SITE: CITY OF HIAWASSEE
OPEN TO PUBLIC – February 12th, 2025 5:30pm
Hiawassee City Hall 50 River Street Council Chambers
HIAWASSEE CITY COUNCIL MEETING
- Call to Order
- Invocation – Nancy Noblet
- Pledge of Allegiance
- Discussion regarding the HB 581
- Adjournment
HIAWASSEE CITY COUNCIL MEETING February 12th, 2025
The City of Hiawassee held a public hearing on February 12, 2025, at 5:30pm in Council Chambers to discuss HB581. The meeting was called to order by Mayor Pro Tem Jay Chastain. Present in addition to MPT Chastain were Council members Amy Barrett, Nancy Noblet, Patsy Owens and Jonathan Wilson. The meeting was also attended by City Attorney Thomas Mitchell and City Clerk Bonnie Kendrick.
The Invocation was given by Council member Nancy Noblet and was followed by the Pledge of Allegiance.
MTP Chastain opened the meeting by thanking the attendees for coming to learn more and invited Attorney Thomas Mitchell to give an overview of House Bill 581 and what it means to the city.
Attorney Mitchell stated that the legislation for HB 581 passed in the 2024 legislative session. It has 3 components – the first has to do with how the Tax Assessors and Appraisers do their jobs, the second is a statewide homestead exemption that applies to local governments, unless they opt out and the third has to with the FLOST (Floating Local Option Sales Tax). The homestead exemption passed the referendum vote in November 2024. At the state level the vote was 63% for and 37% against. Towns County was 67% and 33% respectively.
Because Hiawassee has the homestead exemption on approximately ¼ of the houses in the city and because former Commissioner Kendall implemented a 3% cap on property assessment increases, the impact of opting out is expected to be $15,000 - $30,000.
Michael Coury asked for clarification on the FLOST. The FLOST can be .05 cents to 1 cent. Unlike LOST, it can be a fraction. It would be for 5 years and would need to be reinstituted at that point.
Shawn Jarrard of the Towns County Herald asked for clarification regarding the county’s 3% cap and if it applied to the city – it does. He also asked about the difference between LOST and FLOST – LOST cannot be a fractional amount and FLOST can create a tax up to 9%.
Attorney Mitchell stated that at the time of the referendum vote, he felt it was unlikely that the voting public would be considering the revenue shortfalls for cities and potential consequences.
Michael Coury expressed concern that the city needs money to run the city. MPT Chastain stated that there may be a need to raise the millage rate to balance the budget.
Council member Barrett stated that she had heard rumors that the legislature could force municipalities to opt in. Attorney Mitchell confirmed he had also heard the rumors.
March 1st is the deadline to opt out.
The meeting was adjourned at 6:05pm