Proposal to Reduce City Property Taxes Nixed By City Council 4-2

In the first City Council meeting of the year, Council member Brad Raffensperger proposed a resolution to lower city taxes by one mil beginning with the city's 2015 fiscal year.

His reasoning: The city is on solid financial footing currently running an annual surplus of $600,000 to $700,000, its rainy-day fund has grown by $15 million and the city will be collecting for the next 10 years an additional $1.8 to $2.5 million a year from a Local Option Sales Tax (LOST) settlement with Fulton County.

"We've run a good ship, we've (the city) lived within our means and we've kept our millage rate at 4.614 for the past seven years," said Raffensperger.

"We are in better shape than many of our tax payers," said Raffensperger. "Now is the right time to do it." His proposal was to reduce the millage rate to 3.614 mils per $1,000 of assessed property value.

Raffensperger pointed out that not only would the residents benefit from reduced taxes, but it would help Johns Creek businesses as well.

"There is a nearly 50 percent vacancy in Johns Creek Tech Park," said Raffensperger who added that the lower millage rate would help attract new businesses to move into the city.

"Lower taxes benefit everyone," he said.

But his resolution was voted down 4-2 by the council - with only Ivan Figueroa voting in favor of reducing taxes.

"I appreciate the spirit and like the concept, but I would be hard pressed to vote on this," said Mayor Bodker who favored keeping the millage rate as is and use the monies to pave the city's subdivision streets. "Personally, I can't support the motion," said the mayor during the meeting.

Figueroa pointed out that the original intent when the city was formed was to use tax money for paving the subdivision streets. "Seven years later we still haven't paved the subdivision streets," he reminded the mayor.

The mayor said budget discussions would be coming up soon and the city could take a look at its financial situation. "All is not lost," he said.

Still Raffensperger maintained he felt it was the ideal time to reduce the millage rate. "I think it was the appropriate time to offer a tax cut."

What do you think? Is it time the city reduce taxes or keep them at the current level?