Trash pickup went on as scheduled in Walthourville, after the city came to an apparent payment agreement with its vendor.

Atlantic Waste Services sent a letter to the city last week informing it planned to cut off garbage pickup on Monday, August 25. Company president sent a letter to Walthourville Mayor Sarah B. Hayes, informing the city it owed $116,086.80 for May and June services and the August billing was coming. The company had asked for the city to pay its May and June invoices by August 15 but not heard anything from the city regarding those payments as of his letter, dated August 21.

“In all my years in this business, I have never placed a city on suspension of services for this reason,” Wall wrote. “We simply cannot continue to provide services under these circumstances.”

At a hastily-called special called meeting Friday night of the Walthourville City Council, Mayor Hayes told council members and a packed council chambers “that bill will be taken care of.”

The city has been behind on bills, Hayes acknowledged.

“We don’t have the money to pay for everything,” she said. “That’s the bottom line. It’s unfortunate we’re in this situation.”

Eon van Wyk, a CPA and chief financial officer of the CKH Group, said the city has been delinquent on some of its payments over the last 12 months.

“It has done a good job catching up on some of those,” he said.

But, he added, it was behind on payments to Atlantic Waste. Council members questioned where the money collected from residents – which is more than what Atlantic Waste charges the city – was going.

“I’m at a loss how we’re not paying the sanitation bills,” Council member Bridgette Kelly said.

Hayes said revenue intended for sanitation was used to pay other bills.

“We don’t have enough money,” the mayor said. “Every month, we look at our necessities.”

Hayes said she made paying the Georgia Power bill a priority, since the city’s pump stations and lift stations need electricity to operate.

“We have more bills than revenue,” she said. “All we have right now is water and sewer for our revenue. A city can’t operate if it can’t pay its bills. We’re asking to bear with us as we get a handle on this.”

The city is looking at imposing a property tax of 12 mills.

“We have to do something,” Hayes said.

Council member Mitchell Boston said there are other demand letters from vendors, aside from the one Atlantic Waste sent.

“This isn’t an Atlantic Waste thing,” he said. “It’s an overspending thing.”

Boston added Atlantic Waste picked up 60 tons of storm debris when it took over the contract in January and did not charge the city.

“Atlantic Waste has been a good partner,” Boston said.

Van Wyk said the city used the funding it got from the federal government for COVID-19 effects to invest “significantly” in its fire and police departments. Other cities, he pointed out, used the money on capital projects. How Walthourville used its money led to more costs for maintenance and increased costs for personnel.

“What has happened subsequently, we have used all the grant money the city has received but the revenue streams have not increased,” he told council members. “All of a sudden, you’re in a position where your budget is no longer balanced.”

Being delinquent also prevents the city from applying for more state grants, van Wyk noted. He also said his firm has not found a misuse of resources or any potential fraud or theft.

“We have not come across any suspicious payments,” he said.

Hayes rebuffed calls for a forensic audit of the city’s spending, citing the price for such a review. A forensic audit by an outside firm could cost at least $80,000 she said.

“Things are going to get better,” the mayor said.