the slides that we’ve discussed but I’d be
happy to get that information back to you.
Mr. Johnson: Well, I think we just need to get the facts on it so we’ll be on the same
page with what it means if we do it or if we don’t and if that’s something the county wants to do
or if the city wants to do moving forward because again this is a potential funding stream for
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something and if that’s something that the Commission wants to do, that’s fine however we need
to be clear on what the will is and what it means moving forward because we don’t want to send
mixed messages that this is something that could be done or need to be done without ya’ll
recommend be done moving forward to fund some sort of department or whatever the case may
be because that’s the big disparity right here. We need to know exactly what’s, what happens,
you know, and if it’s something that we don’t want to do now me personally, I made the
agreement last year that I would not support the excise tax but if the Commission choose to do
that, that’s fine, especially now in lieu of the property tax, mill rate increase so this is just stuff
we really need to think about moving forward and make sure that everybody’s clear on what this
means if we do that. I understand what ACCG and GMA is reporting but we need to make sure
that everybody is on the same page with this because this is very critical for industry. Thank
you, Mr. Mayor.
Mr. Mayor: Okay, Commissioner Donnie Smith and Commissioner Guilfoyle.
Mr. D. Smith: Thank you, Mr. Mayor.
Mr. Mayor: Then Commissioner Lockett.
Mr. D. Smith: Ms. Allen, obviously the first thing is to decide whether or not we are
going to, whether this body is going to vote to have the excise tax. The thing beyond that, the
part that bothers me is I know that ya’ll made a proposal to us in our meeting about how those
monies would be divided up but we certainly are not locked in to how that gets distributed
amongst the departments, is that correct?
Ms. Allen: Correct.
Mr. D. Smith: And so how will you propose this body make that decision about how the
money, if it is implemented, how it gets distributed? What will be the process then?
Ms. Allen: What we will do is bring that back to the Commission to identify how it will
be distributed. At the retreat it was recommended that we look at giving the Sheriff’s Office up
to $1.5 million dollars as part of it because in 2015 we’re looking at collecting around $3 million
dollars and in 2016 going on we’re looking at up to $4 million dollars collection. So we looked
at designating some funding to the Sheriff’s Office. We looked at designing funding to
dilapidated housing, and we also looked at a certain amount of funding going to Transit.
Mr. D. Smith: I guess my, I know that there’s been a lot of discussion, I don’t think you’ll
get a lot of argument that public safety is a priority within the community but Mr. Williams has
talked about why should we take taxpayers’ money to deal with dilapidated houses that belong to
other people so I don’t want to get involved in voting for something that we don’t have a clear
path about how we’re going to spend money because I just don’t like putting money in a hole
and I want to know that if this is done, that my vote designates where this money is going to go
and how it’s going to be used and it’s not just money that we throw into a hole and we get no
return on. So I would have a real problem until I saw where actual money went to actual things
to get actual things done because that’s what our constituents want to see is that if they’re going
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to be taxed they want to see a clear cut, defined project with benefits to them so that would be
just be my thoughts on the matter. Thank you.
Ms. Allen: And I don’t disagree with what Commissioner Smith is saying or
Commissioner Williams in regards to us paying for people’s houses to be demolished. And that
decision as it relates to how we would spend the funding could happen at a later date with some
real good discussion and actually do the designation of the actual funds. This today is just for
the actual start of the process. Just send the letters to Hephzibah and Blythe to initiate the
process. We will come back with all the information that was originally discussed, the questions
that were asked of the Finance Director. We will come back with proposals as it relates to how
we can actually designate the funding but today all we need to do is get approval for us to
actually send the letters to start the process.
Mr. Mayor: Actually Commissioner Guilfoyle, Commissioner Lockett, Commissioner
Fennoy then Commissioner Hasan.
Mr. Guifoyle: Tameka, would you verify, I know you’re getting all your information
from ACCG but we also with GMA can we get a verification from GMA because the, one of the
senators had said that they actually could implement a 1%. I know that if the people in Finance
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that I had spoken with said they have not so just for clarification before the September 5
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meeting or October 6 meeting –
Ms. Allen: Okay, I’ll get that information.
Mr. Guilfoyle: Thank you, Tameka.
Mr. Mayor: Commissioner Lockett then Commissioner Fennoy then Commissioner
Hasan.
Mr. Lockett: You know it’s too bad the Administrator doesn’t have a recording because
she could play a lots of this back because we’ve talked about it so many times. You know it
appears to me that having a low tax base hasn’t really served us well. Maybe we should increase
taxes and implement the excise tax. Maybe business will begin to come here because we would
have a better infrastructure because we’d have more money to pump into education, hopefully
make education much better. We could have a good transit system that could get people to and
from. We would have wellness for our people. This is a good thing. Everybody’s health
conscious this day and we could reduce crime. Our criminal statistical data would look much
better because we have the right amount of money to give the Sheriff’s Department. We’ve
talked about House Bill 386 many times, what it’s cost us. I’ve even talked about what decisions
that the general assembly made in 2014 that’s going to cost local governments in the state of
Georgia over $154 million dollars in the next five years. These monies have got to be recouped
because we’re not going to be able to attract people here if we don’t have a better place, if we
don’t have more activities for our young people and old alike. And it takes money. Georgia
Power is not charging the same rate in 2014 as they did in 2000. Neither is Comcast, neither is
the Augusta Chronicle. Everybody realizes that the cost of goods and services is going up. No
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one wants to raise taxes but there is no statistical data that shows if we implement an excise tax
that we’re going to lose business. That information is just not there. Thank you, Mr. Chairman.
Mr. Mayor: Commissioner Fennoy then Commissioner Hasan.
Mr. Fennoy: Yes, I guess my question is that assuming that we pass the excise tax and
we haven’t identified any projects but I guess my question is could this money that is received
from the excise tax be used so that we could issue bonds to alleviate the flooding that has taken
place in Augusta especially downtown Augusta for more than 50 years?
Ms. Allen: Anything is possible, Commissioner Fennoy, I’m not sure we’d have enough
money to issue the bonds after we designate a certain part of the funds to go to public safety and
transit. There wouldn’t be sufficient enough funds to do that.
Mr. Fennoy: I understand that and I know that some of my colleagues have some other
concerns about how the money should be spent but I’m talking about the needs, unmet needs that
have gone on for 20, 30, 40 years and you know at some point in time we as a city needs to start
addressing these needs. We’ve got people that put sandbags to keep the rain out every time to
keep the water from coming in their houses. We’ve got apartment complexes that you know
when a good rain, they’ll be wading in the water. You know when the renovations came up you
know all of a sudden we could come up with monies for renovation but again we have a section
of this city where the needs have gone unmet for a long period of time and at some point in time
it has to be addressed and I think when the opportunity presents itself, assuming that we accept
and (inaudible) the excise tax, we need to implement something that’s going to bring relief for
the people that have been suffering in this city for a long time.
Mr. Mayor: Commissioner Hasan.
Mr. Hasan: Yes, Ms. Allen, you just made mention about there was no designation for
the funds in the event that the excise tax passed and I know probably you hadn’t voted on
anything from the commission floor but I can remember in the retreat when you all discussed
putting it on the agenda you did have some designation points. Has that changed or are you
saying right now that’s not official?
Ms. Allen: No, sir, that has not changed however I was saying because it would take
commission action to actually implement that.
Mr. Hasan: Okay, but the way you were saying it, you were saying that it had not been
so I just wanted to make sure so we do have some designation points.
Ms. Allen: Yes, sir.
Mr. Hasan: Okay, thank you.
Ms. Allen: Yes, sir, some recommended designation points.
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Mr. Hasan: Thank you, ma’am.
Mr. Mayor: Okay. Motion to – go ahead, Commissioner Fennoy.
Mr. Fennoy: Motion to accept the timeline.
Ms. Allen: Yes, sir, so we can go ahead and begin sending the letter out today from the
city.
Mr. Lockett: I second that, Mr. Mayor.
Mr. Mayor: We have a motion that’s been made and properly seconded. If there’s no
further discussion, commissioners will now vote by the usual sign.
Mr. Fennoy, Mr. Mason, Mr. Lockett, Mr. Hasan and Mr. Williams vote Yes.
Mr. Johnson, Ms. Davis, Mr. D. Smith, Mr. Guilfoyle and Mr. G. Smith vote No.
Motion ties 5-5.
Mr. Mayor votes Yes.
Motion carries 6-5.
Ms. Allen: Thank you.
Mr. Mayor: 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 25, 2014.
________________________
Clerk of Commission
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