[A. CALL TO ORDER]
[00:00:07]
GOOD MORNING. I WOULD LIKE TO CALL TO ORDER THE SPECIAL CALLED MEETING OF THE HENRY COUNTY BOARD OF EDUCATION ON MONDAY, AUGUST 11TH, 2025 AT 9:00 AM FOR THE PURPOSE OF ONE OF THREE
[B. Public Tax Hearing #1]
REQUIRED PUBLIC HEARINGS. AND I WILL NOW TURN IT OVER TO DOCTOR PACE. THANK YOU, MADAM CHAIR.THIS IS THE FIRST OF THREE REQUIRED PUBLIC HEARINGS PRIOR TO THE ADOPTION OF THE 2025 MILLAGE RATE. THE BOARD IS SCHEDULED TO SET THE MILLAGE RATE AT A SPECIAL CALLED MEETING ON AUGUST 18TH, 2025 AT 4:30 P.M. MISSUS CLAY WILL PRESENT INFORMATION TO THE BOARD REGARDING THE 2025 MILLAGE RATE. AT THIS TIME, I'D LIKE TO INVITE OUR CHIEF FINANCIAL OFFICER, MISS CLAY, TO THE PODIUM. GOOD MORNING, MADAM CHAIR. MEMBERS OF THE BOARD AND DOCTOR PACE. TODAY WE ARE HOSTING THE FIRST OF THREE REQUIRED TAX HEARINGS BY THE HENRY COUNTY BOARD OF EDUCATION. AS A GEORGIA PUBLIC SCHOOL SYSTEM, LOCAL FUNDING, SUCH AS PROPERTY TAXES, ARE VITAL TO THE STABILITY OF OUR OPERATIONS. TO THIS END, IT IS IMPORTANT TO CONDUCT TAX HEARINGS ANNUALLY AND FOR THE BOARD TO ESTABLISH ITS MILLAGE RATE THAT SUPPORT IN ENSURING OUR CITIZENS UNDERSTAND THE RELATIONSHIP OF PROPERTY TAXES TO THE DISTRICT'S BUDGET. BEFORE I GO FURTHER, I WOULD LIKE TO ACKNOWLEDGE MICHAEL HARRIS, OUR TAX COMMISSIONER, OUR DEPUTY TAX COMMISSIONER AND THEIR STAFF. I WOULD ALSO LIKE TO THANK JOHN SELF, OUR TAX ASSESSOR AND HIS TEAM FOR THEIR SUPPORT. RECENT LEGISLATION HAS SIGNIFICANTLY IMPACTED THE WORKFLOW OF THESE OFFICES, AND I AM THANKFUL FOR THEIR DILIGENCE AND DELIVERING THE TAX DIGEST AND FOR THE WORK THAT THEY DO ON BEHALF OF OUR DISTRICT AND THIS COMMUNITY. IN TODAY'S MILLAGE HEARING, WE WILL REVIEW THE MILLAGE RATE BASICS TO INCLUDE THE DEFINITION FOR AN EXPLANATION OF MILLAGE RATE TYPES. WE WILL REVIEW THE BOARD'S ROLE IN SETTING MILLAGE RATES, THE DIGEST HISTORY, AND DISCUSS THE MILLAGE RATE RELATIONSHIP TO PROPERTY TAXES. WITH THAT RELATIONSHIP UNDERSTOOD, WE WILL REVIEW THE INVESTMENTS IN STUDENT LEARNING THAT ARE PLANNED FOR THE FY 26 SCHOOL YEAR WITH THE PROPOSED MILLAGE RATE. AND FINALLY, WE WILL GATHER COMMUNITY INPUT VIA PUBLIC PARTICIPATION DURING THE COURSE OF THESE TAX HEARINGS. LET'S FIRST DISCUSS WHAT IS A MILLAGE RATE AND HOW TO READ IT. A MILLAGE RATE IS A TAX RATE THAT IS MULTIPLIED AGAINST THE ASSESSED VALUE OF A TAXABLE PROPERTY. TO CALCULATE THE AMOUNT OF PROPERTY TAX THAT IS OWED, THE MILLAGE RATE IS USUALLY STATED AS DOLLARS PER THOUSAND. SO A MILLAGE RATE OF FIVE MILLS IS $5 PER THOUSAND OF ASSESSED VALUE, AND A RATE OF 20 MILLS IS $20 PER THOUSAND OF ASSESSED VALUE. AND IT'S IMPORTANT TO UNDERSTAND THAT ASSESSED VALUE IS EQUAL TO 40% OF A PROPERTY'S MARKET VALUE. HENRY COUNTY SCHOOLS HAS TWO MILLAGE RATE TYPES. THE FIRST IS THE MAINTENANCE AND OPERATION, WHICH IS COMMONLY KNOWN AS THE RATE. THIS TAX LEVY GENERATES FUNDING FOR THE GENERAL FUND, WHICH IS THE HOME OF OUR DAILY OPERATIONS. THE SECOND IS THE BOND MILLAGE. MUCH LIKE WHEN YOU FINANCE A HOME, LONG TERM SCHOOL SYSTEMS FINANCE LARGE CAPITAL PROJECTS AND THEY USE BONDS TO DO THIS. AND THE PROCEEDS OF OUR BOND MILLAGE HELP US REPAY THAT DEBT. MILLAGE RATES ARE ESTABLISHED EACH YEAR BY COUNTIES, CITIES AND SCHOOL DISTRICTS. THE MILLAGE RATES ARE PUBLISHED IN A TAX DIGEST, WHICH IS A DOCUMENT THAT ESTABLISHES TAX DISTRICTS AND DEFINES PROPERTY TYPES SUCH SUBJECT TO TAXATION. THE TAX DIGEST IS DEVELOPED THROUGH THE EFFORTS OF THE COUNTY TAX ASSESSOR, AND IS CERTIFIED BY THE OFFICE OF THE COUNTY TAX COMMISSIONER. SO LET'S WALK AN EXAMPLE. LET'S ASSUME A MUNICIPALITY HAS A MILLAGE RATE OF 23.6 MILLS, WHICH IS $23.60 PER THOUSAND DOLLARS OF ASSESSED VALUE. WITH THE MILLAGE RATE APPLIED TO A PROPERTY VALUED AT $300,000, WHICH MEANS IT HAS AN ASSESSED VALUE OF $120,000. THE PROPERTY TAX LIABILITY IS $2,832. THAT TAX LIABILITY FOR THE HOMEOWNER BECOMES REVENUE FOR THE MUNICIPALITY. THE RELATIONSHIP BETWEEN THE MILLAGE RATE AND THE ASSESSED VALUE IS IMPORTANT TO UNDERSTAND, BECAUSE THE GROWTH OR DECLINE OF PROPERTY VALUES WITHIN THE TAX DIGEST HAS A DIRECT IMPACT ON REVENUE GENERATED FOR PUBLIC SERVICES.
AT THE BOTTOM OF THE SLIDE, I'VE PROVIDED AN ILLUSTRATION OF A HOME HERE WITHIN HENRY COUNTY AND HOW ITS SPECIFIC VALUE CHANGE OVER YEARS. DESPITE THERE BEING A MILLAGE RATE, YOU CAN SEE THAT EVEN WITH A MILLAGE RATE, THE CHANGE IN THE PROPERTY'S VALUE IMPACTED THE PROPERTY TAX. A TAX INCREASE CAN RESULT EVEN WHEN AN ENTITY REDUCES ITS MILLAGE RATE DUE TO GROWTH AND PROPERTY VALUES THAT MIGHT EXCEED THE REDUCTION OF THE MILLAGE RATE. THE BREAK EVEN POINT WHERE A TAX IS HELD CONSTANT, I.E, THE MILLAGE RATE THAT IS REQUIRED TO OFFSET ANY GROWTH IN THE DIGEST IS CALLED THE ROLLBACK RATE. NOW THAT WE UNDERSTAND A BIT ABOUT THE MILLAGE RATE, LET'S APPLY IT TO HENRY COUNTY SCHOOLS. SPECIFICALLY, THE HENRY COUNTY BOARD OF EDUCATION IS CHARGED WITH THE GOVERNANCE OF THE PUBLIC EDUCATION SYSTEM IN HENRY
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COUNTY AND MILLAGE RATE TO GENERATE LOCAL REVENUES, TO INVEST IN HIGH QUALITY LEARNING EXPERIENCES FOR STUDENTS AND FAMILIES OF THIS COMMUNITY. IN FY 26, A SINGLE MEAL PROVIDES $14.2 MILLION OF FUNDING FOR EXPENSES LIKE TEACHER SALARIES, CLASSROOM SUPPLIES, BUS OPERATIONS, AND MORE. IN CONSIDERATION OF THE FY 26 BUDGET ADOPTED BY THE BOARD OF EDUCATION TO SUPPORT STUDENT LEARNING OUTCOMES, IS PROPOSED THAT THE MILLAGE RATE BE REDUCED FROM 22 MEALS TO 21.8 MEALS. THIS WOULD REFLECT REDUCING THE MILLAGE FROM 20 MEALS TO 19.8 MEALS, AND MAINTAINING THE PRIOR YEAR REDUCTION IN THE BOND MILLAGE, RESULTING IN A TWO MILL LEVY. ADOPTION OF THIS PROPOSAL BY THE BOARD WOULD RESULT IN TWO CONSECUTIVE YEARS OF THE MILLAGE BEING REDUCED, AND WOULD RESULT IN THE FIRST REDUCTION OF THE MILLAGE SINCE 2007. THE SCHOOL SYSTEM MILLAGE RATE REPRESENTS A LOCAL INVESTMENT IN STUDENTS, TEACHERS AND STAFF OF THIS COMMUNITY. THOUGH WE ARE PROPOSING A DECREASE TO THE MILLAGE RATE, WE ARE GIVING NOTICE THAT TAXPAYERS MAY EXPERIENCE A MODERATE INCREASE IN THEIR PROPERTY TAX BILL DUE TO THE RISE IN VALUE OF THEIR PROPERTY. LOCAL REVENUES ARE A SIGNIFICANT COMPONENT OF THE TOTAL HENRY COUNTY SCHOOLS GENERAL FUND BUDGET, WHICH IS SHOWN HERE ON THE SLIDE. AND THIS IS THE ACCOUNT THAT DOES OUR DAILY OPERATIONS, LIKE PAYING FOR SALARIES, CONTRACTED SERVICES, MATERIALS AND SUPPLIES. AND AS OUR COMMUNITY GROWS, THE IMPORTANCE OF LOCALLY GENERATED FUNDS GROWS. ALSO FOR FY 26, WHICH REPRESENTS THE 2526 SCHOOL YEAR, WE ANTICIPATE THE MILLAGE WILL CONTRIBUTE NEARLY 52% OF THE GENERAL FUND REVENUES, WITH STATE AND FEDERAL FUNDS BEING THE BALANCE. THE FY 26 FORECAST IS IN LINE WITH TRENDING OVER TIME, WHERE WE'RE SEEING A MORE RELIANCE ON LOCAL FUNDS, AND THIS IS THE TREND THAT CONTINUES, AND THE STATE EXPECTS THIS AS OUR LOCAL INVESTMENTS, AS MEASURED BY OUR DIGEST, CONTINUES TO GROW IN VALUATION. BEFORE WE CONTINUE, IT IS IMPORTANT TO UNDERSTAND HOW THE DIGEST HAS CHANGED OVER TIME. OVER A PERIOD OF 25 YEARS, THE AVERAGE ANNUAL GROWTH IN THE VALUE OF THE SCHOOL BOARD'S DIGEST HAS BEEN 7.3%. THIS TAX DIGEST HAS BEEN CRITICAL TO THE EXPANSION OF SCHOOL SERVICES WITHIN THIS COMMUNITY TO INCLUDE INVESTING IN EMPLOYEE COMPENSATION, CONTRIBUTING TO RETIREMENT AND HEALTH PLANS AS MANDATED BY THE STATE, AND MANAGING OUR DAILY OPERATIONS.THE TAX DIGEST OF A GROWING COMMUNITY WILL GENERALLY SEE INCREASES, BUT GROWTH IS NOT A GIVEN. TAX DIGEST CAN ALSO SHRINK, WHICH WE SAW IN 2008. AND WHEN THEY DO, AGENCIES THAT DEPEND ON GENERATING THE REVENUES FROM PROPERTY TAX CAN FACE BUDGETARY CHALLENGES FOR FY 26, WHICH IS SUPPORTED BY THE 2025 TAX DIGEST. THE VALUATION GROWTH OF THE DIGEST IS 8.2%.
HOWEVER, THE FINANCIAL BENEFIT TO HENRY COUNTY SCHOOLS IS COMPRESSED TO 7.1% BASED ON OUR PROPOSED MILLAGE RATE REDUCTION. ANOTHER IMPORTANT CALL OUT OF OUR DIGEST IS THE CUMULATIVE VALUE OF LOCAL EXEMPTIONS, BECAUSE LOCALLY OFFERED EXEMPTIONS ALSO COMPRESS THE REVENUE CAPACITY OF A MUNICIPALITY. IN 2000, THE TOTAL GROSS TAX DIGEST FOR THE SCHOOL BOARD WAS $3.4 BILLION, AND EXEMPTIONS WERE APPROACHING 523 MILLION. WHILE THE DIGEST HAS GROWN BY 437% OVER THIS PERIOD, THE PACE OF EXEMPTIONS IS 684%, WITH EXEMPTIONS NOW TOPPING $4 BILLION. AS I JUST SHARED, THE RECOMMENDATION IS THAT THE MILLAGE BE REDUCED BY 0.2 MILLS YEAR OVER YEAR. THERE ARE A NUMBER OF FACTORS THAT NECESSITATE THE ADOPTION OF THIS MILLAGE, AS WE CONSIDER THE FUNDING NEEDS OF THE COMING SCHOOL YEAR, AND PLAN FOR CONTINUED FINANCIAL SUSTAINABILITY OF OUR SYSTEM. TOTAL DIGEST VALUE AND EXEMPTION VALUES, AS WELL AS THE CHANGES OVER TIME ARE IMPORTANT TO UNDERSTAND BECAUSE IT PROVIDES CONTEXT OF A MUNICIPALITY'S EARNING CAPACITY AND ANY LIMITATIONS THAT INFORM THE SETTING OF THE MILLAGE RATE. AS A FURTHER ILLUSTRATION OF HOW MILLAGE RATES SUPPORT SCHOOL OPERATIONS AND THE RELATIONSHIP OF THE MILLAGE AND DIGEST, I PREPARED A SUMMARY OF THE LOCAL REVENUES THAT THE LARGEST SCHOOL SYSTEMS IN GEORGIA WERE ABLE TO GENERATE LAST YEAR TO INVEST IN STUDENT LEARNING IN THEIR COMMUNITIES. LOOKING AT THE GOAL LINE IN THE TABLE, WHICH REPRESENTS HENRY AS THE EIGHTH LARGEST SCHOOL DISTRICT IN GEORGIA, AND LOOKING AT THE THIRD COLUMN THAT SUMMARIZES THE VALUE OF THE DIGEST, YOU CAN SEE THAT OUR TAX DIGEST IS LESS THAN NINE OF THE OTHER DISTRICTS, ONLY EXCEEDING CLAYTON. I'VE HIGHLIGHTED THREE OTHER COUNTIES IN BLUE THAT ALSO PROVIDE SIGNIFICANT LOCAL EXEMPTIONS TO THEIR CITIZENS, AND I WANT TO HIGHLIGHT THAT EACH OF THESE COUNTIES GENERATES MORE REVENUE PER STUDENT, WHICH IS SHOWN IN THAT LAST COLUMN THAN HENRY COUNTY SCHOOLS, EVEN THOUGH THEIR MILLAGE RATES ARE LOWER THAN HENRY COUNTY, THEIR DIGEST VALUES ARE GREATER. SO AGAIN, I SHARE THIS INFORMATION BECAUSE IT'S IMPORTANT TO NOT ONLY CONSIDER THE MILLAGE RATE THAT SCHOOL SYSTEMS ADOPT, BUT ALSO THE ASSESSED VALUE OF ITS DIGEST AND THE EXEMPTIONS EXCLUSIONS THAT REDUCE THEIR REVENUE
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CAPACITY. SO WITH A FIRM UNDERSTANDING OF THE RELATIONSHIP BETWEEN THE MILLAGE RATE AND THE TAX DIGEST AND HENRY COUNTY SCHOOLS TAX DIGEST HISTORY, WE CAN NOW REVIEW THE IMPACT THE MILLAGE HAS ON OUR SCHOOL SYSTEM'S BUDGET. THE FY 26 BUDGET ADOPTED BY THE BOARD ASSUMED A REDUCTION IN THE MILLAGE RATE OF 0.2 MILLS AND THE MAINTENANCE OF THE BOND MILLAGE RATE. SINCE PROPERTY VALUES HAVE GROWN, TAXPAYERS ON AVERAGE WILL EXPERIENCE A 4.75% INCREASE IN THEIR TAX LIABILITY, EVEN THOUGH THE BOARD IS REDUCING THE MILLAGE RATE. FOR AN INDIVIDUAL WITH A HOME WITH A FAIR MARKET VALUE OF $350,000, THE PROPERTY TAX INCREASE IS APPROXIMATELY $122.13 FOR THE YEAR, OR $8 PER MONTH. THE PROPOSED TAX INCREASE FOR NON-HOMESTEAD PROPERTIES, WITH A FAIR MARKET VALUE OF $475,000, IS APPROXIMATELY $170.62, OR $14 PER MONTH, FOR A PROPERTY OWNER'S TAXES TO BE HELD FLAT, A ROLLBACK RATE OF 18.902 WOULD BE APPLICABLE, AND THIS WOULD ELIMINATE FUNDING FOR HENRY COUNTY SCHOOLS THAT HAS BEEN FORECASTED WHEN WITHIN THE ADOPTED BUDGET TO ADVANCE OUR ACADEMIC AND INSTRUCTIONAL GOALS FOR THE SCHOOL SYSTEM. ADOPTING THIS MILLAGE RATE OF 19.8 MILLS ON THE INCREASED PROPERTY TAX DIGEST YIELDS ADDITIONAL FUNDS OF $434 PER STUDENT, WHICH EQUATES TO $18.7 MILLION, AND THIS SUPPORTS INVESTMENTS IN EXCEPTIONAL LEARNING EXPERIENCE FOR STUDENTS. COMPETITIVE COMPENSATION FOR HENRY COUNTY SCHOOL TEACHERS, LEADERS AND STAFF, AND ADVANCING GOALS AND OBJECTIVES FROM THE COMMUNITY. INSPIRED STRATEGIC ACTION PLAN. NOW THAT WE'VE REVIEWED HOW THE MILLAGE RATE IMPACTS THE BUDGET OF THE LEVY AUTHORITY, LET'S REVIEW HOW THESE FUNDS WILL BE PLANNED TO BE USED. THE PROPOSED MILLAGE RATE GENERATES 51.7% OF PLANNED FY 26 REVENUES, WHICH TOTAL $568.4 MILLION. ONCE WE HAVE STATE AND FEDERAL FUNDS CONSIDERED, THE SUPERINTENDENT'S BUDGET ADOPTED BY THE BOARD OF EDUCATION, CONTINUES THE SYSTEM'S PERSISTENCE IN PUTTING RESOURCES CLOSE TO STUDENTS. WITH 97% OF OUR FUNDS ALIGNED TO TEACHING, LEARNING, ENVIRONMENT, MAINTENANCE, AND DIRECT STUDENT SERVICES. THE ANTICIPATED PER STUDENT EXPENDITURE OF $13,867 IS THE LARGEST IN SCHOOL SYSTEM HISTORY, AND DEMONSTRATES THIS BOARD'S COMMITMENT TO ENSURING STUDENTS HAVE ACCESS TO OPPORTUNITIES AND SUPPORT IN ACHIEVING EXCEPTIONAL OUTCOMES.AND EVEN WITH THIS INCREASED INVESTMENT, OUR SCHOOL SYSTEM WILL STILL HAVE A PER PUPIL EXPENDITURE THAT IS BELOW THE STATE AVERAGE. THIS MEANS OUR SCHOOL SYSTEM IS MAXIMIZING AVAILABLE FUNDS THROUGH EFFICIENT AND EFFECTIVE USES OF THESE FUNDS THAT CENTER STUDENTS AND STUDENT LEARNING. HENRY COUNTY SCHOOLS CONTINUES TO HAVE ONE OF THE LOWEST CENTRAL OFFICE EXPENDITURES OF ALL OF THE MAJOR SYSTEMS HERE IN GEORGIA. AND, AS I CONCLUDE IN PREPARED TO OPEN THE FLOOR FOR PUBLIC PARTICIPATION, I WILL WRAP WITH THESE THREE POINTS. FIRST, THE ADOPTED FY 26 BUDGET REDUCES THE MILLAGE RATE AND MAINTAINS THE PRIOR YEAR REDUCTION OF THE BOND MILLAGE RATE. OVERALL, THE MILLAGE RATE IS GOING FROM 22 MILLS TO 21.8 MILLS, WHICH REPRESENTS AN $11 MILLION TAXPAYER RELIEF. SECOND, APPLYING THE PROPOSED MILLAGE RATE TO A HIGHER ASSESSED PROPERTY VALUE WILL RESULT IN A PROPERTY TAX INCREASE OF 4.75% ON AVERAGE. AND FINALLY, THE PROPOSED MILLAGE RATE SUPPORTS THE STUDENT CENTERED BUDGET PLAN FOR FY 26. AS THE LARGEST EMPLOYER OF THIS COUNTY, THE HENRY COUNTY BOARD OF EDUCATION HAS PRIORITIZED COMPETITIVE COMPENSATION FOR OUR JOB FAMILIES AND HAS ALLOCATED RESOURCES TO HIGH QUALITY EDUCATIONAL INSTRUCTION AND SUPPORTS DOCTOR PACE. THAT CONCLUDES WHAT I HAVE PREPARED, AND I NOW YIELD THE FLOOR FOR PUBLIC PARTICIPATION. THANK YOU, MRS. CLAY. AT THIS TIME, MADAM CHAIR WILL YIELD THE FLOOR FOR ANY PUBLIC PARTICIPATION. MADAM CHAIR, I DON'T THINK WE HAVE ANY PUBLIC PARTICIPATION. SO I TURN THE TURN BACK OVER TO YOU. THANK YOU SO MUCH, DOCTOR PACE. AND THANK YOU, MRS. CLAY, FOR THAT PRESENTATION. SEEING AS THERE IS NO FURTHER BUSINESS BEFORE THE BOARD AT THIS TIME, I WILL NOW ADJOURN OUR SPECIAL CALLED MEETING AT 9:14 A.M. HAVE A GREAT DAY.
* This transcript was compiled from uncorrected Closed Captioning.