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FY2021 Budget
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A primary responsibility of every level of government — from Congress to your local City Council — is passing a Budget. The City Budget determines how tax dollars collected by the city are spent. The Calendar by which governments (and businesses) spend money is known as the Budget Year or Fiscal Year (FY).
South Fulton FY 2021 Budget & Dec 2020 YTD Expenses
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Police are South Fulton's largest expense, making up 25 percent of the budget their restricted funds are included. The City spends 1 percent of its budget on Economic Development.
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The City's 2021 Budget Ordinance states that the City Budget will be attached (highlighted above in blue).
Councilman khalid is for the City Manager's Proposed Budget to be attached, as well as Page 1 of the City Manager's Proposed Recommendations for the $1.1 million Property Tax Increase passed in the September 2 Millage Rate Hearing. 
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2021 Budget Adoption & Council Meeting
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 Click to View South Fulton's Final FY2021 Budget
City of South Fulton's Fiscal Year begins each October 1 (just like a school calendar, where the 2021 School Year begins in Fall 2020).
The Federal Government's Fiscal Year also beings October 1. The Fiscal Year for Fulton County begins January 1. The Fiscal Year for Fulton County Schools begins July 1. The Fiscal Year for the State of Georgia begins July 1. Section 3.25 of South Fulton's City Charter (lines 745-46) charges City Manager Odie Donald to present a Budget to City Council each year for them review and approve. Click the image to review the City Manager's Proposed FY2021 Budget. South Fulton's final Millage (Property Tax) Rate hearing will be this Wednesday, September 2 at 6PM. This is where City Council will vote whether or not to raise property taxes this year; and if so, by how much. Once they determine how much tax money the City has to spend, City Council will then vote on an overall 2021 Budget Tuesday, September 22 at 10AM.
Tight Margins. Tough Choices.As shown in this chart, South Fulton brought in less tax revenue in 2020 than originally projected. Like many cities, shutdowns caused by the Coronavirus-induced recession led to decreased spending by some business and decreased capacity of city offices like the permitting department to generate income from their fees for services.
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SOUTH FULTON CITIZENS:
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The majority of South Fulton's revenue comes from property & sales taxes paid by residents,
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The FY2021 budget contains millions in unfunded expenses.
No additional police officers have been budgeted for 2021.
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PROPERTY TAXES ARE GOING UP — BUT NOT BY MUCH
In anticipation of more reduced revenue next year, City Manager Odie Donald called on city departments to cut their 2021 budgets by 15 percent just as Georgia Governor Brian Kemp instructed the State Legislature to do earlier this year.
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South Fulton's current Millage (Property) Tax rate (the rate at which properties is taxed) is 11.579 mils. Learn more about Millage Rate and Property Taxes in the green box below.
The proposed 2021 Budget was calculated using the Millage rate of 12.399, recommended by South Fulton's Chief Financial Officer (CFO) Frank Milazi. However, at the August 11 City Council Work Session Milazi & representative from the Fulton County Board of Tax Assessors informed Council that several parcels of land and expensive planes at the Charlie Brown Airport were erroneously included in the South Fulton's tax rolls during previous years were being removed, further reducing the city's anticipated tax revenues for 2021. In response, City CFO Frank Milazi & City Manager Odie Donald are calling for City Council to consider raising the Millage Rate first to 12.899, then 13.399. |
CFO Frank Milazi & the Fulton County Tax Assessor explain South Fulton must raise its Millage (Property) Tax rate to generate the same amount of tax money as it has in previous years.
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How Much More Might You Pay?All homes in Fulton County are taxed at 40% of the Assessed Value of the home. The Assessd Value is determined by the Fulton County Tax Assessor's Office.
For a house with an Assessed Value of $200,000, a Millage Rate Increase from 11.579 to 12.899 would cost a homeowner an additional $105.60 per year, (or less than $10 per month for those whose property taxes are included in their monthly mortgage payment). For a home with an Assessed Value of $200,000: $200,000 x 40% = $80,000
11.579 Millage Rate ($80,000 x 0.01559) = $926.32 per year 12.899 Millage Rate ($80,000 x 0.012899) = $1031.92 per year 13.399 Millage Rate ($80,000 x 0.01399) = $1071.92 per year Note: The calculations above do not include discounts on Property Taxes Seniors and others may be eligible for. Learn more about all exemptions available to you & other Fulton County residents at the link below.
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Millage Rate & Property Taxes ExplainedThe rate at which real estate property is taxed is known as the Millage Rate. Only property owners pay these taxes — not renters (although increases in these taxes may be passed on to renters in the form of increased rents.
This video explains how millage rates are calculated and what property taxes are shared by the city, county and school system; as well as how to calculate what the property taxes on your home will be. |
khalid to Council: Exactly what are we raising taxes for?
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The half-mil Millage Rate (Propety Tax) Increase (from 12.399 to 12.899) will generate approximately $1.1 million more tax dollars for City Council to spend.
In a passionate dissent during South Fulton's final Property Tax Increase Hearing September 3, Councilman khalid outlined $6 million worth currently unfunded priorities across several city departments. He then challenged his colleagues on City Council to commit to only spending the proceeds of a proposed tax hike on services to residents, blighted property and road improvements — not rented buildings and new city administrative departments. City Council declined to vote on this proposal. Though the $1.1 million could be spent on a variety of projects, no definitive list of projects for the $.1. million has been voted on or published by the city. |
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Councilman khalid contends any additional tax hike should be spent on services demanded by citizens. However, City Council has previously discussed spending the money differently.
The City is set to spend up to $5 million to renovate 30,000 square feet of space in the old Ingles at 7490 Old National Highway, whose owner will then rent the renovated space back to the city for $18,886 per month. In recent presentations to Council (see YouTube video below), the city's Municipal Court has confirmed it does not need to move into a physical building. South Fulton Municipal Court is currently hearing cases online, with rarely required, in-person cases being heard at the South Fulton Arts Center. Some of the proposed tax hike might pay for more police, but Councilman khalid is skeptical of this use. "We cannot police our way to prosperity," he says, pointing to Atlanta's recent loss of a $4 million grant to train youth and low-skilled workers. Many cities and counties are shifting from deploying police to respond to social issues like homelessness, truancy, domestic disputes and mental health crises. khalid wants to see more investments in economic development. He often cites economist Gary S. Becker's Nobel Prize-wining research that reveals income inequality is the principal driver of crime. |
Memo from City Manager's Office reveals buildout costs for Public Safety center could be $5 million.
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South Fulton is considering spending $5 million to renovate an old nightclub it will then rent back from the shopping center owner for over $18,886 per month.
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"I need to know exactly what we're raising this extra million for," says Old National Councilman khalid. "If we're paving streets, repairing bridges or picking up trash, I can get with that. But I am not raising taxes so we can rent more government buildings or pay for Roger Bruce's legal department."
Early this year, State Representative Roger Bruce authored legislation ordering the city to create an in-house legal department, an expense estimated to cost over $1 million. Currently, South Fulton contracts for legal services with the law firm Fincher-Denmark. South Fulton residents are currently paying some of Georgia's lowest legal costs, per resident. |
City of South Fulton Residents pay some of the lowest legal fees, per resident, in Georgia.
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South Fulton's Wolf Creek Amphitheater
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Some of the proposed million-dollar tax hike could go to the maintenance of Wolf Creek Amphitheater. The City plans to purchase the amphitheater from Fulton County for $1.2 million this December. An independent inspection of the facility has not yet been conducted. Bathrooms at Wolf Creek flooded regularly during concerts in 2019. In 2017, Wolf Creek Managers Lisa Rushin and Sandy Poag were fired by Fulton County Manager Dick Anderson for "poor management" of the facility The County drained an Enterprise Fund established to pay for the maintenance of Wolf Creek as it fought lawsuits by the former employees. |
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The 2 mil property tax hike comes as all of Fulton County's 13 cities outside of Atlanta have joined forces to demand a larger share of CARES act funding given to Fulton County by the federal government to combat the economic and health impacts of COVID-19. The Fulton County Commissioners recently pledged over $2 million to South Fulton, with more possibly on the way. However, no such agreement between Fulton County and the City of South Fulton has been made; and the possibility of these funds cannot be included in the Proposed 2021 Budget. |
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Councilman khalid's Spending Proposal |
Councilman khalid Proposes Revitalizing Old National Over Raising Property TaxesNearly 70 percent of South Fulton's revenue is derived from property and sale taxes paid by residents. Currently, 84 percent of the land in the City of South Fulton is zoned residential or agricultural. Old National has the citiy's highest density of commercially-zoned land. It also has the highest density of residents and mass transit and is one exit from the world's busiest airport. Though left under-developed for decades by College Park and Fulton County, it is primed to become South Fulton's central business district.
Councilman khalid at the South Perimeter Group are currently working with a developer on a multimillion-dollar, mixed use development whose first phase will be Senior Housing. These will be the first new apartments built on Old National in 40 years. Watch this presentation here to learn more. |
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Department Budget Presentations
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The end of the City Manager's presentation also included a brief conversation about the in-house, legal department proposed under State House Bill (HB) 921. City Manager Odie Donald assured something could be created for the same price as the city currently pays to outsource for legal services. However, when Councilman khalid asked for details on such a department, it was suggested such details be discussed in Executive Session, out of the public view.
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Department Budget Presentations
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Budget Hearing #3
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Budget Hearing #2
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