Welch and Hodgson serve as special counsel to all 15 cities in Gwinnett County lawsuit

Our attorneys, Buddy Welch, Andy Welch and Lindsay Hodgson serve as special counsel to all fifteen cities in Gwinnett County defending a lawsuit brought by Gwinnett County regarding service delivery.

Our attorneys, Buddy Welch, Andy Welch and Lindsay Hodgson serve as special counsel to all fifteen cities in Gwinnett County defending a lawsuit brought by Gwinnett County regarding service delivery.   The presiding Judge, the Honorable David E. Barrett, entered an order consistent with the Cities interpretation and application of certain funding provisions of the Georgia Service Delivery Act.  Gwinnett County filed an application for appeal with the Georgia Supreme Court seeking to overturn Judge Barrett's order.  Our attorneys responded on behalf of the Cities, and the Supreme Court denied the County's application.  Judge Barrett’s order is preserved as the law of the case and provides persuasive guidance for Georgia Cities and Counties negotiating service delivery strategies.
 
Congratulations to Buddy, Andy and Lindsay for a job well done! 

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By Patrick Fox  - The Atlanta Journal-Constitution
January 7, 2010

Invigorated by a favorable court ruling, city leaders are ready to talk turkey with Gwinnett County about taxes.

Following a meeting with mayors Wednesday night, Norcross Mayor Bucky Johnson said the group resolved to meet with county representatives without attorneys present to settle the two-year dispute. They set Jan. 19 and 21 for the meetings, said Johnson, incoming president of the Gwinnett Municipal Association.

At issue is a service delivery agreement that spells out which services the county provides to cities and how much city residents should pay for those services. The old agreement, which expired March 1, set county property tax rates the same for city and unincorporated residents. The lack of an agreement could put eligibility for state grants at risk.

More than 80 percent of Gwinnett's 790,000 residents live outside cities.

"We're hopefully going to get all the [county] commissioners and as many of the mayors that are available together in one room and try to resolve the issue," Johnson said.

The impasse centers on money -- about $50 million.

The mayors have argued that many cities already provide a number of services to their residents, such as police and transportation, independent of the county. They insist the old agreement taxed most city residents twice for police and transportation.

The county has countered that unincorporated residents pay certain fees to the county that help cover the cost of services. City residents pay the same fees, but they go into city coffers. As a result, the county argues, unincorporated residents pay for all the services they receive from the county, while city residents pay for about 88 percent.

The county argues city residents must make up the difference through a higher county property tax rate. The cities contend those fees should be used for countywide services such as the Sheriff's Office and courts before levying a property tax on residents.

The county was handed a severe blow last week when the Georgia Supreme Court affirmed a decision by Judge David E. Barrett that the county cannot use occupational taxes, cable franchise fees, development fees, alcohol license fees and hotel-motel excise taxes as revenue to roll back taxes for county residents. That ruling erased about two-thirds of the county's position.

All it is left with now is the insurance premium tax, which, under state law, the county can use to roll back taxes for unincorporated residents.

County Administrator Glenn Stephens said talks have been ongoing about setting up a meeting without attorneys.

"The decision by the Supreme Court, from the county’s perspective, does not change our desire to continue that dialogue," he said.

Gwinnett's 15 cities have spent a combined $300,000 battling the county over the service agreement. Expenses for the county were not available at press time.

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