Another $936,700 in expense reductions lowered Paulding’s M&O millage rate increase from the expected 0.4 mill to 0.15 mill before commissioners voted 3-2 Aug. 11 to pass the 2010 county budget and a 1.25 mill tax increase.

The millage rate for maintenance and operations rises from 6.5 to 6.65 mills. The millage rate to service county bonds for the county courthouse/administration building and preservation of 7,000 acres of Paulding Forest rises from 0.5 mill to 1.6 mills. The county’s current $2.5 million annual payment on bonds is increasing to a $6.5 million debt obligation.

A $200,000 house taxed at $2,285 in 2008 whose assessment did not change would be taxed at $2,590 in 2009. Property assessments, though, have fallen an average of 11 percent, and a 10 percent lower assessment would produce a tax bill of $2,331, while a 20 percent assessment drop would produce $2,072.

Contributing most of the tax increase is the extra $205 most homeowners will pay because the state legislature did not fund the Homeowners Tax Relief Grant this year. Still, a $200,000 home in 2008 whose value was assessed 10 percent lower would produce only $47 more in taxes.

The county’s balanced 2010 general fund budget totals $53,665,200, a reduction of $8,261,600 from the 2009 budget of $61,926,800. While the tax millage rate is rising from 9 mills (6.5 M&O, 0.5 bond, 2 fire) to 10.25 (6.65 M&O, 1.6 bond, 2 fire), revenues and the budget are still projected to drop 13.34 percent.

Finance Director Tabitha Pollard said Aug. 7 budget revisions reduced spending another $936,700 and reduced the M&O millage increase 0.25 mill. Cuts included another $237,600 in general government expenses and $173,500 in judicial system expenses.

Differences between Chairman David Austin’s original proposed budget include a reduction in expected tax collection from 95 percent to 93 percent – “we hope to get there, but we have to allow for a little less,” said Pollard. Other changes are recalculations of salaries and benefits and deletion of plans to hire in-house engineers to replace contracted engineering.

Employees have 10 unpaid furlough days and no paid holidays in the 2010 budget, capital purchases have been suspended, a hiring freeze continues, departments have been reorganized “and we’ve eliminated everything it’s possible to eliminate,” said Pollard. “We’re learning to do a lot more with less.”

“We had great input from citizens” on the budget, said Austin. “A lot of work went into this.” Experts from the University of Georgia and accountants reviewed the budget as well, he said, “and I hope you’re proud of the work we’ve done,” he said to the commission work session audience.

The vote for the budget and millage rate was 3-2, with Austin and Commissioners Tommie Graham and Wayne Kirby voting to approve and Commissioners Larry Ragsdale and Don Powell opposed.

As usual, commissioners approved a 2.5 percent collection fee for the county tax commissioner to collect and forward school tax revenues.