Local sales tax negotiations resume. What we know about LOST and the mediation process.

Negotiations over sharing nearly $1 billion in local sales tax funds resumed Friday, but the stakeholders have yet to reach agreement.

Local leaders met in Richmond Hill for the first in a series of mediation sessions regarding the Local Option Sales Tax, or LOST. The 1% levy is applied to the purchase of most goods and services in Chatham County. Agreement between Chatham County leaders and those of the county's eight municipalities about how to split LOST proceeds must be reached before the current accord expires on Dec. 31.

A thorny round of discussions on how to divvy up a major source of revenue began in July. The county and cities ultimately failed to reach an agreement, leading to Friday's mediation meeting, which took place behind closed doors.

Read more: Chatham County and its cities have yet to agree on LOST. What's next for LOST negotiations?

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City officials barred media from the meeting room at the Richmond Hill City Center, stating that the mediation process, which discusses the use of public funds, must take place out of the public eye.

Officials also cited attorney-client privilege between cities, their attorneys and mediators.

According to Georgia code, mediation meetings can be exempted from open meeting laws. The Georgia Municipal Association (GMA) also specifically states that LOST mediations, after failed initial negotiations, could fall under that part of Georgia law.

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Savannah City Manager Jay Melder and City Attorney Bates Lovett were present at the meeting, along with officials from a few other municipalities.

The City of Savannah typically leads the once-every-decade LOST negotiations. This year, Melder and Pooler City Manager Robbie Byrd are piloting discussions on behalf of Chatham County's eight municipalities.

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Chatham County officials sat in another room at the City Center. A hired attorney or mediator, who walked between the two rooms, facilitated the discussions.

At the last round of open discussions in July, the county proposed an even split of the LOST funds between county and city governments, increasing the county's share by 22% compared to the current agreement. The municipalities' own proposal called for an 86% share, increasing the collective municipal share by 9%.

During a Monday night council meeting, Garden City's city attorney, James Gerard, said that the jurisdictions are "closer than we were before ... but it's going to take more meetings."

The government jurisdictions have until the end of the year to agree on a new breakdown for the LOST certificate. Otherwise, the billion-dollar revenue generator will go uncollected, resulting in severe property tax hikes for all Chatham County residents.

Nancy Guan is the general assignment reporter covering Chatham County municipalities. Reach her at nguan@gannett.com or on Twitter @nancyguann.

This article originally appeared on Savannah Morning News: Chatham County and Savannah yet to reach agreement on tax collection