McDonough’s budget for the 2021 fiscal year has been approved with the millage rate unchanged and a decrease in initial deficit projections.
The City Council voted 5-0 to approve the $31,237,059 budget at a June 22 meeting, with council members Kamali Varner and Sandra Vincent absent from the meeting at the time of the vote. The budget reflects a 3.086 millage rate, which is the same as the previous year.
During budget discussions at the council’s June 15 meeting, city finance director Mike Clark noted that there were no employee compensation increases in the new budget and a hiring freeze is in place on all non-essential positions, with essential hiring deferred until at least January of 2021.
Clark said that the general fund balance of $18,662,000 includes a 3-percent increase over the previous year, while the hotel/motel tax fund has seen the greatest impact from COVID-19 with a 28.97-percent reduction in revenues. According to estimates, there could be a drop of 20-25 percent in local option sales tax revenue, although the county tax assessor’s office predicts property values could rise by as much as 8 percent, Clark said.
Continuing the discussion at the June 22 meeting, Clark said the city is focusing on existing services and projects, with future projects being deferred whenever possible. A deficit that was previously projected at $3.3 million was reduced to $1.8 million, he added.
No one spoke for or against any aspect of the budget during the public hearing leading up to the vote.
In other business, the council discussed at the June 22 meeting a possible intergovernmental agreement with the Henry County Board of Commissioners on the proposed T-SPLOST. If approved by voter referendum in November, it would provide a special transportation-only sales tax over five years. A full penny per dollar can be collected if an intergovernmental agreement with all of the cities is in place; otherwise the maximum allowed by law is three-fourths of that.
McDonough’s portion of this tax would be approximately $4.7 million per year if the IGA is approved, according to city administrator Preston Dorsey, who asked the council for direction regarding the IGA as well as a list of road projects. He pointed out that the deadline for the project list was June 26 with a joint meeting already scheduled for June 30 with the BOC.
The council voted June 15 to ratify an agreement with Keck and Wood Inc. for professional services in community development, and also approved a $10,538.05 payment to Butler Snow for additional legal service required due to the COVID-19 pandemic. Both votes were unanimous.
An administrative variance request was presented June 15 to the council regarding the Arnold Estates subdivision in the McGarity Road corridor. The request involved reductions in rear yard setbacks of 10 percent on two lots, one from 40 to 36 feet and the other from 30 o 27 feet. The 10 percent threshold is permissible according to city code, and community development director Rodney Heard noted that no vote from the council was needed for approval. Absent a veto from the council, the approval would be formalized and the applicant notified immediately.
