Cleveland City Councilman Richard BanksCLEVELAND, Tenn. -- City Councilman Richard Banks wants his colleagues to reconsider their decision over a court ruling that upholds an agreement splitting local sales tax revenue between Cleveland and Bradley County.
Four weeks ago, after a Chancery Court ruling in favor of the 1967 agreement, the council voted 4-3 to appeal the case to the Tennessee Court of Appeals and, if needed, perhaps take it to the state Supreme Court.
Winning the appeal could bring the city more than $900,000 a year in additional revenue, City Manager Janice Casteel said.
On Monday, Banks asked the council to vote on stopping the appeal and Councilman Charlie McKenzie asked that the vote be delayed until the next meeting, in three weeks. Banks and Councilman George Poe, who seconded Banks' motion, agreed to hold off.
Councilman Bill Estes said his constituents are telling him the appeal "is one of the best things we have done."
"We have heard our council say we would probably win," Estes said.
Casteel said, "We need a final legal decision so we will not be looking back years from now and saying, 'What if?'"
But Banks and Poe said they are hearing comments to drop the appeal to save future city and county relations and future joint funding.
According to the agreement, local schools get half the sales tax revenue with the county having a two-thirds share based on student population. Of the remaining half, the county gets one-third because most sales are made inside the city.
Two chancellors and three appeals judges have upheld the funding plan over the years, Banks said. Chancellor Jerri Bryant's decision upheld the city's claim to $1 million already being held by the county trustee, Banks said, but hurt feelings from the continuing lawsuit could jeopardize future joint interests, including school funding.
"The risk we run far outweighs anything we might gain," Banks said.
Councilman Avery Johnson favors the appeal. The city already has paid most of the legal expenses anyway, he said, "so take this one last step. I also know we need more money for our streets."
Mayor Tom Rowland said that, if he had a vote, it would be for the appeal.
"We have an obligation to look out for the people who put us here," he said, and winning the appeal could mean no need for a property tax increase for years to come.
Contact Randall Higgins at rhiggins@timesfreepress.com or 423-314-1029.