Augusta Commission Tackles $11 Million Budget Deficit

Commissioners discussing budget issues during a meeting

News Summary

The Augusta Commission is addressing a budget deficit of nearly $11 million, primarily due to federal repayment obligations and rising employee healthcare costs. A proposal to utilize $10.9 million from the city’s fund balance garnered support, aiming to ease the financial strain while adopting rollback millage rates for taxpayers. The commission seeks to boost community services, exploring a potential water park development to enhance recreation options. With tax rate discussions on the horizon, the decisions made will impact residents and the city’s fiscal health significantly.

Augusta—The Augusta Commission is currently engaged in efforts to address a budget deficit that has reached nearly $11 million, as reported on Tuesday. This significant fiscal challenge primarily stems from the city’s obligation to repay over $6 million to the federal government due to unspent pandemic assistance grant funds.

In addition to the federal repayment, Interim Finance Director Timothy Schroer highlighted that soaring employee health care costs have contributed an extra $7.8 million to the city’s financial woes. In response to these pressing issues, Commissioner Wayne Guilfoyle put forward a proposal to utilize $10.9 million from the city’s fund balance to mitigate the deficit. This motion garnered support, receiving a favorable vote of 10-1 from fellow commissioners.

As part of the proposal, the commissioners also adopted full rollback millage rates, a move aimed at easing the financial burden on taxpayers. However, not all members of the commission supported this decision; Interim Commissioner Tanya Barnhill-Turnley cast the lone dissenting vote. Commissioner Brandon Garrett emphasized the commission’s commitment to assisting residents with their tax obligations, especially in light of an impending plan by local school authorities to increase millage rates.

Despite the ongoing financial challenges, the commission is also addressing other pressing community issues. The region continues to grapple with food insecurity nearly a year after Hurricane Helene, prompting initiatives like Golden Harvest’s Spooky to be Hungry campaign, which aims to alleviate hunger in Augusta.

Commissioner Don Clark voiced the importance of resolving the deficit efficiently while urging the public to maintain trust in the commission’s leadership. This urgency has led to discussions surrounding potential cuts to services and the necessity of raising taxes if the city is to cover an anticipated $8 million shortfall in the next budget cycle.

Looking ahead, the potential impact of property tax increases has become a focal point of discussion among city leaders. A proposed 1-mill increase in county property tax is projected to cost homeowners an additional $89.33 annually based on an average property value of $200,000. Concerns remain regarding how these tax adjustments will affect constituents, particularly as other fees, such as those for streetlight maintenance and garbage collection, may also be on the rise.

In an effort to boost community services and recreation options, the commission is also exploring the development of a water park, possibly located at Diamond Lakes Regional Park. Initial plans include a $5 million funding allocation through SPLOST 8. Additionally, the commission is seeking a partnership to facilitate the water park’s development, drawing on similar successful collaborations in the past, such as the zipline attraction.

In a related move, several new members were appointed to the Augusta Economic Development Authority, including Gregory Hill and former Mayor Deke Copenhaver, though the reappointment of Steven Kendrick was turned down. These appointments aim to enhance economic growth initiatives amidst the prevailing budgetary challenges.

With tax rate discussions scheduled for early September, the commission faces an imminent timeline for finalizing tax rates, which will be followed by negotiations for the upcoming fiscal year’s budget. Amid rising expenses and a growing deficit, the Augusta Commission’s decisions in the coming weeks will have significant ramifications for residents and the city’s future fiscal health.

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Additional Resources

STAFF HERE AUGUSTA WRITER
Author: STAFF HERE AUGUSTA WRITER

AUGUSTA STAFF WRITER The AUGUSTA STAFF WRITER represents the experienced team at HEREAugusta.com, your go-to source for actionable local news and information in Augusta, Richmond County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Arts in the Heart Festival, Westobou Festival, and Masters Week. Our coverage extends to key organizations like the Augusta Metro Chamber of Commerce and Greater Augusta Arts Council, plus leading businesses in manufacturing and healthcare that power the local economy such as Textron Specialized Vehicles, Cardinal Health, and Nutrien. As part of the broader HERE network, including HEREAtlanta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.

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