The $9.5 Million Standoff: Key Takeaways from the Joint Town Hall (Part 2)

At the recent joint town hall featuring Mableton Mayor Michael Owens and Lisa Cupid, chair of the Cobb Board of Commissioners, we learned about the high-stakes negotiations currently taking place to shape Mableton's future.

In Part 1, we defined the jargon; now, it’s time to talk about the reality of those "hard discussions."

We are currently in the middle of a separation negotiation that will determine exactly how your tax dollars are spent for years to come. While both leaders shared the stage amicably, they didn't shy away from the fact that these discussions have been "hard" and sometimes "strained."

The $9.5 Million Question: The Bill Coming Down the Pipe

As a brand-new city, we are at a crossroads that didn't exist a few years ago. When Mableton was unincorporated, we were simply a part of the county’s broader safety plan. Utilizing the county's police services was the "default setting" for our area.

But now that we are an independent city, the legal "default" has changed. Mableton is now legally responsible for its own safety services. Since the city isn't building its own police department (and hasn't planned to), we now have to contract those services back from the County.

In this new arrangement, Mableton essentially becomes a "customer" of Cobb.

And how much do these services cost? At the current moment, approximately $9.5 million.

Chairwoman Cupid clarified that this final number was the result of intense debate. She shared with the audience:

"This was a negotiated number because the county negotiated a much higher number for [these] services and there was a lot of back and forth where we settled upon that for this first year. However, our public service director and our DOT director will tell you that the cost for those services far exceeds that."

The Dilemma: Why the Math is Complex

To understand why this bill even exists, it’s important to look at the foundational math of how our community is actually funded.

It's important to note that the city of Mableton has not charged a local general property tax.

Many residents have asked: "Why would the city of Mableton have to pay Cobb County if we are already paying county property taxes?"v

The answer lies in two different "pots" of money:

Pot 1: The General Fund (Your Property Tax) As a Mableton resident, your property tax funds the General County expenses. However—and this is the part that surprises many—this fund does NOT pay for police safety.

Instead, it pays for what Chairwoman Cupid called a "laundry list of services" like the jail, the superior courts, libraries, and senior services.

Pot 2: "Other" Revenue Police safety is actually funded by "other revenue" streams, such as franchise fees (from utilities like Georgia Power), business and occupation taxes, and hotel/motel taxes.

The "Revenue Switch" and Covering a Potential Loss

Here is the "switch" that caused the standoff: Since becoming a city, Mableton is now keeping much of that "Other Revenue." For the first time, those utility fees and insurance taxes are staying right here in our city treasury.

Mayor Owens explained that this new stream of income is exactly what allows Mableton to function without a local property tax:

"Each one of these revenue streams... are revenue streams that the city now—by us becoming a city—now have... Those are the revenue streams that fund our city right now. As I mentioned before, we don't have a local property tax, so this is what makes up and constitutes our budget."

However, while this revenue covers our city's "operating costs" (like City Hall and staff), it creates a loss of income for the County. The County still has the police cars and the officers, but they no longer have those franchise fees to pay for them.

To continue providing those services to Mableton, the County says they need a direct payment from the city to cover the gap. That is where the $9.5 million figure comes from.

How Mableton Pays: Enter the SSD (Special Services District)

To pay this $9.5 million bill, the city established a citywide SSD.

The SSD will levy a local tax (millage rate to be determined) as a potential way to pay for public safety. This would look similar to the County Fire line item you already pay on your tax bill each year.

Unlike a general property tax, which goes into a big pot to be spent on anything from salaries to city hall furniture, every penny raised within this SSD must stay within that district to pay for police services.

The Verdict: Is This Double Taxation?

Technically, no. Your county tax (8.46 mills) stays the same and still funds countywide regional expenses.

What’s changing is that Mableton is adding a restricted tax to pay for our local police services. This is necessary because the utility fees the city now collects aren't enough to cover Cobb County police service.

The "dilemma" for residents is that while it isn't "double taxation" in an accounting book, it feels like an additional tax because the County is not currently rolling back your property taxes, claiming those taxes never paid for police in the first place.

The Ticking Clock: Deadlines and Dollars

The clock is now ticking toward an end of May deadline for the SDS (Service Delivery Strategy). This is the date by which the City and County must finalize the "map" of who provides what service. If an agreement isn't reached, both sides could lose eligibility for state grants.

What do you think? This is a complex topic that affects your wallet. What's missing? What else should be considered?