The operating budget for 2009 will be set at $34.7 million, approximately $900,000 more than last year’s budget. The capital budget, which includes items such as equipment, facilities and other fixed assets, is $11.4 million.
In a 4-2 vote, Council also approved increasing the fire tax millage from 2.15 to 3.0, the maximum allowed under Georgia law. The new rate will cost taxpayers approximately $34 a year on a $100,000 home. Councilmen Mike Mingus and David Maynard voted against the tax increase.
MIngus said the 40 percent increase was too high.
“It seems excessive to me,” he said. “I don’t think most of our citizens have extra funds. If anything, I think they have less at their disposal.”
Maynard said he would rather cut the budget elsewhere than raise taxes.
Mayor Chip Thompson said if the millage rate did not pass, the city would be forced to cut essential items, increase rates or impose another tax.
“This is a tight budget,” he said. Citing increased fuel costs among other items, Thompson said the city was already having to make “lifestyle changes” to deal with what he described as tough times.
The increased rate will provide 35 percent of the cost of providing fire services to the city, up from 33 percent previously. The additional funding will allow the department to purchase equipment needed to maintain the city’s ISO rating.
By adding additional fire personnel last year, the city’s ISO rating was lowered from class 4 to class 3. On a $150,000 home, the lower rating results in an annual savings of $48 on homeowner’s insurance.
In other budget related actions, the council:
• appointed City Administrator Bob Beck to the position of budget officer. The budget officer is responsible for the administration of state and local regulations pertaining to budget matters. As budget officer, Beck will have the authority to approve the transfer of monies within a department’s budget without the approval of council.
• designated the departmental level as the legal level of control in budget matters. State law requires that the legal level of control be defined by local governments.
• set the property tax rate at 5.7214 mills for the budget period and authorized rolling the rate back to zero due to the proceeds from the local option sales tax. Winder reported a $325 million net tax digest for 2007 and sales tax revenues of $1.86 million.
• amended the budget for the fiscal year ending June 2008 to include the purchase of a new ladder truck for the fire department. The 75-foot E-One ladder truck will replace the department’s 1975 American LaFrance Telesqurt which failed the annual ladder inspection. The replacement apparatus will cost $511,617.
• amended the budget for the fiscal year ending June 2008 to include the purchase of the Bonanza building on Athens Street for $150,000.
• reallocated funds within the fiscal year 2008 budget.
