The Savannah City Council on Thursday unanimously approved a slight property tax decrease that amounts to a less than 1 percent reduction.
As a result, the property tax millage rate will be reduced from 12.50 to 12.48.
City Manager Stephanie Cutter said that a small increase in the total value of taxable property within the city allowed for the cut.
Following the vote, the city council commended staff for avoiding the need to increase taxes during difficult economic times.
Despite the increased tax digest, the city is still projecting a $3.4 million budget shortfall, due to a reduction in the city's share of the local option sales tax. At the same time, expenses are projected to be $133,438 more than budgeted.
To address the shortfall, Cutter is recommending a series of cuts, including a hiring freeze of all personnel other than police and firefighter positions. Non-safety related capital improvement projects will also be deferred, while officials would keep a closer eye on overtime and purchases. About $1.2 million from the city's tax stabilization fund would be tapped to cover the rest.
For more on this story and other council actions, check Savannahnow.com for updates and Friday’s edition of the Savannah Morning News.