City Council - Regular Meeting

like to say good evening to everyone welcome awesome amazing we thank you God just for allowing us to make it here God God we ask God that you allow your in this place allow us father God to make decision City your Holy Spirit through your power God God we understand that we can't do that without you God we ask God that you would bless God this city bless this state God that we that we're in and also bless the United States of America and God we just say thank you we say this praying your son Jesus name everybody say Amen turn that up son I'm sorry I apologize I you got fin heard next on our agenda is the approval of the agenda councel you have the agenda in front of you if you would I take a motion and a second to approve the agenda motion it's been second in discussion no discussion all be know I raise your right hand also Council we have minut from February 3rd 2025 in your in your package as well I give you a minute to read over those you have not done so um once you're done reading I'll accept the motion and a second to approve

motion to approve second it's second discuss no discussion all be by ra right hand Mr thank you so much at this moment we'll open up our public hearing for House Bill [Music] 51 a lot of people got misr but um we're going to um explain 581 um today have a few slides we try to um get it in a reasonable amount of time quick um make have your all right here's the background where this come from the legislators ENT last year session concerned about arriving property D assessment and turn property taxes Senate leaders wanted meas to control rapid increases and property assessment house leaders look to expand sales tax option various proposals of results in HD HD 581 the law was signed on April 18th and then passage of the referendum in November um major components of this um bill is a Statewide floating homestead exemption a local option sales tax you remember we already do have a local option sales tax and one of the major tenants of it is to offset property taxes and also it has another um property tax procedure changes um it was conted upon the pass of the Constitutional Amendment which it did um

the bill took effect January 1 2025 and part of that bill um implements Statewide Flo homestead exemption for all local governments counties cities School Board a floating homestead exemption is a special type of home state exemption designed the offset of reduce increases and taxable value to the property it is also referred to as a base year a value year offset exemption let's say when the exemption come in effect and you live in a house where you have a homee your property value your exemption will be based upon the value that time um Step let's say it's at 140 during that base year it'll be um 140 40% of that one4 it works by increasing the value of exemption to offset inflation for example a property had a tax value of 100,000 and the tax value increased the following year due to Market changes to 110 now I ask that people really take effect of that the value let's say right now increased to 110 but if you we were under the exemption the 110 of tax value will stay the elect floats to be worth 10,000 of taxable value so the taxpayer still pays on the original base year value of $10,000 I mean $100,000 the floating exemption is unique because the Bas your value is adjusted and increased by the rate of determined by the state revenue commissioner and likely it will be by the Consumer Price Index if we take the same profit with a $100,000 tax for base year value and the CPI is 2% then the following year then the base value of

100,000 may be increased by up to 2% to give an adjusted base value of 102 the exemption floats on that was going to be $8,000 of value so the taxpayer will pay on a taxable value of 102,000 year to now this is only talking about exempt property does not talk about commercial agriculture um any all known Homestead Property am I correct to the that's right essentially your your primary residence even a secondary residence would could not qualify for home first received this exemption in tax year 2025 the base year asset value will be the 2024 assessed value so whatever your 202 24 assess value if the city op and that will be your assess value for homes receiving the exemption in later years the base year assess value will be the assess value for the for immedately preceding year similar to other hom set exemption the value will be reset when the home is sold and adjusted with sub substantial property change you know once you have the once you have the exemption on this property you cannot transfer it to your new home if if you're paying 90,000 here and you buy a new home it might if the size and value might different your new home is going to be the market rate and it might be more than your older home so the effect of HP 581 homet exemption the tax value of Home may only

increase at the rate of inflation each year essentially controlling this assen controlling this will control how much the value of a home can increase annually homeowners already granted a homestead will receive this this exemption automatically none Homestead Property will continue to be valued at Market at fair market and it says this this new floating homestead exemption is in addition to and not in Le of all nonfloating homestead exemption this will not repeal or replace existing homestead exemption if you already have a homestead exemption this will not repal or replace it if there's an existing local flowing home exemption the taxpayer will receive whichever one is the greatest of the two exemptions as it says existing local exemptions will not be affected also part of that bill is any government Authority may elect to op out of the flowing hom set exemption created by house B 581 by following a procedure similar to the public notification of a tax increase when a full Road is take the local government must advertise and conduct three public hearings of intent to opt out and later adopt the resolution must resolution to the Secretary of State by March 1st 2025 um there is a bill in the Georgia General Assembly where they are trying to extend the date for the op out to May the 1st 2029 so there's not a guarantee whether it will pass or anything so you know you can wait or whatever but as it stands now March the 1st 2025 is the DAT

but they there's legislation that is um trying to push that date to May the 1st 2029 question before you go f uh Mr hay you just said that this in uh discussion laying this into 2029 yes to um to be able to laow local governments option to opt up so the bill go ahead so um the the legislation that's being looked at right now has not passed yet um we still have the homestead exemption and 5 want take effect but rather than being locked in if we don't take action this year it would give us the chance to take action next year 2027 up up to 2029 before we be 100% locked in but it wouldn't delay to start it will not delay the Home St you're going into effect for these next four years so so so my next question is this has this uh discussion came up since I last in first read with this about the um the legislation in the general assembly I think it start it fed about the second week of start of the legisl so it was was passed favorably out of the house committee it hasn't even reached the house floor yet which will be the next um next Avenue then once it reaches the house floor it go over to the Senate and then they have to sign it to a committee after they sign a

committee it got to be reported fav out the committee and then it has to be um has to be vot voted on in that I'm going be honest the way the legisl mo move I don't think they'll have it by March I mean March 1 okay well my next question really would be I guess all of my question uh our attorney so I see I'm I'm we saying it end up there going effect Mar why did I see that March of 2025 yes sir that's next month that's within a couple of weeks yes sir but I'm hearing you all saying that it's in discussion maybe putting this off until like 20 29 why would we even be why we even be do we have to it's not that we have to vote on this tonight uh I know it's the second reading on it uh I don't know where to mess stand with was whether he going to take you know to a v on tonight you know this kind of like through me and Luke you know now you saying that we looking at look they're looking at maybe spreading maybe until 2029 what I'm saying right that's that's that's another election cycle this election cycle is in November this year so that'll be the next ele from my marri

right years so you're BR a great point and and this bill has thrown everyone for a loop a little bit there's been different bills that have been um looked at this session this current bill that would extended to 2029 just came out of session did come out of the the committee most recently after our last year but it was getting kicked around before that um but yes your points Council putting the spot where where you may have to take action not knowing whether whether you have to still have this March first deadline or if it can get moved back and and so you're you're exactly right now I will say as Mr ay stated we it's a very good chance we will not get clarity on whether this new bill passes before the March first deadline so so the safest I would suggest the safest thing would be to operate under operate as if this bill was not going to pass because we don't know we don't know if it will and to count on it to count on a passing without knowing anything more from the general assembly whatever thank you just let's try to get some clarification answer your question we won't vote on this tonight this is our third hearing because it was required that we have the three hearing just in case the March 1st deadline ills May or kept um and if it comes to a situation

where the March 1st deadline is in effect call meeting to in V so we're not asking for you V thank you thank you thank you and as some additional notes Deion opt out independent among local government the County city in school B may to decide whether decision of whether would not impact the other local government homestead exemption this will result in comparable homes having different types of value first you go in the subdivision and each home is built the same everything is the same with the exemption is the next door neighbor could be reading the home and the other neighbor could own it the homeowner who owns owns it he he will be covered under the exemption but the person who Ren that same home would not be the Valu would be in compa and it's only going to um you know as long as the people stay inside the home that's that's how long they will have the floating exemption so far as decision permanent um yes no action is needed by the local government to have the home St exemption appli if it is approved in November once the op period pass apparently there is no future me to op out if a local government Ops there no future to opt the h exemption of course a similar homestead exemption can still be done in a traditional manner also the second part of the bill is the local option called floss local option sales tax Conor works the same way as our current loss um if I'm correct um Mr City attorney it one of

the tenants of the um Lo not but Lo off sales tax is far as give a retrieve or um break on proper supposed to be on the proper taxes if somewhat because we have to do a um roll back if I could get let me look on this thing right here but I don't have it but we have the Last 5 Years roll back from the city of um Greensboro and from the past 5 years you all have not never raised the milit bre over the rad back you have always rolled it back and you were able to do that because of the growth in the does and let me get let me show you one example from this year to the estimated value of Homestead Property in the um tax year 2023 was 28 m666 6663 that that was the value in um Home State Property the actual Digest grot um was 32,000 do you see the the the difference if we were under the CIP rate which we got that off of the um labor statistic um um Consumer Price Index was two two at

2% you would have only been allowed the tax value of a zent propit would only been allowed was was 29 million from 28 to 29 million versus the 32 million were the actual digest was at that that's a difference of 3,198 I mean3 mil1 19898 and with a mill rate of 5265 that's 16,000 and if you look at it as the years go by it increases remember your proper tax only covers 800 and something I think $840 or something thousand a year the first year you take about 16 from that $ 800,000 I mean you you got to look at the numbers so there is an increase of um potential Revenue loss as as the years go by it's it gets greater and greater and greater and greater and but looking at the 5year tax levy I don't have that able to say but I able to show you able to see most of the grow came in the residential area and most of that you know will contributed to um Homestead Properties so those those are those are the that's those are the estimated Revenue impact of that new bill this doesn't take count the floss tax anything the reason being is because that tax is negotiated and dependent by the counties about cities and counties and also have to be approved by the

vots so for the Last 5 Years the city has not raised the milit rate you were always able to roll it back rolling back but still at the same time have broken your digest and Revenue that that is all I have [Music] coming from councel there no coming from councel coming from our citizens at this time in regards VI any questions at this time regarding house beld [Music] 581 Mr Mayor yes sir is the city's position that you want to opt out of this and this I'm if I may one is adopted then that increase in loss Revenue if we stay where we are today we're going to lose that additional Revenue because the percentage of increased stays the same cross rather to my understand if we op in then we lose that reeven that's that's that that is estimated the Consumer Price in

that as you as you remember the tricky part of that is we just come out with a lot of inflation let's say inflation is at 8% or 13% then that is what the values cannot increased increased at that rate and believe it or not to go from that amount to you know even under teror system usually don't increase 10 or 133% most time you don't so that can that that potentially can be a big increase as it stat right now a house at 100,000 goes 2% per year no that's that is the that that would be the the new that will be set up by the rate of inflation whatever the revenue commissioner said the city wouldn't set it anymore based upon the statute the revenue the revenue department commissioner he will set the consumer he he will set that rate based on the Consumer Price that's on the hb5 yes the revenue commission is to now we opt out of 581 and that's what you're considering yes sir 100,000 goes to 102 the next year whatever the market set that whatever CPI is the market like market rate whatever the market rate is um with what's the 2% the 2% is Consumer Price Index that's that's that's what you'll be limited at or what whatever Consumer Price Index it's not really always going to be two it could be three a like infl whatever inflation is I understand right now it's two it's two right now so house that being taxed or it's and CP is two next two right yes yes sir thank

you is there any more question for anything else coming from my city see you still trying to get something together well I wanted to show the lady show how the city city has been consistent with keeping the mill rate down that you know the do the city has not city has not risen in taxes or anything so y'all have um kept the milit grade down or whatever and you know really have benefited from the market grow we'll proceed if you can come back to it man if you find we'll come back to it not a long time and this time we'll go back into our re session next item on our agenda is new business is a proposed budg and amended resolution yes may coun this this a and purposes um that is um it allows us to be able to um amend the budget you know for some departments are over some are under this is just for the auditing purposes that allows us to have a balanced budget when we get ready to do the U the audit and it is recommended because a lot of state grants and everything they do read your um fisc year a and if you don't have that we ran to the problem in syester we didn't have it they will they will send it back and say hey you need to have you know what's wrong with this

why on out of order but this is recommended and this is physical year 24 the um P this year that we just left so we need to do a amended budget resolution and if you notice looking our last we just finished that was a finding of expenditures over what we have budgeted and that happens time to time in one in one department or another Council request from my city at this time I entertain a motion to approve the aming resolution second is that F discussion no further discuss all right thank you so much 44 Mr Mayor what you have in front of you um I again for informational purpose but as you know um with we would thank the Lord was able to do it we was able to say B but we did it um far the up removal of those line um with the widening of 44 our contribution is only um 20% um of the um relocation cost um that is like we that is um going to be a total of $ 482,000 it is any kind that is a proposed um

relocation to be done by a developer and the city is on the hook of um excuse me the 23375 is for um upgrade bment by developer but the city's cost is only going to be $252,600 total relocation cost so that water sewer and um if you can see it I think it also includes the gas charges yes gas gas charges on that too Mr Mayor toal reloc I'm looking at on that I apologize 1.4 million we only required to we going to do just um we're just only going to do um a um for the city is responsible um it says if you look at the first the total reconstruction relocation construction cost 1.4 really 1.5 million out of which inome replacement cost is 1.2 the upgrade V cost $3,375 in which the Greek city of Greensboro is responsible for 23 you you break it down the state plays 80% we going hey I'm looking at second page under two under item two it say the

total relocation cost for 8 2,989 192 for a second phase or de we we had to put a developer cost in there the engineer had developer cost because on the development is coming up through there they upgrading the line to to a 12 in s line and we had to put that in there if developer don't don't ever upgrade it we still can keep it on at the same the same the same excuse me we just keep the same so that that is why that that c that engineer upgrade in there and that's supposed to be born by the develop all right so would it be good for us to proove 482989 that way we don't have to come back oh yes this is just for informational purpose look let you know what um what we have to do it and um there is um a misconception out there that utility a every time they come in and um do a body Road if your utilities are in the right away the state doesn't reimburse you I mean it's not it's not obligated to reimburse you if you're in that right so the city of greenber was lucky to be able to get reimbursed and this was started when I you know when I came but we were we were lucky to be able to get reimbursed for being end I'm kind I'm kind of I'm kind of like in line with M Williams should we prove the 482 yes 22 it's yes approval 482 yes if we have to come back

yes coun request coming from city manager g g utility State 44 entertain a motion to approve 82 $4 482989 192 uh for the relocation and upgrade cost these motion to approve second it's been second any further discussion no further discussion all over the be know by ra your right hand thank you all so much next is our withdrawal Council this is agreement that um me and the mayor had looked at and worked on with Georgia Power regarding um they have a new um system in place where they are um redoing the contract and making them um match up with uh water withdrawal permit and also you know they're looking at a pro share a house for recreational Shoreline that they have in their Reservoir so they came up with a new agreement where the city per year I think the cost is is um 23 hold on a minute let make sure I'm correct um we have to pay per year $ 26743 that is a storage fee um for um our water really is um 2.96 million

gallons a day um the city is um grandfathered in for 384,000 um mgds a day um so um we don't have to um allocate for that that is where the city's um grandfather in but we do have to pay for the um other cost of 2.9 MGB per per year I mean excuse me per day at a cost of $2,743 um per annual cost clar permitted at about 3 million per yes that is cor May per 3 million so what AG is saying that uh Georg power will no longer hold our water for us for free they now charging us about 26 almost 30 grand um for our reserves question Mr yes sir have problem that have have attorney looked over this AG yes sir we did um and and about what we expect I think the primary difference that power talks about financials we did look we did look over this agreement runs um I think for six 6 years so it'll take us through 2031 I'm not thank you sir just Council um Council um we're if we don't accept the agreement then we lose our reserve and and there's no telling when we we can get get it back and that

that's true M um um and as a matter of fact they don't have any excess capacity on the lake now everybody has water capacity I mean there's no more excess like if we was to come up and say we want another million gallons a day they don't have it so really and truly you look down I 20 Corridor I think Greenberg is one the one that does have a lot of excess capacity in water to grow 3 million and we lose and we use less than probably a million a day so there is a lot of capacity that the city does have so when does this go into this pay we may maybe this year this year this this year or this year thisal so did we budg for this no we did we did not we just have to make Provisions catch up or whatever in it but we had to make provision for and this and this and this happened after the budget was already adopted we went in negotiation and and I would like to add this um coun Jan power has gone up on us and I would say you we'll have to look very closely at our rates to make sure we can C this this uh this that

so this time a motion to allow sign second it's been second any further discussion no further discussion all by raing right hand so old business second of zoning OS Amendment at the antique store 203 North Street City attorney thank you Mr Mayor and Council um this is the second reading as this may stated um this coordinance um does just two things as it relates to how we regulate antique stores um within the city first um it removes prohibitions on the um certain Nam guns um that to be sold um and then also it allows for the holding of onsite options at add an stores no more though than 12 a year so the idea was we'd expect about one a month um that's that's gener what the ordinance does this has been kicked around for a little while have any questions to approve to approve discuss further discuss

second is the second reading ofos operation tax fees or uh City attorney or city manager this is another second reading Council um essentially what this ordinance does is is when someone applies for an occupation tax certificate um the way the way the or currently reads um is if someone applied for a certificate and the latter half of the year um they would they would still be paying full full amount for that year so this um I think I think it's broken down city manag city is broken um if so it be done on a priority basis if someone applies for for the first three months of the year they pay the full amount um they'll P 75% of the full amount between April and June and for um and so again it's the idea is that people would be paying for that that FR when they're getting started attorney no at this time attorney motion to approve motion to approve been said discussion no discussion all over the raise your right hand thank you so much anything now come coun at this time I would like to encourage our citizens those of you that have not done so and to remind you that we're having our very first ma gather on February 27 at the 6:00 hour uh the the attire is formal you can go and purchase your tickets online and you can also

contact my beautiful wife to uh purchase your tickets as well this event will be given back to two of our nonprofits here in city of Greensboro be given back to our boys and girls to we know there was a great help to our youth and it will also be given back to the organization called Neighbors hey neighbors who help people repair their homes at no cost and well this this this neighbor he neighbor organization has been a great help not just in in the county of green but is also there has been a tremendous help in the city of Greensburg uh so I encourage you to to buy your tickets um and and come out and help support these these organizations um that's all that I have this moment uh youth counsel if you have not gotten your tickets please see city manager let him know if your parents will be coming with you we want to make sure you guys are there because you'll be receiving a gift as well uh and I think that's all that I have I do I do have one Personnel about that I would like to discuss so at this time ask that uh Council give us permission to go into executive session motion go session it's been second discuss no discuss thank you so much you all give us just