MillageRate.com

The Atlanta Journal/Constitution reports that a Clarkston (DeKalb County) mayoral candidate, Abdul Akbar, plans to make the budget and the recently-adopted millage increase a primary issue in his effort to unseat incumbent Lee Swaney.

MillageRate.com sent the following correspondence to Karen Hill, the AJC reporter:

Karen,

I have just read your article about the candidates for the Clarkston mayoral race.

Earlier this year, I helped the Clarkston City Council sort out the tax problem. My efforts included teaching them how to correctly calculate the millage rate. My email is not intended to be an endorsement of Lee Swaney’s reelection; I do not know the man that well, neither do I live in Clarkston. However, this year the City Council under Mayor Swaney joined a small but elite group of Georgia cities, counties and school boards– taxing authorities who actually adopted a mathematically correct millage rate.

There is only one way to correctly calculate the millage rate which, as you know, is the amount of tax on every $1,000 of taxable value required to fully fund the taxing authority’s budget. (You can read about the calculation process here: http://www.millagerate.com/howto.htm ).

There is no law that requires cities, counties and school boards to correctly “do the math.” As a consequence, our research indicates that over 9 out of 10 Georgia taxing authorities annually adopt mathematically incorrect millage rates. The majority adopt rates that are arbitrarily inflated– in other words, they OVERtax their property owners via an incorrect rate.

For several years, Clarkston had been at the other end of the spectrum. The city had dutifully rolled its millage rate back based on the requirements of the “Taxpayers Bill of Rights” ( http://www.millagerate.com/law/billofrights.htm ), to the point that the millage rate no longer generated enough revenue to fund the budget.

The taxpayers of Clarkston have, for several years, enjoyed exceptionally LOW tax rates. This year, however, budget pressures and the consequences of not calculating the millage correctly came home to roost. The city faced another crippling deficit and the probability that the city’s cash reserves would be depleted.

Under the guidance of new City Clerk Tracy Ashby and Finance Officer Juliette Paxton, AND at the insistence of a handful of citizens who understood that the city’s financial future was in jeopardy (ala Lithonia), the City Council “bit the bullet” and adopted a mathematically correct rate that fully funded a “bare bones” budget yet did not take more money from the taxpayers than was necessary.

I commend Mayor Swaney and the rest of the Council who voted, despite the obvious political risk, to adopt a tax rate that protects the city’s financial future yet does not unnecessarily and arbitrarily overtax the property owners of Clarkston.

I recommended to the Mayor and Council that they focus on next year’s budget, minimizing expenses where possible, and identifying non-tax revenue sources to reduce the dependence on property tax revenue. The Council and staff seemed highly motivated to do so; I fully expect Clarkston’s financial picture to improve significantly in coming years should the Council continue under Mayor Swaney’s leadership.

In April, I taught a mini-seminar for Clarkston residents on the city’s budget and tax situation. The seminar notes provide a decent, although certainly not comprehensive, assessment of Clarkston’s financial situation. You can view the seminar material here: http://www.aboutclarkston.com/050421seminar/ .

I welcome your questions.

Take care,

Bob Griggs

MillageRate.com commends Mayor Lee Swaney and the Clarkston City Council and staff for recognizing their obligation to deal honestly with their constituents, taking no more money from their property tax payers than necessary to fund the budget. The City Council should also be commended for acting decisively to rescue the city from certain financial disaster by establishing a frugal and realistic budget, even when it means adopting a tax rate, although mathematically correct, which is significantly higher than the deficient rates of recent years.