Demorest holds public hearing on tentative 7.16‑mill rate and reviews three FY2026 budget options

The Demorest City Council opened a public hearing Oct. 7 on a tentative millage rate of 7.16 mills that staff said would produce an estimated property tax increase of about 8.6 percent.

City Manager Mark Musselwhite presented the numbers and said the tentative 7.16‑mill rate represents a 0.567‑mill increase compared with the alternative rate of 6.593 mills. Staff estimated that for a home with a fair market value of $175,000 the increase would be roughly $28.35 for homestead property and $39.69 for nonhomestead property. Musselwhite also read historical millage rates and invited residents and councilmembers to review the staff materials.

Musselwhite then outlined three FY2026 budget options: a fully funded departmental budget that would require a tax increase to about 15.95 mills (which he described as not feasible); a balanced option that maintains the 7.16 mill rate but requires cuts to police, fire, and streets and a water‑transfer requirement; and a third option that also preserves the 7.16 mill rate but limits new spending to only the payment to Habersham County for fire services. He urged the mayor and council to review the options in detail and submit questions and feedback.

The public hearing drew no speakers; City Attorney Thomas Mitchell opened and closed the hearing during the meeting. Additional public hearings on the tentative millage rate were scheduled for Oct. 21 at 5:00 p.m. and Oct. 30 at 6:00 p.m., both at the Demorest Municipal Conference Center.

Next steps: councilmembers were asked to study the three budget scenarios, and the council may revisit the millage and budget decisions at the scheduled hearings and at future meetings.