HOSCHTON — Residents attending Hoschton’s City Council meeting Monday let out a collective groan as the council announced its decision to deny the validation of a petition to change the city’s charter.

Council members voted unanimously to deny the petition, citing that the amendment it proposes violates limitations on home rule established by the Georgia General Assembly and alters Hoschton’s governing authority. In addition, council members agreed it would violate Hoschton’s two loan agreements with the Georgia Environmental Facilities Authority.

The petition was circulated to garner enough support to get Hoschton to hold an election on whether its charter should be amended so that any time a change in the property tax, or millage rate, is proposed, it must be placed on the ballot.

Residents submitted the petition to city hall on June 15 with 417 signatures.

On Monday night, some of these residents packed into city hall to hear the council’s decision. City attorney Thomas Mitchell read aloud a three-page summary detailing that decision.

Mitchell said what the petition called for was "not a valid exercise of the home rule authority delegated by the (Georgia) General Assembly."

Hoschton, like other cities, has a charter that was originally adopted by the Georgia General Assembly. Under this, Hoschton can amend parts of the charter, but is limited in changing others. What the petition called for, Mitchell said, is included in these limitations.

He said the proposed amendment also would alter the mayor and City Council’s governing authority, which is prohibited.

"The charter of the city of Hoschton does not contain a provision to allow a referendum by the voters on general ordinances and resolutions," he said. That power, he explained, resides with City Council.

Mitchell also cited a previous court case decided by the Georgia Supreme Court, which found that "to allow the use of a petition and referendum to amend ordinances and resolutions generally would be an impermissible delegation of legislative power to the electorate."

Finally, Mitchell explained that the petition would violate the city’s two loan agreements with GEFA. The loans, received in 2002 and 2006, were issued to help Hoschton build and fix its wastewater treatment plant. Mitchell said both loan agreements contained clauses that stipulated the city must retain its "revenue-raising power," which includes the ability to levy taxes. He said the petition’s proposed amendment would hinder this power and, in turn, violate the loan agreements.

Regardless of the council’s finding, Hoschton resident William Pendergast told council members Monday that one thing remains clear.

"The statutes notwithstanding, this does not preclude the council from recognizing what the homeowners want in this town with regard to tax increases," he said. "So, regardless of what statutes he (Mitchell) was talking about, you all know what the people of Hoschton want or don’t want, and I think you can be guided by that and act accordingly."

Hoschton resident Kelley Gary, who helped spearhead the petition, said he was not surprised by council’s decision. He said that he doesn’t think the city has any "valid legal basis" for its decision, and he is in the process of checking the "legal validity" and how it might be challenged.

In the meantime, Hoschton must make its proposed 2010 budget available to the public by July 29. The city will then submit the proposed budget and any preliminary millage rate at its Aug. 3 City Council meeting for adoption.

Following this, three public hearings regarding any tax increase will be held during August. The city plans to adopt the budget and set millage rates at 7 p.m. Aug. 24.