At a specially-called meeting late Wednesday afternoon, the County Commission voted unanimously to step down and turn control of county government over to the mayors of Gwinnett’s 15 cities.

With the same vote, the Commissioners agreed to flush $6.2 million in tax dollars down one of the office toilets, necessitating the immediate termination of dozens of police officers and firefighters.

I wish that I could say that the above scenario is a complete and total fabrication but, with little exaggeration it describes the result of the Commission’s continued failure to lead.

On Tuesday, a hearing was held before Judge Tim Hamil on the county’s request for an order to adopt a millage rate for the collection of 2009 property taxes. The county sought a tax rate slightly lower than last year’s 10.97 for county property owners, but a much higher rate of 12.00 for city residents. I provided some detail on the hearing in yesterday’s article.

When Judge Hamil indicated that he would not approve a dual rate structure (*according to the judge, say reports, it had never been done before), county attorneys scrambled to negotiate an alternative. In the end, the county tentatively agreed to do what Chairman Bannister and the Commission should have and could have done months ago– adopt a single tax rate to fund county government. Doing so would have also paved the way for the cities and the school board to begin collecting their own tax revenue.

[*Update 8/13 09:19 - A county official has reminded me that Gwinnett had a different rate for cities from 1982 to 1991.]

The judge indicated that a millage rate which, when applied to the 2009 tax digest, would produce the same tax revenue as was received in 2008 might be appropriate. That rate is 11.18, .21 of a mill higher than last year.

Because of falling assessed values, the Net Tax Digest (the value of all taxable property within the county) is approximately $1.5 billion less than last year. To be “revenue neutral”– in other words, to produce the same revenue as was received last year– a tax rate increase is required.

At the court hearing, the County Commission, in essence, asked the court to set its millage rate for them, a clear abdication of their fiduciary responsibility to the people of Gwinnett. Judge Hamil refused; he essentially told county officials that he would probably approve the “revenue neutral” rate if the Commission would do its job and formally recommend it.

A failure to lead

Wednesday’s special meeting of the Commission was called for that very purpose, but it ended with no formal decision.

County attorney Van Stephens told the Commission that, earlier in the day, the attorney for the municipalities had petitioned the court (via the filing of a proposed order) to force the Commission to adopt last year’s rate of 10.97. Stephens indicated that the filing, if accepted by the judge, might make any action that the Commission took moot.

(Update: The AJC is reporting that the proposal of last year’s rate originated with the judge. That appears to conflict with the information provided to the Commission by Stephens.)

Rather than belatedly fulfill its duty and adopt a rate– even a slight increase– the Commission voted unanimously to go back to court with no millage rate in hand at all. News reports indicate that Judge Hamil will make a decision on Friday, when he will likely issue a temporary collection order at 10.97 mills.

In dollars and cents, this means that the county will collect $6.2 million LESS in property tax dollars than it did last year, because of the depressed tax digest. While $6.2 million is equal to just a couple of recent Bannister land deals, it represents an even greater pressure on a budget that already includes significant cuts to police, fire and other essential county services and facilities.

Granted, the order is to set a temporary rate to allow local governments to begin collecting taxes. The Commission could approve a slightly-higher “permanent” rate later and send out supplemental bills.

Given Bannister’s failure to respond responsibly and aggressively to the economic crisis, however, it is unlikely that the Commission would seek additional revenue. That would require the Commission to actually do its job.

Political paralysis

I cannot comprehend the reasoning behind the Commission’s failure to act. I can only assume that they fear the prospect of being the first Commission in recent years to approve a “tax increase.”

That fear is purely a political consideration. There are times when a tax increase is necessary and prudent; especially in Gwinnett where growth has subsidized a lower-than-realistic tax rate for many years. That period of rampant growth has ended, but increases in the cost of basic government services have not.

In this instance, a modest increase of less than a quarter-mill (approximately a $17 increase on a $200,000 home) would have been a small price to pay to avoid further cuts in police and fire services, and continued chaos in county government.

Bannister has publicly blamed the cities for the Commission’s inability to adopt a rate, saying that the cities had threatened to go to court to block its adoption.  However, it is my understanding that the county has received no less than seven correspondences from city representatives in which they indicated that they would not oppose the Commission’s adoption of a single, county-wide rate. Try to do something squirrely, however, said the cities, and we’ll go to court.

As I wrote yesterday, “squirrely” is exactly what happened with the county’s effort to charge city residents a higher tax rate.

Lame ducks

Quite honestly, refusing to “raise taxes” may be too little, too late for any Commissioner standing for reelection in the near future. The public’s confidence has been severely damaged by the Commission’s recent blunders– the sanitation plan, a proposed 3-mill tax hike, questionable land deals and the like. Rejecting a quarter-mill increase isn’t going to save anybody’s political career at this point. Both District 2’s Bert Nasuti and District 4 Commissioner Kevin Kenerly stand for reelection next year.

The cost of incompetence

The Commission’s failure to resolve this issue may have costly and far-reaching consequences. For example, the oft-heralded “AAA” bond rating is almost surely in jeopardy.

The preferred rating, which allows the county to finance capital projects at lower interest rates, is based on investors’ confidence that Gwinnett County is led by competent individuals who understand their authority and possess the will to generate sufficient revenue (including through property taxes) to pay the county’s debts. The Commission’s failure to exercise as basic a duty as adopting a millage rate may shake investor confidence, meaning that borrowed funds will cost us more.

Now you see why my initial assessment of the situation is not that far off. Through their inaction, the County Commission has essentially abdicated their authority and given over control of county finances to the court and to the cities. Through their failure to act, the Commission has jeopardized county government’s ability to provide essential services.

I hold Charles Bannister, the only full-time Commissioner, completely responsible for the present predicament. In my opinion, Bannister has failed to fulfill the oath of his office. The county would be better off with him gone.

And the sooner, the better.

• Watch the Commission’s 8/12 meeting here: http://tinyclip.tv/2926869b
• GDP story
• Four cities receive go-ahead to issue tax bills

More on This Topic:

• A Deal to Save Gwinnett
• A Failure to Lead: When Property Tax Cuts Go Wrong
• First of Many Bad Land Deals Finally Exposed
• Special Grand Jury for Land Deals a Big Deal
• `CYA,` Gwinnett Commission Style