By Maggie Lee / Staff

TAX DIGEST:  HASN'T HIT BOTTOM YET

Five percent here and five percent there, and all of a sudden you're broke.

So it goes for Alpharetta, as the city looks to dip into reserves to pay for routine maintenance next year, as property tax revenue isn't expected to come up from underwater anytime soon.

Across the county, property values this year will drop about five percent from what Fulton originally estimated, goes the analysis by city Finance Director Tom Harris, predicting they'll drop another five percent next year, too. 

But he also acknowledged, "We are hearing 10, 15, 20 percent drops, but we have no data to support that."  So the draft Alpharetta budget he presented last week can handle about a six percent drop.

Councilwoman Cheryl Oakes said in her realty business she's seen some assessments fall by 40 percent. 

Property taxes make up around one-third of Alpharetta's revenue.

Alpharetta is likely to find its revenue decrease by at least $600,000 next year, as the residential and commercial property tax take shrinks. Part of that will be due to the city's new property tax exemption.

That tax exemption will rise in two steps by 2012, which is calculated to eventually save at least $147 on a $300,000 residence.

But Harris also cautioned that estimating the "tax digest" -- the official assessment of all taxable property in the county -- is partially "an art" in part because of appeals and their outcomes.

And appeals will be up next year, he predicted. Under a just-passed bill that's awaiting Governor Sonny Perdue's signature, counties will have to provide annual assessments and make them clearer and easier to appeal.

As for next year, Alpharetta should narrow its operating budget, Harris suggested, for one, by funding $900,000 in road milling and resurfacing by dipping into capitol reserves.

 
Other cuts should come through keeping 13 unfilled city jobs vacant and cutting six percent from citywide maintenance and operations, he continued.

Employee pensions and health will cost the city more next year, though the move to a defined benefit plan and high-deductible health insurance will stem that in the future. 

Harris' budget and suggestions were simply a draft for discussion. City Council will work on the draft before seeing on a final 2011 budget proposal on May 17.