A called meeting between the City of Eastman and the Dodge County Board of Commissioners to continue negotiations of the Local Option Sales Tax (LOST)
Funds ended with no agreement on Thursday, January 12, 2012.
At the request of Bobby Slye, chairman of the city council, City of Eastman Attorney Rita Llop began the meeting with an overview of the disbursements of the LOST funds currently and the proposal from the city to the county.
For the last 20 years the City of Chauncey has received 1.88%; City of Chester, 6.48%; City of Eastman, 31.14%; City of Milan, 3.38%; City of Rhine, 2.82% and unincorporated Dodge County, 54.30%.
Michael Brown, an advisor to local governments, was hired by the City of Eastman to review the allocation criteria for LOST funds and make a recommendation for the disbursement of the funds based on eight criteria* mandated by the state. His final recommendation was that the City of Eastman should receive 52% of the funds.
A called meeting to discuss proposals from the municipalities for the allocation of the LOST funds was held on October 27, 2011. The City of Chauncey requested 5%, City of Eastman, 40%; City of Milan, 5%; City of Rhine, 5% and there was no representation from the City of Chester.
Commissioner Karen Cheek made a motion to give the City of Chauncey, 2.57%; City of Chester 7.6%, City of Milan, 3.38% and City of Rhine 2.82%. Commissioner Brian Watkins seconded the motion and when the vote was called Cheek and Watkins voted for and commissioners Terry Niblett and Jr. Howell voted against. Chairman Dan McCranie voted to break the tie with a yes vote for the municipalities.
McCranie then made a motion, which was seconded by Howell, to set the Dodge County unincorporated rate at 60.86% and the City of Eastman at 22.77%. This motion passed unanimously.
On December 5, 2011, commissioner Cheek made a motion to offer the City of Eastman 25% on the LOST negotiations, leave the smaller municipalities as voted on in October and the difference would be taken off the unincorporated Dodge County allocation. This motion passed unanimously.
At the called meeting on January 12, 2012 city councilman Buddy Pittman made a motion requesting the City of Eastman receive 35% of the allocation. Council members Raymond Mullis and Idle Walker voted yes and Slye and David Rawlins voted against.
A counter motion from commissioner Watkins was for the City of Eastman to receive 27%. It was passes unanimously by the commissioners.
City council member Rawlins then made a motion for the city to receive 31.14% (what it currently receives) with the agreement that the county pay all SPLOST funds that were in arrears and wave future holding of any funds.
Council members Slye, Mullis, Walker and Rawlins voted for and Pittman abstained from voting.
Commissioner Watkins then requested the city accept the 31.14% without any conditions.
City council members declined the request.
*The eight criteria for allocation of the LOST funds are: the service delivery to the population served, the service delivery to the resident population, the service delivery of each local government, a change in sales tax distribution to meet short-term and long-term debt, the point of sale and use which generates the tax, intergovernmental agreements, tax equity/double taxation and any coordinated plan of county and municipal service delivery and financing.
The law does not provide specific information for the city or the county on how to calculate each of the eight criteria to be used.
