08/19/2026
Villa Rica to hold millage rate steady despite state classifying move as 3.71% tax increase
VILLA RICA, G.A. — Villa Rica city officials are recommending maintaining the property tax millage rate at the same level as last year, though state law requires the city to advertise the move as a 3.71% tax increase.
During a public hearing Tuesday morning, Finance Director Jennifer Homeman presented the proposal to keep the 2026 millage rate at 5.588 mills, identical to the 2025 rate. However, because the city is choosing not to adopt a lower "rollback" rate designed to offset inflationary growth in property values, Georgia law classifies the decision as a tax increase.
"We are recommending that we maintain the same millage as 2025 which is 5.588 mills versus the 5.388 mills which would generate $260,000 in additional revenue," Homeman told the governing body.
The rollback rate of 5.388 mills would offset the 3.87% inflationary reassessment growth in the city's property digest. The city's net digest increased 8.25% overall, with 4.38% coming from new property growth that generated approximately $295,000 in revenue.
A primary factor driving the recommendation is a significant shortfall in the Tax Allocation District (TAD) debt service fund, which requires payment from the city's general fund.
"We have a debt service fund payment that is due of just under two million," Homeman explained. "So that's about $825,000 that needs to be funded for that shortfall and that comes from the general fund."
The TAD currently has approximately $1.1 million in revenues and reserves, leaving a substantial gap to cover the nearly $2 million debt service payment due in fiscal year 2027. This mirrors the funding challenge the city faced in the current budget year.
Beyond the debt service shortfall, city officials cited multiple budget pressures justifying the maintained millage rate. Personnel costs are increasing due to cost-of-living adjustments, merit raises, and additional staff needs that will be detailed in the upcoming budget presentation.
Operating expenditures across city departments are also rising.
"Government is not exempt from inflation of all of the supplies and services that are needed to operate," Homeman noted during her presentation.
The city also faces a $100,000 increase in fire service funding, with Carroll County Fire Services costs jumping from $300,000 in the current fiscal year to $400,000 in the proposed budget.
Despite the millage rate remaining flat, state law mandates specific public notice requirements.
"The state still sees that as a property tax increase because we're choosing not to roll back the millage rate," Homeman explained.
The city placed advertisements in local newspapers on August 8 announcing a "Notice of Property Tax Increase" showing the 3.71% increase. State law requires the advertisement to be worded exactly as specified and measure 30 square inches.
Recognizing potential confusion, the city also published an additional explanatory advertisement.
"According to Georgia law, all taxing agencies must advertise a tax increase and hold three public hearings to claim taxes on reassessed properties even if the millage rate remains unchanged," the supplemental notice stated.
Two state-level programs will help offset the impact on homestead property owners. House Bill 581 provides a floating homestead exemption that caps assessed value increases at 2.7% for 2026, regardless of actual reassessment growth.
Additionally, the Homestead Tax Relief Grant (HTRG) will reduce assessed values by approximately $18,000 for homestead properties, resulting in roughly $105.58 in property tax savings per homestead owner in Vera. The state will reimburse municipalities for the reduced revenue.
Tuesday's meeting marked the first of three required public hearings. No residents spoke for or against the proposal during the public comment period. A second hearing is scheduled for Tuesday evening at 6 p.m., with the third and final hearing set for the following Tuesday, also at 6 p.m. The city council will vote on adopting the millage rate following the final hearing.
The city's property digest reached $1.55 billion in gross value for 2026, with residential properties comprising 49.4% of the total, industrial properties 26.8%, and commercial properties 22.2%.
Watch the full hearing here: https://www.youtube.com/watch?v=-RjfwBBfJfw
**Photo courtesy of the City of Villa Rica on YouTube**
