Service Delivery Strategy, A Dacula Perspective

SDS Overview--A Dacula Perspective

Overview:

Georgia’s Service Delivery Strategy (SDS) law requires that county and city governments reach agreement on how they deliver all services to property owners. SDS agreements must also address how taxes are charged to avoid double-taxation. The first Gwinnett 10-year agreement was signed in 1999. For more than two years, Gwinnett County and its 15 cities have worked to reach a new SDS agreement. At present, all Gwinnett taxpayers are taxed at the same rate, inside city limits or not, even though Gwinnett County does not provide some services inside cities. This arrangement results in over-taxation of city property owners in varying amounts based on the city and the services provided. The most efficient remedy is to develop appropriate tax reductions for city taxpayers that are not receiving certain services from the county.

Our current SDS agreement expired on February 28, 2009. Failure to have a current SDS agreement causes the loss of our “qualified local government status” which amounts to state sanctions against the county and all cities. The result is the inability to receive state grants, loans and permits. In early February, before the last agreement expired, Gwinnett’s mayors signed a 2-month SDS extension and delivered it to the Gwinnett County Commissioners. This extension would have avoided sanctions and allowed more time to negotiate. Unfortunately for all taxpayers, Gwinnett County has refused to sign the extension, and instead filed a lawsuit against each city. All 15 cities have since retained legal counsel, Buddy Welch of McDonough, Georgia for legal defense.

What has happened since the lawsuit was filed?

Attorneys for all parties have motions and issues pending with the appointed out-of-circuit judge. The next step in the process is court-ordered mediation. State law provides that both sides work with a mediator in an effort to reach an agreement. The cities are preparing for mediation and hope the process moves along as quickly as possible.

What services provided by Dacula are affected by SDS?

The Service Delivery Strategy must cover every service that a city or county provides. The original agreement included fourteen service categories. The cities believe there is agreement on the majority of the services. The primary areas of disagreement are related to police, transportation, and planning and development services.

What is the effect of not having an SDS Agreement?

The cities want to eliminate the double taxation of city property owners. Until a new SDS agreement is reached, the county continues to bill this over-taxation and keep the excess revenue. Additionally, all citizens will feel the impact of the state sanctions. The sanctions were included in the SDS process to motivate all parties to negotiate in good faith and reach a SDS agreement quickly. All cities simply want the state law to be followed.

Will an SDS Agreement be reached outside of the courts?

It is possible, but the fundamental disagreement is about the fair taxation. Gwinnett’s cities have worked intensely to reach agreement with the county, but they have repeatedly delayed since early 2008. The county has had more than ample opportunity to negotiate with the cities in good faith.

How could the outcome of this affect Dacula residents?

Once an SDS agreement is reached, all Gwinnett property owners will be billed only their fair taxes, no more or less. Georgia law requires, and we have the responsibility as elected city officials, to ensure all Gwinnett citizens are taxed fairly. Each city outcome may be different, but some city taxpayers could see a modest rollback of their county taxes, because they will no longer pay taxes for services they don’t receive from the county.

Final thoughts.

Officials representing Gwinnett’s 15 cities believe that Georgia state law should be followed. The cities are working hard to move through the mediation process quickly and pledge to work with the judge to minimize any negative impact to Gwinnett citizens. Once this process is complete, all citizens will receive excellent and efficient city and county services, paying only for the services they receive. Dacula’s stake in this dog fight is small. Gwinnett County provides many of our services; yet inequity exists even in Dacula. Our citizens are paying for services they don’t receive. That’s just not right nor probably legal under Georgia’s SDS law.