Lookout Mountain, Ga., Mayor David Bennett said at a budget public hearing on Tuesday night that there will be a two percent increase in the property tax millage rate in the upcoming budget. The current millage rate is 9.35.
There is also the possibility of a new fire service fee. Mayor Bennett said with all the other commitments of the city, it will be difficult to fund a new fire truck. He proposed a possible fire service fee of $25 per year per household, which would generate about $15,000 per year. Town Attorney Bill Pickering said that a number of other cities in Georgia have fire fees, but they are in lieu of a portion of the property tax, not just tacked on.
The public meeting was held at the Lookout Mountain, Ga., town hall for the first reading of the 2017-2018 budget amendment. The first reading to adopt the new budget for fiscal year 2018-2019 also was on the agenda. Both passed unanimously on first reading.
The General Fund provides funding for city services such as the fire and police departments, the general administrative department, parks and the public works departments. In the past year, the city’s general fund received $50,000 more in revenue than had been budgeted. Increases were seen in real and personal taxes, motor vehicle tax, intangible tax and a grant from GDOT. Figures that were below expectations last year, included a reduction in franchise fees from Comcast because EPB is picking up some customers, which will carry over into the new budget. The sales tax projection is also being lowered in the 2018-19 budget by about $20,000. The total revenue for the general fund in the 2018-19 fiscal year budget is $1,281,451.61.
The property tax rate that will be set in September will reflect the budget. Some items included in the new budget are over $60,000 that will be designated for the town center development. the purchase of a new garbage truck and some sewer repairs. There also will be a three percent increase in employee benefits.
In a few days, the new budget will be posted online for the public to be able to familiarize themselves with it. A second and final reading of the new budget will be held at the regular June council meeting.
The need for the new fire truck was also discussed at the meeting. The town now owns one that is 10 years old and another that is 25 years old. The oldest needs to be replaced or the town’s ISO rating might be lowered, which could cause an increase of eight percent in homeowner’s insurance costs.
Council member Taylor Watson said that the fire department has been keeping other equipment up to date and would be prepared for an ISP inspection. The last inspection was done three years ago. No grants have been found applicable to the purchase of a truck, though grants have been found for other equipment used by the fire department.
The town has three additional funds separate from the General Fund. The Water and Sewer fund revenue and expenses for 2018-2019 are budgeted for $830,520, and the Solid Waste Fund which is for domestic and commercial garbage, has projected $266.300 for operations which includes the new garbage truck that has already been ordered. The amount of $34,000 that is expected from the Hotel / Motel fund will be used for the town center’s debt service.