Property owners in Cornelia will pay slightly higher taxes this year and may also have to pay more for water and sewer services.
The city commission this week voted unanimously to keep the millage rate at 8.50 mills. Although the rate did not change, it still equals an increase of .44 mills based on the inflationary rollback rate. In dollars, this equates to a revenue increase of $194,709 in property taxes, an increase of 7.33%. A homeowner with a house valued at $100,000, will see their property tax rise by about $17.60.
In addition, the city commission is considering a proposed budget that would raise water and sewer rates by 3% and stormwater utility fees by 75 cents per ERU. Money from those funds would be combined with grant money and SPLOST revenue to pay for infrastructure improvements including:
- Pine Street Drainage Project – $221,000
- 2021 Community Development Block Grant projects – $254,395
- South Main Street Drainage Project – $50,000
- Hazel Creek Pump Station upgrade – $420,000
Those projects are outlined in Cornelia’s proposed budget, unveiled on November 1 by city manager Dee Anderson. The draft budget includes a 7% cost of living increase for employees. Anderson says he’s recommending the across-the-board increase due to inflation and to improve employee retention.
The Consumer Price Index projects the cost of living will rise by 10.5% in 2023, which is the largest increase since 1982.
“We already struggle to keep good employee [sic], if we do not increase our pay we will continue to lose good people,” Anderson wrote in his budget cover letter to commissioners.
Where’s the money coming from?
Before commissioners voted to finalize the millage rate, Anderson explained that the city digest increased by $22,906,919. Reassessments were $12,280,816. New developments were $3,848,152. Real and Personal Property were $4,100,150. The city also had a decrease in exemptions of $2,867,323.
The city’s overall proposed operating budget for the upcoming fiscal year is right at $17 million. To balance the $5.9 million general fund portion of it without a property tax increase, the city will rely on $337,331 from its prior year fund balance, $193,000 of ARPA funds, $118,125 from the Hotel/Motel Tax, and $1,416,600 from water and sewer funds.
Those interfund transfers, Anderson said, would allow the city to balance the budget without cutting services.
Cornelia Ward 3 Commissioner Don Bagwell stated the city is fortunate to utilize the interfund transfer to avoid raising taxes. Anderson added that the city has been frugal in the past and that is why there is a good fund balance. He explained to the city commission the budget is just a draft at this point. It is available for public viewing on the city’s website.
Cornelia must hold two more public hearings before the budget can be finalized.
