After failing to agree on how to divide the costs of paying for municipal services such as libraries, courts and code enforcement for more than two years, Henry County and its four cities are going to mediation to resolve their differences.
Henry County, which is initiating the proceedings, alleges unincorporated taxpayers are carrying the burden of the south metro community's costs — annually paying $58 million more than their city counterparts for the same services.
Henry wants to address the problem by renegotiating its Service Delivery Strategy agreement, the intergovernmental deal counties and cities strike for municipal functions such as animal control, fire departments and the coroner’s office.
It was unclear how the county and the cities would create equity — including whether property taxes would increase for residents— because they were still working through the process, said a spokesman for the county.
The conflict comes as Henry's growth is changing the once rural south metro community into metro Atlanta's second-fastest growing county. That has put pressure on the county and its cities for more police protection, wider roads and increased services for seniors.
Hampton Mayor Steve Hutchinson said he and his counterparts in Stockbridge, McDonough and Locust Grove have been more than willing to come to the table and that its frustrating that its reached the point that a third party is necessary.
“We started discussions with [the county] in 2016,” he said. “It’s finally coming to a head.”
Henry County Manager Cheri Hobson-Matthews said leaders decided to seek mediation to avoid any penalties from the Department of Community Affairs for failing to get an agreement after being granted a deadline extension to do so.
Scott Johnson, a consultant on county service agreements, told the Henry Commission last week that part of the inequity between city and unincorporated tax burdens may be the result of the way Henry collects its taxes. Most cities in Georgia levy an additional tax on top of county collections if they want enchanced services such as a city police or fire department in addition to what the county provides.
Because Henry’s cities don’t collect municipal taxes, city residents get a police force that is in part being paid for by county residents. All Henry’s cities have separate police forces except Stockbridge, which has a law enforcement agreement with the county.
“It probably has to do with the idea of not having double taxation,” Johnson said.
Locust Grove Mayor Robert Price said while the cities do not levy a city tax, they do face costs for enhanced services. He said Locust Grove could save about $1.5 million annually if it let Henry County police handle its law enforcement and court protections. But that would rob residents of the one-on-one relationship with those who protect them, he said.
“It’s personal when you know who the officer is,” he said.
Despite the impasse, everyone involved expects the county and its cities to eventually find common ground.
“We want to make sure this is ultimately fair and equitable for unincorporated and incorporated citizens alike,” Stockbridge City Manager Randy Knighton said. “I remain optimistic that it can be done.”
