Millag age Rate He Hearings gs City of Newnan August 7, 2018 at - - PowerPoint PPT Presentation

Millag age Rate He Hearings gs

City of Newnan

August 7, 2018 at 6:30pm August 10, 2018 at 11:00am August 14, 2018 at 2:30pm

COUNTY TAXING JURISDICTION REASSESSMENT OF OTHER CHANGES EXISTING REAL PROP TO TAXABLE DIGEST 1,214,588,113 33,362,111 49,442,043 1,297,392,267 108,008,290 14,267,006 122,275,296 MOTOR VEHICLES 20,606,520

• 5,561,330

15,045,190 MOBILE HOMES TIMBER -100% HEAVY DUTY EQUIP GROSS DIGEST 1,343,202,923 33,362,111 58,147,719 1,434,712,753 EXEMPTIONS NET DIGEST 1,343,202,923 33,362,111 58,147,719 1,434,712,753 FLPA Reimbursement Value Adjusted NET DIGEST 1,343,202,923 33,362,111 58,147,719 1,434,712,753

(PYD) (RVA) (NAG) (CYD)

2017 MILLAGE RATE >>> 3.870 ABBREVIATION AMOUNT FORMULA PYD 1,343,202,923 RVA 33,362,111 NAG 58,147,719 CYD 1,434,712,753 (PYD+RVA+NAG) PYM 3.870 Millage Equivalent of Reassessed Value Added ME 0.090 (RVA/CYD) * PYM RR 3.780 PYM - ME Rollback Millage Rate for 2018 2018 PROPOSED MILLAGE RATE >>>

Coweta THIS SECTION WILL CALCULATE AUTOMATICALLY UPON ENTRY OF INFORMATION ABOVE

2018 Net Digest DESCRIPTION 2017 DIGEST PERSONAL

Newnan INFORMATION FOR THE SHADED PORTIONS OF THIS SECTION MUST BE ENTERED

This information will be the actual values and millage rates certified to the Department of Revenue for the applicable tax years.

2018 DIGEST DESCRIPTION 2017 Millage Rate REAL Net Value Added-Reassessment of Existing Real Property 2017 Net Digest Other Net Changes to Taxable Digest

The Mayor and Council of the City of Newnan has tentatively adopted a 2018 millage rate which will require an increase in property taxes by 5.82 percent. All concerned citizens were invited to the public hearings

• n this tax increase held at 25 LaGrange Street, Newnan,

Georgia in the Council Chambers at City Hall on Tuesday, August 7, 2018, at 6:30 PM and Friday, August 10, 2018, at 11:00 AM. The third and final public hearing on this tax increase will be held at City Hall, 25 LaGrange Street, Newnan, GA

• n August 14, 2018 at 2:30 PM.

This tentative increase will result in a millage rate of 4.00 mills, an increase of 0.22 mills. Without this tax increase, the millage rate will be no more than 3.78 mills. The proposed tax increase for a home with a fair market value of $150,000 is approximately $7.80 and the proposed tax increase for a home with a fair market value

• f $250,000 is $13.00.

Required Public Advertisement in Legal Organ

City 2013 2014 2015 2016 2017 2018* Real and Personal $936,159,264 $1,081,798,682 $1,175,236,951 $1,204,536,961 $1,322,596,403 $1,419,667,563 Motor Vehicles 69,857,690 56,791,200 39,862,510 28,360,230 20,606,520 15,045,190 Mobile Homes Timber - 100% Heavy Duty Equipment Gross Digest $1,006,016,954 $1,138,589,882 $1,215,099,461 $1,232,897,191 $1,343,202,923 $1,434,712,753 Less M & O Exemptions Net M & O Digest $1,006,016,954 $1,138,589,882 $1,215,099,461 $1,232,897,191 $1,343,202,923 $1,434,712,753 State of Georgia Forest Land Assistance Grant Value $0 $0 $0 $0 $0 $0 Adjusted Net M & O Digest $1,006,016,954 $1,138,589,882 $1,215,099,461 $1,232,897,191 $1,343,202,923 $1,434,712,753 Gross M & O Millage 9.490 8.805 8.988 9.241 8.709 8.707 Less Rollback 5.120 4.655 4.938 5.191 4.839 4.707 Net M & O Millage 4.370 4.150 4.050 4.050 3.870 4.000 Net Taxes Levied $4,396,294 $4,725,148 $4,921,153 $4,993,234 $5,198,195 $5,738,851

Net Tax $ Increase/(Decrease)

$38,569 $328,854 $196,005 $72,081 $204,962 $540,656

Net Tax % Increase/(Decrease)

0.9% 7.5% 4.1% 1.5% 4.1% 10.4% * Proposed Millage Rate. Actual Millage Rate will be determined by Council at the August 14, 2018 meeting.

City of Newnan

CURRENT 2018 TAX DIGEST AND 5-YEAR HISTORY OF LEVY

2017 Prop Tax Digest Millage of 3.87 3.78* 3.87 4.00 Real and Personal $1,322,596,403 $1,419,667,563 $1,419,667,563 $1,419,667,563 Motor Vehicles 20,606,520 15,045,190 $15,045,190 $15,045,190 Adjusted Net M & O Digest $1,343,202,923 $1,434,712,753 $1,434,712,753 $1,434,712,753 Gross M & O Millage 8.71 8.49 8.58 8.71 Less Rollback 4.84 4.71 4.71 4.71 Net M & O Millage 3.87 3.78 3.87 4.00 % Increase over Rollback 2.38% 5.82% Net Taxes Levied $5,198,195 $5,423,214 $5,552,338 $5,738,851

Net Tax $ Increase/(Decrease)

$204,962 $225,019 $354,143 $540,656

Net Tax % Increase/(Decrease)

4.1% 4.3% 6.8% 10.4% Projected Impact - Collections @ 93% Rate

• Net Taxes Collected

$4,880,179 5,043,589 $ 5,163,675 $ 5,337,131 $

• Net Tax $ Increase/(Decrease)

$204,962 $163,410.21 $283,495.67 $456,952.44

• Net Tax % Increase/(Decrease)

4.1% 3.3% 5.8% 9.4%

City of Newnan, Georgia

2018 Property Tax Millage Rate Scenarios

2018 Millage Rate Scenarios

2017 Prop Tax Digest Millage of 3.87 3.78* 3.87 4.00 Annual Taxes:

Based on Home Valued at:

Property Tax Property Tax Property Tax Property Tax $75,000.00 $116.10 $113.40 $116.10 $120.00 $100,000.00 $154.80 $151.20 $154.80 $160.00 $125,000.00 $193.50 $189.00 $193.50 $200.00 $150,000.00 $232.20 $226.80 $232.20 $240.00 $175,000.00 $270.90 $264.60 $270.90 $280.00 $200,000.00 $309.60 $302.40 $309.60 $320.00 $225,000.00 $348.30 $340.20 $348.30 $360.00 $250,000.00 $387.00 $378.00 $387.00 $400.00 $275,000.00 $425.70 $415.80 $425.70 $440.00 $300,000.00 $464.40 $453.60 $464.40 $480.00 $325,000.00 $503.10 $491.40 $503.10 $520.00 $350,000.00 $541.80 $529.20 $541.80 $560.00 $375,000.00 $580.50 $567.00 $580.50 $600.00 $400,000.00 $619.20 $604.80 $619.20 $640.00

City of Newnan, Georgia

2018 Property Tax Millage Rate Scenarios

2018 Millage Rate Scenarios

2017 Prop Tax Digest Millage of 3.87 3.78* 3.87 4.00 Annual Impact on Property Taxes from 2017 Rate: $75,000.00 ($2.70) $0.00 $3.90 $100,000.00 ($3.60) $0.00 $5.20 $125,000.00 ($4.50) $0.00 $6.50 $150,000.00 ($5.40) $0.00 $7.80 $175,000.00 ($6.30) $0.00 $9.10 $200,000.00 ($7.20) $0.00 $10.40 $225,000.00 ($8.10) $0.00 $11.70 $250,000.00 ($9.00) $0.00 $13.00 $275,000.00 ($9.90) $0.00 $14.30 $300,000.00 ($10.80) $0.00 $15.60 $325,000.00 ($11.70) $0.00 $16.90 $350,000.00 ($12.60) $0.00 $18.20 $375,000.00 ($13.50) $0.00 $19.50 $400,000.00 ($14.40) $0.00 $20.80

City of Newnan, Georgia

2018 Property Tax Millage Rate Scenarios

2018 Millage Rate Scenarios

$0 $200,000,000 $400,000,000 $600,000,000 $800,000,000 $1,000,000,000 $1,200,000,000 $1,400,000,000 $1,600,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Digest History 2005 – 2018

Total Digest Digest Grew by $343M, 45.8% Digest Decreased by $104M, -9.3% Digest Grew by $428M, 42%

4.5 4.4 4.34 4.32 4.27 4.36 4.39 4.59 4.64 4.37 4.15 4.05 3.88 3.87 4.5 4.4 4.34 4.32 4.32 4.32 4.39 4.39 4.39 4.37 4.15 4.05 4.05 3.87

3.4 3.6 3.8 4 4.2 4.4 4.6 4.8 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Millage Rate History

Rollback Rate Adopted Rate

($76,725) ($52,263) ($19,958) $50,594 ($44,413) $77,167 ($208,376) ($244,486) ($20,454) ($250,490) ($121,510) $209,593 ($241,777) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Annual Impact of Adopted Millage vs Holding Millage

($76,725) ($139,369) ($179,622) ($182,140) ($199,860) ($121,264) ($114,607) ($107,574) ($132,950) ($398,506) ($546,795) ($554,804) ($846,218) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Compounding Impact (w/ 4.5 Millage Base)

$ (3,600,433)

Adopted Budget Est Revenue @ 4.0 Millage Variance To Budget 2018 Property Taxes $4,950,000 $5,337,131 $387,131.00 Adopted Budget Est Revenue @ 3.87 Millage Variance to Budget 2018 Property Taxes $4,950,000 $5,163,675 $213,675.00 Adopted Budget Est Revenue @ 3.78 Millage Variance to Budget 2018 Property Taxes $4,950,000 $5,043,589 $93,589.00

2018 Property Tax Budget

93% Collection Rate

Potential Budget Impacts

TAVT Revenue Hiring of Fire Fighters Establishment of Leisure Services Additional Beautification Crew Downtown Sanitation Supplement Trolley Operations Unknown Health Insurance Other Employee Requests Potential Pay Increase

$832,934 $1,102,344 $1,153,165 $885,404 $1,037,383 $1,474,000 $1,159,543 $948,209 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2013 2014 2015 2016 2017 2018 2019 2020

TAVT Revenue

It is estimated that HB329, adopted in the 2018 Legislative Session and effective July 2019 will impact TAVT collections by an estimated $500,000 by 2020.

Why the decrease to TAVT?

Under the existing law, Newnan receives approximately 9% of the total TAVT dispersed in Coweta County. This is based upon current LOST and SPLOST distribution formulas. Under the new law, city’s will receive 23% of the vehicles registered WITHIN THEIR CITY. Based on data from the Tax Commissioner, it is estimated that Newnan has 20% of the vehicles in the County. 20% x 23% equals a 4.6% share The local share is increasing from 51% to 65%, but Cities are not the beneficiary of the increase. In order to maintain closer to a 9% share, the % of vehicles registered in Newnan would need to be closer to 40%.

Fire Staffing at Station #4

The new station is slated for completion in late summer of 2019. This will require the hiring of 6 new firefighters. Projected Costs: 2019: $150,000 (half-year) 2020: $300,000

Leisure Services

This function was created earlier in 2018 to manage program within select city

• facilities. The Manager has been hired with plans to hire the additional staff person

early in 2019. Projected Costs: $75,000 Additional

Beautification Crew

An additional crew will be needed to maintain new facilities such as the LINC, Fire Station #4, and the Dog Park. We have also added facilities over the past several years without the addition of a crew. Projected Costs: $245,000

Downtown Sanitation

As previously discussed, the operation is running at a deficit and will require

• supplement. The General Fund is currently the source of such supplement.

Projected Costs: $115,000

Trolley Operations

The purchase of a trolley included in the 2013 SPLOST Program. Council has previously discussed operating the trolley on a fixed-route along McIntosh Parkway going between Downtown Newnan and Ashley Park. Projected Costs: $145,000

Health Insurance

As of this report, we have not received notice of our renewal premium for Health

• Insurance. We have taken steps over the past few years to help minimize the loss

ratio, but we should still expect some level of increase. Rates increased 10% in 2018, 12% in 2017, and 7% in 2016. Projected Costs: A 10% increase would be approximately $290,000

Other Employee Request

It is anticipated that the budget process will see new employee and reclassification requests from several departments. In 2018, there were a total of 23 requests which totaled $1,027,000. Projected Costs: TBD

Pay Increase

With each budget year, we try to provide pay adjustments for our employees. Adjustments since 2012 have ranged from 2% to 3.9%. Projected Costs: Each 1% of pay adjustment is approximately $135,000.

TOTALS - Potential Budget Impacts

TAVT Revenue ($300,000) Hiring of Fire Fighters $150,000 Establishment of Leisure Services $75,000 Additional Beautification Crew $245,000 Downtown Sanitation Supplement $115,000 Trolley Operations $145,000 Unknown Health Insurance (10%) $290,000 Other Employee Requests TBD Potential Pay Increase(3%) $405,000

$1,725,000

Comparison of 18 Georgia Cities with populations between 26,000 and 40,000, average cost per capita is $730. Newnan ranked 15th at $610.

Early Revenue Projections for 2019 (@ 4 Mils)

Overall, Increase Estimated at 5.41% or $1,311,800. 2018 Budgeted Revenue 2019 Estimated Revenue $24,251,100 $25,562,900

2019 % Change Property Taxes $6,149,500

$6,842,000

11.26% Sales Taxes $6,600,000

$7,000,000

6.06% Excise Taxes $4,375,000

$4,448,000

1.67% Occupational Taxes $3,110,000

$3,111,000

0.03% Permits $630,000

$680,000

7.94% Service Charges $587,100

$714,900

21.77% Fines $594,500

$542,000

• 8.83%

Water and Light $1,650,000

$1,650,000

0.00% Other Local Revenue $555,000

$575,000

3.60%

$24,251,100 $25,562,900

5.41% 2018

University of West Georgia Debt Estimated Yearend Balance: $511,396

2012 2013 2014 2015 2016 2017 2018 Est

Total $19,077,393 $21,281,008 $23,151,435 $24,211,497 $24,237,383 $24,143,129 $25,009,013 Non Spendable $6,647 $16,728 $3,027,727 $2,284,814 $1,543,948 $791,483 $41,483 Restricted $61,140 $137,715 $33,670 $30,404 $15,470 $94,240 $98,152 Committed $0 $1,400,871 $2,500,000 $1,150,000 $2,353,593 $0 $500,000 Assigned $548,916 $385,070 $395,476 $449,037 $704,848 $607,010 $678,633 Unassigned $18,460,690 $19,340,624 $17,194,562 $20,297,243 $19,619,524 $22,650,396 $23,690,745

FUND BALANCE

Unassigned as % of GF Budget 104% 103% 80% 91% 86% 93% 93%

IN CLOSING

The City of Newnan has long been known for financial excellence and a very high level of service to our constituents. We have also been known for being able to

• ffer these services very efficiently. Our cost of service per capita has always been
• ne of the lowest when compared to other cities of our size. We ask a lot of our

employees and they almost always deliver beyond our expectations. Some of these services are beginning to push the limits of our staff and current resources. In order to insure that our high level of service continues, in addition to offering new select services, Council should consider adopting a millage rate of 4.00.