Dooly County escalates LOST talks to mediation and then arbitration after talks stall

Negotiations between Dooly County and its cities over a new Local Option Sales Tax (LOST) distribution certificate dominated multiple meetings through 2012 and culminated in legal escalation when mediation failed to produce an agreement.

Timeline of talks: County staff began negotiations with city officials in late June to set a new LOST distribution certificate (required by state law before the year end). The county and four municipalities met repeatedly and entered mediation under the Carl Vinson Institute and later hired private consultant Doug Eaves to assist the talks.

Fee dispute and mediation: The University of Georgia charged a mediation fee that was later reduced; the board discussed how to apportion mediation costs among the cities and county. Local mayors expressed differing positions on whether to retain current shares or shift the allocation; smaller cities asked the county to reconsider charging them a pro rata mediation fee.

Failure to settle and arbitration: After talks and mediation failed to resolve distribution shares, the county held a special Nov. 12 meeting and authorized County Attorney William NeSmith to file a Petition for Arbitration with Dooly County Superior Court. Prior to that step the board also voted to hire a consultant (contract not to exceed $10,000) to support negotiation strategy.

Why it matters: LOST distribution determines how sales tax revenue is shared among the county and incorporated municipalities and funds local capital projects and operations. A binding arbitration or court resolution will impose an outcome that both sides must accept.

Next steps: With arbitration authorized the county expects the Superior Court process to adjudicate the distribution formula; staff and legal counsel will continue to consult with municipal leaders and file required documents with the court.