Demorest council approves FY2026 budget, sets millage at 6.593 mills

The Demorest City Council voted unanimously on Oct. 30, 2025, to adopt the FY2026 budget and to set the 2025 millage rate at 6.593 mills. Councilman Shawn Allen moved to accept Budget 4, Option 1 with the deletion of $5,000 from dues and fees; Councilman Jimmy Davis seconded and the motion passed 4-0.

City Manager Mark Musselwhite presented multiple budget options, identifying Budget 4, Option 1 and Budget 3, Option 3 as the two paths that would achieve a full rollback in the tax rate. Council members Donnie Bennett, Shawn Allen and Jimmy Davis voiced support for a full rollback. Councilman Andrew Ferguson said he was concerned about using tax dollars for infrastructure but ultimately expressed a preference for Budget 4, Option 1.

Budget 4, Option 1 includes the reinstatement of a police department position so the city can maintain current staffing levels. According to the council discussion, that reinstated position is a reason the option carries slightly different staffing costs than other rollback options. Chief Chastain, speaking to staffing choices, said a previously suggested cut (Hughes' position) would remove a necessary role.

During the public hearing resident Patti Davis raised three specific questions: whether the budget includes a severance package, why $13,000 was allocated for code enforcement, and what the court cost line covers. City Manager Mark Musselwhite told the council and the public that the proposed budget does not currently account for a severance package and that further discussion of code enforcement is anticipated. Chief Chastain said the court cost line covers the judge, the solicitor and an interpreter.

Separately, council reviewed a tentative millage scenario that would have set a higher rate (7.16 mills, described in meeting materials as an 8.60% increase compared with the current rate). The council agreed instead to the rollback rate of 6.593 mills; Councilman Allen moved to approve the millage at 6.593 and Councilman Davis seconded; the motion passed 4-0.

The council also voted earlier in the meeting to approve the agenda and later voted to adjourn into executive session to discuss personnel and potential litigation. The Regular Session recessed at 6:32 p.m. for executive session and reconvened at 7:00 p.m.; the meeting adjourned at 7:01 p.m.

No formal amendments to Budget 4, Option 1 were recorded in the public session beyond the $5,000 reduction to dues and fees. Council and staff said discussions about severance and code enforcement responsibilities will continue outside the public hearing.

The meeting record shows the votes were unanimous on the agenda approval, budget adoption and millage adoption (each 4-0).