Habersham commissioners review $43.99M budget

CLARKESVILLE — Habersham County commissioners received their first public look Monday at a proposed $43.99 million fiscal year 2027 budget that increases spending 6.44% while funding additional fire staffing, absorbing rising operational costs and projecting a slight reduction in the county’s millage rate.

Finance Director Kiani Holden presented the $43,988,343 general fund budget during a public hearing before the Habersham County Board of Commissioners. The proposal is up from the county’s amended fiscal year 2026 budget of $41.15 million.

Holden said county departments initially requested $47.1 million in spending, but the budget was reduced by more than $3.1 million through multiple rounds of review by finance staff and department directors.

“We strive for a balanced budget without a millage increase every year,” Holden said.

Budget drivers include rising personnel and public safety costs

Holden said the proposed budget reflects increased costs in several major areas, including employee compensation, benefits, utilities and emergency services.

Among the largest increases are $310,000 for the second half of a previously approved 3% salary adjustment, $232,000 in higher health insurance costs, $100,000 in increased retirement contributions, $127,800 in utilities and a $719,000 increase in E911 operations funding.

Public safety spending is projected to rise about 10%, driven by the county’s fire services agreement with the City of Demorest, animal control services and E911 costs.

Fire staffing tied to ISO rating concerns

The budget includes six new firefighter/EMT positions to staff the county’s New Liberty and Fairview fire stations. Departments had requested nine full-time and one part-time position, but the budget committee recommended only the six fire positions.

Commission Chairman Bruce Harkness said the staffing is necessary to maintain the county’s Insurance Services Office rating, which helps determine property insurance premiums.

“If we don’t keep that down, your insurance premium on your houses and property could skyrocket,” Harkness said.

Animal control costs rise 24%

Holden said animal control spending is up about 24%, largely due to rising veterinary costs after local providers were acquired by larger companies, requiring the county to transport animals to Athens for services.

She said the county is exploring a potential partnership with a low-cost spay-and-neuter provider known as “Leftover Pets,” which operates a mobile surgical unit and could relocate operations to Habersham County.

Commissioners discussed the increase during the meeting, with Harkness questioning whether taxpayers should bear the additional cost.

“I love animals,” Harkness said. “But shouldn’t our taxpayers be looking at an additional $253,000 to spend there?”

Commissioner Kelly Woodall said the increase reflects higher service costs rather than program expansion and noted the county is required to provide certain services for animals before adoption.

“You have to do that service for an animal that’s collected,” Woodall said.

Millage rate and tax relief discussed

Holden said the proposed county millage rate is 0.006 mills lower than the 2025 adopted rate.

She also highlighted Georgia’s Homeowner Tax Relief Grant program, which provides an $18,000 homestead exemption for eligible homeowners. Holden said a homeowner with a $350,000 home could see about $202 in savings if the program is fully implemented.

Commissioner Kelly Woodall said the proposal would allow the county to fund additional fire stations while still reducing the county’s tax rate.

“So, for me to summarize, we’re funding two fire stations out of the three that are not currently staffed,” Woodall said, noting that citizens should see a lower overall tax burden.

Commissioner reaction highlights budget priorities

Commissioner Dustin Mealor said strong property tax digest numbers have helped improve the county’s budget outlook.

“It’s really, really good that we have good property tax numbers early this year,” Mealor said. “It’s been years since we, as a commission, had good numbers to make a budget decision on.”

He credited county staff and the new chief appraiser for the improved revenue outlook.

Other fund and budget changes

Holden said the county’s total budget across all funds is $78.45 million, a 1.8% decrease from the previous year, driven largely by reduced capital spending as SPLOST-funded projects near completion.

Capital improvement funding is down about 33%, and SPLOST-related revenues are declining as the county transitions between funding cycles.

Enterprise funds, including the landfill, transit system and airport, showed mixed changes depending on capital needs and grant funding.

Next steps

Commissioners are expected to hold additional public hearings and consider final adoption of the fiscal year 2027 budget during a special called meeting June 29.