City of Decatur v. DeKalb County
289 Ga. 612
Ga.2011Background
- In 1998 the County and its within-county municipalities entered into a 49-year intergovernmental agreement (IGA) governing HOST revenue distribution.
- HOST funds, collected under OCGA § 48-8-100 et seq., were to fund capital outlay within DeKalb County and related municipal projects.
- Disputes over how HOST proceeds were calculated led to multiple lawsuits and appellate decisions since 2000.
- Georgia courts previously addressed whether the IGA was permissible under the Intergovernmental Contracts Clause and HOST provisions, with shifting outcomes.
- The superior court ultimately granted summary judgment for DeKalb County, holding the IGA unconstitutional under the Intergovernmental Contracts Clause as a contract for revenue sharing, not for services or joint use.
- This Court affirms, holding the IGA is a revenue-sharing contract and thus outside the Intergovernmental Contracts Clause.”
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the IGA falls within the Intergovernmental Contracts Clause. | Cities contend the IGA is an authorized intergovernmental service contract. | County argues the IGA is a revenue-sharing arrangement not governed by the Clause. | IGA is not a contract for services or joint use; outside the Clause. |
| Whether the IGA provisions constitute a contract for the provision of services under the Constitution. | IGA funds capital projects via HOST, implying service provision. | IGA is a revenue-sharing agreement, not a service contract. | IGA does not provide or purchase services; it merely distributes HOST proceeds. |
| Whether the IGA violates 1983 Georgia Constitution Art. IX, Sec. III, Par. I(a). | IGA should be permissible under the Intergovernmental Contracts Clause exception. | IGA violates the Clause by creating impermissible long-term revenue sharing. | IGA violates the Clause; summary judgment for County proper. |
Key Cases Cited
- Greene County School Dist. v. Greene County, 278 Ga. 849 (2005) (contracts may last up to 50 years under the Intergovernmental Contracts Clause)
- Nations v. Downtown Development Auth., 255 Ga. 324 (1986) (allows intergovernmental contracts for joint use of facilities/services under law)
- Ambac Indem. Corp. v. Akridge, 262 Ga. 773 (1993) (contract for services recognized as intergovernmental contract)
- Unified Govt. of Athens-Clarke County v. McCrary, 280 Ga. 901 (2006) (role of contract language in determining intergovernmental contract scope)
- Mulkey v. Quillian, 213 Ga. 507 (1957) (historic context of government contracts and limits)