The Fayette Citizen-News Page

Wednesday, November 28, 2001

Tax equity mediation begins Fri.

By DAVE HAMRICK
dhamrick@TheCitizenNews.com

Professional mediator Tim Keim has been handed the task of unraveling the long-standing dispute between Fayette County and its three largest cities of tax equity.

An initial meeting with attorneys has been set for Friday. "We'll get some ground rules and so on that we're going to proceed under and then get started," said County Attorney Bill McNally.

Senior Judge Stephen Boswell appointed Keim, who was recommended by county attornies, to try and come to a meeting of the minds between Fayette and the cities of Fayetteville, Peachtree City and Tyrone. He has worked with the local court system in mediating domestic disputes, said assistant County Attorney Dennis Davenport.

Boswell had earlier ruled in favor of the cities, denying the county's motion to dismiss their request for mandatory mediation under House Bill 489, the 1997 state law requiring counties and cities to make sure their residents are taxed only for the services they receive.

In a sometimes rancorous difference of opinion that has lasted more than two years, the cities claim their residents pay more in taxes than they receive in services from the county, to the tune of about $2 million a year. County leaders say just the opposite is true residents of the unincorporated area may be subsidizing services for city residents.

Following a series of heated debates in joint meetings with city officials, county leaders late last year called a halt to the discussions, saying they had given their final answer. "There is no tax inequity," they said.

Under HB 489, the cities earlier this year filed the request for mandatory mediation, saying the law requires that the dispute be settled. The county challenged with a motion to dismiss the request, saying that a joint service delivery strategy already exists.

After ruling that the mediation must proceed, Boswell appointed Keim.

Now, the county and cities must begin negotiations within 30 days, and conclude within 60 days after that.

Whether that's the end of the matter is anybody's guess. According to the law, the mediation is not binding. If any of the parties disagrees with the results, more court action may result.