Richmond Hill accepts $3.5 million settlement from Bryan County to resolve 2018 lawsuit

The settlement will be used for eight different infrastructure projects, including road improvements and traffic signals, that Richmond Hill and Bryan County will work on together.

The county also agreed to stage an ambulance and EMS crew within Richmond Hill's limits to aid the city's growing elderly population. Lastly, the agreement states the county will repay more than $2.5 million back to the general fund.

The original complaint filed in Bryan County Superior Court alleged that the county breached a contract by increasing property taxes for Richmond Hill property owners and also erroneously used money from the general fund for services designated for unincorporated areas.

Richmond Hill is one of Bryan County's two incorporated cities. Pembroke is the other.

2021 Richmond Hill & Bryan County SDS Press Release and Settlement Agreement by savannahnow.com on Scribd

Bryan County created the property tax discrepancy in 2018 by adjusting the millage rate for all county residents. The move raised concerns from Richmond Hill officials over the inequities and a nearly $20 million cash reserve resulting from the higher tax rate, leading to the filing of the lawsuit.

In a statement issued on Aug. 23, Bryan County Administrator Ben Taylor said the "reserves are well within the recommended levels for a coastal community that remains under the continued threat of impacts from a hurricane," and that "having a cash reserve on-hand allows the county to further invest in infrastructure projects and leverage grant opportunities..."

Bryan County SDS Agreement News Release FINAL (002) by savannahnow.com on Scribd

2018 0821 Rh vs Bryan County Et Al by savannahnow.com on Scribd

The original complaint followed a 2018 Bryan County Commission decision to raise the millage rate in the city of Richmond Hill to 8.8 mills, an increase of .937 mills, meaning city property owners would pay 12% more in property taxes than the previous 14 years.

The increase intended to equalize the millage rate among Bryan County’s three tax districts: Richmond Hill, Pembroke and the unincorporated county. County officials previously disputed that the uneven millage rate was not fair to all residents of the county.

However, Richmond Hill alleged that, by equalizing the millage rate, they breached a contract called the service delivery strategy (SDS), which outlines what constitutes countywide services and who should be paying for them.

Richmond Hill property owners previously paid almost one mill less in property taxes as part of a longstanding agreement that the incorporated areas of Bryan County would pay a slightly lower millage rate because they purportedly didn’t receive the same level of services that their counterparts in the unincorporated portion of the county did.

According to the complaint, Richmond Hill also identified several areas in the existing SDS agreements with the county that it says result in funding inequities and causes city property taxpayers to pay for county services that city property taxpayers do not receive, such as public works, road/bridge construction and maintenance, curbside solid waste collection and disposal, landfill, mosquito control, planning and zoning engineering, building inspection, economic development, fire protection, jail and other services.

“To be clear, the city agrees that millage rates should be equalized for countywide services but we disagree on what that rate should be,” said a 2018 statement from Richmond Hill.

Since the lawsuit was filed, the city and county have had several mediations with no court involvement, resulting in the current agreement, which also outlines how certain services should be paid for.

“The City looks forward to working with Pembroke and Bryan County to address the challenges of our growing community, the fastest growing county in the state.  We have come a long way, and we have a lot of work to do together," said Richmond Hill Mayor Russ Carpenter.

In the Aug 23 statement, the county said they "worked to ensure the resolution of those issues was fair and in the interest of all Bryan County citizens, both inside and outside incorporated areas."

However, they "denied all claims in the litigation and no other provision of any agreement relates to those claims."

In the statement, the county also disputes the misuse of general funds, stating the investment was for the benefit of both incorporated and unincorporated areas.

Nancy Guan is the general assignment reporter covering Chatham County municipalities. Reach her at nguan@gannett.com or on Twitter @nancyguann.

This article originally appeared on Savannah Morning News: Richmond Hill accepts $3.5 million settlement from Bryan County to resolve 2018 lawsuit