The Fort Oglethorpe Council on Wednesday avoided the potential loss of $2.1 million in special purpose sales tax funds by unanimously approving a government agreement it first considered Monday.
When Councilman Harold Silcox had moved to approve the agreement at the regular meeting Monday, he couldn’t even get a second on his motion.
But at Wednesday’s special called meeting to reconsider, the city joined Catoosa County, Ringgold and the Catoosa Utility District in approving a list of projects for the sales tax referendum.
A vote is set for Sept. 16.
City Manager Ron Goulart apologized Wednesday to the mayor and council.
“Let me take the full brunt for not informing you properly Monday night,” he said.
Mr. Silcox said prior to the Wednesday vote that failure to okay the intergovernmental agreement could cost the city millions of dollars and stop sewer and recreation projects.
Under state law that became effective in 2004, the special purpose local option sales tax referendum could be held without the government agreement, and the funds divided according to population.
Under that funding distribution formula, if the tax passed, Fort Oglethorpe would have received about $5 million in funds.
Fort Oglethorpe is now slated to receive $7.1 million in SPLOST funds for projects approved by the City Council, assuming voters approve the referendum to renew the tax. It is projected to raise $56 million over five years to pay for capital projects list
Mr. Silcox said Mayor Ronnie Cobb and Catoosa Commissioner Ken Marks were at county offices early Tuesday to see if the city could get another chance at accepting the governmental SPLOST agreement.
“The county gave the city another shot, which it wasn’t required,” he said. “I want to thank both men for their efforts on our behalf.”
Councilman Steve Brandon said he remains opposed to the list of projects.
“I am voting to approve this to give our residents a chance of accept or reject the referendum through their votes,” he said.
Mr. Marks said the tax is important.
“We’ll never have a perfect SPLOST where everyone gets all they want, but referendum approval is crucial to the county and both our cities,” he said.