Correction: 9:37 a.m. Sept. 18: Fixes typo to show sewer system long-term debt is $25,000 per month
As Walthourville’s elected officials work out the city’s 2026 proposed budget, some citizens say they are frustrated by what they feel is a lack of transparency about the city’s finances.
But the struggle to keep small cities alive after the COVID-19 crisis and amid rapid, large-scale economic changes is not unique to Walthourville. Keeping local government afloat is not as simple as tightening a household budget or balancing a small business’ books. Municipal finance runs on a complex patchwork of grants, loans, taxes, bonds, and fees. Failing infrastructure plus rising costs for employee healthcare and pensions are driving cities both large and small to the brink of collapse.
The city has held three budget hearings that were open to the public, one of which drew a crowd of about 40 to a meeting room that holds half as many people.
A petition drive calling for an investigation into city finances was put on hold last Friday until organizers can get more information about how the city is paying its bills.
Here’s what we know as of publication about several issues related to Walthourville’s finances.
Q: Is the city missing any money?
A: According to the city’s accountant, Eon van Wyk of CKH Group, and City Attorney Luke Moses, Walthourville is not missing any money from its budget.
Social media rumors about allegedly-missing money likely stemmed from councilmembers asking where the money went, as well as from the assumption that, because the city is running a deficit, someone had to have stolen funds.
Georgia law requires local governments to pass zero-balance budgets. That means each budget must have the same dollar amount of revenues (money in) and expenditures (money out).
The previous council refused to pass a balanced budget in 2023, dropping the problem in the current council’s lap.
Q: Why doesn’t the city do an audit?
Walthourville did not submit routine annual audits from 2021 through 2024 during former Mayor Larry Baker’s administration. It also will need to submit the 2025 audit next summer. Until it catches up on the audits, the city cannot apply for grants from state agencies.
On Tuesday evening, the city opened bids from two outside companies that want to provide audit services: James Moore and Co., P.L. of Gainesville, Fla.,, and Kendall L. Davis, PC of Hazelhurst.
Moore proposed $25,000 to audit the 2021 budget; $26,000 for 2022; $27,000 for 2023; and $28,000 for 2024, as well as fees for additional meetings and a $195 hourly rate for any “larger project.”
Davis proposed a flat $20,000 per budget year, billed monthly, assuming all goes smoothly; otherwise, the fees would be adjusted.
The council will vote at its next meeting on which bid to choose.
Q: Why is the city in debt?
A: Lots of reasons. It’s important to understand that the municipal debt crisis is bigger than just what’s happening in Walthourville.
Small towns and cities nationwide are struggling financially. Factors like the COVID-19 pandemic, then the end of COVID relief funds, play a part. So do rising employee pension costs. And construction slowdowns due to labor and material shortages mean new homes and businesses that would bring in more tax revenue aren’t finished yet.
Walthourville has seen increased rates for sewage treatment (provided by Hinesville), along with heavy long-term debt ($25,000 per month for Phases I-III) for sewer system improvements under Mayors Carrie Kent, Henry Frasier and Daisy Pray.
That debt also is tied to the city’s contract (and later amendments) with Hinesville for the use of its wastewater treatment plant. The more homes that Walthourville builds and the more people who move into those homes, the more wastewater capacity the city has to buy from Hinesville.
Other previous expenses, like professionalizing the fire department, also strained city finances.
Now officials are trying to figure out how to plan for repairs at the city’s two water towers — in hopes of avoiding possible multi-million-dollar replacement costs in a few years.
Walthourville has very little revenue, other than from the Water Department and its share of county TSPLOST for roads and transportation expenses. That’s why officials pushed for a 12-mil property tax, which on a $100,000 home would amount to $480 per year or $40 per month.
The council also is looking at charging more for “tap-in fees,” which are fees the city charges developers for hooking up new homes to city water supplies.
The city doesn’t just make up these fees; they are standard practice. A recent study by the Georgia Rural Water Association found Walthourville was charging way less than comparable cities do for tap-in fees.
Q: Is the budget balanced?
A: Georgia law requires cities to use “zero-based budgeting,” meaning the city cannot spend more than it has budgeted in a given year. That approach requires local governments to build in some reserves — a cushion — in case of emergencies.
Because the city owes more than it brings in, it has no cushion. The city expects to receive FLOST funds in 2026, if voters countywide renew the one-cent sales tax, but cannot spend those until 2027. By law, those funds are for roads and transportation only.
Similarly, any property tax revenues for 2026 — if the millage rate passes — would not come in until 2027.
Part of the city’s immediate problem is cash flow. The city gets certain revenues out of sync with when certain bills are due, forcing it to move money from the Water Fund to the General Fund to cover expenses, then back again when monthly revenues come in.
The Current GA asked Mayor Sarah B. Hayes and City Clerk Shana T. Moss whether the practice is illegal. They said that City Attorney Moses told them it was not illegal, but that it’s also not considered a best practice. Once the city starts bringing in reliable revenue streams, that should take some pressure off the General Fund by freeing up non-dedicated funds for other bills.
Q: Shouldn’t the city tighten its spending?
A: It has. That was why Walthourville quit picking up garbage and outsourced the job to Atlantic Waste. The city also sold Atlantic Waste its relatively-new solid waste truck, which was already two-thirds paid for. However, the city’s accountant said during a recent budget workshop that the cost has been about the same for Atlantic Waste to pick up the trash as the cost of the city doing it itself. Councilman Mitchell Boston contended that the city should have been making money on the deal but Wyk said the numbers don’t bear that out.
The city also has left at least one Public Works position unstaffed as a cost-cutting measure. But empty positions mean more work for the remaining city employees.
Q: How far behind is the city on its bills?
A. Walthourville has been paying down various expenses, some of which have stacked up over years. These include:
- Liberty County Solid Waste Landfill
- Atlantic Waste
- Georgia Power (city streetlights, buildng. and lift stations)
- Coastal Electric (city streetlights, buildng. and lift stations)
Some bills are affected by rate changes, like Georgia Power, which has passed along the cost of the Plant Vogtle nuclear power plant to its customers, and which has seen enormous cost spikes due to more data centers coming online in Georgia. These centers use massive amounts of energy and water to process data-heavy services like cryptocurrency trading and artificial intelligence requests. And those are factors outside the city’s control.
When the city got out of the sanitation business, it made payment arrangements with the county to pay down its existing debt. As of Aug. 29, according to Liberty County Chief Financial Officer Samantha Richardson, Walthourville owes $23,337 on the landfill bill.
The city also is paying down its $116,086.80 Atlantic Waste bill (which runs $38,000 per month) and has another , keeping garbage pickup going as Walthourville juggles other good-faith payments.
Each month, the city gets between $47,000 and $50,000 in Local Option Sales Tax (LOST) revenue from the county. Payroll costs are larger at the beginning of the month when elected officials get paid along with staff. Every check the city cuts must be signed by Hayes and one councilperson with access to the bank accounts. Those council members are Boston and Bridgette Kelly.
Q: Who is the city’s accountant?
A: Walthourville’s current accounting firm is Atlanta-based CKH Group, headed by Eon van Wyk. The city’s previous CPA, Matthew Caines, resigned in 2024 after the council failed for five months to vote on hiring him.
Q: How can I see a copy of the city’s budget?
A: Budgets for 2020 through 2025, including the 2025 Water Fund, are available on the city’s website at https://www.cityofwalthourville.com/fiscal-year-budget . The 2026 draft budget changes throughout the budgeting process, so it is not online. However, you can see video of the August 5, August 19, and Sept. 2 budget workshops online. You also can request a copy of the latest working budget from City Hall (it’s a public document).
The City Council voted to hold a fourth budget workshop after the Liberty County Tax Commissioner’s Office gets the tax digest evaluation back from the Georgia Department of Revenue. The tax digest sets Walthourville’s property values for tax purposes. The millage rate only applies to 40% of each home’s assessed value, meaning 60% of your home’s value is tax-free. You also can apply for various tax exemptions from the Liberty County Tax Assessor’s Office between Jan. 1 and April 1, 2026 to save a little more money.
Q. Why hasn’t the city done a forensic audit to see whether any money went missing in past administrations?
A: The City Council did vote to set aside $20,000 for a forensic audit earlier this year, something Cuncilwoman Luciria Lovette has repeatedly sought. When they learned forensic audits start at $80,000, the council voted to reallocate that money to replace outdated computers that City Hall staff needed to keep doing their jobs.
Q: Who can I talk to at City Hall about all this?
A: You can go directly to the mayor or any member of the city council to voice your concerns. Here is their contact information.
Q: I’m still not satisfied. How can I get someone to investigate the city?
A: That depends on what you want investigated and by whom:
The Current GA is dedicated to investigative and in-depth journalism. We welcome your tips and inquiries, particularly when supported by evidence. You can learn more about what we do and how we do it here.
The Georgia Bureau of Investigation does not take requests for investigations from citizens. Only certain officials can request a GBI investigation into alleged criminal activity.
The state Attorney General’s Office handles open government issues, specifically violations of Georgia’s Open Meetings Act and Open Records Act. That means it looks into allegations that a government agency failed to follow either of those laws, and it has secured convictions against local officials for violations. Critics also have accused the AG’s office of selective enforcement of the state’s sunshine laws. To better understand your rights and the government’s responsibilities under these laws, check out the Georgia First Amendment Foundation’s free resources and handbooks. GFAF’s Red Book, which applies to local governments, is also available on the Attorney General’s website.