News Summary
In a recent meeting, the Augusta Commission voted 10-1 to implement full rollback millage rates to address potential budget shortfalls. Despite rising financial concerns, this decision allows the city to maintain last year’s tax revenue levels. Interim Finance Director Tim Schroer projected a significant budget shortfall of $10.9 million for the upcoming fiscal year, prompting discussions on necessary spending cuts and potential increases in streetlight fees. Further discussions on the budget and proposed rate changes are set for an upcoming meeting.
Augusta – The Augusta Commission has taken decisive action to address potential budget shortfalls by adopting full rollback millage rates during a meeting on Tuesday. This decision, passed with a vote of 10-1, enables the city to generate the same amount of tax revenue as last year, despite rising financial concerns.
The motion to adopt the rollback rate was supported by the vast majority of commissioners, with only interim Commissioner Tanya Barnhill-Turnley opposing the measure. According to Commissioner Brandon Garrett, while the city government aims to alleviate the financial burden on its residents, it lacks the authority to influence tax decisions made by the Richmond County Board of Education, which recently increased its millage rate.
Amid these financial deliberations, interim Finance Director Tim Schroer highlighted a troubling projected budget shortfall of $10.9 million for the 2025 fiscal year. This deficit arises from significantly rising costs and unexpected expenses, ultimately eclipsing anticipated revenue increases estimated at over $4 million from various sources, including property taxes, sales taxes, and franchise fees.
Among the contributing factors to this budget gap are unknown expenses related to a repayment of $6.5 million to the U.S. Treasury for unspent pandemic grant funds, which includes a potential $2.2 million penalty. Additionally, the Richmond County Sheriff’s Axon contract has incurred an unforeseen overruns totaling $400,000, while prisoner healthcare costs have surged by $1 million. Furthermore, employee healthcare expenses have escalated by $7.8 million following a poor claims experience.
Given the financial strain, Schroer emphasized the necessity of increasing the current 22 percent employee insurance contribution as a critical measure to stabilize the budget. An increase of 1 mill in countywide taxed property would result in approximately $8 million in additional revenue, which would translate into an estimated $89.33 increase in annual city property taxes for homeowners with properties valued at $200,000.
Mayor Garnett Johnson addressed the need for strategic spending cuts and described the fiscal situation as an urgent concern. Meanwhile, Commissioner Don Clark criticized the proposed tax increases, especially in light of recent increases in streetlight and garbage service fees.
The commission currently has control over about $60 million of Augusta’s $206 million general fund revenue, with the remainder dictated by various elected officials and governing bodies. In response to the financial crisis, the commission plans to hold a called meeting on August 12 to discuss the budget shortfall further.
In addition to addressing the budget shortfall, the commission is examining the need to adjust streetlight fees, proposing an increase from $85 to $95 for the annual residential fee, while commercial and tax-exempt properties would rise to $295. Furthermore, approximately 15,000 homeowners who do not currently pay a streetlight fee may soon see a new $45 fee added to their tax bills.
The commission will return on August 12 to thoroughly explore these proposed rate changes and their implications for the community. Additionally, discussions regarding utilizing city reserves to address the budget shortfall are ongoing. However, existing policy requires that reserves be maintained at 43% of expenditures, which translates to around $80 million.
It’s worth noting that Augusta has consistently maintained the rollback rate annually since 2014, and the current millage rate remains lower than it was in 2005, reflecting ongoing fiscal management efforts.
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Additional Resources
- WRDW: Augusta Leaders Solidify Rollback Millage Rate
- Wikipedia: Property Tax
- The Augusta Press: Augusta Weighs Millage Rate Increase
- Google Search: Augusta commission property tax
- Augusta Chronicle: Property Taxes and Inflation
- Google Scholar: Augusta property tax
- Post and Courier: No Property Tax Increase Proposed
- Encyclopedia Britannica: Property Tax
- The Augusta Press: Streetlight Fee Hike
- Google News: Augusta Commission budget shortfall
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.
