Gwinnett, cities miss deadline, could lose big bucks

An impasse between Gwinnett County and its 15 municipalities may cost both sides millions in state grants and freeze some projects in their tracks.

The deadline passed Monday for the governments to sign a state-mandated intergovernmental service agreement, which establishes taxes the county can levy on city residents. As a result, neither can qualify for state grants, permits or financial assistance until at least April 1.

“This is the most severe set of sanctions of any program we administer,” said Mike Gleaton, assistant commissioner with the Georgia Department of Community Affairs.

Besides the financial impact, Gleaton said, city and county departments cannot obtain permits to expand water or sewer systems or extend or repair water or sewer lines that run on state right-of-way.

The county filed for an alternative dispute resolution Monday seeking third-party assistance in reaching an agreement with the cities. It is also asking a judge to suspend the state sanctions during the resolution process.

Gwinnett County government received $13.6 million in state money in 2008.

The Gwinnett Municipal Association, which is representing 14 of the 15 cities in negotiations, does not have a cumulative figure for state funding, but the amount is probably in the millions, said Suwanee Mayor Dave Williams, who serves as chairman of the association.

The Service Delivery Strategy was instituted by state law in 1999 to address double taxation of city residents for services already provided in their municipalities.