The Garden City Council is on the verge of joining most of Chatham County’s other cities in levying a property tax on its residents.
The tax would be the first for the west Chatham city, although it is not exactly a historic occasion that officials want to celebrate.
City Manager Brian Johnson said a variety of factors are behind the plan to adopt a tax rate of 2 mills, which would amount to about $80 a year for a $100,000 property.
One of the most significant reasons is an anticipated drop in local option sales tax revenue, Johnson said.
“If we were not steering toward a revenue reduction, we would not be having this conversation,” he said.
Distribution of the 1 percent sales tax has to be renegotiated by Chatham County and the municipalities within two years of every 10-year census. A proposal presented by the county on Tuesday would reduce the municipalities’ share of revenue and be a significant hit on Garden City’s budget, Johnson said.
But Garden City’s cut could also be reduced if the governments reject the county’s formula and decide to base the distribution on population. The 2010 Census found the number of Garden City residents had decreased by 14 percent to 8,778 — a reduction the city is challenging.
If approved, Johnson said, the property tax is anticipated to raise about $600,000 for city services such as police, parks and recreation and public works.
Cutting spending to make up for the lost revenue is also an option, but there would be consequences, Johnson said.
“Cutting the police department in half may not be an acceptable option,” he said. “It’s just whether or not council and residents feel they are acceptable.
“That’s just what council has to take into account when they consider this.”
The first two of three public hearings on the tax proposal will be held Monday morning and evening at city hall. The third is scheduled for June 28.
If the tax is approved, Bloomingdale would be the only city in Chatham with no property tax. The town of Vernonburg also does not levy a property tax.
Bloomingdale City Administrator Charles Akridge said his city has no plans to adopt a property tax, although a drop in local option sales tax revenue, which funds about a quarter of the city’s expenses, would have significant impact. Akridge said the city’s population has remained about the same since 2000 and hoped Bloomingdale’s sales tax percentage follows suit.
“There is a lot of room for negotiation,” he said. “I anticipate the cities and counties will come to an adequate conclusion.”
If you go
What: Public hearings on Garden City property tax rate
When: 9 a.m. and 6 p.m., Monday
Where: Garden City City Hall, 100 Central Ave.