Time is running out for the city to decide whether it will absorb a coming rate increase from Golden Triangle Waste Services or pass it on to customers.

GTWS will begin Sept. 1 charging the city 84 cents more per household monthly for residential garbage pickup, per a notice the service sent the city in May.

If the city passes on the whole amount, customer bills will rise to $21.79 per month. Passing on none of the increase means the city would absorb roughly $100,000 over the next year of its contract with GTWS, city Chief Operations Officer Jammie Garrett said Thursday during a city council work session at City Hall.

“I’m thinking that I want to absorb the costs because we’ve already cut down on services and already increased (rates),” Ward 3 Councilman Rusty Greene said.

The city entered a five-year contract with GTWS in 2023 for residential garbage pickup, agreeing to pay the service $13.95 per household monthly for once weekly pickup after years of paying less for twice weekly pickup. The city adds a $7 surcharge to customer bills to cover landfill disposal fees and other costs for providing the service.

Under the terms, GTWS can raise rates each year, on the anniversary of the contract, if the costs to provide the service increase.
GTWS is raising its rate with Lowndes County by $1.09 as of Oct. 1, but a customer rate increase in 2023 will allow the county to absorb the latest GTWS hike.

Greene, who has taken issue since May with GTWS’s power to raise the rate each year, asked Chief Financial Officer Jim Brigham on Thursday if the city could afford to absorb the increase. Brigham said it was “feasible” but did not offer the council a recommendation either way.

The city, with 90 days notice, can terminate the contract. It can also request proposals from other waste management companies to see if it can get a better deal.

Garrett said the council needs to act soon on how to handle the upcoming GTWS increase because any amount passed on to customers must be advertised before Sept. 1.

Greene then suggested absorbing the costs this year, then revisiting next year whether to increase customer costs or request fresh proposals.

Ward 1 Councilwoman Ethel Stewart reminded Greene the city tried that in 2023 – when GTWS last raised its rate – only to have GTWS still offer the best value bid.

“So it’s not like you’re going to bid and get it cheaper than what they’re offering,” she said
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“You’re probably right, but at the same time … I think we need to explore every option,” Greene replied.

Speaking to The Dispatch after the work session, Mayor Stephen Jones said he initially agreed with Greene. After more deliberation, he believes a compromise may be more practical.

“We may choose to absorb some of it, but not all of it,” Jones said. “… That $100,000 has to come from somewhere. We do need equipment for public works. We need some other additional things.”

Jones emphasized this was GTWS’s, not the city’s, rate increase.

“The city does not want to do it, and we’re going to look for every way we can to do what’s right for the citizens.”

Zack Plair is the managing editor for The Dispatch.