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Statesboro City Council holds first tax hearing, reviews Fire Station 3 plans and distillery ordinance

The Statesboro City Council held its first public hearing on the FY2026 property tax rate, with City Manager Charles Penny recommending the millage remain at 8.625. Council also discussed financing for Fire Station 3 and advanced a new downtown distillery ordinance to a second reading.
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Anthony Hendrickson speaking to the Statesboro City Council

The Statesboro City Council held its regularly scheduled meeting at 9am on Tuesday, September 2. This meeting included the first public hearing on the 2025 millage rate, as well.

First Property Tax Hearing

The meeting’s centerpiece was the FY2026 property tax hearing, where City Manager Charles Penny recommended keeping the city’s millage rate at 8.625 mills. Penny explained that while the city’s total budget has dropped by about six percent due to the end of one-time federal funds, the General Fund has grown eight percent to cover rising personnel costs. Nearly 70 percent of that fund supports salaries and benefits.

Penny credited the city’s 2024 pay plan with stabilizing staffing, pointing out that police department vacancies have been eliminated and turnover has fallen below five percent. He also noted that one-quarter of property inside the city is non-taxable, which limits revenue compared to the county or school system. Property tax revenue of $10.5 million doesn’t even cover the $12.6 million police budget, with additional transfers needed for fire services.

For a $250,000 home, Penny said the city tax bill would be about $845.25, an increase of roughly $66.25 per year without a rollback. He urged council to resist lowering the rate to the revenue-neutral level of 7.9 mills, saying, “In order to keep pace with utilities, supplies, and competitive pay, the most prudent decision is to maintain the current rate.”

Fire Station #3 Financing

Council also held a public hearing on financing for Fire Station #3. The $4.8 million project will be built on Brannen Street through a design-build contract with Lavender & Associates. Because the city cannot pay cash, the Georgia Municipal Association will hold temporary ownership of the property while the city finances the cost.

Construction is expected to begin later this fall, with the fire station set to open by June 2026.

Distillery Ordinance

Downtown development was another focal point, as council approved the first reading of Ordinance 2025-29, creating a local distillery license classification. City Attorney Cain Smith explained that the ordinance was prompted by local investors planning a small distillery restaurant downtown. The license would require at least 40 percent of sales to come from prepared food.

Allen Muldrew, with the Downtown Statesboro Development Authority, praised the project as a major step forward for a long-vacant corner building. Council voiced unanimous support, advancing the ordinance to a second reading.

Other Business

Council moved through a slate of additional approvals, including:

  • A new alcohol license for Reliance 17412 Inc. on U.S. 301 (beer and wine package sales).
  • Adjusted security enhancement grant funding for South Apartments, rescinding a prior $9,969 award and conditionally approving a new $13,000 allocation.
  • A memorandum of understanding with Pineland Behavioral Health and Developmental Disabilities for transit vouchers.
  • An amendment with AT&T for upgrades at the Claude Howard Water Tank.
  • Donation of five portable radios from the Statesboro Fire Department to the volunteer group Citizens Assisting in Fire Emergencies (C.A.F.E.). Fire Chief Tim Grams explained that C.A.F.E. assists with victim support and firefighter rehab at fire scenes and that the program’s recent move under Bulloch EMA has already strengthened coordination.
  • A $124,180 change order to fix drainage design flaws in the West Main Street Sidewalk Project.
  • Vehicle purchases for solid waste, water, and sewer divisions totaling more than $300,000, funded through reserves and the FY2026 CIP budget.

Mayor Pro Tem Shari Barr reminded the public of open seats on the Planning Commission and the Keep Statesboro-Bulloch Beautiful board.

City Manager’s Comments

In his report, Penny clarified that the second millage rate hearing would be held Tuesday evening at 6:30pm (note that this is a change from an earlier posted time of 6pm), with the final hearing scheduled for the September 16 meeting at 5:30pm. He also highlighted a planned annexation on Langston Chapel Road for city-owned property and announced two stakeholder meetings on September 8 to discuss potential updates to salon and massage therapy ordinances.

Public Comments

Anthony Hendrickson, a Southeast Bulloch graduate, introduced plans to launch a local Police Athletic League program through his nonprofit, Lead by Example, Reverse the Trend. He has secured the former Habitat for Humanity building and intends to turn it into a hub for mentoring, job readiness, and violence prevention programs. “We want to be utilized,” he told officials, adding that his team is ready to provide structure and support without adding to law enforcement’s workload. Mayor McCollar praised the idea and said the city would help coordinate stakeholder discussions.

Annie Bellinger raised concerns about children swimming in drainage ditches and said pool admission fees were driving families away. She also warned that property tax hikes were pushing longtime residents out of their homes. McCollar clarified that the Luetta Moore pool fee is $3 instead of the $8 that was Bellinger referenced and that vouchers are available for families in need. He directed staff to investigate the drainage issues. He also tied her comments to the city’s past push for a youth facility, noting that the county opted to fund a $60 million jail instead. “Any community that fails to invest in its young people is failing to invest in its future,” he said.

Marcus Toole, representing Habitat for Humanity, expressed support for Hendrickson’s proposal, calling the reuse of the former Habitat building the “highest possible use” of the space. He shared his own experience working on a Plains Cree Indian Reservation in Canada, saying he was encouraged to see the facility being used for youth outreach.

City Council Agenda Packet

Continue scrolling for the in-depth coverage of the Statesboro City Council meeting.

1. Call to Order by Mayor Jonathan McCollar

2. Invocation and Pledge of Allegiance

3. Public Comments (Agenda Item)

APPROVED 4. Consideration of a Motion to Approve the Consent Agenda

A) Approval of Minutes

a) 08-19-2025 Work Session Minutes

b) 08-19-2025 Council Minutes

c) 08-19-2025 Executive Session Minutes

B) Consideration of a motion to surplus a 2013 Caterpillar 816F Compactor from the Solid Waste Division of Public Works and Engineering

5. Public hearing to solicit input on the proposed 2025 millage rate for property taxes

At a public hearing Tuesday morning, City Manager Charles Penny presented the City of Statesboro’s FY2026 property tax outlook, recommending that the millage rate remain at 8.625 mills. Penny emphasized that the rate, which is lower than both Bulloch County’s 11.35 mills and the Board of Education’s 10.4 mills, is critical for maintaining services and retaining employees in a competitive labor market.

Penny noted that the city’s overall FY2026 budget has decreased by about 6 percent, from $93.5 million in FY2025 to $87.9 million this year, largely due to the conclusion of one-time federal funds such as ARPA and FEMA reimbursements. At the same time, the city’s General Fund has grown 8 percent, from $25.3 million to $27.3 million, with the majority of that increase tied to personnel costs. Nearly 70 percent of the General Fund is dedicated to salaries and benefits.

“We don’t manufacture products or sell goods,” Penny told council. “Our greatest asset is our workforce. Without police officers, firefighters, water and sewer staff, or solid waste employees, we can’t provide the services our residents expect.”

The city has continued its pay-for-performance program for employees and was able to hold employee health premiums steady for another year. Penny credited the council’s 2024 adoption of a pay plan with stabilizing staffing, pointing out that police department vacancies have been eliminated and overall turnover has fallen below 5 percent.

Penny also highlighted that about 25 percent of property inside the city limits is not taxable, including schools, churches, government facilities, and Georgia Southern University’s 700-acre campus. This limits the city’s property tax base compared to the county or school system. As a result, one mill in the City of Statesboro generates about $1.2 million, compared to nearly $3.8 million per mill in the county.

The city’s property tax revenue of $10.5 million falls short of even the police department’s budget, which stands at $12.6 million. Additional support for the fire department is transferred from the General Fund.

Penny provided an example of the potential impact on homeowners: A $250,000 home, after standard assessment and homestead exemption, results in a taxable value of about $98,000. At 8.625 mills, the annual city property tax bill would be about $845.25—an increase of roughly $66.25 over the prior year without a rollback.

While acknowledging that no one enjoys paying more in taxes, Penny urged council to avoid rolling the rate back to the revenue-neutral level of about 7.9 mills, saying that doing so would undercut the city’s ability to meet rising expenses.

“In order to keep pace with utilities, supplies, and competitive pay, the most prudent decision is to maintain the current rate,” Penny said.

6. Public hearing to solicit input regarding a multiyear installment sale agreement, subject to annual renewal, to be entered into between the City of Statesboro and Georgia Municipal Association, Inc., a Georgia nonprofit corporation, relating to the acquisition and construction of a new fire station in the City of Statesboro, Georgia

Council held a public hearing on a proposed multiyear installment sale agreement with the Georgia Municipal Association (GMA) to finance the construction of Fire Station #3 on Brannen Street.

City Manager Charles Penny explained that the project has been in planning for more than a decade, with the land already purchased. The estimated cost is $4.8 million, which includes construction, furniture, and equipment. Because the city cannot pay cash for the project, Penny said GMA’s financing tool would be used. Under the arrangement, the property would be temporarily transferred to GMA and returned to the city once the financing is completed.

The fire station will be built through a design-build contract with Lavender & Associates, with an engineering firm handling the associated street and cul-de-sac design. Construction is expected to begin later this fall, with a goal of opening the new fire station by June 2026.

No one from the public spoke for or against the proposal. Council closed the hearing, with a formal vote on the financing agreement scheduled in two weeks.

7. Public hearing and first reading of Ordinance 2025-09: An Ordinance amending Chapter 6 of the Statesboro Code of Ordinances to allow for a Local Distillery alcohol license classification

Council held a public hearing for the first reading of Ordinance 2025-29, which would amend Chapter 6 of the city’s alcohol ordinance to create a local distillery license classification.

City Attorney Cain Smith explained that the ordinance was drafted after local investors expressed interest in opening a small downtown distillery and restaurant. The new classification would allow such businesses to produce distilled spirits under state production limits while also selling beer, wine, and spirits on-site. To qualify, establishments must derive at least 40 percent of gross annual sales from prepared food. Package sales of house-produced spirits would be exempt from this calculation.

Allen Muldrew, representing the Downtown Statesboro Development Authority, spoke in favor of the ordinance. He praised the project as an important investment in the downtown district, noting it would bring a long-vacant corner building back into use and complement the city’s recent streetscape improvements. He also highlighted the role of city staff in helping the developers navigate challenges with renovating an older structure for modern business use.

Mayor Jonathan McCollar and council members voiced support, with McCollar pointing to the growth and revitalization of downtown storefronts since his election in 2018 as evidence of the city’s momentum.

The first reading was approved, advancing the ordinance to a second reading and final consideration at a later meeting.

8. Public Hearing & Consideration of a Motion to approve application for an alcohol license in accordance with the City of Statesboro alcohol ordinance Sec. 6-13 (a)

Reliance 17412 Inc.
Owner: Pashav Shah
Location: 17412 US 301
License Type: Package Sales – Beer and Wine Only

APPROVED 9. Consideration of a motion to rescind the previous approval of the application submitted by Centurion Property 111 South, LLC dba South Apartments for funding under the Security Enhancement Incentive Program in the amount of $9,969.50, and conditionally approve an application submitted by Centurion Property 111 South, LLC dba South Apartments for funding under the Security Enhancement Incentive Program in the amount of $13,000.00 subject to the fulfillment of all eligibility requirements

APPROVED 10. Consideration of a motion to approve a Memorandum of Understanding with Pineland Behavioral Health and Developmental Disabilities authorizing the distribution of Statesboro Area Transit vouchers

APPROVED 11. Consideration of a motion to approve the Fifth Amendment to the lease agreement with New Cingular Wireless PCS (AT&T) regarding the Claude Howard Water Tank at 600 Park Avenue to include upgrades to existing cellular equipment

APPROVED 12. Consideration of a motion to donate five (5) Motorola Portable Radios from the Statesboro Fire Department to the Citizens Assisting in Fire Emergencies (C.A.F.E.)

Statesboro Fire Chief Tim Grams explained that Citizens Assisting in Fire Emergencies (C.A.F.E.) is a volunteer group that responds alongside the Statesboro Fire Department. Members assist at structure fires by providing victim support, firefighter rehab, filling air bottles, and handling other non-suppression duties on the fireground.

He noted that the program has recently been moved under the umbrella of Bulloch County EMA, which he said is already paying dividends by strengthening coordination. The five portable radios being donated by the city are not suited for frontline firefighting but remain serviceable, making them a good fit for C.A.F.E.’s volunteer work until the group can develop longer-term communications solutions.

APPROVED 13. Consideration of a motion to approve a change order on the ENG-122k West Main Street Sidewalk Project with HD Construction in the amount of $124,180.00, to be funded by TSPLOST

Council approved a $124,180 change order with HD Construction for the West Main Street Sidewalk Project after city staff identified a design error that caused drainage problems along the corridor.

City Manager Charles Penny explained that the original design called for a catch basin in the right-of-way, but it was not adequate. As a result, heavy rains left water standing along the curb and in the street, an outcome the city could not accept. Penny said the city had challenged the design firm over the error and would continue to address their responsibility for the mistake, but corrective work had to move forward immediately to ensure the project was completed properly.

The change order will fund modifications needed to fix the drainage issue, even though some previously completed work will need to be undone and rebuilt. Despite the additional cost, Penny said ensuring a long-term solution was the city’s priority.

APPROVED 14. Consideration of a motion to approve the purchase of a 2026 HX260 International Dump Truck from Roberts International Trucks in the amount of $206,450.94 for the Solid Waste Disposal Division, to be funded by Solid Waste Disposal reserve funds and insurance total loss funds reimbursement

APPROVED 15. Consideration of a motion to approve the purchase of one (1) 2025 Ford F-150 Supercab XL in the amount of $41,178.00 and one (1) 2026 F-250 4x2 Superduty with utility bed in the amount of $55,253.00 from JC Lewis Ford for the Water & Sewer Division of the Public Utilities Department. These items to be purchased with funds approved in the FY2026 CIP Budget, WWD-136 funded by system revenues

16. Other Business from City Council

Mayor Pro Tem Shari Barr reminded the public that there are vacant seats on the City Planning board, as well as the Keep Statesboro-Bulloch Beautiful board. 

17. City Manager’s Comments

During his regular report to council, City Manager Charles Penny provided several updates and clarifications. He first addressed the schedule for the city’s millage rate hearings, noting that the second hearing would be held at 6:30 p.m. Tuesday evening, not 6:00 p.m. as an earlier memo had indicated. A third and final hearing will take place during the council’s September 16 regular meeting.

Penny also highlighted an upcoming annexation on Langston Chapel Road for property recently acquired by the city, saying the move would be a logical step to incorporate land the city already owns.

Finally, he reminded council and the public of two stakeholder meetings on September 8, one at 10:00 a.m. and another at 4:00 p.m. in the council chambers. These meetings will bring together salon operators, massage therapists, and other affected business owners to provide input before any proposed ordinance changes are presented.

18. Public Comments (General)

During public comments, Anthony Hendrickson introduced himself to the council and community, sharing his deep ties to Statesboro and Bulloch County. A Southeast Bulloch High School graduate who attended football camps at Georgia Southern, Hendrickson said his return home was motivated by a desire to give back.

Hendrickson announced his plan to launch a local chapter of the National Police Athletic League (PAL), a program designed to build positive connections between youth and law enforcement. He emphasized that the effort would not place extra demands on the police or sheriff’s office, but instead would be fully managed by his own nonprofit, Lead by Example, Reverse the Trend.

Through Lead by Example, Reverse the Trend, Hendrickson said his team works with youth and young adults in several areas: school-based prevention for those at risk of falling behind, re-entry support for individuals impacted by the justice system, and mentoring programs aimed at steering young people away from gang involvement and violence. The organization also focuses on job readiness, training, and placement to help participants become productive members of their communities.

Hendrickson told the council that he has secured the former Habitat for Humanity building in Statesboro to serve as the program’s base of operations. He explained that city inspections have already been completed and that his team is working to bring the building up to code so that fundraising and programming can begin.

In closing, Hendrickson said his goal was to create a support system that complements the city’s ongoing growth and development by ensuring young people have opportunities and mentorship. “We want to be utilized,” he told officials. “We want you to take advantage of the skill sets we have to help put systems of support in place for those young people who are struggling with finding their way in our community.”

Mayor Jonathan McCollar responded by praising the vision and confirming he had already discussed the idea with Hendrickson and other stakeholders. He said further meetings would be held to explore how the program could best serve the city.

Annie Bellinger addressed council with concerns about living conditions and affordability on Statesboro’s west side. She described seeing children swimming in drainage ditches rather than at the city pool, saying the $8 admission fee she believed was being charged put the facility out of reach for many families with multiple children. She also voiced frustration about steadily rising property taxes, warning that longtime residents who have lived in their homes for decades are being pushed to the breaking point.

Mayor Jonathan McCollar responded to Bellinger’s comments with several clarifications and assurances. He explained that the current admission fee for children is $3, not $8, and emphasized that the city intentionally set a lower price for youth in the surrounding neighborhoods. For families who cannot afford even that cost, McCollar said vouchers are available through the Honey Bowen Building to ensure children have safe access to the pool. He asked staff to review the drainage conditions in the Johnson Street area that Bellinger had described, noting that those concerns needed immediate follow-up.

On the broader issue of affordability and property taxes, McCollar echoed Bellinger’s concern that rising costs can displace families. He tied her comments to past city efforts, recalling discussions with Bulloch County leaders during debates over the county’s $60 million jail project. McCollar said the city had urged county officials to invest a portion of those funds into a $15 million youth facility instead, but the county declined. As a result, he said, the community was left with a new jail but no comparable investment in youth programs and recreation.

“It’s sad in any community when you fail to invest in your young people,” McCollar told attendees. “If we don’t put resources into them now, we’re failing to invest in our future.”

Marcus Toole, representing Habitat for Humanity, spoke during public comments to commend how the former Habitat for Humanity building is being repurposed. Toole noted that before returning to Georgia, he spent eight years working on a Plains Cree Indian Reservation in Canada, specifically in street gang intervention.

He told council he was encouraged that the building will now house youth programming led by Anthony Hendrickson, calling it the “highest possible use” of the space. Toole’s remarks added support to the vision of transforming the facility into a hub for mentoring and outreach services in Statesboro.

19. Consideration of a Motion to enter into Executive Session to discuss “Personnel Matters,” “Real Estate,” and/or “Potential Litigation” in accordance with O.C.G.A. 50-14-3(b)

20. Consideration of a Motion to Adjourn