City of Americus discusses proposed millage increases during December 12 meeting

Published 12:57 pm Monday, December 16, 2024

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The City of Americus Council met on December 12. City Manager Diadra Powell gave the proposed budget for 2025. “Salaries account for 29% of the total expenditures in 2024. There is the 2.41% salary increase for 2025 however there is not a merit increase for 2025. Benefits such as insurance, Social Security, retirement and workers compensation account for 35% of the budget. Health insurance costs are estimated to increase 22.5%.” She stated there would be no increase for the employee portion of the premium.

She gave project funds. “Capital outlay projects for non-enterprise funds account for 7.2% of the projected expenditures for 2025. This includes the SPLOST funded projects identified in the 2014 SPLOST referendum and in 2019 SPLOST referendum. The capital outlay also includes street improvements funded by the TSPLOST and LMIG grant programs. Other operating expenses, excluding salaries and capital projects, accounts for 43% of the protected expenditures for 2025. These include the cost of utility operations, material supplies, utilities contract services and repair and maintenance for vehicles, etc.”

Powell also gave the proposed utility rates. “The base rate for water is projected to stay the same. The usage will remain the same, at 3.32 per cubic feet. The cutoff threshold will be increased as a result of the rate increases. The methodology of billing for sewer service has remained unchanged since we changed it in 2016. The sewer bill is based on the actual water consumption each month.”

Powell listed further utilities. “Gas rates for 2025 will be market plus the existing margin. There is no margin increase and there’s no increase in our stormwater rates. And as I indicated, our stormwater rates have been the same since we implemented that program over 10 years ago.”

She also proposed property tax increases. “Property taxes, as a result of the 2025 budget numbers, the millage rate is projected in the budget as 14.12 which is an increase of three mills.”

Powell listed retirement funding. “The retirement funding contributions to GMA administered retirement system, has gradually increased since 2015 as the markets have rebounded. The City’s contribution is returning to normal levels and this particular Budget is built around a contribution of 10.8%.”

She gave further spending. “The Mayor and Council’s budget includes over a million dollars for support of various community entities as well as the Rylander Theatre and tourism.”

Council member Charles Christmas commented on proposed increases for employees. “Health insurance costs [are] going up 22.5%, but we’re not charging the employee, and over the last, I don’t know, three years or so, we’ve gone up over 20% in salaries.”

Christmas stated dissatisfaction with the budget requiring a 3 mill increase. “I’m just not comfortable with the way the budget is set up right now. I think there’s other things within that budget that can go away personally.”

Afterward, Christmas answered questions about his views on the budget. When asked if there was anything else he would consider cutting not mentioned in the meeting such as the lobbyist, not making the raise universal, and Music Fest, he replied; “No, I mean those were the things that just stuck out, that were pretty easy.”

He commented on the 2.41% raise, stating that they were still in favor of; “raising the starting salary for public service, public safety, also the compression where you bring up those that are below that, which would take in that some of that 2.41% for the police, fire, and public works folks.”

Christmas reiterated the importance of taking care of compression. “Obviously, you raise the starting salary, you hire someone, and you got somebody already on the force that’s making less money, well you can’t do that, so you got to get them compensated to get to where they’re going to be where they need to be in order to raise that starting salary, so hopefully we can hire more folks and not have those vacancies.”

When asked if the proposed cuts would be significant enough to only raise the millage rate 1.5 instead of 3 mills, Christmas replied; “probably not, but it’s a start.”

He stated he was not against music fest. “I’m just thinking look for sponsorships, a different way of getting the $85,000.”

Council member Daryl Dowdell also expressed dissatisfaction with the 3 mill increase. He did state he believed there needed to be an increase, but was against the blanket 2.41% increase for employees. “It was clearly told to us that, in executive session and out here, that it was just a couple of people, two departments, that was going to get that, that percentage?” He stated the original proposal was to increase starting salaries in certain fields and to take care of compression, which would insure that existing employees’ wages did not fall behind the increased starting salaries.

Dowdell summed up his opinion on the proposed budget. “I’m not in favor of going forward with this budget.” He also stated he was; “not in favor of putting three mill off on our constituents.”

Dowdell commented further after the meeting. When asked if he thought that restricting the 2.41% raise, cutting Music Fest, and possibly the lobbyist would leave enough for the budget with a 1.5 mill increase instead of 3 mills, he replied; “I don’t.” He stated that the entire budget needed to be reviewed. He also stated he did not say he was in agreement with cutting the lobbyist or not. “But I think that the whole entire budget [needs] to be looked at and things that can be cut should.”

When asked if he had seen anything else in the proposed budget he believed should be cut, Dowdell replied; “Yes I have.”

When asked if he cared to comment he replied; “not at this time.”

Council member Kelvin Pless commented on costs during the meeting. “There’s one part that don’t negotiate.” He commented on the aging infrastructure of the City. He also spoke of cuts to the budget.

Kinnamon told how the Council did not move the millage rate back up after it was reduced during COVID. He mentioned another issue. “Appraisals are not reflective of market value.” He gave details from the County. “Chairman Baldwin told me that we are now at about 32% rather than 40% of the assessed value.” He stated the projected time for reassessment was 3 years.

He gave the implications. “It means that when we do the math to determine what one mill equals in terms of revenue, it is lower than it should be.”

Kinnamon gave his conclusion. “Adding mills might not be necessary if the actual mill reflected true market value.” Kinnamon did state that 3 mills did seem much for the citizens to bear in a single tax year. He proposed 1.5 mills as a compromise. He also stated that the adoption of the millage rate would not occur until October 2025 and three public hearings would be required if the increase was to be adopted.