DEMOREST, Ga. — The Demorest City Council approved more than $259,000 in water and sewer improvements Tuesday while postponing action on a proposed $5.1 million water line project after learning the city had secured financing through the Georgia Environmental Finance Authority.
Council members unanimously approved seven water system upgrades totaling about $227,500 and the purchase of dissolved oxygen analyzers for the city’s wastewater treatment plant at a cost of $31,771.75. They also unanimously tabled the largest project on the agenda — water line improvements in the Iron Ore pressure zone — until staff can further evaluate the financial impact of the project.
City Manager Mark Musselwhite told the council the city learned Tuesday afternoon that GEFA had approved financing for the estimated $5.1 million project at an interest rate of about 3.23%.
The project would replace aging 2-inch water lines with 6-inch lines in the Iron Ore pressure zone.
City Engineer Fletcher Holliday said the area has long been identified as one of the city’s highest priorities for improvement.
“The hydraulic water model that we’ve completed for the city … was one of our worst areas,” Holliday said, citing low water pressure and water flow issues.
During the discussion, Councilman Shawn Allen asked whether the project area included the site of a major water main break earlier this year. Holliday confirmed the break occurred within the Iron Ore pressure zone, which encompasses a large section of the city’s water distribution system.
Rather than move forward immediately, Musselwhite recommended postponing action while city officials analyze the project’s long-term financial impact.
He said financing the project over 20 years would require monthly payments of about $27,000, while extending the repayment period to 30 years would reduce the monthly payment to about $21,000 but add roughly $1 million in interest over the life of the loan.
“It’s just the beginning of this conversation,” Musselwhite said.
The project is expected to return to the council after staff evaluates its effect on the city’s cash flow, debt service requirements and future revenue.
Booster stations, flow meters approved
The council unanimously approved seven other water system improvements that had already been included in the city’s 2026 capital budget.
The projects include upgrades to booster pump stations on Ga. 17, Ga. 105, Ga. 225, Habersham Mills, the city’s water treatment plant and the Iron Ore pressure zone, along with the purchase of five new flow meters.
Holliday said the projects will modernize aging infrastructure throughout the city’s water distribution system.
“Many of the electrical components have reached their end date,” he said. “A lot of these pumps and motors, some of them are inoperable. Others need to be replaced and maintained.”
Allen asked why the project costs varied from $10,000 to $99,000.
Holliday said the differences reflect the size of each booster station and the scope of work required. The Ga. 17 booster station, the largest project at $99,000, will require replacement of both aging pumps.
“They’ve been rebuilt multiple times, and they’re just one gallon away from essentially not being operational and creating water issues in the distribution system,” Holliday said.
The new flow meters will help the city’s water department monitor usage throughout the distribution system, making it easier to identify leaks and locate areas with unaccounted-for water.
Holliday said he expects the approved projects to be completed by the end of the year.
Musselwhite said the city has sufficient money in its water and sewer fund to complete the approved projects.
Wastewater improvements
The council also approved the purchase of dissolved oxygen analyzers for the city’s wastewater treatment plant.
The equipment, which came in about $9,000 below the original budget estimate, will automate the process of monitoring oxygen levels in the plant’s aeration basins.
Currently, operators manually measure dissolved oxygen levels and adjust the aeration system as needed.
“This is an automated feature, so it targets a set dissolved oxygen,” Holliday said. “It actually saves power in the long run and optimizes the treatment process.”
Council members tabled consideration of a grit classifier for the wastewater treatment plant until Sept. 1 after staff said the vendor was unable to provide complete pricing information before the meeting.
Holliday said the equipment would improve operations by removing excess water from grit and debris before the material is transported to a landfill, reducing odors, improving housekeeping and lowering disposal costs.
Pension ordinance advances
The council unanimously approved the first reading of an ordinance formally implementing a previously approved increase in the city’s Georgia Municipal Employees Benefit System defined benefit retirement plan.
City Clerk Megan Chastain reminded council members they voted June 2 to increase the pension benefit multiplier from 1.5% to 1.75%.
“This is just the ordinance that we have to get two readings on to put that into place,” Chastain said.
Georgia Municipal Association representative Joshua Colley said the increase will cost the city about $35,030 annually, or approximately 1.8% of payroll.
The ordinance will return to the council for a second reading and final consideration at its Sept. 1 meeting.
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