Decatur City Manager Peggy Merriss writes in the “Budget Message” (see page 8 ) to the City Commissioners that the city believes the Georgia Supreme Court will make a final ruling in City of Decatur et al. v. DeKalb County next month.

For the uninitiated, the HOST dispute revolves around DeKalb County cities believing that the County has unfairly distributed sales tax proceeds established under the Homestead Option and Sales and Use Tax agreement in 1997.  Four DeKalb cities – including Decatur – sued the county way back in 2000.  This will mark the third time the case has been ruled on by the Georgia Supreme Court.

Over the years, the money under contention has really added up, with Decatur stating as recently as February 2011 that it was owed over $10 million from the county in HOST money for capital improvements.

Back in February when the case was argued before the Supreme Court, some of you expressed doubt that the County could pay the City of Decatur and other DeKalb cities, tens of millions of dollars if they lost the suit.  However, the City Manger’s note says this…

Should the litigation be resolved in the City’s favor, we would anticipate receiving significant funds for capital improvements by 2013.

What would Decatur do with $10 million for capital improvements?