08 LC 21
9927S
The
Senate State and Local Governmental Operations Committee offered the following
substitute to HB 1015:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 36 of the Official Code of Georgia Annotated, relating to local
government, so as to change certain local government provisions with respect to
newly created municipalities; to provide for legislative intent; to provide for
a limited period of time the offer of sale to certain qualified municipalities
of county property used as police stations, fire stations, cultural properties,
or vacant properties within the geographical boundaries of the qualified
municipality; to provide for procedures, conditions, and limitations; to specify
additional service delivery strategy requirements regarding garbage and solid
waste collection and disposal fees and fire protection services fees; to provide
for additional requirements regarding certain special district excess funds; to
provide for limitations with respect to the rezoning of territory proposed for
inclusion in a new municipal corporation; to provide for the defeasance of the
rezoning of territory proposed for inclusion in a new municipal corporation when
such rezoning took place after a point in time; to provide for additional
limitations and requirements in the event a new municipality is created in a
county subsequent to a referendum in which bonded indebtedness is approved; to
provide an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
36 of the Official Code of Georgia Annotated, relating to local government, is
amended by adding new Code sections to read as follows:
"36-31-11.1.
(a)
This Code section shall stand repealed in its entirety on December 31,
2009.
(b)
As used in this Code section, the term:
(1)
'Appraised value' means the fair market value as determined by a Georgia general
certified appraiser as of December 31 of the year prior to the date of
incorporation. The county and the qualified municipality shall agree upon the
appraiser; provided, however, that, if the county and qualified municipality
cannot agree on an appraiser, either party may apply to the chief judge of the
superior court of the county who shall appoint a qualified
appraiser.
(2)
'County´s park cost' means the original acquisition cost for any land,
including any buildings located thereon at the time of acquisition, for use as a
park, plus interest at the rate of 3 percent per annum from the date the county
paid any such amounts to the date title to such property is transferred to the
qualified municipality pursuant to this Code section.
(3)
'Date of incorporation' means the date the local Act creating a municipality
becomes law.
(4)
'Police station,' 'fire station,' or 'park' means property, including buildings
and fixtures located within a qualified municipality and as used by the county
to provide police, fire, or park services to territory located within a
qualified municipality during the calendar year prior to the date of
incorporation of the municipality. Such properties shall also include equipment
and vehicles located at such property or used by county employees working at or
stationed at such property as of December 31 of the year prior to the date of
incorporation. 'Park' includes any property or facility used for greenspace,
recreational purposes, cultural purposes, or educational purposes.
(5)
'Qualified municipality' means any new municipality created by local Act which
becomes law on or after January 1, 2008.
(c)
It is the intent of the legislature that the residents of a qualified
municipality receive full credit for taxes paid for police stations, fire
stations, and parks to be purchased by the qualified municipality; to assure
that qualified municipalities will have the facilities necessary to deliver
municipal services; and to provide certainty as to how the purchase price for
such properties will be determined.
(d)
The governing authority of the county shall provide to each of the county
commissioners and members of the General Assembly whose district includes any
portion of a qualified municipality a listing of all county owned properties
located in the qualified municipality within 60 days after the date of
incorporation.
(e)
The county shall not convey, otherwise encumber, move any fixtures or buildings,
or enter into any contractual obligations with respect to any police station,
fire station, or park located in the qualified municipality on or after the date
of incorporation to the end of the transition period provided in Code Section
36-31-8. The governing authority of the county shall assign to the governing
authority of the qualified municipality all of its right, title, and interest in
any executory contract respecting any police station, fire station, or park to
be purchased by the qualified municipality. Such assignment shall be effective
on the date the municipality assumes ownership of such properties or as
otherwise may be agreed between the governing authority of the municipality and
the governing authority of the county.
(f)
When a qualified municipality is removed from a special district as provided in
either Code Section 36-31-11 or Code Section 36-31-11.2, the qualified
municipality may elect to purchase from the county any police station, fire
station, or park. The qualified municipality shall provide written notice to
the governing authority of the county specifying the properties to be purchased
and the date or dates the qualified municipality will assume ownership of such
property. Such notice shall be provided with respect to each such property no
less than 30 days prior to the date the qualified municipality intends to assume
ownership of the property.
(g)
The purchase price to be paid by the qualified municipality may be determined by
negotiation and agreement of the two governing authorities. In that event, all
of the county´s right, title, and interest in such property shall be
transferred to the governing authority of the qualified municipality as provided
in such agreement.
(h)
In the event that the county and the qualified municipality fail to reach an
agreement as to the purchase price for any such properties, then the following
process is available to the parties:
(1)
The county or qualified municipality may file a petition in the superior court
of the county seeking mandatory mediation. Such petition shall be assigned to a
judge, pursuant to Code Section 15-1-9.1 or 15-6-13, who is not a judge in the
circuit in which the county is located. The judge selected may also be a senior
judge pursuant to Code Section 15-1-9.2 who resides in another
circuit;
(2)
The visiting or senior judge shall appoint a mediator within 30 days of receipt
of the petition. Mediation shall commence within 30 days of the appointment of
a mediator. The mandatory mediation process shall be completed within 60 days
following the appointment of the mediator. A majority of the members of the
governing body of the county and of the qualified municipality shall attend the
initial mediation. Following the initial meeting, the mediation shall proceed
in the manner established at the initial meeting. If there is no agreement on
how the mediation should proceed, a majority of the members of the governing
body of the county and of the qualified municipality shall be required to attend
each mediation session unless another process is agreed upon. The cost of
alternative dispute resolution authorized by this subsection shall be shared by
the parties to the dispute pro rata based on each party´s population
according to the most recent United States decennial census; and
(3)
If no agreement is reached at the conclusion of the mediation, either the county
or the qualified municipality may petition the superior court and seek
resolution of the items remaining in dispute. The visiting or senior judge
shall conduct an evidentiary hearing or hearings as such judge deems necessary
and render a decision with regard to the disputed items. The judge shall
consider the following factors to determine the purchase price and shall make
specific findings of fact relative to the following factors:
(A)
The court shall determine a tax ratio by dividing the assessed value of the
residential property tax digest for the municipality by the assessed value of
the residential property tax digest for the entire special district from which
the qualified municipality was removed;
(B)
The court shall determine a parks asset ratio by dividing the total number of
park acres to be purchased by the qualified municipality by the total number of
park acres located in the special district from which the qualified municipality
was removed;
(C)
The purchase price for the parks to be purchased by the qualified municipality
shall equal the county's park cost; provided, however, that there shall be a
presumption that the county's park cost for parks to be purchased by the
qualified municipality has been fully paid by the qualified municipality if the
tax ratio is equal to or greater than the asset ratio for parks; and provided
further that there shall be a presumption that the county's park cost of the
parks to be purchased by the qualified municipality has been partially paid by
the qualified municipality residents if the tax ratio is less than the asset
ratio. The fraction the county's park cost that shall be considered paid shall
be determined by dividing the tax ratio by the asset ratio. The qualified
municipality shall pay to the county the portion of the county's park cost that
has not been paid, which portion shall equal one minus the fraction considered
paid;
(D)
There shall be a presumption that the purchase price for a police station or
fire station shall equal the appraised value times a fraction determined by
dividing the area served by the station outside of the qualified municipality by
the total area served by the station both inside and outside the municipality as
of December 31 of the calendar year prior to the date of incorporation. If such
fraction is more than 20 percent of the total service area, then from the date
the municipality assumes ownership of such station, the municipality shall be
obligated to offer to lease the police station or fire station back to the
county for a period not to exceed one year for $10.00 for the lease period;
and
(E)
The purchase price determined in accordance with this paragraph shall be
presumed to be correct unless the judge determines that other unusual factors
may be considered consistent with the legislative intent expressed in subsection
(c) of this Code section. Such unusual factors may include the cost paid by the
county for the properties, the presence of facilities or buildings on such
properties the value of which is materially disproportionate to the value of the
land being purchased, and whether the residents of the qualified municipality
will continue to pay taxes after incorporation to repay bonds issued by the
county for the facilities or buildings.
(i)
A qualified municipality may elect to pay the purchase price for one or more
county properties amortized over a 25 year period at an interest rate equal to
two percentage points less than the legal rate of interest specified in
subparagraph (a)(1)(A) of Code Section 7-4-2. If the governing bodies do
not reach agreement as to the purchase price to be paid prior to the date the
date the municipality intends to assume ownership of such properties as stated
in the notice given pursuant to subsection (f) of this Code section, then upon
payment of $5,000.00 into escrow in the registry of the superior court and
delivery of written notice from the governing authority of the municipality to
the governing authority of the county that the municipality intends to pay the
balance of the purchase price over a 25 year period as provided in this Code
section, all of the county´s right, title, and interest in the police
stations, fire stations, or parks the qualified municipality elects to purchase
shall be transferred to the governing authority of the qualified municipality.
Such transfer shall be effective on the date the municipality intends to assume
ownership of such properties as stated in the notice given pursuant to
subsection (f) of this Code section. The governing authority of the county
shall promptly transfer, execute, and deliver to the governing authority of the
qualified municipality such instruments as may be necessary to record the
transfer of such right, title, and interest. Upon final determination of the
purchase price either by agreement or by the court under subsection (h) of
this Code section, the qualified municipality shall either pay the balance due
or execute and deliver to the county a note to pay the balance due over 25
years.
(j)
In the event a park is transferred by a county to a qualified municipality under
this Code section, the qualified municipality shall be prohibited from imposing
or collecting user fees from residents of the county in excess of the amount of
such fees imposed or collected from residents of the qualified
municipality.
(k)
Property transferred to a qualified municipality from a county pursuant to this
Code section shall not be sold, leased, assigned, or transferred, in whole or in
part, to any private person or entity for a nonpublic use other than to the
county from which it was transferred. Any such sale to a county pursuant to this
subsection shall be on the same terms as the original transfer from the county
to the municipality.
36-31-11.2.
(a)
A qualified municipality located within a county which has a special district
for the provision of fire services shall continue to be part of such special
fire district where the local Act creating such qualified municipality so
provides or where the governing authority of the qualified municipality, within
30 days of taking office, elects by formal resolution to continue to be part of
the special fire district by formal resolution, provided the governing authority
of the qualified municipality delivers a copy of such resolution to the
governing authority of the county within ten business days after the date the
resolution is adopted.
(b)
If a qualified municipality elected initially to remain in a fire services
special district, such municipality shall be removed from such fire services
special district by adopting a resolution stating its intent to be removed from
the district and the date of removal, provided the governing authority of the
qualified municipality delivers a copy of such resolution to the governing
authority of the county at least 30 days prior to the date of
removal.
(c)
If the local Act does not provide that fire services shall be provided through
the county special district or if the qualified municipality decides not to
continue receiving fire services through the county, the fire services shall be
discontinued by the county on the first day of the next fiscal year of the
county that begins at least 180 days after the specified notice is received by
the county.
(d)
A qualified municipality located within a county that charges fees on a periodic
basis for the provision of water or sewer services, or both, may elect to
continue receiving such services for the same fees charged residents in the
unincorporated area of the county. Such election may be set forth in the local
Act creating such qualified municipality or be made by resolution of the
governing authority of the qualified municipality within 30 days of taking
office, provided the governing authority of the qualified municipality delivers
a copy of such resolution to the governing authority of the county within ten
business days after the date the resolution is adopted.
(e)(1)
A qualified municipality located within a county that charges fees on a periodic
basis for the provision of sanitation services, including garbage and solid
waste disposal and collection, may elect to continue receiving such services for
the same fees charged residents of the unincorporated area of the county. Such
election may be set forth in the local Act creating such qualified municipality
or be made by resolution of the governing authority of the qualified
municipality within 30 days of taking office, provided the governing authority
of the qualified municipality delivers a copy of such resolution to the
governing authority of the county within ten business days after the date the
resolution is adopted.
(2)
Such qualified municipality may elect to terminate sanitation services by
adopting a resolution stating the date of removal, provided the governing
authority of the qualified municipality delivers a copy of such resolution to
the governing authority of the county at least 30 days prior to the date of
removal.
(3)
If the qualified municipality decides not to continue receiving sanitation
services through the county, the sanitation services shall be discontinued by
the county on the first day of the next fiscal year of the county which begins
at least 180 days after the specified notice is received by the
county."
SECTION
2.
Said
title is further amended in Code Section 36-31-12, relating to special districts
divided into noncontiguous areas, by revising subsection (b) as
follows:
"(b)(1)
When a municipal corporation is created by local Act within a county which has a
special district for the provision of local government services consisting of
the unincorporated area of the county and following the creation of said
municipal corporation the special district is divided into two or more
noncontiguous areas, any special district taxes, fees, and assessments collected
in such a noncontiguous area shall be spent to provide services in that
noncontiguous area. Effective January 1, 2006, for the purposes of this Code
section, a noncontiguous area located within ten miles of another noncontiguous
area may be treated as the same noncontiguous area.
(2)
If, on the effective date of this paragraph:
(A)
Excess proceeds remain following the expenditure required under paragraph (1) of
this subsection; and
(B)
All of the area within the special district shall have become incorporated
within one or more municipalities,
then
the excess proceeds shall be disbursed within 60 days to the governing authority
of each municipality which has incorporated any portion of the area of the
special district. The amount of proceeds to be disbursed to each municipality
shall be determined on a pro rata basis using as a denominator the total value
of all tax parcels within the special district and as a numerator the total
value of all tax parcels which were incorporated within each
municipality.
(3)
If, on the effective date of this paragraph:
(A)
Excess proceeds remain from the collection of any special district taxes, fees,
and assessments; and
(B)
A new municipality shall have been created from within such special district
such that the special district shall have been diminished in size but not all of
the special district shall have been incorporated within one or more
municipalities,
then
the excess proceeds shall be disbursed within 60 days to the governing authority
of each municipality which has incorporated any portion of the area of the
special district. The amount of proceeds to be disbursed to each municipality
shall be determined on a pro rata basis using as a denominator the total value
of all tax parcels within the special district and as a numerator the total
value of all tax parcels which were incorporated within each
municipality."
SECTION
3.
Said
title is further amended by adding a new Code section to read as
follows:
"36-31-13.
(a)
As used in this Code section, the term:
(1)
'Charter' means a local Act of the General Assembly creating or proposing the
creation of a new municipal corporation.
(2)
'New municipal corporation' means a new municipal corporation of this state
created by or proposed to be created by a charter.
(3)
'Rezoning action' means:
(A)
Adoption of a new zoning ordinance;
(B)
Adoption of an amendment to a zoning ordinance which has the effect of rezoning
real property from one zoning classification to another or changing the
permitted use of property;
(C)
Granting of a variance, conditional use, or other treatment which has the effect
of allowing real property to be used for a use not otherwise permitted under a
zoning ordinance; or
(D)
Any other action which has the effect of changing the permitted use of
property.
(b)
During the period commencing with the effective date of charter until the date
the new municipal corporation begins exercising planning and zoning powers, no
county shall take any rezoning action affecting any part of the territory
described in the charter as included or proposed for inclusion within the new
municipal corporation. This prohibition shall be dissolved if the creation or
continued existence of the proposed new municipal corporation under the charter
definitively ceases to be possible because of defeat at a referendum election,
definitive final failure to secure approval under the federal Voting Rights Act
of 1965, as amended, or definitive failure of any other condition specified in
the charter."
SECTION
4.
Said
title is further amended in Code Section 36-82-1, relating to elections and
requirements regarding bonded debt, by adding a new subsection to read as
follows:
"(e.1)(1)
As used in this subsection, the term:
(A)
'Bonds' means any bond to purchase properties or for capital improvements to
existing properties or facilities which, at the time of the issuance of the
bonds, were to be used by the county for the provision of any of the services
listed in Article IX, Section II, Paragraph III of the Constitution of the
State of Georgia and, subsequent to the issuance of the bonds, a new
municipality took over the provision of such services.
(B)
'Bond proceeds' means the proceeds received by the county as the result of the
sale of bonds.
(C)
'Net homestead digest' means for each qualified municipality the total net
assessed value of all qualified homestead property located in that portion of a
new municipality located in the county remaining after all other homestead
exemptions are applied.
(D)
'Total homestead digest' means the total net assessed value of all qualified
homestead property located in the county remaining after all other homestead
exemptions are applied.
(2)
This subsection shall apply only to a new municipal corporation created by local
Act within a county which has a special district for the provision of local
government services consisting of the unincorporated area of the county. In the
event a new municipality lying wholly or partially in such a county is
incorporated subsequent to the issuance of any bonds by the county, the
governing authority of the county shall pay to the governing authority of the
new municipality a portion of the bond proceeds. The amount to be paid shall be
determined as follows:
(A)
If the resolution of the governing authority of the county pursuant to which
such bonds were issued specifies the amount to be spent in the area included in
the new municipality for the purchase of properties and for capital
improvements, then such amount plus a proportionate amount of the interest
earned by the county on the bond proceeds prior to the date payment to the new
municipality is due, less any credit due under subparagraph (C) of this
paragraph shall be paid to the new municipality;
(B)
If such resolution does not specify the amount to be spent in the area included
in the new municipality for the purchase of properties and for capital
improvements, then the amount to be paid shall be a portion of the bond proceeds
plus a proportionate amount of the interest earned by the county on such
proceeds prior to the date payment to the new municipality is due, less any
credit due under subparagraph (C) of this paragraph. Such portion shall equal
the net homestead digest for the new municipality divided by the total homestead
digest;
(C)
The county shall be given a credit against the amount due under either
subparagraph (A) or (B) of this paragraph for any payments that were
made:
(i)
By the county from bond proceeds to any third party prior to the date the
payment to the new municipality is due;
(ii)
Pursuant to a valid contract in existence as of the effective date of the local
Act creating the new municipality; and
(iii)
For the purchase of new properties or for capital improvements in the area
included in the new municipality; and
(D)
The payment determined in accordance with subparagraphs (A) and (B) of this
paragraph shall be due ten days after a majority of the members of the initial
city council take the oath of office.
(3)
If the county and municipality fail to reach an agreement as to the amount to be
paid or any related matter, either the county or the municipality may petition
the superior court and seek resolution of the items in dispute. Such petition
shall be assigned to a judge, pursuant to Code Section 15-1-9.1 or 15-6-13, who
is not a judge in the circuit in which the county is located. The judge
selected may also be a senior judge pursuant to Code Section 15-1-9.2 who
resides in another circuit. The visiting or senior judge shall conduct an
evidentiary hearing or hearings as such judge deems necessary and render a
decision with regard to the disputed items."
SECTION
5.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
6.
All
laws and parts of laws in conflict with this Act are repealed.