In December 2009, the GDP reported on the county’s plan to use the 2009 tax increase for unfunded liabilities rather than to pay for the fire stations, police officers and youth athletics as had been promised. Gwinnett Finance Director Aaron Bovos had told the Engage Gwinnett committee of the plan just days after the Commission voted to hike the tax rate.

Now, we learn that the Commission will use part of the tax increase to make up for an expected 2010 budget shortfall. The Commission’s decision to use (arguably) 2009 tax money to balance the 2010 budget is not unexpected. Last year, while Chairman Bannister and staff were sounding the alarm and Kevin Kenerly was putting his "lame duck" status to good use (by RE-proposing the tax hike), Bovos was quietly moving 2009 expenditures into the 2010 budget. The items moved included almost all of the expenses that were used to justify the hike…. three fire stations and equipment, 58 police officers and money to keep the lights on at the little league ball fields.

The county ended 2009 in the black…. in other words, the 2009 (calendar) tax rate of 10.97 paid for everything that remained in the 2009 budget. It was ALWAYS Bovos’ plan to delay enough 2009 expenses to end the year balanced.

The 2009 tax hike (collected this year, as you know) was ALWAYS going to be spent on 2010 expenses. Bovos told the committee in December that he had hired a consultant and was already looking into using the revenue from the hike to pay down accrued liabilities instead of funding fire stations and police, as had been the "carrot" in 2009.

A large number of members opposed Aaron’s plan to use the tax money to pay down the county’s $300 million in unfunded liabilities. The subject was never brought up before the committee again; however, it remained on our radar screen. Some members supported using half of the revenue for unfunded liabilities and the remainder for the promised purpose. I wanted all of the revenue from the tax increase to be used to fund the promised services.

I do not know what the county actually did. As reported by the AJC, they are doing exactly what they had planned to do by taking a portion of the tax revenue to pay 2010 expenses. I do not know if they still propose to or have actually paid toward liabilities.

I am not accusing the Chairman and Aaron of being deceptive, except that the end result of their failure to provide all of the facts is that the taxpayer has been deceived…. several times… over the past year. One of the new fire stations is near my home; it still sits empty, although the chain link fence that had surrounded the building has been taken down.

While this year’s budget is balanced, next year’s spending plan already is $31 million in the hole. In a recent interview, Bovos said that could grow as declining property values continue to erode tax receipts.

Update: The GDP article on the same topic reports that part of the tax increase is being used for unfunded liabilities:

The money, from a millage rate increased imposed late last year after property tax bills had gone out, includes $18 million to reduce this year’s deficit, as well as $10 million to pay outstanding debt and $5 million for the Gwinnett Hospital Authority to complete a commitment to give $5 million for five years. Another $21.2 million will be applied to the county’s accrued liabilities, which include retiree health care and pensions.

If my math is correct, the tax hike revenue has been spent. It remains to be seen whether or not the county will open the fire stations and hire the cops.

Gwinnett commission taps tax hike proceeds to balance 2010 budget  | ajc.com