Cornelia approves floating sales tax agreement with Habersham County

CORNELIA, Ga. — The Cornelia City Commission approved an intergovernmental agreement Tuesday supporting a proposed countywide sales tax referendum that could cut the city’s property tax rate in half while also adopting zoning changes aimed at encouraging more compatible residential development.

Mayor John Borrow was absent from the meeting, which was presided over by Mayor Pro Tem Janice Griggs.

Commissioners unanimously approved a resolution authorizing Borrow to sign an intergovernmental agreement with Habersham County and the county’s municipalities to place the proposed Flexible Local Option Sales Tax, or FLOST, before voters.

If approved in a countywide referendum this fall, the one-cent sales tax would be used exclusively to offset property taxes. Unlike a traditional SPLOST, FLOST revenue cannot be used for capital projects or general government operations.

Under the proposed agreement, Cornelia would receive 11.52% of the tax proceeds. City Manager Donald Anderson said preliminary estimates indicate the revenue could allow the city to reduce its property tax millage rate by approximately 50% based on its current tax rate.

County officials have said the tax is expected to generate enough revenue to provide meaningful property tax relief while shifting more of the tax burden to visitors and others who shop in Habersham County. The referendum is expected to appear on the Nov. 3 general election ballot.

Commissioners also unanimously approved amendments to the city’s Traditional Neighborhood Development zoning district, saying the changes are intended to encourage infill housing while making future development more compatible with surrounding neighborhoods.

Anderson said the amendments reduce the maximum building height from 45 feet to 35 feet, lower the maximum number of stories from four to three and increase the minimum heated floor area from 550 square feet to 1,080 square feet. The ordinance also reduces setbacks adjacent to existing single-family neighborhoods from 35 feet to 15 feet, bringing the standards more in line with the city’s other residential zoning districts.

The commission also voted to advertise a proposed zoning ordinance amendment that would limit accessory buildings in residential districts to rear yards only. Anderson said the change was drafted following feedback received during last month’s meeting. The proposal will return for a public hearing before commissioners consider final adoption.

Commissioners awarded a $1,042,970 contract to Higgins Construction for water, sewer and stormwater improvements in the Circle Drive area.

The project is partially funded through a $1 million Community Development Block Grant. Anderson said the city received six bids ranging from about $1.04 million to $2.21 million. Following a review of the proposals, the city’s engineering consultant, Carter & Sloope, recommended awarding the contract to the low bidder.

The commission also approved installing two permanent speed bumps on Lee Street after police continued receiving complaints about speeding.

Anderson said the police department has monitored the area for about a year and issued citations, but officers cannot maintain a constant presence. A temporary speed bump installed near Sierra Vista Apartments has helped slow traffic, he said, and Police Chief Jonathan Roberts recommended adding permanent speed bumps near the entrances to Sierra Vista Apartments and Lee Street Apartments.

Commissioners also approved revisions to the city’s financial policies reflecting the implementation of a centralized purchasing system. The changes require departments to process purchases through the city’s purchasing agent, clarify that purchase orders must be approved before purchases are made and remove outdated language regarding department-issued credit cards, which are now managed by the finance department.

During his monthly report, Anderson said the city’s Big Red Apple Centennial Celebration drew strong attendance despite extreme heat and generated positive community feedback. He said organizers identified improvements for future events, including shortening the event and opening food vendors earlier.

Anderson also reported that construction of the Kinetic Amphitheater is expected to begin soon. Soil testing was completed this week, with results expected by the end of the week before contractors begin footing work.

He also announced the city recently received its fiscal year 2025 audit, which contained only one minor finding related to the city’s software conversion. The audit will be presented to commissioners during their August workshop.