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2007-12-20  TOP STORIES | Cumming mayor to take SPLOST to round 2
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| | by Hatcher Hurd | |  |
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| | | (click for larger version) | |
December 26, 2007
Cumming Mayor Ford Gravitt walked into court Dec. 17 with a lawsuit against the county's proposal for Special Purpose Local Option Sales Tax referendum, Superior Court Judge Hugh W. Stone.
Ninety minutes later, after Stone threw out the city's case against Forsyth County, Gravitt was putting "Plan B" into action to stop the referendum. He vowed the wheels were already turning to set up citizen committees to defeat the $275 million SPLOST at the polls.
At the heart of the rift between the city and the county is the way the money is split. Cumming had identified $50 million in projects it wanted to accomplish through the SPLOST. But the county has only allotted the city 4.29 percent of the sales tax revenue (about $11.8 million). That figure is the per capita share of the SPLOST based on the 2000 Census.
Gravitt and his City Council had sought 15 percent of the SPLOST revenue, then agreed to 12 percent. But the most the county ever offered was 10 percent, or about $27.5 million. The city would not take that offer.
Gravitt said the SPLOST referendum as now constituted could mean a property tax increase at least for the city because may need its own bond referendum to complete all of the projects the city wants to do.
Gravitt also said the county has not identified the specific projects it wants to accomplish. Without having those specifics, the voters are being asked to vote spending in the dark.
"If this [SPLOST] passes, it will mean a raise in property taxes," Gravitt said.
Forsyth County Chairman Charlie Laughinghouse said he was pleased with the outcome, and that the city had a chance to have a 10 percent split had it taken the offer.
"[The city's] response was very negative. They could have taken the first or the second offer, but they rejected [10 percent, then 8 percent]. With the expediency of time to prepare the ballot, and the futility of further negotiations with an intransigent [City Council], we had to move forward with the ballot initiative," Laughinghouse said.
Laughinghouse said he did not understand why the city wants to try to defeat the SPLOST now. It contains the road improvements needed for the Great Wolf Resort project, a $100 million private investment in the city's Mary Alice Park.
As for the SPLOST causing an increase in property tax, County Attorney Ken Jarrard said the only way for that to happen was for the county's economy to go completely in the tank. There are $160 million in bonded indebtedness that would be incurred to be repaid by the bonds.
"But that is just to let us get a jump on construction, since the majority of projects will be associated with transportation [$218 million]. But the law requires that the SPLOST repay the bonds before any other spending is undertaken," Jarrard said. "I can't foresee a situation in which the county would not raise the money to retire the debt using SPLOST funds."
The SPLOST does not name the specific projects targeted for funding in the referendum ballot. But this is not unusual. Indeed, Jarrard pointed out it is exactly the way the county's previous SPLOST ballots have been constructed. Jarrard said the county has similar SPLOSTS from several other counties including Barrow and Dawson counties which construct their ballots the same way – by purpose rather than specific project.
"Every county ballot is done by purpose rather than spelling out each project," he said.
The Feb. 5 SPLOST ballot is expected to have a fairly heavy turnout since it is the same day as the presidential preferential primary in Georgia.
- www.northfulton.com
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The SPLOST debate
• Oct. 16 Commissioners meet to discuss SPLOST proceeds. No intergovernmental agreement between city and county was reached. Mayor H. Ford Gravitt said the city would not accept a discussed split of 10 percent to Cumming and 90 percent to Forsyth County.
• Oct. 16 At a city council meeting, Gravitt said the 90-10 split was unacceptable considering the SPLOST V split was 85-15 and the city planned $50 million in projects from future SPLOST proceeds.
• Oct. 18 Commissioners continue SPLOST discussion. A 10 percent offer to the city failed with a 3-2 vote (at least a 4-1 vote was needed to support the purposed agreement). Commissioner Jim Harrell made the motion to offer an eight percent portion to the city, which was seconded by Commission Chairman Charles Laughinghouse. The motion failed to pass.
Commissioners then decided 3-2 to accept a five-year SPLOST with the city's portion based on the 2000 Census, or 4.29 percent.
• Oct. 23 Commissioner Brian Tam announces he will ask for a reconsideration of the SPLOST vote and seek a 91-9 split with the city.
• Oct. 30 Commissioners vote 3-2 against revisiting the SPLOST decision
• Nov. 6 Cumming filed suit against Forsyth County | |
Tags: SPLOST
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