Augusta City Administrator Expected To Call For Tax Hike

Augusta, GA—When you buy something, you help Augusta’s budget, but spending is down in the city, and that could cause property taxes to go up.

“The economy is just as tough for us for you and everybody else it’s nothing that we want to do but maybe time,” says Commissioner Joe Jackson.

Sales tax collections have gone south this year. Augusta collects two cents for every dollar spent in the city, one penny goes to build special projects, the other is to offset property taxes, and those collections are off.

Through August, the city has collected just over $24 million, but through the same period last year, the city had collected more than $25 million. That’s a four percent drop, when the city was banking on a two percent increase. And, that has bean counters concerned and suggesting Commissioners look at increasing taxes.

Tuesday, City Administrator Fred Russell will present his 2010 budget recommendations to Commissioners, and it’s expected Russell will recommend a property tax increase to balance it.

“We’re going to review it look at it and, if it’s necessary to continue the services that the people need, then we might have to do it,” says Commissioner Don Grantham.

Russell has not been shy about suggesting tax increases in past years, but recommending another will not sit well with some city leaders.

“I would be shocked if I was to receive a recommendation tomorrow,” said Commissioner Joe Bowles, who chairs the Finance Committee, as for Bowles supporting a tax hike next year. “Absolutely, not actually, I would be a little upset if I’m presented with a budget tomorrow to increase taxes without ever seeing a budget,” he said.

“I would like to get creative in other ways, but it’s something we will seriously have to take a look at. It’s nothing that we really want to do, but to keep up with the goods and services the county gives, it may be time,” says Commissioner Jackson.