Public a no-show at hearing on Dublin school tax hike

The Dublin City Board of Education’s proposed tax increase drew no interest – much less protests or objections – from residents at Friday’s public hearing, the first of three on the rate hike.

The public was a no-show at Friday’s hearing, held at 11:45 a.m. and attended by just a handful of school staffers and a relative of a board member. The board has scheduled the two remaining public hearings in the evening when more people are likely to attend.

The school board has advertised a millage rate of 18.772 mills, a 3.9 percent increase from last year. To offset inflationary growth in the tax digest and avoid a tax increase, the board would need to roll the millage rate back to 18.067.

Members had considered a rollback, as well as keeping the millage at its current rate of 18.564, but were told both options would result in a loss of net revenue from last year. Even with the tax increase, the district would gain just $40 more in taxes. 

That’s just a few dollars more than the owner of a $125,000 home would pay in additional city school taxes if the increase passes, Chief Financial Officer Teresa Lounder told the board.

Although the city’s gross tax digest grew by $39.3 million – to $963 million – exemptions increased by $46 million. That left the net tax digest – the official list of all taxable properties – at about $791 million, about $8.9 million decrease from a year ago. At least some of the additional exemptions are from a senior citizen homestead exemption on city school taxes passed by voters last November.

Rolling back the millage rate would result in a net loss of $557,923 in tax revenue from last year. Keeping it unchanged would cost the district about $164,802.

“The tax digest shows no increase in proposed levied taxes from the prior year using this new millage rate.” Lounder said. “In an attempt to be conservative, we are setting it to account for disputed property values still in review and possible exemptions costing $300,000.”

The district’s fiscal year 2027 budget projects finishing the year with $821,000 surplus. The budget does not include about $3 million in back payments owed to the State Health Benefit Plan. The system is monthly installments of almost $300,000 to the plan.

“Our budget is based on the actual collected tax dollars last year,” Lounder said. “The higher millage will aid in reduction of our prior year deficit if taxes do come in higher than last year.” 

During last fall’s cashflow crisis, the district relied on advances of its monthly state funding allotments to meet payroll and other operating expenses until property taxes were collected. Lounder said the board will need advances again this year until taxes come due. 

“Our goal is to dig our way out as much as we can. There are a lot of things impeding us from doing that,” Lounder told the board.

The district should see some additional unbudgeted revenue, after Dublin City Council voted Thursday to approve a one-time cap of $200,000 on its fee for collecting school taxes. The city charges 2.5 percent, the most common collection rate charged for collecting school taxes in Georgia, though metro-Atlanta counties charge less.

The break could potentially save the district about $171,000, interim Superintendent Marcee Pool said.

Two more public hearings will be held before the board votes on the increase – on Monday and again on Oct. 26, both at 6 p.m.