City of Savannah finding funds without fire fee
SAVANNAH, GA (WTOC) - Thursday evening, Savannah City Council members made one of their biggest budget decisions since walking back on the controversial fire fee.
A tax increase is the number one way they plan to replace about $16 million that was lost from repealing the fee. This definitely wasn't the kind of turnout the city was hoping for. For all the controversy surrounding the fire fee, it doesn't appear anyone is upset about the slight tax increase. In fact, only a handful of people showed up to the public hearing, which was the first of three.
"I'm appalled at the lack of enthusiasm and the fact that only three of us showed up tonight."
There was no other public comment besides that. As quickly as it started, the hearing on the tax increase ended. City leaders voted on the other way to make up a $16 million funding loss from repealing the fire fee. Some of the big decisions include a hiring freeze for the city, reducing funding to the Metropolitan Planning Commission, and lowering the amount of money the city spends on special events.
The meeting was supposed to be a chance to hear from taxpayers.
"The only way we can make informed decisions as staff and make recommendations to the city council is if we really hear from our citizenry," said Melissa Carter, Savannah Budget Director.
The tax increase of .9 mills comes out to about $55 a year for a home valued at $150,000.
"Whatever mill rate that we set at this point as a result of these three public hearings, we will be using that millage rate to be the foundation for our 2019 spending plan," Carter said.
Carter says it's important for taxpayers to know what the general fund covers. Public safety, public works, and personnel costs are just a few of those things.
The property tax increase generates a big chunk of what the fire fee would have - nearly $10 million of the $16 million needed to balance the budget the rest of the year.
"If it were that after the three public hearings, the tax increases and not passed, then you would likely see a significant budget amendment coming back before council and the public to significantly reduce our personnel within our general fund," said Budget Director, Melissa Carter, City of Savannah.
The City is already implementing a hiring freeze for the remainder of the year, a measure that will reduce general fund expenditures by $500,000.
"There may be some services that we're not able to provide to the level that we as the City of Savannah would like to be able to provide them, because we cannot hire that additional staff that we need, that are on the books that we should be able to fill," said City Public Information Officer Michelle Gavin. "But we're also going to try to balance that with the critical needs of services that we provide the community, so that they're not interrupting any of those critical needs."
City staff has made a commitment to not reducing any public safety services or personnel, including police and fire services.
One fact highlighted by Alderwoman Estella Shabazz on Thursday is that even though the fire fee is dead, it could still be revived in the future because council altered the city charter - which doesn't happen often - to allow the city to impose those kinds of fees.
"Make it a referendum so that we can first hear from the people and not go on the backside of this, and making us change the ordinance, change the charter, then hear from the people and do all this backlashing," Shabazz said.
City staff says they don't plan on revisiting the fire fee idea next year either.
The other two public hearings will be held July 19 at 9:45 a.m. and 2 p.m. at City Hall.
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