East Point City Council member Karen Rene is adamant that a new city of South Fulton will hurt her constituents.
Speaking at a recent city council meeting, Rene said, "The bottom line is if this new city is created, we will have a deficit in our budget."
Council Member: New City of South Fulton Will Hurt East Point
According to some unofficial estimates, the City of East Point will lose somewhere between $250,000 and $1.2 million in local option sales tax (L.O.S.T.) dollars if voters approve the incorporation of a new municipality.
The L.O.S.T. is a one percent sales tax that everyone pays whenever they make a purchase at the grocery store or the gas station, regardless of whether they own property in the county or city where the purchase was made. L.O.S.T. dollars are then distributed to the cities and counties using a formula negotiated by the local governments every decade.
House Bill 165 would authorize a November 2015 referendum on cityhood in unincorporated south Fulton County. The proposed city, with a population nearing 100,000 people, would force a redistribution of L.O.S.T. dollars across Fulton County
"How will we make up that deficit?," Council member Rene asked. "Let's be truthful. We will lose revenue, and the East Point residents cannot afford it.
"They elected us to do better, and if we do not sound the alarm to say, 'Look, this will hurt us,' when will you?," Rene quizzed rhetorically.