City folks pay too
much tax, study says By DAVE HAMRICK
dhamrick@thecitizennews.com
Residents
of unincorporated Fayette County owe their
neighbors in the county's cities a little over $2
million a year.
That's
the bottom line in a draft reaport from
Governmental Solutions Inc., a consulting firm
hired by local governments to settle a
disagreement over how taxes and services are
distributed.
City
officials in recent months have complained that
their residents are subsidizing services for
residents in unincorporated areas, and county
officials have countered that they believed
county-only residents have been paying more than
their fair share.
Amid
nervous jokes about which government entities
should have brought a checkbook to the meeting,
Steve Burnett of Governmental Solutions issued
his draft report at Tuesday's gathering of the
FUTURE Committee. FUTURE (Fayette United Team to
Utilize Resources Effectively) is a group of
elected and appointed officials from all of
Fayette's governments that has been working for
about two years to find ways the governments can
cooperate to reduce the overall tax burden on
residents.
The
tax inequity question came before the
committee after Tyrone Town Councilman Ronnie
Cannon aired his feelings on the matter during a
council meeting. Later, officials in Fayetteville
and Peachtree City expressed their own feelings
that their residents were being shortchanged.
County-only
folks need to pay more for public works,
said Burnett Tuesday, later adding, We have
a tax inequity problem in the Sheriff's
Department.
Slight
inequities also exist in emergency medical
services as well, said Burnett.
Fayetteville
residents are paying $321,424 more in county
taxes than they are receiving in county services,
according to Burnett's report, while Peachtree
City residents are shortchanged about $1.3
million, and Tyrone residents pay $130,505 too
much.
City
officials objected to the fact that Burnett's
study found no inequity in how library and
recreation services are dispersed in the county.
Peachtree
City residents have their own library and
wouldn't logically drive to Fayetteville for that
service, said city manager Jim Basinger.
That's
a duplication of services that the cities chose
to do, said Burnett, adding that detailed
records simply don't exist that tell how many
county library patrons come from within the
cities. I can't prove it's not a
county-wide service, he said.
The
same is true of recreation services, he added.
What
now?
FUTURE
Committee members will begin what is expected to
be a lengthy negotiation process next Tuesday at
8 a.m. at the Wendell Coffee Golf Center in
Tyrone.
Burnett's
recommendations include several options for how
to address the inequities, including simply
increasing property taxes for unincorporated
county residents while reducing them in the
cities.
Fee
increases for specific services also are an
option, he said. Every dollar of fees would
offset a tax dollar, he said.
The
officials also should consider setting up more
special tax districts so that the residents of a
specific area would be taxed for a specific
service, he suggested.
And
the county could directly handle more services
inside the city limits, he added.
Additional
special tax districts should be used to better
account for taxes and benefits as the long-term
solution, said Burnett, adding that a
reasonable time to accomplish this would be
somewhere around 2002. You can continue to
explore joint ventures in the meantime, he
said.
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