Roy Exum
Joe Graham tossed out what could be a “game saver” for Hamilton County on Wednesday. As the FY2018 budget proposal was presented by Mayor Jim Coppinger to the County Commission, Graham offered a somewhat confusing solution that could, in fact, be one heck of a plan, While he said he’s neither for nor against a unique proposal to stall the approval of the budget, he explained the state will certify a new millage rate for the county in late July or early August.
Graham believes if an opportunity is played right, and the Commissioners worry more about our education and safety woes than their re-election chances, the respect they will gain will far outweigh any future election barrier. “What if we left the current rate in place?” he wondered and, brother, I think he’s on to something.
His fellow commissioners immediately seemed nervous but Greg Beck and Warren Mackey appeared ready to talk about it, and the more you think about his idea, the more sense it makes because it would result into a sensational windfall. With a budget increase of only 1.7 percent, Hamilton County has never needed a miracle quite as badly and the fact it has been over a decade since the last tax increase, the entire county infrastructure is struggling from the irresponsible drought.
Simply put, the millage rate is the amount per $1,000 used to calculate taxes on property. In Hamilton County it is currently $2.76. Those who live in Chattanooga pay an additional $2.30 in city taxes, compared to an additional $1.42 in the city of East Ridge, or $1.56 on Signal Mountain, and so forth. The millage rate is set every four years and this summer it is now believed a big change is coming.
Word around the courthouse is that with property values climbing all around the county, the new millage rate could drop by approximately 10 cents. That will have a big effect on the FY2018 budget and, depending how the commissioners handle the changes, it could become a huge blessing for all of Hamilton County and get us out of a deepening ditch.
What other cities and counties around the United States sometimes do when the millage rate changes is to keep the old tax rate in place, diverting the new money towards the public good. As a matter of fact, there is a strong rumor the city of Chattanooga will do this with the city’s new millage rate because it is not a tax increase at all.
Most property owners are seeing their land values go up and – yes -- the down side is that while the millage rate stays the same, the taxes on the increased assessment will be more for the property owner to pay. But when they sell property with a higher appraisal value, that’s when they will realize a gain in a higher price for their property.
The immediate upside is that Hamilton County will have an additional $20 million or so in income if it keeps the millage rate at $176 instead of dropping it to an anticipated level of around $157 for the next four years. Since the FY2018 budget must be revenue neutral, a careful plan could be in place and ready to us before the money causes the proposed budget to change dramatically. In short, the County Commission should hold the budget – why not? It isn’t required to be submitted until Sept. 1.
So, let’s figure the county gets $20 million. Mayor Coppinger takes that Godsend to the bond market where, with the county’s AAA rating, we get a bond for $200 million. Now let’s take another look at our FY2018 budget. Commissioner Mackey says the small 1.7 increase over last year proves Hamilton County is unwilling to move forward. It doesn’t match inflation. But an infusion of $200 million to the proposed $691,498,923 is just under 30 percent, the biggest increase in years.
If we throw an additional $200 million into the budget – with 66 percent allocated to the schools – we can get that new middle school we desperately need in the bustling north end of the county. We can make urgent repairs district wide. We can fund the HCDE “urgent needs” list. We can create a funding pattern where new schools will begin being built on a regular basis and we can get out of a deepening ditch that is strangling public education rather than supporting it.
We could add more jailers, we could increase pay for sheriff’s deputies and teachers. When you have no new income in education for the last 12 years, are you still wondering why problems seem to mount? A permanent superintendent is expected to be picked next week – that person needs an arsenal of support to hire assistants and begin the arduous duty of winning back the public trust.
Can you imagine what the county’s financial guys – Al Kiser and Lee Brouner – could budget with such a heaven-sent influx? The millage money could service the bond as other bonds are retired. Think about Coppinger’s delight in being able to say “yes” for a couple of days.
There is a noted concern that senior citizens on fixed incomes can’t handle a tax increase but this is a better solution. It is based on property value and new assessments vary quite a bit. That’s why it is believed many seniors and low-income properties are not faced with large assessments because property value, without vast improvements, stays relatively the same. The millage rate does, too.
Trust me, the Department of Education, the sheriff’s office, the girls in Bill Knowles’ office, and all else in Hamilton County government want the Commission to have the conversation. This could really change things, most especially our future.
royexum@aol.com