Stephens County adopts $41.6 million FY2026 budget after public hearing; M&O millage kept at 10.38

The Stephens County Board of Commissioners adopted the fiscal year 2026 government‑wide operating budget and authorized the chairman to sign the adopting resolution after a public hearing in which residents raised questions about rising assessments, exemptions and the special purpose local option sales tax (SPLOST).

County staff presented the proposed FY2026 government‑wide budget at $41,623,134, a 3.15% increase over fiscal year 2025. The proposal includes an unincorporated maintenance and operations (M&O) millage rate of 10.38 mills, unchanged from FY2025, and a projected net millage of 13.96 mills (a 0.38‑mill decrease from last year). County finance director James Elrod was present for questions from the commission.

Why it matters: The budget funds essential services including EMS, volunteer fire, 9‑1‑1 and emergency management, the court system and the sheriff’s office. County staff told the board the increase is driven primarily by higher health insurance, liability insurance and workers' compensation costs and by costs for essential public safety services.

Board and staff details County staff explained that the FY2026 general fund is proposed at $23,313,121, a 5.52% increase over FY2025. The budget assumes a roughly 3% performance pay increase for most employees and that the county will cover 98% of employee‑only group health insurance costs for the single plan option. The county plans for 208 approved full‑time positions in FY2026, one fewer than the current fiscal year. Revenue projections include a 1% estimated uncollected rate for property taxes and a projected 5.97% increase in local option sales tax receipts. Building permit revenues were projected to rise about 38.46% and recreation revenues about 8.89%.

Public comments Several residents spoke during the hearing, raising questions about assessed values, the rollback/advertised tax increase, exemptions and the county’s use of SPLOST funds. Sherry Jeffers, who gave her address as 126 Holiness Church Road in Toccoa, said, “I can't see any reason why I would not be for the budget,” and praised the commissioners' work. She asked about unpaid utility collections referenced by staff and about the effect of House Bill 581 on homestead assessments.

Resident AJ Paplaczek said some residents are confused by the interaction of rising assessed values and a lower millage rate, asking the commission to clarify that reducing the millage while values rise can leave tax bills unchanged: “When the millage rate comes down, the valuation of the property goes up. ... I don't like to use the term smoke and mirrors, but a lot of people are confused by that.”

Richard Santiago, a resident who spoke later, urged the commission to consider sharper millage reductions to offset higher assessed values, saying the county should avoid causing residents to skip medicines or other essentials. Gerald Turner and other speakers urged the county to consider selling unused properties and to keep taxes as low as possible for seniors and long‑term residents.

Clarifications from staff and other officials County staff and other officials explained roles and processes during the hearing. One staff member emphasized that the Board of Assessors sets assessed valuations and that the commission does not directly set those values; the board of equalization and the county assessor participate in establishing assessment levels. Staff also noted that the insurance premium rollback (2.23 mills) and the sales tax rollback (4.02 mills) were included in calculating the advertised tax change. Staff said the value of a mill for the digest is projected at $906,224, reflecting about a 15.7% increase in the net digest.

Decision and next steps After the public hearing the board voted to adopt the FY2026 budget and authorized the chairman to sign the resolution. The board also noted it must advertise a tax increase under Georgia law because it did not provide a full rollback of the M&O millage despite an overall lower millage rate and an increased digest.

Budgetary details and limits The board emphasized revenue projections were conservative and included contingencies: capital projects funding of $1,090,631, a capital contingency of $150,000, and general contingencies of $200,000. The solid waste enterprise fund was budgeted at $705,262, with substantial transfers from the general fund. The county expects continued SPLOST receipts and plans to use those funds for referendum‑approved purposes, including county roads.