Demorest council to revisit budget, tax increase

The Demorest City Council (Patrick Fargason/Now Habersham)

DEMOREST, Ga. — Demorest City Council will hold a special called meeting Tuesday to revisit several financial and administrative matters, including the proposed fiscal 2027 budget, a tentative 16% property tax increase and policies that were discussed or tabled during the council’s Oct. 6 meeting.

The meeting is scheduled for 5 p.m. Oct. 20 at the Demorest Municipal Conference Center, 250 Alabama St. The agenda includes public hearings on the FY2027 budget and FY2026 millage rate, along with consideration of court fines and fees, a certificate of deposit renewal, a proposed human resources policy and bids for the City Hall parking lot.

The council is also scheduled to consider entering executive session to discuss personnel, potential litigation and real estate.

Public hearings set on budget, millage rate

The proposed FY2027 budget and tentative millage rate will be the focus of two public hearings scheduled for Oct. 20 and Oct. 27. The Oct. 20 hearings are set for 5 p.m., with a second round scheduled for 6 p.m. Oct. 27 at the conference center.

According to the city’s public notice, the council has tentatively adopted a millage rate of 7.60 mills, an increase of 1.048 mills over the rollback rate of 6.552 mills. The proposed rate would represent a 16% increase in property taxes, according to the notice.

The city estimates the proposed increase would add approximately $125.76 in annual property taxes for a homestead property with a fair market value of $350,000. For a non-homestead property valued at $250,000, the estimated increase is $104.80.

The rate remains tentative, and the public hearings will give residents an opportunity to submit written or oral comments on the proposed tax increase and annual operating and capital budget.

During the Oct. 6 work session, City Manager Mark Musselwhite presented several preliminary millage options, including a rate near 6.55 mills, a rate of 7.255 mills and the proposed 7.60 mills. The options would generate different levels of additional revenue for the city, and council members were expected to continue discussing the budget before adopting a final rate.

Council to revisit tabled items

The agenda also includes consideration of an update to court fines and fees and a proposed human resources policy and procedure plan. Both items were tabled during the council’s Oct. 6 meeting.

The proposed HR policy review would involve outside assistance to review the city’s employee handbook and procedures. During the previous discussion, Musselwhite outlined a proposal costing $12,870 and taking approximately four months, with a goal of implementing revised policies in the first quarter of 2027. Council members raised questions about the cost and funding before the item was tabled.

Council members will also consider bids for the City Hall parking lot and renewal of a certificate of deposit with Rabun County Bank.

The special called meeting comes as the city continues to address financial planning and administrative issues discussed during recent work sessions. The agenda does not specify the details of the parking lot bids or the terms of the proposed certificate of deposit renewal.

The council is scheduled to consider a motion to enter executive session to discuss personnel, potential litigation and real estate before adjourning.

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