(WSB Radio)  Millions in state grants and federal stimulus money could be in jeopardy now that talks between Gwinnett County and its 15 cities on a service delivery agreement have broken down.

State law mandates that every ten years counties and their cities reach an agreement on who provides services such as fire, police, and water and how much taxes residents are required to pay for those services.

After failing for more than two years to reach an agreement before the March 1st deadline, a judge ordered mediation and extended the deadline to June 10th.

At issue is duplication of services, according to Suwanee Mayor Dave Williams.

"It's important that there is a single provider that's identified so you don't have conflicts but it's also important that there's an accounting for how those services are funded so that there's equity in taxation for those services," he says.

For example, Williams tells WSB's Sandra Parrish that residents in his city are paying for some county services such as police that the city is providing.

"Everybody in the city pays the same tax rate to Gwinnett County even though taxpayers within our city don't receive police patrol from Gwinnett County," he says.

Williams says he's unclear now if Judge David Barrett from the Enotah Circuit in White County will impose sanctions now that the two sides have failed to reach agreement during mediation.

WSB unsuccessfully tried to reach both Barrett and the Gwinnett County Commission.