The Baldwin County Board of Commissioners declined this past Monday to lower the county’s millage rate following a significant revaluation of properties his year, meaning many property owners will see an increase in their tax bill this year.
The 3-2 vote to leave the tax levy at the same level as 2023 came at the conclusion of a called meeting Monday morning. That meeting immediately followed the third and final public hearing required by state law when the board advertised its millage rate at 10.02, which amounted to an increase due to the revaluation of properties in the county. To avoid the tax increase and accompanying legal requirements, commissioners would have needed to adopt a millage rate of 8.54. That figure, referred to as the rollback rate, would have meant about $447,000 in additional revenue as a result of normal growth in the tax digest.
Commissioners Sammy Hall, Emily Davis, and Johnny Westmoreland approved the resolution with 10.02 while Kendrick Butts and Henry Craig opposed the measure. Considerable debate preceded the vote during the 25-minute meeting.
Craig was the first to address the issue, saying at the outset he has previously expressed his opposition to the increase. He acknowledged that prices and expenses in various areas have increased.
“At the same time,” he countered, “I believe we can do with less than 10.002, and I am proposing 9.26 (mills), which is a 0.75 increase from the rollback rate. That will produce about 1.7 million dollars. As I have said,” the commissioner added, “there are things we want and things we need. I think we can get the things we need at the 9.26 rate.”
Butts attended the meeting via telephone and went even further than Craig.
“I think we can do it at the 8.54 rollback rate,” he said. “I think we can still accomplish things. In my four years we’ve never not rolled back. We’re going to still generate money at the 8.54 … We owe the taxpayers and property owners a break.”
Hall was the leading advocate for staying at the current level. He first noted the $2 million in additional budget requests sought by department heads, adding he understood the board does not have to approve all requests.
He then brought up a point that has been the subject of considerable discussion.
“The other thing we have talked about for the last 16 years is trying to build up our reserves,” he told his colleagues. “We have no contingency fund.” Hall questioned how the county would have paid necessary expenses if Hurricane Helene had hit the county harder. “How would we manage without a contingency fund? If we go to the 10.02, that will allow us to have a little contingency money.”
At one point, the discussion turned to the TANs (tax anticipation notes) that the county uses annually to cover expenses until property tax revenue is received. Assistant County Manager Dawn Hudson told the commissioners that in 2023 the county paid $140,000 in interest toward those notes.
Craig responded to that point.
“If we go with the 10.02 with dedicated money to go into our reserve, which is a good thing, but at the same time what we are doing is filling up our bank from ‘their’ bank,” he said.
The commissioner said he realized spending $140,000 in interest is not the best practice. However, he pointed out, that amount divided by the number of parcels in the county averages less than $7 per parcel.
“I think a lot of people would rather see $7 than a mill rate of 10.02, which is significantly more.”
Hall answered Butts’ position that the rollback rate is the way to go.
“We can’t do just 8.5. That’s not going to work,” he declared. “We do have some of these wants and needs of department heads that we don’t have to provide. We just need to.”
Butts again pushed for the rollback millage rate.
“If we go back to the rollback, we’re still going to make money,” he contended. “We’re still going to have over $444,000 we can spread out across the board where needed.” He added that the county will be in the same situation, no matter which millage rate is used.
“I’d rather give the money back to the taxpayers and have the same problem than at 10.02, collect $2.9 million, and we have the same problem. That’s not going to make me look like I’m an efficient board member.”
Hall immediately thereafter made the motion to set the millage at 10.02, and Davis seconded it.