CLARKESVILLE — Habersham County commissioners kicked off early discussions on the fiscal year 2027 budget Monday, weighing employee costs, major equipment needs and a potential sales tax that could significantly reduce property taxes.
The conversations, held during a work session preceding the board’s regular meeting, highlighted competing priorities as officials try to balance rising costs with long-term financial planning.
“We have to look at every dollar and we have to be good stewards,” Chairman Bruce Harkness said. “But we have to pay salaries that are competitive, and benefits — benefits are a big deal.”
Health insurance increase prompts policy decision
County Manager Tim Sims said the county is facing a 3% increase in employee health insurance costs — far lower than recent years — totaling about $239,000.
He credited county staff for keeping the increase down.
“Our staff deserve a good, big kudos for that,” Sims said, noting some nearby counties are seeing increases closer to 8%.
Still, commissioners must decide whether to absorb the full increase or split the cost with employees. If shared, monthly premium increases would range from about $8.91 to $26.74 depending on coverage.
Sims said employee rates have not increased in more than three years.
“I was going to see your thoughts on sharing this with the employees… or if you want us to incorporate all that into the budget,” he said.
Harkness said the decision should be tied to any cost-of-living adjustment, which has not yet been determined.
“I don’t want to be… down on our employees,” he said. “We’ve got to keep employees and keep that longevity.”
Sims said staff will prepare multiple budget scenarios.
“We’ll just do scenarios with both… and let you look at it and see how that works out,” he said.
Major equipment, infrastructure needs discussed
Among the capital items under review is a request for a new landfill compactor expected to cost more than $1 million — a sharp increase from roughly $735,000 for the last unit purchased in 2018.
Interim Finance Director Kiani Holden said the equipment is critical to operations and subject to heavy wear.
“When it’s down, it impacts the operations of the landfill significantly,” she said.
Holden added the current compactor has already required significant repairs.
“We’ve already had to have the bottom replaced once… they rust out so fast,” she said.
At the Habersham County Airport, officials are proposing a $25,000 annual investment in hangar maintenance, an area that has seen little funding in recent years.
Some hangars generate as little as $100 per month in rent, prompting concern from Harkness about the return on investment.
“If we’re going to be spending $1,200 a year to maintain their hangar…” he said, trailing off as he questioned the balance.
Holden said maintenance needs vary widely depending on the structure, with higher-end hangars requiring more upkeep, including lighting and door repairs.
Officials are also exploring a shift from flat monthly lease rates to a model based on square footage and condition.
“We’re doing inspections… to get a measurement of the square footage and what kind of condition they’re in,” Holden said.
Harkness said he wants a clearer picture before supporting additional spending.
“Budget time is coming. I’m not going to vote for it if we don’t have some ideas of some costs,” he said.
Sales tax option could cut property taxes
Commissioners also revisited the idea of a Floating Local Option Sales Tax, or FLOST, which would be used entirely to reduce property taxes.
Sims said the county could lower its millage rate by roughly four mills — from about 12 mills to 8 mills — if voters approve the tax.
“Every dime of this would go back to lowering property taxes,” Sims said.
He framed the approach as shifting more of the tax burden to consumption.
“You control your tax usage by what you purchase,” he said.
A newer option, the Local Homestead Option Sales Tax, or LHOST, would provide similar relief but only for properties with a homestead exemption.
Commissioner Kelly Woodall clarified the difference during the discussion.
“Under FLOST, everyone gets a tax rollback… and under LHOST, you would only roll back property taxes for homestead,” he said.
Sims confirmed that distinction, noting LHOST would not apply to businesses or rental properties.
Woodall said he prefers the broader approach.
“Personally, I’m more comfortable with FLOST because you already have city buy-in, voter buy-in,” he said. “The other is still uncertain… it seems like there’s still some legislative work that could be changing.”
November referendum possible, deadline approaching
Sims said the county must move quickly if it wants to place a FLOST referendum on the November ballot.
“To have this on the November ballot, we have to meet some deadlines,” he said.
The county must begin the formal process by July 27, including coordinating with municipalities and finalizing intergovernmental agreements.
“The cities are all on board with the FLOST… they’re waiting for an update,” Sims said.
He said he is seeking consensus from commissioners to begin that process.
“I just kind of need a consensus… that y’all are OK with us pursuing this,” he said.
Meeting actions
During the regular meeting, commissioners approved the consent agenda without objection.
The board approved the appointment of Emily Herron to the Planning Commission and voted to table a District 3 appointment to the Recreation Advisory Board until June, when a new commissioner is expected to be seated.
Commissioners also approved a contract with Yellowstone Landscaping, not to exceed $66,000, to assist with storm debris removal after winter storms brought down an estimated 2,000 trees across the county.
“They’re the local contractor for GDOT around this area,” Sims said. “We’re going to get behind on that right-of-way mowing if we don’t get this out of the way.”
Finally, the board approved an application for the 2026 Local Road Assistance grant, totaling about $1.04 million with no local match. The funding would be used to pave about 1.5 miles of roadway and replace guardrails.
“This is the governor’s extra that he had in the budget this year to give us,” Sims said. “We just get another million dollars this year, like we did in the past two previous years.”
Commissioners are expected to continue budget discussions in the coming weeks, with more detailed proposals and potential decisions on employee compensation and tax policy still ahead.
