During Monday’s regular September meeting, the Cornelia City Commission tackled the existential question, “What is a tax increase?”
Last week, the city issued a notice for public hearing announcing its intention to increase 2025 property taxes by 10.29 percent over the rollback millage rate of 8.61 mils.
However, Cornelia City Manager Donald Anderson, Jr. told the packed commission room that the millage rate will hold steady at its current rate of 9.5 mils.
“Because the recommended rollback rate is 8.61 mils, by keeping the millage rate at 9.5 it is considered by law a tax increase,” Anderson said.
The rollback rate is a mandated revenue-neutral calculation that would produce the same total property tax revenue as the previous year, accounting for any increases in the tax digest.
Local municipalities are required to perform this calculation and the Georgia Department of Revenue ensures compliance.
Anderson said keeping the millage rate steady will increase revenue to the city.
“If we keep the millage rate at 9.5 mils the increase to our revenue will be $300,000 or 10.29%,” Anderson said.
Despite trepidation by many in the audience, Anderson wanted to make one point abundantly clear.
“To clarify, we’re not raising anyone’s taxes,” Anderson said. “If your taxes go up it’s because the county reassessed the value of your property.”
The city of Cornelia will hold two additional public hearings on the millage rate increase on October 7 at 12 p.m. and 6 p.m.
2026 Budget Overview
The millage rate was one of three public hearings on the docket Monday. Additionally, Anderson gave an overview of the proposed 2026 budget for the city which was created with the help of department heads.
While prefacing that the new budget would not jeopardize the level of service that residents are accustomed to, Anderson said, “We’ve had to make some very tough decisions regarding much-needed equipment and capital projects, by prioritizing what we feel we must have with what we feel can be pushed to future years.”
The 2026 proposed budget will see an increase to the general fund of $316,078 and includes a 2.5 percent cost-of-living adjustment for employees.
Anderson stated that 72 percent of the general fund budget is allocated to public safety, and the increase is due in part to increased personnel costs and new 911 radio fees. However, he did announce a staff increase for the Cornelia Fire Department
“The budget does have three permanent part-time firefighter positions which would bring us to five firefighters per shift and the cost $99,216,” Anderson said.
The biggest increase in the 2026 budget was to the water and sewer fund. The proposed budget added an additional $2.28 million over 2025 to help pay for several capital improvement projects, including the wastewater plant expansion project.
To help pay for this increase, the commission voted to raise water rates by 5.4 percent beginning in 2026. However, that increase comes with an added tier of per gallon costs from 2,000-6,000 gallons instead of the previous 2,000-10,000 gallons.
The added tier is something that Cornelia Mayor John Borrow feels will be a nominal increase for the average user at best.
“After listening to the presentation from our water engineers, most water users fall into the 2,000-6,00 gallons per month and after that it tiers up,” Borrow said. “For most people who use regular water, by adopting this the first year your water rate will stay the same or go down slightly.”
Vape shop restrictions
A third public hearing addressed a proposed ordinance to restrict vape shops. Anderson said the ordinance would mirror alcohol package store regulations by prohibiting vape shops within 1,000 feet of a school or day care and limiting them to business, light industrial or heavy industrial districts.
The Planning and Zoning Board approved the measure Aug. 21. City Attorney Steve Campbell said existing vape shops would be grandfathered in.
“It will limit the number going forward,” Campbell said. “Technically, it’s going to greatly limit the number in town.”
Other actions
The commission voted unanimously to set a speed limit of 15 mph in the Magnolia Villas subdivision, down from the state standard of 30 mph.
Following the close of municipal election qualifying, no candidates filed to run against incumbent commissioners Jancie Briggs and Don Bagwell. As a result, no city elections will be held, though the SPLOST referendum will remain on the ballot.
