Reassessment appeals could leave Dougherty schools without local tax money until April

Superintendent says the district may need to borrow against future collections as appeals tie up roughly 30% of the county’s tax digest

Dougherty County Schools Superintendent Ken Dyer: File Photo

ALBANY — The Dougherty County School System may not see any local property tax revenue until April, nine months into its fiscal year. The reason is a flood of appeals after the county’s first full property reassessment since 2007.

Superintendent Ken Dyer told the Dougherty County Board of Education on Thursday that appeals cover roughly 30% of the value on the county’s tax digest. Until that share comes down, the state can’t approve the digest and the county can’t send regular tax bills.

“We certainly have enough cash flow to get us through December,” Dyer said. “But I don’t know if we’ll be able to get through nine months … without receiving that local revenue.”

Dyer said the district is running a cash flow analysis to decide whether it needs a tax anticipation note. That is a short-term loan repaid once tax collections arrive. He expects to bring the analysis to the board at its next meeting or in December 

A long way to 8%

The revaluation covered about 37,000 properties and took 2½ years.

County officials have said a 2022 state sales ratio study found Dougherty out of compliance with state standards, forcing the revaluation. In 2024, county assessments averaged about 31% of market value, below the 40% Georgia law requires.

The catch-up produced steep jumps on notices mailed this summer. Owners had 45 days to appeal, and the deadline passed Oct. 5.

Dyer said the district learned this month that appeals represent “at least 30% of the value of our tax digest.” He added, “If that figure is correct …” A member of the Dougherty County Taxpayers Association estimated more than 5,000 appeals were filed.

State law sets the bar. In a revaluation year, the state revenue commissioner cannot approve a county’s digest when 8% or more (O.C.G.A. § 48-5-304) of the disputed assessed value and 8% or more (O.C.G.A. § 48-5-304) of the properties are on appeal or in arbitration.

If the taxpayer group’s estimate holds, both measures are well past that line. With about 37,000 properties, 8% works out to roughly 2,960 parcels.

“We have a long way to go,” Dyer said. “And all those delays just further delay our receipt of our local property tax revenue.”

He said resolving the first round will likely take a couple of months. Owners who lose before the county Board of Equalization, a hearing officer or an arbitrator can then appeal to superior court.

“So that will take this out even further,” Dyer said.

April at the earliest

Dyer said the earliest he expects the digest to be approved is late January. Bills would likely go out in February and come due about 60 days later.

“So that puts us in the beginning of April before receiving any local revenue,” he said. April is the 10th month of the district’s July-to-June fiscal year.

The district enters the gap with a cushion.

“Fortunately, we have a reserve that will sustain us for a large period of that time,” Dyer said. He noted that some school systems struggle to make it to Dec. 31.

That cushion has been shrinking. The general fund balance fell from about $41.3 million at the end of Fiscal 2023 to a projected $31.8 million by the end of the current year.

The district’s Fiscal 2027 budget calls for about $181.8 million in general fund spending. It draws about $3.1 million from reserves. Dyer estimated monthly payroll at around $10 million. At a June budget hearing, Dyer said, “Even after this budget, we’re projected to have more than $30 million in reserves.”

Rate decision on hold

The delay also stalls the board’s tax rate decision, which can’t be made until the digest arrives. Dyer has said he expects a “significant reduction” in the millage rate. It would be the district’s ninth straight cut. The rate was 17.93 mills in 2025, down from 19 mills in 2005.

He also has warned that cutting too deep could cost the district state equalization money. That funding requires a minimum local tax effort.

The county and city face the same wait. Local officials have said millage rates will be set after appeals are complete. The county’s Fiscal 2027 budget is $104.13 million.

Could last year’s digest be used?

Board member James Bush, who chairs the board’s Finance Committee, asked whether the county could keep using last year’s digest until the appeals are settled.

Dyer said that call belongs to the Board of Tax Assessors. He said the district would review state law and consult the assessors, the city of Albany and the Dougherty County Commission “to see if there’s an appetite for that.”

“Although we don’t control that, that’s certainly something that tax assessors can consider,” Dyer said. “I certainly wish they would, and wish they would make that inquiry.”

State law offers a route. A Superior Court judge can let a county collect taxes temporarily while its digest awaits approval. The order may be based on the most recently approved digest, adjusted for ownership changes (O.C.G.A. § 48-5-310).

Fulton County won such an order in August after problems with its 2026 digest. The judge allowed bills based on 2026 values and 2025 tax rates, with refunds for any overpayment once the digest is final.

Bush also credited Dyer and his staff for the district’s finances. He said he was looking at about $33 million on hand. He recalled a time “when the board used to have to borrow money.”