A bill pending in the Georgia House of Representatives seeks to prevent newly formed cities from escaping old pension debts.
The legislation, House Bill 711, was pre-filed last week by Rep. Mary Margaret Oliver, D-Decatur, and will be considered when next year's lawmaking session begins Jan. 11.
The issue is relevant in DeKalb County, where Dunwoody and Brookhaven incorporated in recent years and more cities may be on the way. Tucker will become a city next year, and lawmakers are reviewing cityhood proposals for Stonecrest and Greenhaven.
After cities are created, a portion of their residents' property taxes that previously paid for county services instead goes toward their municipalities. The county used part of that money to pay for its pension debts.
The bill requires residents in newly created cities to continue paying taxes for county government employee pension debts at a similar rate as they did before incorporating.
“HB 711 will solve a basic unfairness that presently exists for pension obligations to county employees for citizens of newly created cities,” Oliver said.
DeKalb’s unfunded pension liability was about $666 million as of last year.
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