County/City Reach SPLOST VII Deal

After weeks of back and fourth negotiations, the distribution of revenue for the next Special Purposes Local Option Sales Tax has been settled between the County and the City of Toccoa.

Monday morning, Stephens County Commissioners accepted the City’s counter offer of a 68.25% County, 31.75% City split with no conditions.

County Administrator Phyllis Ayers said County Commissioners felt the City had come close to last week’s offer.

“It was close to the non-negotiable 70/30 split, which we really need because our operating budget for the services that we are required to supply plus the ones they want us to supply, we are tied to our property and sales tax,” Ayers explained. “So we are using our fund balance to balance the budget right now. And so it’s the County Board’s effort not to be looking at a millage rate increase anywhere in the near future.”

City of Toccoa Commissioners had asked for $9-million in SPLOST revenue based on a 3% annual increase in sales tax over a six-year period.

That offer was rejected by the County who wanted to offer $6-million based on a 1% increase over six years or a 70/30 split minus the Cities of Martin and Avalon’s share.

Ayers says how much the City will now receive depends on how whether sales taxes will increase during the next SPLOST.

“If we were to literally stay the same as the 12-month period, the City would get $6,350,034.93. That would end up being the 31.75% split,” she said. “Then if we look at a 1% increase, the City would get $6,579,135. And then if we continue like this past calendar fiscal year, over a 12-month period there was a 3% increase in sales tax. If we are able to do that over the next six years, the City would get $7,315,180.”

City Manager Billy Morse tells WNEG News he’s pleased with the agreement and how well both sides were able to work towards a final solution.

“It is good news that the City/County have agreed to a SPLOST distribution,” he said Monday. “We have a number of good projects that we need to do with those funds; wastewater fire truck, street resurfacing. I know the County has a long list  of very good projects too, but I think the community will be pleased that we’ve looked at economic development, public safety, transportation; those sorts of projects.”

Ayers said the County attorney will now begin putting together a resolution for a referendum which will then be sent to the Secretary of State’s office to be put on the November ballot.