The vast majority of the 120,000 residential property notices issued in the first batch will show an average value decrease of 17 percent or $35,000 of market value, Pruitt said. The sum of all decreases for residential property totals approximately $4.2 billion of market value.

As I explained in “Tax Digest Time Bomb,” the lower tax value may not necessarily translate into a lower tax bill. In fact, as a result of the 2009 tax increase that is being continued for 2010, you will probably pay a lot more than in previous years.

Gwinnett property owners may get good news  | ajc.com

Budget `Bait and Switch`

Bannister presented his 2010 budget to the other Commissioners and to the public on December 1, as required by law. The law is designed to give the public ample opportunity to review the document prior to its adoption. The required public hearings were also held.

A day or so before Christmas, however, Bannister sent the Commissioners a revised budget which increases spending by $6.3 million. Not only that, but Bannister juggled a number of capital projects, fast-tracking a park development in his home city of Lilburn while postponing a new park a few miles from the home of Mike Beaudreau, the only Commissioner to vote against the 2.28-mill tax increase.

Even worse, Bannister’s unilateral revision of the published budget may be illegal.

Some of Bannister’s changes:

• $500,000 subsidy to Partnership Gwinnett;
• $82,000 related to the county’s AAA bond rating;
• $6,500 for the County Administrator’s attendance at various conferences.

Bannister proposes to pay for these additions by transferring $500,000 less from the operating budget to the capital budget later in the year, as has been the usual practice. The artful number tweaking allows Bannister to increase non-capital spending without adjusting the operating budget’s bottom line by a single dollar.

Capital spending will increase by much more than the $6.3 million that Bannister proposes to add to the budget. He will make up the difference by deferring other projects including the Harbins Community Park in the Archer school cluster.

Bannister wants to postpone the engineering phase of the District 3 park from 2010 to 2013. He will instead spend that $1.2 million on the Lion’s Club Park in Lilburn this year, rather than in 2012 as planned. There appears to be no justification for this swap except to punish Beaudreau for his continuing stand against wasteful spending and tax increases.

Other additional capital spending:

• $250K for an airport feasibility study;
• $500K for a “nuisance abatement project;”
• $7.6M for fire stations #31 and #10 (relocation);
• $110K for a police aviation fuel truck.

The revision will also postpone development of the Rabbit Hill Park from this year to 2013.

Bannister proposes to increase the budget despite the county’s expectation that 2010 will be worse economically than previously projected.

Budget Deception

State law appears to prohibit the revision of the published budget proposal, except by a majority vote on an amendment during a public meeting… or by starting the public hearing process anew.  The Chairman cannot simply change the budget published on December 1 on his own.

The Chairman’s plan to adopt a budget different from the one that was presented to the public is tantamount to a lie. But then, deception appears to be Bannister’s stock in trade.

After the  2.28-mill tax increase was adopted, the county’s finance director announced that the additional revenue might be spent to reduce the county’s accrued liabilities, even though the increase had been sold as necessary to fund police officers, fire stations and recreation. Apparently, a decision on what the money will actually be spent has not been made.

I strongly encourage you to contact the Commission and send Bannister a message similar to the following:

Commissioners, I do not want you to approve a budget different from the one for which public hearings were held, except by amendment in a public meeting. I do not want you to increase spending. Chairman Bannister, I insist that you honor the expectations created by last year’s millage increase hearings and budget hearings.

To be effective, you must send your email before the Commission’s 2 pm meeting today.

The $59 million Gwinnett County will collect next spring during a second billing of 2009 taxes could be set aside for employee pension liabilities, the county chief financial officer said.

Official: Use extra tax money for pensions

If you’re totally against a tax increase, you face an uphill battle. The reality is that there are already enough votes to pass the tax hike as proposed. Chairman Bannister has signaled that he will support it, as has Kevin Kenerly, who isn’t running for reelection. Shirley Lasseter is a sure second vote for Bannister; Bert Nasuti is also a lame duck but is open to reason. Only Mike Beaudreau is expected to oppose it.

There is, however, plenty about this proposal to criticize. As I will explain, the increase could be reduced by 32% and still fund the full restoration of service levels for this year.

SaveGwinnett.com » The Tax Increase: Myths and Misconceptions

State Rep. Edward Lindsey (R-Buckhead) said the current crisis sheds light on a flaw in the system — that assessments are a tax on an unrealized gain — an issue that draws some complaints when values are rising but seems just plain unfair when they tumble.

The following correspondence was sent this morning to various reporters, state legislators and those quoted in the article:

D.L.,

If you will give me a little time I can show you, mathematically and without question:

1. Rep. Lindsey’s tax "freeze" proposal, if adopted, will introduce MORE unfairness into the tax system and financially harm the most vulnerable taxpayers;

2. There is a VERY simple solution to the "problem" that Lindsey seeks to solve. The problem isn’t "tax on unrealized gain;" there is a foundational flaw in the property tax code that politicians REFUSE to fix because it would result in more fairness and transparency and LESS power in their hands;

3. If that flaw is fixed, it would not matter AT ALL whether or not property owners were taxed on "unrealized gain." Lindsey’s concern would become a non-issue.

The solution isn’t anything new; the state Department of Revenue has taught this simple concept to tax commissioners, assessors, appraisers and Board of Equalization members for decades. I learned the solution to the problem from the state 15 years ago!

There are numerous other benefits as well to simply "doing the math." I am a former Board of Equalization Chairman with training in property tax matters. I publish the site at www.millagerate.com where I explain the problem, the solution and how the State Legislature could very easily eliminate many of the problems with the tax system, and without a constitutional amendment.

I field dozens of inquiries a year on Georgia property tax matters. This time every year, I contact every legislator to educate them and encourage them to address the root problem with the tax code. While a handful, including Lindsey, have expressed an interest only Senator Curt Thompson has offered significant assistance when, several years ago, he asked Legislative Counsel to draft a bill.

I am angered to see the AJC present Lindsey’s proposal without challenge, when he has no clue what he is doing. I invite you to meet with me to discuss this topic.

You can help move this issue in the right direction by contacting your representatives in the State Senate and House of Representatives and directing them to MillageRate.com.

Property tax fight gears up | ajc.com