[A. CALL TO ORDER]
[00:00:07]
GOOD EVENING AND WELCOME. WELCOME TO THE SPECIAL CALLED MEETING OF THE HENRY COUNTY BOARD OF EDUCATION. IN ORDER TO ENSURE PRODUCTIVE MEETING, ATTENDEES AT THE MEETING HAVE AGREED TO THE DECORUM EXPECTED OF A MEETING OF THE BOARD OF EDUCATION. DISRUPTION TO CONDUCTING THE BUSINESS OF THE BOARD WILL RESULT IN THE BOARD MOVING TO RECESS, A VIRTUAL FORMAT OR SUSPENSION OF THE MEETING TO A LATER DATE. I WILL TURN IT OVER TO THE CHAIR. THANK YOU SO MUCH, MISS RIDDLE, AND GOOD EVENING, EVERYONE, AND WELCOME TO THIS SPECIAL CALLED MEETING OF THE HENRY COUNTY BOARD OF EDUCATION. I WOULD LIKE TO CALL OUR MEETING TO ORDER ON MONDAY, AUGUST 11TH AT 6:32 P.M. AND THIS IS FOR THE PURPOSE OF OUR SECOND REQUIRED PUBLIC TAX
[B. Public Tax Hearing #2]
HEARING OF THREE. AND I WILL TURN IT OVER TO DOCTOR PACE AT THIS TIME. THANK YOU, MADAM CHAIR. AS PREVIOUSLY STATED, THIS IS THE SECOND 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. AT THIS TIME, I WOULD LIKE TO INVITE OUR CHIEF FINANCIAL OFFICER, MRS. CLAY, WHO WILL PRESENT INFORMATION TO THE BOARD REGARDING THE 2025 MILLAGE RATE. GOOD EVENING, MADAM CHAIR. MEMBERS OF THE BOARD AND DOCTOR PACE. AS STATED, WE ARE HOSTING THE SECOND OF OUR THREE TAX HEARINGS THAT WILL BE HOSTED BY THE HEARING 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 FOR THE BOARD TO ESTABLISH ITS MILLAGE AND TO SUPPORT OUR CITIZENS IN UNDERSTANDING THE RELATIONSHIP OF PROPERTY TAXES TO THE DISTRICT'S BUDGET. BEFORE I GO FURTHER, I WOULD LIKE TO ACKNOWLEDGE MICHAEL HARRIS, OUR TAX COMMISSIONER, AND LYNN CARDY, 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 THE DILIGENCE IN 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 AND AN EXPLANATION OF MILITARY TYPES. WE WILL REVIEW THE BOARD'S ROLE IN SETTING MILLAGE RATES, THE DIGEST HISTORY, AND DISCUSS THE MILLAGE RATE RELATIONSHIP TO PROPERTY TAX. WITH A RELATIONSHIP UNDERSTOOD, WE WILL REVIEW THE INVESTMENTS AND STUDENT LEARNING PLAN FOR THE FY 26 YEAR THAT THE PROPOSED MILLAGE RATE WILL SUPPORT. AND FINALLY, WE WILL GATHER COMMUNITY INPUT VIA PUBLIC PARTICIPATION DURING THE COURSE OF THESE HEARINGS. SO LET'S FIRST DISCUSS HOW THE MILLAGE RATE IS READ. A MILLAGE RATE IS A TAX RATE THAT IS MULTIPLIED AGAINST THE ASSESSED VALUE OF TAXABLE PROPERTY. TO CALCULATE THE AMOUNT OF PROPERTY TAX THAT IS OWED, THIS MILLAGE RATE IS USUALLY STATED IN DOLLARS PER THOUSAND. SO A MILLAGE RATE OF FIVE MEALS IS $5 PER THOUSAND OF ASSESSED VALUE, AND A RATE OF 20 MEALS IS $20 PER THOUSAND OF ASSESSED VALUE, AND THE 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, COMMONLY KNOWN AS THE RATE. THIS TAX LEVY GENERATES FUNDING FOR OUR GENERAL FUND, WHICH IS THE HOME OF OUR DAILY OPERATIONS. THE SECOND IS THE BOND MILLAGE.MUCH LIKE WHEN YOU FINANCE YOUR HOME, LONG TERM SCHOOL SYSTEMS FINANCE LARGE CAPITAL OUTLAY PROJECTS. WHEN THEY SELL BONDS, THE PROCEEDS OF THE BOND MILLAGE REPAY THE LONG TERM DEBT.
MILLAGE RATES ARE ESTABLISHED BY COUNTIES, CITIES AND SCHOOL DISTRICTS ANNUALLY. THESE MILLAGE RATES ARE. THE MILLAGE RATES ARE PUBLISHED IN A TAX DIGEST, WHICH IS THE DOCUMENT THAT ESTABLISHES THE TAX DISTRICTS AND DEFINES THE PROPERTY THAT IS SUBJECT TO TAXATION. THE TAX DIGEST IS DEVELOPED THROUGH THE EFFORTS OF THE COUNTY TAX ASSESSOR AND 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 OF TAX PER $1,000 OF ASSESSED VALUE. WHEN THE MILLAGE RATE IS APPLIED TO A PROPERTY VALUED AT $300,000, WHICH WOULD HAVE AN ASSESSED VALUE OF $120,000, A PROPERTY TAX LIABILITY OF $2,832.
RESULTS. THE 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 IN PROPERTY VALUES WITHIN THE TAX DIGEST HAS A DIRECT IMPACT OF REVENUE GENERATED FOR PUBLIC SERVICES. AT THE BOTTOM OF THE SLIDE, I PROVIDED AN ILLUSTRATION OF A HOME WITHIN HENRY COUNTY AND HOW THE CHANGE IN THAT HOME'S VALUE, EVEN WHEN THE MILLAGE RATE WAS HELD CONSTANT, YIELDED PROPERTY TAX INCREASES OR DECREASES. A TAX
[00:05:03]
INCREASE CAN RESULT EVEN WHEN AN ENTITY REDUCES ITS MILLAGE. IF THE PROPERTY GROWTH ON THE VALUE EXCEEDS THE AMOUNT OF THE REDUCTION OF THE MILLAGE, THE BREAK EVEN POINT WHERE TAX IS HELD CONSTANT, I.E, THE MILLAGE RATE THAT WAS REQUIRED TO OFFSET ALL DIGEST GROWTH IS CALLED THE ROLLBACK RATE. SO NOW THAT WE UNDERSTAND A BIT ABOUT THE MILLAGE RATE, LET'S APPLY THIS TO HENRY COUNTY SCHOOLS. SPECIFICALLY, THE HENRY COUNTY BOARD OF EDUCATION IS CHARGED WITH GOVERNANCE OF THE PUBLIC EDUCATION SYSTEM IN HENRY COUNTY COMMUNITY AND SETS THE MILLAGE RATE TO GENERATE LOCAL REVENUES TO INVEST IN HIGH QUALITY LEARNING EXPERIENCES FOR THE STUDENTS AND FAMILIES OF THIS COMMUNITY. IN FY 26, A SINGLE MILL 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, IT IS PROPOSED THAT THE MILLAGE RATE BE REDUCED FROM 22 MILLS TO 21.8 MILLS. THIS WOULD REFLECT REDUCING THE MILLAGE RATE FROM 20 MILLS TO 19.8 MILLS, AND MAINTAINING THE PRIOR YEAR REDUCTION IN THE BOND MILLAGE, RESULTING IN A TWO MILL LEVY LEVY. ADOPTION OF THIS PROPOSAL BY THE BOARD WOULD RESULT IN TWO CONSECUTIVE YEARS OF THE MILLAGE BEING REDUCED, AND WOULD REPRESENT 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 IN THE MILLAGE RATE, WE ARE GIVING NOTICE THAT TAXPAYERS MAY EXPERIENCE A MODERATE INCREASE IN THE 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 THE ACCOUNT USED FOR 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 CURRENT 2526 SCHOOL YEAR, WE ANTICIPATE THAT THE MILLAGE WILL CONTRIBUTE NEARLY 52% OF GENERAL FUND REVENUES, WITH STATE AND FEDERAL ENTITIES CONTRIBUTING TO BALANCE. THE FY 26 FORECAST IS IN LINE WITH THE TREND THAT WE'VE SEEN OVER THE PAST FEW YEARS, WHERE WE SEE OUR REVENUE PROFILE SHIFTING TO BE MORE RELIANT ON LOCAL FUNDS, AND THIS IS BECAUSE THE STATE EXPECTS THE LOCAL INVESTMENT IN LEARNING TO IMPROVE AS THE RELATIVE WEALTH OF OUR COUNTY, WHICH IS MEASURED BY THE DIGEST VALUATION, IMPROVES. BEFORE WE CONTINUE, IT'S 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 DIGEST GROWTH HAS BEEN CRITICAL TO THE EXPANSION OF SCHOOL SERVICES WITHIN OUR COMMUNITY TO INCLUDE INVESTING IN EMPLOYEE COMPENSATION, CONTRIBUTING TO THE RETIREMENT AND HEALTH PLANS AS MANDATED BY THE STATE, AND MANAGING DAILY OPERATIONS. THE TAX DIGEST OF A GROWING COMMUNITY WILL GENERALLY SEE INCREASES, BUT GROWTH IS NOT A GIVEN. TAX DIGEST CAN ALSO SHRINK, AND WHEN THEY DO, AGENCIES THAT DEPEND ON GENERATING THESE REVENUES FROM PROPERTY TAX FACE BUDGETARY CHALLENGES FOR FY 26, WHICH IS SUPPORTED BY THE 2025 TAX DIGEST, THE VALUATION GROWTH OF THE NET DIGEST IS 8.2%. HOWEVER, THE FINANCIAL BENEFITS TO HENRY COUNTY SCHOOLS IS COMPRESSED TO 7.1% BASED ON THE PROPOSED MILLAGE RATE REDUCTION. ANOTHER IMPORTANT CALL OUT FOR OUR DIGEST IS THE CUMULATIVE VALUE OF LOCAL EXEMPTIONS, BECAUSE LOCALLY OFFERED EXEMPTIONS ALSO COMPRESS THE REVENUE CAPACITY OF A MUNICIPALITY INTO. IN 2000, THE TOTAL TAX DIGEST FOR THE SCHOOL BOARD WAS $3.4 BILLION, AND EXEMPTIONS WERE APPROACHING $523 MILLION, WHILE THE DIGEST HAS GROWN 437% OVER THIS PERIOD, THE PACE OF EXEMPTIONS HAS GROWN BY 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 RATE, AS WE CONSIDER THE FUNDING NEEDS FOR THE COMING SCHOOL YEAR AND PLAN FOR CONTINUED FINANCIAL STABILITY. I PREPARED A FURTHER VISUAL TO HELP YOU UNDERSTAND THE MILLAGE RATES RELATIONSHIP WITH PROPERTY TAX VALUES. THIS REPRESENTS THE LARGEST SCHOOL SYSTEMS IN GEORGIA, AND YOU CAN SEE THE REVENUE THAT THEY'VE GENERATED FOR THEIR STUDENTS OF THEIR COMMUNITY. IF YOU LOOK AT THE GOLD LINE OF THIS TABLE, THIS REPRESENTS HENRY COUNTY. AND THIS IS THE EIGHTH LARGEST SCHOOL DISTRICT IN GEORGIA.HOWEVER, WHEN YOU LOOK AT THE PROPERTY TAX DIGEST, WE HAVE THE NINTH RATED, THE ONLY DISTRICT THAT HAS A LOWER TAX DIGEST VALUE THAN US IS CLAYTON. HENRY COUNTY HAS SIGNIFICANT LOCAL EXEMPTIONS, WITH NEARLY 22% OF THE GROSS DIGEST BEING EXEMPT FROM TAX. I'VE HIGHLIGHTED THREE OTHER COUNTIES ON THIS SLIDE IN BLUE, AND EACH OF THESE OFFER SIGNIFICANT LOCAL TAX. DIGEST
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LOCAL EXEMPTIONS TO THEIR CITIZENS AS WELL. HOWEVER, I'LL CALL OUT THAT THEY EACH GENERATE MORE REVENUE PER STUDENT, WHICH IS SHOWN IN THAT LAST COLUMN. AND THIS IS BECAUSE THEY HAVE A HIGHER VALUATION TO THEIR TOTAL DIGEST DESPITE HAVING LOWER MILLAGE RATE. I SHARE THIS INFORMATION BECAUSE IT IS IMPORTANT TO NOT ONLY CONSIDER THE MILLAGE RATE THAT SCHOOL SYSTEMS ADOPT, BUT ALSO THE ASSESSED VALUE OF ITS DIGEST AND ANY EXEMPTIONS OR EXCLUSIONS THAT REDUCE THE REVENUE CAPACITY. SO, WITH THE 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 OF 0.2 MILLS AND 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 PROPERTY, 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 MILLAGE RATE OF 18.902 WOULD BE APPLICABLE, AND THIS WOULD ELIMINATE ADDITIONAL FUNDING THAT HAS BEEN FORECASTED WITHIN OUR ADOPTED BUDGET TO ADVANCE INSTRUCTIONAL AND ENRICHMENT GOALS FOR SCHOOL SYSTEM. ADOPTING THE MILLAGE OF 19.8 MILLS ON THIS INCREASED PROPERTY VALUE YIELDS AN ADDITIONAL $433 PER STUDENT, WHICH EQUATES TO $18.7 MILLION TO SUPPORT INVESTMENTS IN EXCEPTIONAL LEARNING EXPERIENCES FOR STUDENTS. COMPETITIVE COMPENSATION FOR HENRY COUNTY SCHOOLS TEACHERS, LEADERS AND STAFF, AND ADVANCING GOALS AND OBJECTIVES FROM THE COMMUNITY.INSPIRED STRATEGIC ACTION PLAN. AND NOW THAT WE REVIEWED HOW THE MILLAGE RATE IMPACTS THE BUDGET OF THE LEVY AUTHORITY, LET'S REVIEW HOW THE FUNDS SPECIFICALLY ARE PLANNED TO BE USED. THE PROPOSED MILLAGE WILL GENERATE 51.7% OF OUR PLANNED FY 26 REVENUES, WHICH WILL TOTAL $568.4 MILLION. ONCE OUR STATE AND FEDERAL SOURCES ARE CONSIDERED. THE SUPERINTENDENT'S ADOPTED THE SUPERINTENDENT'S BUDGET, WHICH WAS ADOPTED BY THE BOARD OF EDUCATION, CONTINUES THE SYSTEM'S PERSISTENCE IN PUTTING RESOURCES CLOSE TO STUDENTS, WITH 97% OF 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 THAT STUDENTS HAVE ACCESS TO OPPORTUNITIES AND SUPPORT IN ACHIEVING EXCEPTIONAL OUTCOMES. 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 FUNDING THROUGH EFFICIENT AND EFFECTIVE USES OF FUNDS THAT CENTER STUDENTS AND STUDENT LEARNING. IN FACT, HENRY COUNTY CONTINUES TO HAVE ONE OF THE LOWEST CENTRAL OFFICE EXPENDITURES OF ALL THE MAJOR SYSTEMS IN GEORGIA. AS I CONCLUDE AND PREPARE TO OPEN THE FLOOR, 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 IN TAXPAYER RELIEF. SECOND, APPLYING THE PROPOSED MILLAGE RATE TO A HIGHER ASSESSED PROPERTY VALUE WILL RESULT IN PROPERTY TAX INCREASE OF 4.75% ON AVERAGE. AND FINALLY, THE PROPOSED MILLAGE RATE SUPPORTS A STUDENT CENTERED BUDGET PLAN FOR FY 26. AS THE LARGEST EMPLOYER IN THE COUNTY, THE HEARING COUNTY BOARD OF EDUCATION HAS PRIORITIZED INVESTMENTS IN COMPETITIVE COMPENSATION FOR OUR JOB FAMILIES AND HAS ALLOCATED RESOURCES TO HIGH QUALITY EDUCATIONAL INSTRUCTIONS AND SUPPORT. DOCTOR PRICE, THAT CONCLUDES WHAT I'VE PREPARED, AND I YIELD THE FLOOR FOR PUBLIC PARTICIPATION. THANK YOU, MRS. CLAY. AT THIS TIME, I'D LIKE TO JUST CHECK WITH OUR PARLIAMENTARIAN TO ENSURE WE HAVE NO PUBLIC COMMENT. THAT IS CORRECT, DOCTOR PACE. WE DO NOT HAVE ANY PARTICIPANTS FOR PUBLIC PARTICIPATION TODAY. THANK YOU. THANK YOU, MISSUS PARLIAMENTARIAN. MADAM CHAIR, I TURN IT BACK OVER TO YOU. THANK YOU SO MUCH, DOCTOR PACE. AND THANK YOU, MRS. CLAY, FOR THAT PRESENTATION. AT THIS TIME, THERE'S NO FURTHER BUSINESS BEFORE THE BOARD FOR OUR SPECIAL CALLED MEETING, AND I WILL ADJOURN SAID MEETING AT 6:46 P.M, BUT WE WILL RETURN
* This transcript was compiled from uncorrected Closed Captioning.