- Business & Development
City annexations and SDS settlement augment deficits - Council votes to maintain current 6.42% millage rate.
CITY OF NORCROSS, GA - In a 4-0 vote during the August 6, 2012 session, Norcross council members agreed to not increase the cityâ€™s 2012 millage rate. Despite depressed property values across the nation, the City of Norcross is able to offset its reduced tax digest using tax income from newly annexed properties and funds awarded from the recent Service Delivery Strategy (SDS) settlement. The settlement results from a lawsuit between Gwinnett Countyâ€™s 15 cities and the county, which was settled earlier this year.
According to public record, Norcrossâ€™ property tax digest was down 14.6% from 2011, a 55M tax value decrease in the cityâ€™s 2012 digest. With the January 1, 2012, annexation of over 1700 homes and 250+ businesses, the city is able to augment its digest with these additional taxes, and then supplement the remaining deficit with SDS funds.
â€œIf we hadnâ€™t had the SDS settlement and the income from the annexation, we would have had to increase the city millage rate to around 8 mills in order to compensate for losses in 2011,â€ said Norcross City Manager Rudolph Smith. â€œAs it is, we are able to offer the citizens a roll back, or tax credit, keep the millage rate the same, and then offset the deficit with SDS funds.â€
This strategy also allows the city to continue its services and programs without any cutbacks.
â€œNorcross taxpayers enjoy a high quality lifestyle and fortunately, we have these other resources to draw from so we can continue to operate in the black and still support citizen expectations,â€ added Smith. # # #