Alto approves FLOST agreement, clearing way for countywide tax referendum

ALTO, Ga. — The Alto Town Council unanimously approved three resolutions Tuesday, including an agreement supporting Habersham County’s proposed Floating Homestead Local Option Sales Tax and amendments to the county’s animal control agreement with the town.

The council also adopted a policy governing virtual participation in council meetings.

FLOST agreement

With Tuesday’s vote, Alto became the final Habersham County municipality to approve an intergovernmental agreement tied to the proposed Floating Homestead Local Option Sales Tax, or FLOST.

The proposed 1-cent sales tax, authorized under House Bill 581, would be used to offset property taxes by funding county homestead exemptions. Voters will decide the measure in a Nov. 3 referendum. If approved, the tax would take effect Jan. 1, 2027, and remain in place through Dec. 31, 2031.

Mayor Gail Armour said the tax would be collected by the county and used to reduce the property tax burden.

Councilman Allen Fox asked whether the town would need to wait until after the November referendum to adopt its budget under the new tax structure.

Chief Financial Officer Lisa Turner said Alto is preparing its budget now and can account for either outcome. She added that, if approved by voters, Habersham County likely would not begin collecting the tax until early 2027 as state officials continue working through implementation details.

Animal control changes

The council also approved an amendment to its intergovernmental agreement with Habersham County for animal control services.

Armour said the amendment became necessary after changes to how animal control cases will be handled.

Under the revised agreement, citations issued by Habersham County Animal Care and Control officers within Alto will be heard in Alto Municipal Court instead of Habersham County Magistrate Court. The town will retain fines and fees collected through its municipal court, while restitution ordered for the sheltering and care of animals will continue to be paid to the county.

The amendment also changes how Alto reimburses the county for animal control services. Instead of a fixed arrangement, the county will calculate the town’s annual cost based on its population, less a credit tied to Alto’s share of the county tax digest.

Although the agreement outlines the reimbursement formula, it does not include a specific annual dollar amount. Mount Airy tabled action on the same agreement Monday while seeking additional information from the county, but Alto approved the amendment without discussion.

Virtual participation policy

Council members also approved a resolution establishing the town’s first formal policy governing virtual participation in council meetings.

Armour said she reviewed the town charter, Robert’s Rules of Order and state law after realizing Alto had no written policy addressing remote participation by council members. She said Town Attorney David Syfan prepared the resolution using state guidelines.

The policy follows the council’s June 25 special called meeting, when Councilman Allen Fox participated remotely.

Audit discussed

During its work session, the council reviewed the town’s 2025 audit, which included a repeat finding related to year-end financial reporting procedures.

Auditors identified a significant deficiency in the town’s internal controls over financial reporting, saying accounting adjustments were not made in a timely manner before the annual audit. The report said auditors made reclassification adjustments before the financial statements complied with generally accepted accounting principles.

The audit found no instances of noncompliance with laws or regulations and did not identify a material weakness. The same finding appeared in the town’s 2024 audit, and town officials said they plan to implement additional internal controls over year-end financial closing procedures.