Fulton Property Tax Bills Could Decrease Under New County Budget

Most residents and other property owners in the Cascade area should see a decrease in their county property tax bill this year.

That’s the outcome of two actions:

• Fulton County’s Board of Commissioners did not increase the tax rate for this year’s county budget when it approved in January the 2011 operating budget.
• The basic homestead exemption for property taxes will increase this year from $25,000 to $30,000.

However, the county did raise certain fees this year and Cascade residents and merchants saw them take effect Feb. 1. The new fee schedule can be seen on this county website.

Current recipients of a homestead exemption do not need to reapply. First-time applicants must occupy the home as of Jan. 1 and file an application by April 1. More information is available from the Fulton County Board of Assessors.

The reason most property tax bills will drop is a result of the falling assessments of property values. In prior years, rising property assessments drove tax bills higher even if the tax rate was unchanged.

But because assessments are flat or trending downward, the unchanged tax rate will most likely result in a tax bill that is lower than in 2010. Add in the higher homestead exemption, and the overall bill from the county government likely will be lower than in 2010.

The Fulton County Board of Education will vote later this year on the tax rate to run the county schools.

County spokeswoman Jolene Butts Freeman provided details of the budget in a conversation with Cascade Patch. Here are some highlights:

Q: What is the county’s budget for maintenance and operation this year and what was it last year?

A: The 2011 General Fund operating budget is $600,658,411 and the 2010 General Fund operating budget was $588,501,410

Q: What was the vote by the Board of Commissioners?

A: The vote was 5-2, with commissioners Robb Pitts and Liz Housmann voting against the budget.

Q: Should property owners expect to see any increase in their property tax bill, through any upward reassessment of property values in the cascade area?

A: The average property owner in the area could expect to see a decrease in their property tax bill because of the downward trend in real property assessment which has been going on in the last couple of years throughout the County due to the economy and foreclosure.

Additionally, in 2011 the basic homestead exempt will increase another $5,000 to bring the  2011 total basic homestead exemption to  $30,000.  With the assessments trending down, the basic homestead exemption increasing and the millage staying the same, the net result is a reduction in Fulton County General Fund tax bill.

Q: Will service levels continue at the 2010 level?

A: Yes. The budget was prepared with projection that service levels will remain the same as in 2010.

Q: What amount was authorized for Grady Health System?

A: The board approved $62,117,195 for Grady Health System operations and clinics in 2011, in addition to the $17 million financed for debt service.

Q: Were there any pay increases for lower-income Employees

A: The Board of Commissioners approved 2 percent salary increase effective on June 22, 2011 for those employees with annual salary of $40,000 or below. This was the first increase since July 11, 2007.

Q: Were payments to the pension fund provided?

A: Yes. The FY2011 approved budget includes funding for county contribution to the pension plan

Q: At what percentage is the pension program funded?

A: The Defined Benefit Plan, which was closed to new entrants in 1999, has a funded ratio (assets to liabilities) of 77.8 percent.  The amount funded annual is determined by the Actuary based on the minimum funding requirements imposed by the state of Georgia.