Monticello, Jasper Begin LOST Talks

County Commission Chair Alan Cox, Commissioner Mary Patrick, County Manger Greg Wood and the county’s Chief Financial Officer Lorri Smith met with Monticello City Manager Bob Schwartz and Mayor Bryan Standifer last Friday to begin Local Option Sales Tax negotiations.

The LOST is a one percent sales tax that is used to offset property taxes, and cities and counties must negotiate the terms of it each decade.

Under state guidelines, Monticello and Jasper County have 60 days to reach an agreement, after which they must go to mediation. Friday begins the clock ticking.

The guidelines for negotiation offer about eight criteria to be considered, and several ways to figure it. The county had done calculations five different ways to present how the county thinks funds should be divided to be fair.

When the last Special Purpose Local Option Sales Tax (SPLOST) was negotiated, Jasper County offered the cities the opportunity to accept the same amount for SPLOST and LOST. Shady Dale agreed, and will continue to get 3 percent of revenues. Monticello disagreed.

Currently, the county gets 67 percent of LOST proceeds and Monticello gets 30 percent. Both entities are looking to increase their share of the pie.

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The county used formulas based on population, services, percentage of property values, percentage of taxes, and percentage of expenditures. In the county’s calculations, the lowest percentage the county would be entitled to is 79 percent, and the highest is 94 percent.

The city did not have anything prepared to counter the arguments presented by the county. Mr. Schwartz did say the county’s chart left off some city services, but did not say what, except for streets, saying he would go back and get the information. Before the end of Friday’s meeting, the city agreed to get needed figures, such as other city services, to Mrs. Smith before the two parties meet again on July 20.

Chairman Cox opened the meeting by reminding everyone that LOST is to reduce property tax. It is also supposed to stop double taxation and clarify that the appropriate entity provides the service. He said whoever provides the service should get the money.

Mr. Cox also said that the main thing to keep in mind is that nothing happens in Monticello that doesn’t affect Jasper County and vice-versa. All the citizens are Jasperites.

The group also referred to the Service Delivery Area and how that document could affect negotiations. Mr. Cox’s document on service delivery was dated 1999, and Mr. Schwartz’s was dated 2006. The first step was for them to get on the same document. Mrs. Smith is supposed to look up the previous one, as many items on the 1999 document say, “same.” Therefore, she is to find the older document to learn what “same” means.

The two entities also have to look at their respective debts, as that is one item for negotiations that had not been including in the county’s presentation. Mrs. Smith said she thought it meant general obligation bonds, and the county has none. The county does have debt, however, on equipment.

At one point during the meeting, Commissioner Patrick looked at Mr. Schwartz and said, “you’re nitpicking this, and you haven’t provided anything.”

Mayor Standifer calmed all down, and had Mrs. Smith continue with her presentation.

The mayor and chairman agreed that they need to get along, and work together with a certain amount of give and take.

The city officials felt like it would take them until July 20 to be ready to come back to the table, which is why the meeting was set for then. They plan to begin actual negotiations then.