Albany, Dougherty County continue back and forth over division of sales tax dollars

ALBANY — There was no whack of a tennis racket, but the Dougherty County Commission sent the ball back to the city’s side of the court on Tuesday in negotiations over the division of proceeds from a 1% sales tax.

Dougherty officials voted unanimously to accept three of the conditions in the city’s latest counter-offer, but balked on a condition of holding a non-binding referendum on consolidation of county and city governments.

“We’ve made a lot of progress,” Commission Chairman Chris Cohilas said of the negotiation process. “I hope the people see the progress.”

In short order, the County Commission unanimously agreed to a 36-64 division of proceeds, with the larger share going to the city and the same as the original tender from the county. The city originally requested a 70 percent share of the six-year special-purpose local-option sales tax.

The commission also agreed to distribute an additional $3.5 million separate from the percentage split to fund the city’s stormwater/sewage separation project. The city is under a federal mandate to complete 85 percent separation by July 2025, and the overall project has an estimated cost of $105 million.

Another request from the city was that the $3.5 million for the drainage overhaul be distributed for the project in the first year of collections for the SPLOST, which would extend the current tax for six years if approved by voters.

The county agreed to provide that amount over the first two years in equal installments of $1.75 million instead of the full amount during the first year, despite County Administrator Michael McCoys recommendation to pay installments over the six-year period.

“I would recommend we put it in increments in the EPA’s (Environmental Protection Agency) time frame,” Commissioner Gloria Gaines said.

Commissioners also unanimously agreed to negotiate the city/county local-option sales tax (LOST) separately. The LOST can be used for general government operating expenses, while SPLOST is limited to use for capital projects such as equipment, renovating facilities and purchasing land or buildings.

Commissioners also quickly agreed to engage in separate negotiations on the LOST issue, which must be finalized by Dec. 21 as compared to the Friday deadline on the SPLOST. That was the county’s original position, Cohilas said, and thus not a problem.

That left the decision on a non-binding referendum asking voters whether they would like to have the city and county governments consolidated.

“Here’s the one where I don’t think we’re going to be unanimous,” Cohilas said.

Commissioners Victor Edwards, Gaines, Russell Gray, Anthony Jones and Clinton Johnson indicated that they opposed putting the question on the November ballot, although Cohilas, Gray and Commissioner Ed Newsome said they are in favor of consolidation.

“I don’t believe it should be part of the intergovernmental agreement” on the sales tax, Gray said. “I think it can be a separate discussion, (but) I don’t think now’s the time to do it.”

Newsome joined the others in the decision to make the commission’s vote unanimous on the issue.

“My personal thoughts and feelings, I feel in order for this community to move forward, consolidation has to move forward,” Cohilas said. “Ultimately, the citizens will have to decide. I don’t think that should be part of this negotiation.”

The Albany City Commission will meet on Thursday to consider the county’s offer. Earlier this week the city indicated the Georgia Secretary of State’s office is willing to extend the deadline. If the two sides can’t agree this week, Edwards and Gaines indicated they are ready to proceed, and if the city does not agree, to move forward on its alternate plan.

Under that option provided in negotiations, the county would add more of its Level 1 projects, including expanding renovations of the jail and the Judicial Building and adding a courthouse annex.

If the two sides do not produce an intergovernmental agreement, the tax could be extended only five years instead of six and would bring in less tax dollars.

Staff Photo: Alan MauldinAlanMauldin[email protected]