Flowery Branch’s proposed 2020 property tax rate is staying the same, but, if approved, that would mean a hike for residents with rising property values.
The city is proposing to keep the rate at 3.264 mills, with 1 mill equal to $1 per $1,000 in assessed property value. Under that formula, a $250,000 home would be taxed at $326.40.
Rising home values are increasing property tax revenues for the city. To keep the revenue amount the same as in 2019, the city would have to drop the tax rate to 3.178 mills.
The city is proposing a $5.1 million budget in fiscal 2021, which begins July 1. The current budget is $5.2 million.
While property tax revenues are generally the same in the proposed budget, there are revenue losses elsewhere, such as in local option sales taxes, which are dropping from $1 million to $750,000, or by 25%.
Local governments have had to wrestle with lost revenue from the COVID-19 pandemic.
Flowery Branch, where hundreds of homes are being built, had planned “to hire new employees to keep pace with our growth, (but hiring) has been put on the shelf for now,” City Manager Bill Andrew has said.
“Due to projected declining revenues, particularly in sales taxes, we are carefully examining the most effective ways to cut costs while still trying to maintain an acceptable level of service,” he said.
A public hearing is set for 9 a.m. and 6 p.m. June 18 on Flowery Branch’s tax rate. The meeting will take place at Flowery Branch City Hall, 5410 W. Pine St. Another public hearing is set for 6 p.m. June 25 at the same location.
Flowery Branch City Council
What: public hearings on proposed 2020 tax rate
When: 9 a.m. and 6 p.m. June 18 and 6 p.m. June 25
Where: Flowery Branch City Hall, 5410 W. Pine St.