The DeKalb County Commission’s Budget Committee completed the 2025-26 budget at its meeting on Tuesday, June 8, with the budget recommendation to come before the full commission at its next meeting.
With most of the budget already having been voted on, the Tuesday meeting was left with only one remaining question, overall county property tax rate would be set at.
There had been some calling for a reduction of the property tax rate, after the county voted to move forward with building a new jail at a new location. The property tax rate had been set at $2.51 per $100 of assessed value, up from $2, last year after approval to move forward with a judicial center and jail, but that plan was later defeated in a referendum vote last November. With the jail only plan coming in at a much less cost to the county, some had wanted to see the tax rate be lowered this year.
During the monthly meeting in June, the county commission voted to purchase 71.5 acres on Smith Road for the new jail not to exceed $1.8 million plus closing costs, and subject to favorable core drilling, which has not yet been completed. The commission further committed to issuing notes to buy the land and to fund construction of the new jail at the new site for up to $35 million. Treanor will be the architect of the project although specifics are yet to be determined, as to the number of beds, etc.
At Tuesday’s meeting, the county’s fiscal agent, Steve Bates, did not recommend lowering the tax rate, not knowing what interest rates will be as far out as a year from now when a 12-year capital outlay note is actually issued to fund new jail construction.
“What could we lower the tax rate to if we do the $35 million jail and still pay it off and not struggle,” budget committee member Tony Luna asked.
“I can’t tell you to the penny. I don’t really know,” replied Bates. “We don’t know where it’s (jail) going to come in at. We are trying to amortize it for 12 years and do a smaller project. I based everything on what I knew we could do in 12 years on the money we have. Even if you bought the land today and they (architects) started those plans, it’s going to be six to eight months before they get final drawings. I don’t know where rates are going to be in 10 months or 12 months. I can tell you where they are at now. I just know we will have to make it work with what we have got.”
“What could you lower it (tax rate) to for today (based on today’s interest rates),” asked Committee Chairman Barnes.
“Two pennies probably,” said Bates. “To be safe, I’d leave it like it is, but if you need the two pennies you could give it up and revisit it. If you cut two pennies that’s about $120,000 (savings) but that’s cutting it close,” Bates explained.
“It will save eight million dollars in interest and nine million dollars moving (jail) to a different site,” Luna said. “We’ve already saved $30 million building a smaller place. The voters didn’t want the $65 million bond. We didn’t do that. We’re going to save over $40 million. I still think we’re doing the right thing and we’ll have it paid off in 12 years versus 30 years. That was another complaint I heard. We didn’t want our grandkids paying for this. We’re not.”
Luna made a motion to leave the property tax rate at $2.51, while Glynn Merriman made a second. The committee voted 6-1 to keep the tax levy, with Chairman Barnes, Merriman, Luna, Mathias Anderson, Tony (Cully) Culwell, and Daniel Cripps voting in favor, while Sabrina Farler voted no.
After setting the tax rate, the budget committee adopted the debt service fund and voted to submit to the commission a consolidated budget, meaning combining all budgets together (county general, schools, highways/public works) for final approval instead of voting on them separately.
The county commission will take up action on the new budget and tax rate at its next meeting on Monday, July 28 at 6:30 p.m. in the auditorium of the county complex. Eight votes are needed for final passage.
