The 15 cities arguing with Fulton County over local option sales tax revenue are ready to have an arbitrator weigh in on the disagreement, Sandy Springs Mayor Rusty Paul said.
Paul says arbitration would be open to the public and allow residents throughout the county to have a greater understanding of what’s at stake.
“It is a great indicator from an impartial person of who has the stronger case and argument,” he said.
Fulton wants a greater share of LOST — a penny sales tax in which a portion is allotted to local governments. County officials say the increase would help improve the court system, jails, mental health services and more. Cities use the funds for fire, police and other services and mayors say losing revenue to the county would cause them to raise property taxes.
Mediation between the two sides has been out of public view and no new meeting date was scheduled as of last Friday, but Fulton County issued a statement that included offers made by both parties.
“Simply put, Fulton County is seeking additional funding to address two crises that affect residents in each of your cities: public safety and public health,” Fulton County Commission Chairman Robb Pitts said in the statement. “... The cost of leased jail beds from outlying jurisdictions (including Atlanta) is costing $28 million annually, on top of other jail operation costs and the costs to operate the court system as a whole.”
Credit: Courtesy Fulton County
Credit: Courtesy Fulton County
In 2028, the cities collectively would receive $31.7 million less than what their mayors are asking for. In 2032, the cities would collectively receive $24.8 million less than their offer to Fulton.
“For certain cities like Johns Creek, it’s 40% of their budget so a few million dollars is significant,” Paul said.
In addition to Sandy Springs and Johns Creek, the partnering cities include Atlanta, College Park, East Point, South Fulton, Roswell, Alpharetta, Milton, Palmetto, Fairburn, Mountain Park, Hapeville, Union City and Chattahoochee Hills.
Currently, Fulton cities’ collectively share 95% of LOST revenue, leaving the county less than 5%.
According to the information provided, the cities’ offer would gradually increase the county’s share to 9.5% by 2032. Countering, the county would instead increase its share to 15% by that year.
Paul said it’s possible mediation will continue instead of arbitration.
Arbitration would not be binding but it would conclude with one side loosening their stance, he said.
If the arbitrator were to decide in the favor of Fulton, Paul said: “We would have to reconsider our position, just as if the arbitrator chose the cities’ position, the county would be forced into a situation where they would have to reevaluate their position.
“We’re confident in our position,” Paul said of the cities.
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