[A. CALL TO ORDER]
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GOOD AFTERNOON. I WOULD LIKE TO NOW CALL TO ORDER THE SPECIAL CALLED MEETING OF THE HENRY COUNTY BOARD OF EDUCATION FOR THE PURPOSE OF THE THIRD OF THREE REQUIRED PUBLIC HEARINGS.
[C.1. 2025 Millage Rate]
AND I WILL NOW TURN IT OVER TO DOCTOR PACE. THANK YOU, MADAM CHAIR. AS PREVIOUSLY STATED, THIS IS THE LAST OF THREE REQUIRED PUBLIC HEARINGS PRIOR TO THE ADOPTION OF THE 2025 MILLAGE RATE. AT THIS TIME, I'D LIKE TO ASK OUR CHIEF FINANCIAL OFFICER, MRS. CLAY, TO COME TO THE PODIUM TO PRESENT INFORMATION TO THE BOARD REGARDING THIS 2025 MILLAGE RATE. MRS. CLAY. GOOD AFTERNOON, MADAM CHAIR. MEMBERS OF THE BOARD AND DOCTOR PACE. TODAY WE ARE HOSTING THE THIRD OF OUR THREE REQUIRED TAX HEARINGS THAT ARE BEING HOSTED 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 AND TO DISCUSS FOR OUR CITIZENS HOW THIS SUPPORTS THE SCHOOL DISTRICT'S BUDGET. BEFORE I GO FURTHER, I WOULD LIKE TO ACKNOWLEDGE MICHAEL HARRIS, OUR TAX COMMISSIONER, AND LYNN CARDY, OUR DEPUTY TAX COMMISSIONER. I WOULD LIKE TO ALSO ACKNOWLEDGE JOHN SELF, OUR TAX ASSESSOR, AND HIS TEAM FOR THEIR SUPPORT. THE RECENT LEGISLATION HAS SIGNIFICANTLY IMPACTED THE WORKFLOW OF THESE OFFICES, AND I AM THANKFUL FOR THEIR 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 EXPLANATION OF THE 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 TAX WITH THE RELATIONSHIP.UNDERSTOOD. WE WILL REVIEW THE INVESTMENTS IN STUDENT LEARNING THAT ARE PLANNED FOR FY 26, WHICH IS THE FISCAL YEAR THAT THIS MILLAGE RATE WILL SUPPORT. AND FINALLY, WE WILL GATHER COMMUNITY INPUT VIA PUBLIC PARTICIPATION DURING THE COURSE OF THIS FINAL TAX HEARING. SO LET'S FIRST DISCUSS WHAT IS A MILLAGE RATE AND HOW IT IS USED AND HOW YOU READ IT. 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, 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 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, WHICH IS ALSO COMMONLY KNOWN AS THE NO 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 WE FINANCE OUR HOMES FOR LONG TERM SCHOOL SYSTEMS, FINANCE LARGE CAPITAL PROJECTS, WHEN WE SELL BONDS AND THE PROCEEDS OF THE BOND MILLAGE IS WHAT'S USED TO REPAY THESE LONG TERM DEBTS. 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 THE PROPERTY TYPES THAT ARE SUBJECT TO TAXATION. THE TAX DIGEST IS DEVELOPED THROUGH THE EFFORTS OF OUR COUNTY TAX ASSESSOR, AND IT 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 OF TAX PER $1,000 OF ASSESSED VALUE. WHEN THE MILLAGE RATE IS APPLIED TO A PROPERTY VALUE OF 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 ON THE REVENUE GENERATED FOR PUBLIC SERVICES. AT THE BOTTOM OF THIS SLIDE, I'VE PROVIDED AN ILLUSTRATION OF A HOME HERE IN HENRY COUNTY AND HOW THE CHANGE IN THAT HOME'S VALUE, EVEN WHEN THE MILLAGE RATE WAS HELD STEADY DURING THAT PERIOD, CHANGED THE PROPERTY TAX. WHETHER IT INCREASE OR DECREASE, A TAX INCREASE CAN RESULT EVEN WHEN AN ENTITY REDUCES ITS MILLAGE RATE. IF THE PROPERTY GROWTH VALUE EXCEEDS THE AMOUNT OF THE REDUCTION OF THE MILLAGE, THE BREAK EVEN POINT WHERE A TAX IS HELD CONSTANT, I.E. THE MILLAGE RATE REQUIRED TO OFFSET ANY DIGEST GROWTH IS CALLED THE ROLLBACK RATE. SO NOW THAT WE UNDERSTAND A BIT MORE 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 THIS HENRY COUNTY COMMUNITY AND SETS A MILLAGE RATE TO GENERATE LOCAL
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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 WILL REFLECT REDUCING THE MILLAGE RATE FROM 20 MILLS TO 19.8 MILLS AND MAINTAINING THE PRIOR YEAR MILLAGE RATE REDUCTION TO THE BOND MILLAGE, LEAVING A TWO MILL LEVY. ADOPTION OF THIS PROPOSAL BY THE BOARD WOULD RESULT IN TWO CONSECUTIVE YEARS OF THE MILLAGE RATE BEING REDUCED, AND WOULD REPRESENT THE FIRST REDUCTION OF THE MILLAGE SINCE 2007. THE SCHOOL SYSTEM MILLAGE 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 TO TAXPAYERS THAT THEY MAY EXPERIENCE A MODERATE INCREASE IN THEIR PROPERTY TAX BILL DUE TO THE RISE IN THE 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 SALARIES, CONTRACTED SERVICES, MATERIALS AND SUPPLIES. AND AS OUR COMMUNITY GROWS, THE IMPORTANCE OF LOCALLY GENERATED FUNDS GROWS. ALSO FOR FY 26, WHICH REPRESENTS OUR CURRENT 2526 SCHOOL YEAR, WE ANTICIPATE THAT THE MILLAGE WILL CONTRIBUTE NEARLY 52% OF TOTAL GENERAL FUND REVENUES, WITH STATE OR 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 THE 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 OUR ASSESSED VALUATION, ALSO 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 RETIREMENT AND HEALTH PLANS THAT ARE 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, AND WHEN THEY DO, AGENCIES THAT DEPEND ON GENERATING THEIR REVENUES FROM PROPERTY TAX FACE BUDGETARY CHALLENGES. SOME OF YOU MAY RECALL THIS IN 2008 FOR FY 26, WHICH IS SUPPORTED BY THE 2025 TAX DIGEST, THE VALUATION GROWTH OF THE NET DIGEST IS 8.2%.HOWEVER, THE FINANCIAL BENEFIT TO HENRY COUNTY SCHOOLS IS GOING TO BE 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 OUR LOCALLY OFFERED EXEMPTIONS ALSO COMPRESS OUR REVENUE CAPACITY. 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 437% OVER THE PERIOD OF 25 YEARS, THE PACE OF EXEMPTIONS HAVE GROWN BY 684%, WITH EXEMPTIONS NOW TOPPING $4 BILLION. AS I SHARED, WE ARE RECOMMENDING THAT THE MILLAGE RATE BE REDUCED BY 0.2 MILLS YEAR OVER YEAR, AND THERE ARE A NUMBER OF FACTORS THAT NECESSITATE THE ADOPTION OF THIS MILLAGE, AS WE CONSIDER THE FUNDING NEEDS FOR THE COMING SCHOOL YEAR AND THE PLAN FOR CONTINUED FINANCIAL SUSTAINABILITY, TOTAL DIGEST VALUE AND EXEMPTION VALUES AS WELL AS WELL CAN CHANGE OVER TIME. AND SO IT'S IMPORTANT TO UNDERSTAND THIS IN THE CONTEXT OF THE MUNICIPALITY'S EARNING CAPACITY AND THE LIMITATIONS THAT CAN OCCUR. AS A FURTHER ILLUSTRATION, I HAVE PREPARED A GRAPHIC THAT GIVES YOU THE RELATIONSHIP OF THE MILLAGE RATE AND DIGEST, AND THOSE EXEMPTION VALUES FOR THE LARGEST SCHOOL SYSTEMS HERE IN GEORGIA. LOOKING AT THE GOAL LINE OF THE TABLE, WHICH REPRESENTS HENRY COUNTY, WHICH IS THE EIGHTH LARGEST SCHOOL DISTRICT IN GEORGIA, AND LOOKING AT THAT THIRD COLUMN FROM THE END, YOU. THIS SUMMARIZES ARE THE THIRD COLUMN FROM THE RIGHT. YOU CAN SEE THAT THIS SUMMARIZES THE DIGEST VALUES OF THESE HENRY COUNTY SCHOOLS HAS THE NINTH LOWEST DIGEST VALUE COMPARED TO THE OTHER TEN. ONLY CLAYTON COUNTY HAS A LOWER DIGEST VALUE THAN US. HENRY COUNTY ALSO HAS SIGNIFICANT LOCAL EXEMPTIONS, WHICH ARE APPROACHING 22% OF THE GROSS DIGEST BEING EXEMPT FROM TAX. THERE ARE THREE OTHER COUNTIES THAT I'VE HIGHLIGHTED HERE IN BLUE. EACH OF THESE CAN
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PRODUCE MORE INCOME THAN US, DESPITE HAVING HEALTHY EXEMPTIONS AS WELL, BECAUSE THEIR TAX DIGEST VALUE HAS A HIGHER STARTING BASIS. SO IF YOU LOOK AT THAT LAST COLUMN OVER HERE TO THE RIGHT, THE REVENUE EARNED PER STUDENT, YOU CAN SEE THAT THEY ARE EARNING OUT, EARNING US ON A PER STUDENT BASIS. AND THIS IS DESPITE HAVING LOWER MILLAGES THAN US.AND I SHARE ALL THIS INFORMATION BECAUSE IT'S IMPORTANT TO NOT ONLY CONSIDER THE MILLAGE RATE THAT A SCHOOL SYSTEM ADOPTS, BUT ALSO TO CONSIDER THE ASSESSED VALUE OF THAT DIGEST AND ANY EXEMPTIONS AND EXCLUSIONS THAT REDUCE THE REVENUE CAPACITY. SO NOW, WITH A FIRM UNDERSTANDING OF THE RELATIONSHIP BETWEEN THE MILLAGE RATE AND THE TAX DIGEST AND THE HENRY COUNTY SCHOOLS DIGEST HISTORY, WE CAN NOW REVIEW THE IMPACT OF THE MILLAGE THAT HAS ON OUR SCHOOL SYSTEM'S BUDGET. THE FY 26 BUDGET THAT WAS ADOPTED BY THE BOARD ASSUMED A REDUCTION IN THE MILLAGE RATE OF 0.2 MILLS, AND THE MAINTENANCE OF THE 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 A NON HOMESTEADED PROPERTY WITH A FAIR MARKET VALUE OF $475,000 PER YEAR, IS APPROXIMATELY $170.62, OR $14 PER MONTH, FOR A PROPERTY OWNER'S TAXES TO BE HELD FLAT FROM THE PRIOR YEAR. A ROLLBACK MILLAGE RATE OF 18.902 WOULD BE APPLICABLE, BUT THIS WOULD ELIMINATE THE FUNDING THAT HAS BEEN FORECASTED WITHIN OUR ADOPTED BUDGET TO ADVANCE INSTRUCTIONAL AND ENRICHMENT GOALS FOR OUR SCHOOL SYSTEM, ADOPTING A 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 TO SUPPORT INVESTMENTS IN EXCEPTIONAL LEARNING EXPERIENCES FOR STUDENTS. COMPETITIVE COMPENSATION FOR OUR HEARING COUNTY SCHOOLS, TEACHERS, LEADERS AND STAFF, AND TO ADVANCE GOALS AND OBJECTIVES FROM THE COMMUNITY INSPIRED STRATEGIC ACTION PLAN. NOW THAT WE REVIEWED HOW THE MILLAGE RATE IMPACTS THE BUDGET OF THE LEVYING AUTHORITY, LET'S REVIEW HOW THE FUNDS EARNED THROUGH THE MILLAGE RATE ARE PLANNED TO BE UTILIZED THIS YEAR. THE PROPOSED MILLAGE WILL GENERATE 51.7% OF OUR PLANNED FY 26 REVENUES, WHICH WILL TOTAL $568.4 MILLION ONCE STATE AND FEDERAL FUNDS ARE TAKEN INTO CONSIDERATION. THE SUPERINTENDENT'S BUDGET 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 STUDENTS HAVE ACCESS TO OPPORTUNITIES AND SUPPORT TO ACHIEVE 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 OUR AVAILABLE FUNDS THROUGH EFFICIENT AND EFFECTIVE USES OF FUNDS THAT CENTER STUDENTS AND STUDENT LEARNING. IN FACT, HENRY COUNTY SCHOOLS 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 FOR ANY PUBLIC PARTICIPATION, I WILL WRAP WITH 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 $11 MILLION IN TAXPAYER RELIEF. SECOND, APPLYING THE PROPOSED MILLAGE RATE TO A HIGHER ASSESSED PROPERTY VALUE WILL RESULT IN PROPERTY TAX INCREASES OF APPROXIMATELY 4.75%. FINALLY, THE PROPOSED MILLAGE RATE SUPPORTS THE STUDENT CENTERED BUDGET PLAN FOR FY 26. AS THE LARGEST EMPLOYER IN THE COUNTY, THE HENRY COUNTY BOARD OF EDUCATION HAS PRIORITIZED INVESTMENTS IN COMPETITIVE COMPENSATION FOR JOB FAMILIES AND HAS ALLOCATED RESOURCES TO HIGH QUALITY EDUCATION, INSTRUCTION AND SUPPORT. DOCTOR PACE, THAT CONCLUDES WHAT I PREPARED AND I YIELD THE FLOOR FOR PUBLIC PARTICIPATION. THANK YOU, MRS. CLAY. MADAM CHAIR, THAT CONCLUDES OUR INFORMATIONAL. AND AT THIS TIME, THE FLOOR WILL BE OPEN FOR PUBLIC PARTICIPATION. HOWEVER, MADAM CHAIR, I'VE BEEN NOTIFIED THAT WE DO NOT HAVE ANY PUBLIC SPEAKERS PRESENT FOR PUBLIC PARTICIPATION. THANK YOU SO MUCH, DOCTOR PACE. AND THANK YOU, MRS. CLAY, FOR THAT PRESENTATION. WE ARE NOW READY TO APPROVE OUR MILLAGE RATE. SO CAN I GET A MOTION, PLEASE, TO APPROVE OUR MILLAGE RATE AT 19.8 MILLS AND OUR BOND MILLAGE RATE AT TWO MILLS AS PRESENTED. MADAM CHAIR, I MAKE A MOTION THAT WE APPROVE THE RATE AT 19 MILLS,
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POINT EIGHT 19.8 MILLS. THANK YOU. AND OUR BOND AT TWO MILLS. THANK YOU SO MUCH, MR. MCDANIEL.IS THERE A SECOND? SECOND. THANK YOU, MISS CARTER. ALL IN FAVOR, PLEASE RAISE YOUR HAND. FIVE ZERO. OUR MILLAGE RATES ARE APPROVED. AND SEEING AS THERE IS NO FURTHER BUSINESS BEFORE THE BOARD, I W
* This transcript was compiled from uncorrected Closed Captioning.