Demorest Council Keeps Millage Rate at 6.593 Mills, Approves FY 2027 Budget

Demorest property owners will not see the proposed increase in the city's millage rate after the Demorest City Council voted Tuesday to keep the rate at 6.593 mills.

The decision came as the council approved the city's fiscal year 2027 budget following weeks of discussion over how much property tax revenue would be needed to fund city operations.

City officials had considered increasing the rate to 7.60 mills, approximately 16% above the current rate. Instead, the council unanimously approved a budget that maintains the existing 6.593-mill rate.

Keeping the millage rate unchanged does not necessarily mean every property owner's tax bill will remain the same. Increases in assessed property values can result in higher taxes even when the millage rate does not change.

The city's property tax collections are expected to increase by approximately $25,000, from approximately $480,000 to $500,000, according to figures presented in connection with the budget.

Residents had expressed concerns about the proposed increase during the budget process, including the effect higher property taxes could have on retirees and others living on fixed incomes.

The council also discussed the property tax exemption available to qualifying homeowners age 65 and older and encouraged eligible residents to apply.

Other Council Business

Council members handled several additional financial and administrative matters during Tuesday's meeting.

The council approved an annual Georgia Environmental Protection Division invoice of approximately $12,123 related to Demorest's drinking water system and the authorizations associated with the city's wells and water withdrawals.

Council members also authorized an inmate housing agreement with Habersham County. Demorest does not operate a jail, requiring people arrested by the city's police department to be housed elsewhere. Under the arrangement discussed by the council, the city contributes an agreed percentage of municipal court fines and fees rather than paying a separate charge for each inmate.

The council also addressed the renewal of a city certificate of deposit.

City staff obtained interest-rate information from six banks before the council considered its options. Bank OZK offered a quoted 4.4% annual percentage yield for a 15-month term, while Traditions Bank offered 4% for a 12-month term.

After discussing the rates, requirements associated with municipal deposits and the city's existing banking relationship, the council voted to keep the certificate of deposit with Traditions Bank at 4% for another 12 months.

The amount held in the certificate of deposit was not stated during the discussion.