Planning Commission - Special Meeting

Welcome to the special call meeting. Today is Monday, June 8th. The time is now 1134. Madam City Clerk, can you be so kind and do the roll call for me?

Yes, ma'am. Good morning, everyone. Mayor Jasmine Cobble. Mayor Pro Tem Tara Graves. Here. Council Member Alicia Washington. Council Member George Turner.

Here.

Council Member Karmisha Smith.

Present.

We have a quorum.

The first item on the agenda is public hearing. Madam City Clerk, can you be so kind to read the rules for public hearing?

Citizens wishing to participate and comment during the public hearing portion of the meeting may comment in person. You may also submit your requests, including your full name, address, position on the agenda item you are commenting on, whether it is for or against, via email to cityclerk at stonecrestga.gov by 2 p.m. on the day of the public hearing to be read into the record at the meeting. A Zoom link for the meeting will be sent to you upon your request. When it is your turn to speak, please state your name, address and relationship to the case. There is a 10 minute time limit for each item per side during all public hearings.

Thank you, Madam city clerk. The first item for discussion is proposed 2026 millage rate by Eric Hawkins, revenue manager and Keisha Franklin, finance director.

Good morning. So as you all may recall, Georgia law requires local governments to complete a specific process each year when establishing a property tax millage rate. That process includes calculating the rollback rate, publishing required notices, conducting public hearings, and considering a proposed millage rate for adoption. This meeting today is in alignment with those requirements. Just a few key points before I turn it over to Eric for the presentation is that the millage rate remains the same as previous year. Property taxes represent approximately 15% of the city's annual revenues and that the city has completed the required advertisements and public hearing notices in accordance with state law. And here I'll turn it over to Eric.

good morning good morning i'm a little tall so i'm gonna try to adjust my mic okay all right so good morning um council and members of the stonecrest community my name is eric hawkins i'm with the finance department so i'll be presenting the 2026 proposed millage rate So the taxpayer, the taxpayer bill of rights is legislation enacted back in January 2000 and his purpose and objectives are to enhance individual property owners rights when appealing an increase in property value, prevent tax increases resulting from increases to existing property values in a county due to inflation. The City of Stonecrest is proposing, as you all are aware, a millage rate of 1.257. That exceeds the rollback rate, and because it exceeds the rollback rate, we are required to do several things. Issue a press release. That's through the media, and we are required to publish that information on the City website. uh published a five-year history of levy through the champion paper which is dekalb county's legal organ and also provided information on the city website advertised for three public hearings that includes location dates and times and also provided information on the city website conduct three public hearings as scheduled If adopted, the millage rate would remain the same, 1.257 mills for five consecutive years. Let us talk about what a millage is. A millage rate is the determinant factor when calculating property taxes. So one meal is equivalent, one meal equals $1 in taxes per thousand of assessed property value. Also keep in mind, properties are taxed at 40% of their fair market values. A rollback rate represents the millage rate that would produce the same total revenue on the current year's digest that last year's millage rate would have produced had no reassessments occurred. The rollback rate is calculated by the DeKalb Tax Commissioner's Office. Reassessment values within Stonecrest are determined by DeKalb Tax Assessor's Office. So, on the left side is the notice of property tax increase, which was advertised by the champion on May 28 2026 as required by the state. So, although the city is not proposing a millage rate increase the state considers any millage above the rollback rate a property tax increase. There are 11,365 homestead properties with an average fair market value of 300,000. So when I talked about the 40% assessed value, 40% of 300,000 is 125. So that's what a homeowner with an average fair market value of 300,000 will be paying taxes against. There are 9,000 59 homestead properties with an average fair market value of 525. So when you convert that to the 40%, that's 225,000, whereas taxes would be assessed. Properties whose assessed values remain unchanged would generally experience no change in city property taxes resulting from a millage rate. Let me reread that. Properties whose assessed value remains unchanged will generally experience no change in city property taxes resulting from the millage rate. So the computation of the millage. So what you're looking at is the PT 32.1 form. This is a form that we complete each year with collaboration with the task commissioner's office. And what this form is showing, it's keeping the 2026 millage the same as 2025 at 1.257. With keeping the millage rate the same, properties that had no increase in reassessed values will not see an increase in taxes. The 2.44% tax increase is the calculated increase between the proposed millage rate and the rollback rate. Property reassessment values are not determined by the City of Stonecrest, but by the County Tax Assessor's Office. So this is the current tax digest in five year history of levy. So the tax digest reflects the adopted 1.257 millage rate from 2021 through 2025 and proposed 1.257 millage rate for 2026. If you take a look at the digest to the left, in the area, look in the middle over to your left, where it says rate, if you draw your attention to the net M&O millage rate, across that line, it shows you the millage rate that was adopted for each year. So as you can see, in 2021, the millage rate was 1.336. And it held steady at 1.257 mills all the way through 2025. And you see the reflected proposed millage rate in 2026 for 1.257. As a result of the reassessment values, the digest reflects an increase of $82,459. This is a 2.87% increase from 2025. The budget allocation of these additional funds will be determined during budget development gross property taxes levy represents approximately 15% of the city's total operating and maintenance budget. So understanding the millage rate history, the millage rate is the tax rate adopted by the city to calculate property taxes. Stonecrest reduces millage rate from 1.336 mills to 1.257 mills and has maintained that same rate since 2022. While individual tax bills may change, those changes are generally driven by property reassessments performed by DeKalb County, rather than increases from the city's millage rate. Understanding digest growth, the tax digest represents the total taxable value of our property within the city. Digest growth occurs when property values increase, new development is added to the tax rolls, or reassessments occur. A growing digest can generate additional revenue even when the city keeps the millage rate the same. Understanding revenue growth. Property tax revenue can increase even when the city keeps the same millage rate. As property values increase and the tax digest grows, the same tax rate is applied to a larger taxable value. These revenues help support public services, parks, infrastructure improvements, and administrative operations. Revenue growth does not necessarily mean the city increased the millage rate. How it all works together. County reassessments and new development increases the tax digest. As the digest grows, the rollback rate decreases. State law then requires a tax increase notice when the adopted millage rate exceeds the rollback rate. For 2026, the city is maintaining the same 1.257 millage rate. The advertised 2.44% increase is driven by the statutory rollback calculation and county reassessments, not by an increase in the city millage rating. So this chart is just an illustration of how items one through six are all connected and really reiterate how critical property tax revenues are to supporting those services such as public safety parks and recreation infrastructure Community programs and city services. So this is just an overview of what has been discussed. The City of Stonecrest is proposing to maintain its current millage rate of 1.257 mills. Any increase in any individual tax bill will result from property value reassessments performed by DeKalb County, not from an increase in the city millage rate. City of Stonecrest remain among the lowest municipal millage rates in DeKalb County and among the lowest municipal millage rates in Georgia. The advertised 2.44% tax increase only impacts residents' properties with increased reassessment values determined by the County Tax Assessor's Office. City of Stonecrest property tax revenues only represents 15% of the city's annual revenues, which is 35% lower than most municipalities. For other municipalities, tax revenues generally represents 47 to 50% of their annual operating revenues and budget. That concludes the presentation.

Thank you. Council do you have any questions before we go into public hearing? Hearing none I entertain a motion.

Madam City Manager. I'm sorry. May I approach him?

Councilman Turner.

Thank you. I'm going to be going to open the floor for public hearing for the proposed 2026 military. Second.

The motion has been properly moved in. Second. Are you ready for the question? All those in favor of the motion, please respond with yay.

All those opposed nay, starting with District 3.

District 4?

Yay.

District 5?

Yay.

District 1 is yay. Motion carries. 3 to 1 with one absent. Motion carries with 3 votes in one is absent for the record. The floor is now open for public hearing is there anyone speaking in favor. Again, is anyone speaking in favor of the military? Anyone speaking in opposition of the military? Do you have any?

No form.

But we don't have anyone speaking in favor or against the military here today. I will entertain a motion to close public hearing.

They have proved him. Yes, councilman Turner moved to close public hearing on the proposed 2026 military.

Motion has been properly moved in second by councilwoman Smith are you ready for the question.

All those opposed. The motion please respond with yay all those

All those in favor of the motion, please respond with yay. All those opposed nay. Starting with District 3. District 4?

Yay.

District 5?

Yay.

District 1 is yay. Motion carries with three votes and one absent. Is there any need for executive session?

I'm here for Tim.

Yes, Councilman Turner.

I had some questions. I was waiting for the public to chime in first, but I had a couple of questions for Mr. Hawkins.

You have the floor.

Just quickly, page six, you speak of five years.

Try to get to my question here.

It was clear after I read it the second time, but my first glance at it, it almost indicated to me, just my reading of it, that we were taken on.

Is this the page you're looking, you're referring to?

Page six.

Okay.

I don't see it, but I'll tell you what it is. And we'll take a look at it tonight. And that is it indicates that you have the same rate for five years.

Yes. Got it. Yeah.

If adopted, the millage would remain 1.257 mills for five consecutive years. My first glance, I got the feeling that for the next five years, it will remain the same. But what it probably should be written to make it totally clear that for the last five years, the millage rate is 1.257. Maybe it's just the way I read it. I got the impression that for the next five years, the millage rate is going to be 1.257.

So what I provided was a range. So the tax digest reflects the adopted 1.257 millage rate from 2022 through 2025. Yes. And being that those were adopted and there's a delineation between 2026 we adopted for this year that would make it the fifth consecutive year.

Yeah, I understand it as reading it again, but I'm just saying might it be necessary to make it totally clear that we're not locking in for the next five years. No, sir. This is over the last five years. That's what the rate has been. Yeah. Okay.

I can look at it on that as needed.

And just out of curiosity, the 40% rule that DeKalb County uses in terms of calculating your taxes, is that a county rule or is that a state rule?

That is a state rule.

OK, so that's statewide.

Yeah.

OK. And although we are doing this in the middle of 2026, this does cover the 2026 years tax assessments.

That is correct.

So the bill you receive in 2027 will be for 2026 based on what we settle on after the last public hearing.

Not exactly. Mr. Turner, we adopt the millage for 1.257 mills. So when the residents get their tax bills, which are due sometime in October, their taxes would be reflective of this millage rate.

Yes, that's the 2026 bill.

So 2027 will be back here again going through this process. So this is a year-by-year process.

Oh, okay. Got you. OK. And we didn't talk about the appeal. If someone is not satisfied with the calculation of their tax assessment, they have a right to an appeal. I know it's not a part of the millage process, but just that they can know that if they have an increase in their taxes, for whatever reason, they have a right to file an appeal.

When the residents of Stonecrest receive their, what I would call their tax bill, and it'll reflect the due date for those taxes, there'll be language that comes along with that sharing their appeal rights if they object to their taxes. So they can just follow those guidelines that are set by the county.

One last thing. using real numbers, if this is accepted and a homeowner with a $300,000 house was valued from last year and a $300,000, well, the house still valued at $300,000 this year, what was that dollar amount they can expect to see as an increase?

So in the notice of property tax increase, it gives an example. So as we know, not all properties will have the same fair market value, but the average fair market value in Stonecrest for homestead is $300,000. So if your home is valued at $300,000, you can expect to see a tax increase on the bill for $3.75.

$3.75.

On average, yes.

Got it. Thank you very much.

Thank you, Councilman Turner. Council, any other questions?

Mayor Pro Tem.

Councilwoman Smith.

Thank you, Councilman Turner, for asking that question about the five years because I was a little confused based on page six as well. So that last line, if you guys can rephrase it or Yes, rephrase it, because right now it says the millage would remain at 1.257 mills for five consecutive years, not would have remained or will have remained. It says it would if we adopt this. And it's on page six, last line.

Duly noted, I'll make sure I make that edit.

Okay, thank you. And I think that's all I have. Thank you.

Thank you, Councilwoman Smith. Is there any need for executive session? And I just wanted to confirm, um, I'll see the attorneys were online. They are online. Thank you. Hearing none, I entertain a motion.

Mayor Pro Tem. Mayor Pro Tem. Move for adjournment.

Second.

Motion has been properly moved and seconded by Councilwoman Smith. Are you ready for the question? All those in favor of the motion, please respond with yay. All those opposed, nay. Starting with District 3. District 4.

Yay.

District 5.

Yay.

District 1 is yay. Motion carries 3 with 1 absent. Thank you so much for attending this morning special call meeting.