Cities, county seek
third opinion on tax equity By DAVE
HAMRICK
Staff Writer
Are
residents of Fayette's cities getting as much
from the county in services as they are paying in
taxes?
The
answer depends upon who is crunching the numbers.
County
and city representatives Monday tentatively
decided to consider hiring an outside expert to
get a more objective reading after county manager
Billy Beckett reported that the county's finance
office came up with a completely different answer
than the one arrived at by Peachtree City and
Tyrone officials.
All
of us are looking at it through our own
eyes, said Beckett during a meeting of the
county's FUTURE (Fayette United Team to Use
Resources Effectively) committee. We're not
going to come up with an objective
analysis.
The
committee, composed of appointed and elected
representatives of Fayette and its five
municipalities, has been working for two years to
find ways the county and cities can cooperate to
reduce costs and improve efficiency. Complying
with a new state law, HB 489, which requires
cooperative agreements between counties and
cities, is part of FUTURE's mission.
The
question of whether city residents are receiving
services equal to the taxes they pay Fayette
County leaped into public discussion when Tyrone
Town Councilman Ronnie Cannon charged during a
council meeting that the town's residents pay
$400,000 a year more in taxes than they receive
in services.
Peachtree
City officials studied the question and
determined that their residents are shortchanged
by $2.5 million, said Mayor Bob Lenox.
We're
not saying this is the exact number, said
Lenox Monday, but we're saying this is a
logical framework for discussing the
matter. In our opinion the citizens of
Peachtree City are subsidizing the citizens of
the county, he said. That's not a
tolerable nor an equitable situation for the
citizens of Peachtree City.
Our
data suggest the cities are getting more than
their fair share, said Beckett, adding that
the city study doesn't take into account
indirect services such as use of
county roads, only direct services like county
participation in city construction projects.
Lenox
and other city representatives said they want to
move quickly to get an independent expert to
address the question.
If
there is a parity here, I want to know it,
said Lenox. If not, he added, I want to
figure out how it is we're going to move toward
achieving parity.
Peachtree
City's study suggests that, out of the county's
$29.5 million budget, Peachtree City residents
provide $8.1 million in property taxes and other
fees, and receive $5.7 million in services.
Fayetteville
pays $2.7 million and receives $2.4 million in
service, the study says, and Tyrone pays $875,511
and receives $654,560 in services.
The
study doesn't provide figures for Brooks and
Woolsey.
A
similar study conducted by Fayette's finance
office starts by discounting $3.8 million in
service-specific revenues and expenses. Those are
services such as Fayette County's fire service,
for which taxes are collected only in the
district where services are received.
Of
the remaining $25.6 million in revenues, $15.6
million comes from unincorporated residents and
$10.11 million from the cities, the county study
says.
The
county figures, which break down expenditures
into eight categories and 45 subcategories,
suggest that the cities receive $10.16 million in
services, just over the $10.11 million they pay.
Peachtree
City receives $6.63 million; Fayetteville $2.52
million and Tyrone $1.01 million in services, the
county study reports. The county study does not
break out revenues by individual cities.
County
and cities have agreed on several plans for
service delivery, but could not agree in four
areas: recreation, law enforcement, public works
and fire services.
The
state Department of Community Affairs has
approved Fayette's joint service agreements,
including its plan to come to agreement on the
four sticking points by the end of 2000, but city
leaders at the table Monday indicated they want
to move a lot faster than that.
This
is a hot button for me, said Lenox.
FUTURE
members agreed to come up with a list of names of
experts who could do an independent study, and
have a meeting next month to decide whose name
they should carry back to their respective boards
for a final decision.
Coming
to agreement on the four areas of disagreement
should be easy once the central question of taxes
paid versus services received is answered, said
Fayetteville Mayor Mike Wheat.
Those
present tentatively agreed to shoot for receiving
a report from the outside expert by March or
April in hopes of coming up with a final
agreement by July or August.
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