Those in attendance for the Council Meeting were as follows:
Mayor: Lois Salter
Council Members:
Bernie Cohen, Debbie Guthrie, Delicia Reynolds, George Sipe and Marcie Zielazienski
City Clerk- Jackie Wall

Citizens Present- 3

CALL TO ORDER
Salter called the meeting to order at 8 PM at 4043 South Berkeley Lake Road.

MAYORS MESSAGE
Salter updated Council on Fowlers mill. She said that Jackie Henderson was proceeding with landscaping. Henderson wanted to hand the entire property over to the City as a turnkey deal- so that the City spends no funds fixing it up. The Deed will be conveyed to the City when it is completely finished. Henderson has designed it so it is not visible from South Berkeley Lake Road as a park. She has consulted some of the residents of the area to make sure it all blends in.

Sipe said in response to other comments, that Henderson is free as a property owner of the property to open it to public access if she wishes to. If the City owns it, total access can be restricted to it, or it can be open, the rights are the same whoever owns it. If the City owns it, more people can make the decision as to what is done there, which they could not do if a private property owner owns it.
Zielazienski said Henderson has talked to Bayway Circle residents: Tom Kitchens and Gary Moore have been involved in the planning.
Salter reiterated that it is not actually a park but a memorial to Bob Henderson.

PROPOSING A TENTATIVE MILLAGE RATE
Pam Williamson- City Treasurer.
Williamson explained how the Financial Affairs Committee had arrived at their recommendations. They had used the actual amounts spent from January to April to estimate what would be spent over the rest of the year, as well as any other new information which was available as to what else would be spend until the end of the year. They had come up with a revised forecast of total outlays of $926,209.

Williamson said that the group had three proposals for the millage rate. The first one was their recommendation- to hold the millage rate at the 2003 level of 4.35 mills. It will mean that an additional $43,500 out of the reserve fund will be needed to cover the shortfall for unanticipated or unbudgeted costs in infrastructure work.

Williamson said the second proposal showed updated operating costs with no change to the equity transfer to cover revised forecast without any additional money from the reserve. The millage rate would have to be increased to 4.88 mills. This would be considered as the top end.

Williamson said the third proposal shows the low end and the effect of what is called the rollback. This is calculated by the County reassessments of homes within the City limits. There has been a huge rise in the value of homes, and therefore it had a huge impact on the rollback. It was a 5.78% increase equating to a $4.354 million increase in values. The State calculates this into the rate, so there is not a huge windfall in re-assessed value. If this were applied to the millage rate, it would fall to 4.1232 mills, and therefore $61,569 more would have to come from the reserves.

There was discussion about the adjustments which would be made the County on their taxes due to the reassessments, and that any increase in taxes would be offset by their homestead exemption.

Cohen asked how much Council members would be comfortable having in reserve. He said for every scenario, there was a need to take from the reserve.

Sipe said that in discussion with residents he had found that it depended on how long residents intended on living in Berkeley Lake. If they are only here a year or two more, they would prefer tax rates lower, as it is a better selling point and involves smaller outlays in the interim. However, those who intend to live in the City long term look toward more security and a stronger financial underpinning for the City.

There was discussion that $400,000 had been spent from the reserves so far in addressing long-term problems but it was a significant dent in reserves- money that could not be replenished. However it should be used in an emergency, for unanticipated expenditure.
If the City is maintained, property values stay higher to sell later. However, there should not be a need to go into reserves so much, so there is flexibility to spend later if necessary.

It was reiterated that the 4.35 millage rate recommended unanimously by the Financial Affairs Committee was still effectively a 5.51% increase in taxes. About one fifth of the community, whose properties had been reassessed, would see this increase.

There was discussion that there would not be such an exaggerated expenditure from reserves next year, but funds would still need to be spent on some other long term infrastructure issues that still needed to be resolved. There was concern that the reserves were not constantly dipped in to, and that the millage rate should cover the ongoing costs of the City. It was pointed out that some of the roads and infrastructure projects would not have to be done again for some time once they had been completed.

Salter acknowledged that it was a tight budget to keep it at the current 4.35 millage rate, but that there are hopes that other income would come through next year. If that was not the case, then taxes would have to be raised. If it were held where it is now, then four fifths of the residents would have the same taxes.

There was discussion that if taxes were raised to the 4.88 millage rate, there would be $43,500 taken from the reserves. That is less than approximately a 5% risk to the reserves. There was hope however that there would be other possibilities for income in future: an increase in tax base with new homes in the sod farm development, as well as the possibility from SPLOST tax revenue if it is voted in the fall. However it would be hard to tell how much that would be at this stage.

Cohen motioned a resolution to set the proposed millage rate at 4.35 mils for 2004. Zielazienski seconded the motion and all were in favor.

Reynolds stated that our city charter requires the millage rate to be set by ordinance. Generally, the ordinance specifies the year; so an ordinance is required even if the rate does not change from the previous year. Last year was the first year that we also set the rate by resolution to comply with the county billing schedule. So we must pass the resolution for the county billing requirement and the ordinance for the city charter requirement.

Cohen motioned that the millage rate for 2004 be 4.35 and that it be put on first read. Sipe seconded the motion. All were in the favor of the motion and the motion passed.

Salter announced that the Public Hearings to hear the millage rate would be June 3rd at 12 noon and again at 7:30pm that night along with the regular council meeting. There would also be a Special Called meeting on June 10th at 7:30 pm for the third and final public hearing.

It was suggested that these dates be included in the Mayors message too. Residents should be encouraged to call the Mayor and Council should they want to ask any questions before then.

THERE BEING NO FURTHUR BUSINESS, COHEN MOTIONED TO ADJOURN THE MEETING AT 8:40 PM. ZIELAZIENSKI SECONDED THE MOTION, AND ALL WERE IN FAVOR. THE MOTION PASSED.

Respectfully submitted by Jackie Wall, City Clerk (Correct as of June 3, 2004)