Liberty County considers solid waste price hike

For Liberty County residents and businesses already struggling under hefty property tax bills, another budget hit could be coming.

The Liberty County Board of Commissioners is considering whether to raise prices on solid waste services.

Projected revenue for the county’s Solid Waste Fund is $4,104,232, while projected expenses are $5,130,672 — a deficit of $1,026,440.

John Culbertson of Orlando-based MidAtlantic Solid Waste Consultants told the BOC at its Jan. 16 meeting that the county is significantly undercharging clients for the use of its transfer station. The county’s last rate study was in 2020.

Culbertson attributed the county’s projected 25% Solid Waste Fund shortfall of $1,026,440 to growth, which has generated more solid waste in the county, as well as inflation. 

For years, he said, local municipalities have told their solid waste contractors to deliver tons of garbage to the county transfer station, which has covered the facility’s fixed costs. The county also runs 10 smaller sites where customers can drop off garbage or recycling.

But now, “Municipalities have been opting to contract for services and take tonnage away from the county system. And that leaves the county still having to pay the fixed costs of operating a transfer station, but not having tons coming across the scale, the number of units goes down, ergo, the cost per unit goes up. That’s a very dangerous dynamic.”

To fix the problem, Culbertson said transfer station tipping fees, residential fees, and commercial collection fees for roll-on/roll-off and frontloader services must go up. 

The county has two options, he said: Either do it all at once, or spread out the increase over the next 2 to 5 years.

What that looks like

• Transfer station tip fees would increase 3% per year from 2025 through 2029. In-county tipping fees would go from $55.39 to $62.35, while out-of-county tipping fees would rise from $60.39 to $67.97. As of Jan. 23, in-county tipping fees at the main transfer station were $53.78 per ton, according to the  Solid Waste department’s webpage.
• Commercial collection charges proposed “are not terribly high, but completely appropriate,” Culbertson said, “especially the roll-off rate.” He said Liberty County needs to set its prices closer to what private companies charge: “The county’s not in the business to make a profit, but nor are you existing to be charitable in providing services.” He suggested an 84.5% price increase this year in the roll-off pull fee (currently “about $100”), then annual increases of 4%. Business polycarts would go up 15% this year to $20, followed by 4% annual increases to $23.40 in 2029. Likewise, reuse and OCC (old corrugated container) dumpsters would see a 15% increase this year, followed by 4% annual increases.
• Residential assessments could come as a larger one-time increase, which would quickly restore the Solid Waste Fund to “financial sustainability,” but pose “significant rate increases for select customer groups.” The other option would be to spread the increase over 2 years, but that would require the county to move money from the General Fund to cover any temporary low balances. Residential customers pay for service through their annual tax bill.

District 2 Commissioner Justin Frasier said he would rather increase commercial rates “and see what we could do to adjust the residential [rates]….We’re building houses, it’s ridiculous around here. What I’m saying is, a wise man told me when I was young, ‘Iron your britches while the iron is hot.’ And the iron is on fire right now.” 

Culbertson replied that his point was “very valid” and that “a little market research, a little secret shopping” could help the county keep residential rates down.

Kitchen-table blues

The draft report comes as several new subdivisions are being built to meet projected employee housing needs of Hyundai Metaplant and related industries. The county also is looking to draw more retail business to Highway 85.

But higher consumer costs could further upset residents already unhappy about the county’s property tax increase. 

While the county needs revenue to provide services and maintain infrastructure, as Chairman Donald Lovette has pointed out, voters rejected continuation of the existing one-cent transportation sales tax for local road maintenance last November. This put the county in a financial bind on dozens of planned repairs and upgrades that the General Fund cannot cover.

Hinesville’s residents pay the highest combined taxes in Liberty County. The city council voted to opt into HB 581’s sales tax offset, which could knock 5 mils off the city’s current rate of 15.97 mils — nearly a third of the city’s cut. Hinesville does not offer any homestead exemptions, unlike the county. However, the consensus of the Hinesville City Council is to opt into HB 581, said Mayor Karl Riles. That one-cent floating local option sales tax could lop as much as 5 mils off Hinesville homeowners’ property taxes, he said.

In March, voters will decide whether to approve the Liberty County School System’s decision to opt out of House Bill 581, which would allow LCSS to keep setting its own millage rate. House Bill 581, which Georgia voters approved last November, allows local governments to offset property millage rates by imposing a sales tax instead. That takes the burden off property owners and shifts it onto everyone who shops in a given area, including people who don’t live there but who shop or dine there. By opting out, LCSS can set the millage rate it thinks it needs. 

The final public hearing on the matter is scheduled for 6 p.m. on Feb. 11.