Demorest balances infrastructure and accountability amid rising property values

Demorest city officials deliberate during the October 7, 2025, council meeting. From left: Councilmen Jimmy Davis and Donnie Bennett, Mayor Jerry Harkness, City Manager Mark Musselwhite, and Councilmen Shawn Allen and Andrew Ferguson. (Carly McCurry/ Now Habersham)

DEMOREST — Demorest city leaders are putting their focus on maintenance and steady finances as they enter the new budget year. Officials approved contracts Tuesday night that keep essential services running.

During the October 7 meeting, Demorest City Manager Mark Musselwhite summed it up simply: “Without water and sewer, we don’t exist.” Property taxes, of course, do pay a portion of the city’s operational expenses and this year, those taxes have increased.

While Demorest will keep its current millage rate, state law requires the city to advertise it as a property tax increase because property values rose. The digest increased from $65.8 million to $73.1 million, pushing city revenue from $471,317 to $524,000 — an 11.2 percent increase.

Public hearings on the tax rate are set for October 7, 21, and 30 at the Demorest Municipal Conference Center.

Tank contract saves money

Residents attend the Demorest City Council’s October 7, 2025, meeting, where officials discussed property tax adjustments, infrastructure contracts, and ongoing city maintenance projects. (Carly McCurry/Now Habersham)

Looking ahead to the new year, the city council approved a seven-year agreement with American Tank Maintenance, LLC to service the Bear Gap water storage tank. The contract begins November 1 and replaces the old pay-as-you-go model with set annual costs.

For the first three years, Demorest will pay $26,786 per year. That drops to $8,035 annually for years four through six, with only a small adjustment allowed in year seven. The new plan is expected to save the city about $50,000.

The contract includes annual visual inspections, washouts, a full exterior renovation in the first year, emergency services, valve maintenance, and safety upgrades.

Massie Hughes, the company’s regional director, said his team will be hands-on and available at all times. “A handshake actually means something,” Hughes told city officials. “We’re available 24/7.” His company maintains more than 14,000 tanks across the Southeast, including in Habersham County.

Inspectors recently recommended a full exterior coating for the Bear Gap tank after finding that a previous asphalt-based coating failed. The company plans to use a TNEMEC coating system, applying three layers of epoxy after high-pressure cleaning and crack repairs, to protect the tank from corrosion.

City Hall renovation

The city also signed a $19,600 contract with Blake Rainwater & Associates of Clarkesville to design renovations for City Hall. The firm will handle design development, construction documents, and cost estimates. Vice President Brentt R. Cody signed the agreement alongside Musselwhite.

The renovations are part of a plan to move the Demorest Police Department into City Hall.

There was no additional discussion Tuesday night about plans to possibly cut two large oak trees on the property for a parking lot. That project is still under consideration. If approved, the larger parking lot would accommodate United State Postal Service requirements, paving the way for the Demorest Post Office to also relocate into the building.

Grant management

Council renewed its agreement with Southern Prosperity Ltd Co. of Homer to manage the city’s Georgia Department of Transportation grants. The company is paid $45,000 per project, with two active projects totaling $90,000. If a third grant is awarded, payment rises to $135,000.

The deal also includes an annual $5,000 Tactical Analysis to evaluate city grant performance.

Intern shares experience

Piedmont University intern Erin Irvin presents her report to the Demorest City Council, detailing her experience working alongside city departments on medical calls, traffic incidents, and administrative operations during her internship. (Carly McCurry/Now Habersham)

Erin Irving, a Piedmont University student, presented a report on her internship with the city. She joined crews on medical calls, traffic incidents, and criminal cases, and also worked on administrative tasks such as permit applications and departmental reports.

“It was great to see how the different teams work together,” Irving said. “I got to see a lot more than many interns. I’ve learned a lot and enjoyed it so far.”

Musselwhite praised her initiative and encouraged more students to apply.