Tax Millage Rate Increase Defeated
Friday, October 22, 2010
The proposed millage rate increase was defeated at the October 7th called Council meeting. The vote was unanimous. The unanimous vote was somewhat unexpected since the Council had voted earlier to consider the increase in millage from 6.8 to 7.3 mills. Even those proposing the increase, voted to keep the millage at 6.8. So, after about six weeks delay and perhaps $1,500 in advertising expense, some members of the Council had a change of heart and voted no. This is thanks to your input and thanks to those spoke at the Council meeting and voiced objection to the increase. Thank You..!
The Best Way To Increase Your Taxes
Tuesday, September 21, 2010
At the Canton City Council meeting on September 16th, the Council voted to hold a 3rd Public Hearing on the proposed Millage increase....Therefore the vote on whether to increase the property tax millage will be held at the next City Council meeting on October 7th......
One of the Council members remarked that he had heard no opposition to the increase...I understand that this member may be leaning toward voting in favor of the increase....The Best Way to get an increase in City taxes is to do nothing.....Don't Call your Council Member... Don't Call your Mayor.... Just be quiet and let the Government make all the decisions for you..... Someone else with speak for you....
Another Council member remarked earlier that we should bite the bullet, increase the millage and build up our reserve....Well I for one don't believe you build a reserve in troubled economic times.... you build a reserve when times are good..... we are in an economic drought...everyone is... We don't pump water out of the Etowah River to fill our Reservoir during a drought... we will do so when there's plenty of rainfall and water in the River....The same is true for building a reserve...
However, during the past years when the times were good, development was rapidly occurring and impact fees from developer was coming into the City coffers at a fast clip, the City was spending like there was no tomorrow!! Never thinking that the economy could ever become what it is today....So instead of building a reserve when the times were good and the money was rolling in, the City was borrowing and spending money like we would neve need a reserve....
But now, that we could use extra money, we are in a drought... but all our neighbors are too....we do not need to build a larger reserve on the backs of our citizens who are suffering just like the city....
So if you want an increase in your City tax millage rate, do nothing.....
One of the Council members remarked that he had heard no opposition to the increase...I understand that this member may be leaning toward voting in favor of the increase....The Best Way to get an increase in City taxes is to do nothing.....Don't Call your Council Member... Don't Call your Mayor.... Just be quiet and let the Government make all the decisions for you..... Someone else with speak for you....
Another Council member remarked earlier that we should bite the bullet, increase the millage and build up our reserve....Well I for one don't believe you build a reserve in troubled economic times.... you build a reserve when times are good..... we are in an economic drought...everyone is... We don't pump water out of the Etowah River to fill our Reservoir during a drought... we will do so when there's plenty of rainfall and water in the River....The same is true for building a reserve...
However, during the past years when the times were good, development was rapidly occurring and impact fees from developer was coming into the City coffers at a fast clip, the City was spending like there was no tomorrow!! Never thinking that the economy could ever become what it is today....So instead of building a reserve when the times were good and the money was rolling in, the City was borrowing and spending money like we would neve need a reserve....
But now, that we could use extra money, we are in a drought... but all our neighbors are too....we do not need to build a larger reserve on the backs of our citizens who are suffering just like the city....
So if you want an increase in your City tax millage rate, do nothing.....
Next Canton City Council Meeting: September 16th, 2010 @ 6::00 PM
Saturday, September 4, 2010
Remember the second public hearing for the proposed tax rate increase will be held at the Canton City Hall at 6:00 PM on Thursday, September 16. Some members of the City Council are proposing an increase from 6.80 to 7.4 mils. Voice your opinion at the meeting. After the public hearing the Council will cast their votes for or against the millage increase.. I would like to hear from as many of you as possible regarding this matter, supporters or opponents. Should the City increase the tax rate simply to build up reserves?? My opposition is well known. I believe you build a reserve in Good Times not Bad...... It is analogous to filling Canton's new reservoir.... Capture the water when there's plenty of rainfall... Don't try to fill the reservoir during a drought....... I believe we're in an economic drought now......Attend the meeting if you can.
Have a great Labor Day Weekend!
Gene Hobgood, Mayor
Have a great Labor Day Weekend!
Gene Hobgood, Mayor
Canton Considers Millage Rate Increase
Tuesday, August 31, 2010
The Canton City Council approved it's FY 2011 Budget at the August 19th City Council Meeting. The budget was approved with no change in millage rate. The Council then however, voted to begin the process to consider a millage increase of approximately 0.4 mills which in theory would be revenue neutral since our overall property tax digest decreased by approximately 8.5%.
In reality, however not everyone's property value decreased and by increasing the millage would mean a tax increase for those individuals. As Mayor I know that most of our citizens are having difficulty in these current economic conditions. Many are having difficulty making mortgage payments and many are in foreclosure. The American Dream has become a nightmare for many. The basic family essentials are becoming more and more difficult to maintain. Small businesses in our community are finding it more and more difficult to make ends meet.
Our City has been especially hard hit due to the rapid growth from annexations and a policy of "development at all costs". To give credit where credit is due this city tried to prepare for all the development and population surge its' development and annexation policies were inviting. Unfortunately, the financial arrangements of the previous administration which allowed for the accumulation of tremendous debt, failed to consider any possibility of a slower economy. Now you are left to pay the bill.
The good news is this. In early 2009, this Mayor and Council took the very difficult measures to insure the financial stability of this City. We reduced the total number of our employees by approximately 15% (22). We eliminated unnecessary expenditures and more closely managed your tax dollars. While we are certainly not in the financial position we would like, we have turned the corner and stabilized our finances, even ending our last two fiscal years with a positive fund balance.
My point is this. We can do with less in difficult times; through cost cutting and good financial management. We have a balanced budget for 2011. Some have suggested that we raise the millage to increase and build up a larger reserve. We do not need to raise the millage. We have more than $500K in contingency funds built into our FY 2011 budget. We also should also have at the very least an additional $250K in fund balance from FY 2010 (ending Sept 30). The City should have at least $750K if unforeseen expenditures should arise during the fiscal year.
Certainly, a larger reserve would be nice, but now is not the time to pad our financial position on the backs of City property owners.
In reality, however not everyone's property value decreased and by increasing the millage would mean a tax increase for those individuals. As Mayor I know that most of our citizens are having difficulty in these current economic conditions. Many are having difficulty making mortgage payments and many are in foreclosure. The American Dream has become a nightmare for many. The basic family essentials are becoming more and more difficult to maintain. Small businesses in our community are finding it more and more difficult to make ends meet.
Our City has been especially hard hit due to the rapid growth from annexations and a policy of "development at all costs". To give credit where credit is due this city tried to prepare for all the development and population surge its' development and annexation policies were inviting. Unfortunately, the financial arrangements of the previous administration which allowed for the accumulation of tremendous debt, failed to consider any possibility of a slower economy. Now you are left to pay the bill.
The good news is this. In early 2009, this Mayor and Council took the very difficult measures to insure the financial stability of this City. We reduced the total number of our employees by approximately 15% (22). We eliminated unnecessary expenditures and more closely managed your tax dollars. While we are certainly not in the financial position we would like, we have turned the corner and stabilized our finances, even ending our last two fiscal years with a positive fund balance.
My point is this. We can do with less in difficult times; through cost cutting and good financial management. We have a balanced budget for 2011. Some have suggested that we raise the millage to increase and build up a larger reserve. We do not need to raise the millage. We have more than $500K in contingency funds built into our FY 2011 budget. We also should also have at the very least an additional $250K in fund balance from FY 2010 (ending Sept 30). The City should have at least $750K if unforeseen expenditures should arise during the fiscal year.
Certainly, a larger reserve would be nice, but now is not the time to pad our financial position on the backs of City property owners.
Welcome to my Blog!
Monday, August 30, 2010
~Gene Hobgood
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