FLOWERY BRANCH -- The Flowery Branch City Council is trying to figure out what early tax digest numbers from Hall County are going to mean for the city's property tax rate in fiscal year 2017.
City Finance Director Jeremy Perry reported at the council's meeting Thursday that preliminary numbers suggest a roughly two percent increase in the tax rate with a millage rate rollback of around 0.3 mills. That would increase the rate on a fair market value home valued at $200,000 by $5.60.
However, ups and downs in the property value in recent years have made city officials wary of what actual revenue a tax increase would create.
The council decided not to roll back the millage rate in 2015, causing tax rates to increase. However, Perry said values did not live up to projections and the city took in less revenue than expected.
"You stood up here, took all the yelling and then it turns out you didn't get all your money," Perry said.
He said had Flowery Branch rolled back the rate as proposed the revenue would have suffered even more. He said other cities suffered from the disappointing values as well, noting that Gainesville could even have to raise the millage rate to make up its lost revenue.
Perry also reminded council members that the numbers are preliminary, with the final assessment figures set to be announced May 20.
"We're not even sure the two percent increase is going to happen," City Manager Bill Andrew said.
The council will hold several public hearings on the potential increase after those final numbers come out, the first at the council's scheduled meeting on June 9. The millage rate would be finalized at the last public hearing on June 16.
