The city of Cornelia is set to potentially become the first in Habersham County to opt out of the new floating homestead exemption, as the city has scheduled a public hearing during its commission meeting on Tuesday, January 7.
The hearing will provide residents with an opportunity to voice their opinions on the exemption, which limits increases in the assessed value of homes to no more than the inflation rate from the prior year.
Local governments must hold three public hearings before March 1 to decide whether to opt out of the exemption, which was approved by Georgia voters in November with 65% support in Habersham County.
According to city documents, the new exemption would have a significant impact on the city’s tax digest. For example, if the inflation rate for 2024 is 3%, the assessed value of homes in Cornelia could not increase by more than 3% in 2025. In 2023, the city saw an average increase of 7.33% in its tax digest, with the inflation rate at 3.4%. Under the new exemption, this increase would have been reduced by nearly 4%, translating to an approximate $111,000 decrease in assessments.
The city offers a $5,000 non-floating exemption to property owners that increases to $10,000 for those that are 65 and older.
In order for the county to ask voters to approve the new Floating Local Option Sales Tax (FLOST), none of the cities can opt out of the Floating Homestead Exemption.
Other business
In addition to the public hearing, the Cornelia City Commission will conduct several other items of business. The Cornelia Fire Department will hold a pinning ceremony to recognize two recently promoted firefighters: Matthew Williams, promoted to Captain, and Kyle Shelton, promoted to Lieutenant.
The commission will also consider entering into an automatic aid agreement with the city of Demorest for fire service. Under the agreement, Cornelia’s fire department would respond to Demorest fire calls with its ladder truck and two firefighters, while Demorest would provide assistance on Cornelia calls with an engine and two firefighters.
Progress on the downtown amphitheater project will also be discussed. The commission will review two key items related to the development of Phase 1. Higgins Construction is the sole bidder for the project, with a bid of $1,833,489. This phase will include most of the construction, excluding restrooms, stage, and dressing rooms, and will feature a new parking lot on Front Street. The total cost for Phase 1 is expected to be $2,033,489.
The amphitheater project is budgeted for $2,525,000, funded by a $1 million Appalachian Regional Commission grant, $1 million from the general fund, and $525,000 from SPLOST funds.
The commission will also review an agreement with Georgia Power for the installation of 13 decorative streetlights along the new walking trail and food truck path at the new Amphitheater Park. The total upfront cost to the city will be $93,600, with a monthly recurring charge of $354.51 for electrical service and maintenance.
The Cornelia City Commission will meet Tuesday, January 7 for its work session and regular commission meeting. The work session will begin at 5 p.m. and the regular meeting begins at 6 p.m. Both meetings will be held at Cornelia City Hall located at 181 Larkin Street in Cornelia.
