Franklin Co. To Consider Millage Rate Hike

By MJ Kneiser, WLHR Radio, Lavonia

Franklin County’s cash reserves are almost depleted and to get those reserves built back up, it must raise its millage rate in Fiscal Year 2016.

That was the conclusion of Franklin County Manager Beth Thomas’ Fiscal Year 2016 budget presentation last Monday night to the Franklin County Board of Commissioners.

Thomas said that while Franklin County is seeing some growth in some areas, overall it is still in a recession.

“We are on the verge of being something great,” Thomas told the board. “Yet we have incurred an economic recession. We have had to dip into our reserve multiple times to cover things that have been out of our control.”

Thomas began her presentation by noting Franklin County’s current millage rate of 8.140 mills is lower than it was in 1999.

Also, she said property tax revenues have only increased by $165,000 over the past five years, not enough to keep up with the rising cost of services for Franklin County.

In addition, she said Local Option Sales Taxes have not been as high as anticipated for several years.

Thomas said Franklin County’s general fund has been running a deficit for the past five years, forcing Franklin County to dip into its cash reserves year after year until now there is almost nothing left to fall back on.

“In the last five years, we have not made enough money to cover our expenditures,” she said. “These deficits range anywhere from $152,000 to $1.1 million. So just like with your home, when you don’t have enough money to cover expenditures, you have to dive into your savings account. And that’s exactly what the County has done.”

Thomas outlined a FY16 General Fund budget of $13,253,100 for Franklin County, which is up from this fiscal year’s budget of $11,832,230.

Some of the big increases coming up for Franklin County in Fiscal Year 2016 include the hospital bond debt, the Sheriff’s Department budget, inflation, and an increase in employee health insurance costs.

Also, Thomas said Franklin County has also been asked to set aside about $300,000 for a capital murder trial set for later this year.

According to Thomas, the total increase in expenses comes to just over a million dollars next fiscal year.

She said she sees no other way than to raise the millage rate.

“So I am looking at a weighted increase of 2.67 mills,” Thomas concluded. “That is a weighted increase between the incorporated and unincorporated groups because they have historically been at different rates. One of those groups will get hit higher than the other group. One will be at 2.99 and one will be at 1.83. Over 60% of that increase due to sustained cost overruns. .26 mills is due to the reduction in sales tax and .22 mills is due to a reduction in the digest.”

Franklin County has scheduled four town hall meetings and two public hearings.

The first two town hall meetings are set for June 16th at 10 a.m. and 7 p.m. The second set of town hall meetings will be held on June 18 at 10 a.m. and 7 p.m.

Additionally, two public hearings will be held this month.

The first on June 23 at 6 p.m. and again on June 30 at 6 p.m. during the Commission work session.

The Franklin County Commission is expected to adopt the FY16 budget on the 30th after the public hearing.

Once adopted, Franklin County will then hold public hearings before voting to raise the millage.

That is expected to take place in July.

Franklin County’s fiscal year begins July 1.