Can a Mississippi city use general fund money to subsidize rising garbage collection costs instead of raising fees?

Plain-English summary

Vicksburg's garbage collection costs were going up, and the mayor wanted to know whether the city could pull money from its general fund to absorb part of the increase rather than raise fees on residents.

The AG split the answer in two. First piece: yes, the city can adopt an ordinance exempting certain garbage generators from a portion of fees or charges. That option lives in Section 21-19-2(d). The exemption has to be tied to differing volumes of garbage (think small generators vs. large), not to age, income, or other personal factors. Earlier AG guidance had made clear that age-based senior discounts do not qualify under Section 21-19-2(d).

Second piece: no, the city cannot use general fund money to cover the cost. Sections 21-19-1, 21-19-2, and 19-5-109 list the only authorized sources for waste disposal funding: generator fees, ad valorem tax revenues authorized under Sections 19-5-21 or 21-19-2, and county or municipal special funds authorized under those same sections. The 2016 amendment to Section 19-5-109 removed general funds from that list. The AG explicitly modified earlier opinions (Barber 2020 and Webb 2016) to the extent they relied on the pre-amendment text.

So the practical menu for Vicksburg: raise fees, raise the ad valorem tax, find or create a special fund, or adopt a volume-based exemption ordinance. The general fund is off the table.

What this means for you

For mayors and city councils setting waste rates

Don't budget waste disposal as a general fund subsidy. The 2016 amendment closed that door. If you want to hold customer fees flat in the face of rising contractor costs, the only legal cushions are an ad valorem tax increase under Section 19-5-21 or 21-19-2, or a special fund authorized under those statutes. Document the fund source clearly in the budget ordinance.

For municipal attorneys drafting garbage rate ordinances

If your council wants an exemption ordinance, build it on volumes of garbage produced, not on demographic categories. The AG opined in 2016 that a senior-citizen discount keyed to age fails Section 21-19-2(d). The same reasoning applies to income-based discounts. The exemption must (1) be defined by ordinance, (2) describe clearly which generators qualify, and (3) be applied consistently. If your existing ordinance uses age or income criteria, it is likely vulnerable.

For public works directors and budget staff

When projecting next year's waste enterprise budget, treat the general fund as a non-source. Build the rate model on (a) generator fee revenue, (b) ad valorem revenue if the council approves a millage line for sanitation, and (c) any qualified special funds. If the math doesn't work, the rate has to go up, the ad valorem has to go up, or the service has to be cut. There is no fourth option.

For Mississippi residents watching their garbage bills

If your city raises its garbage fee, the city is not legally allowed to soften that increase by drawing on its general fund. The 2016 legislature took that option away. Pressure for a different funding mix has to come from a millage change or a service redesign, not from a general fund transfer.

Common questions

Why can't a city just decide to spend its own general fund on garbage?
Mississippi cities operate on Dillon's Rule: they can do only what the legislature has expressly authorized. The legislature wrote a list of permitted funding sources for waste disposal, and in 2016 it removed the general fund from that list. Without statutory authority, a general fund transfer would be ultra vires.

Can the city give a discount to senior citizens?
Not under Section 21-19-2(d) standing alone. The AG opined in 2016 that the exemption must be tied to volumes of garbage, not to age. A volume-based ordinance that, in practice, helps low-volume households (which often correlates with seniors) is permissible; an explicit age cutoff is not.

Can the city raise its ad valorem tax to cover the gap?
Yes, that is one of the listed sources in Section 19-5-109. The city would have to follow the regular process for setting and approving the millage. Voters and homeowners feel the increase on their property tax bill rather than their utility bill, but the legal authority is there.

What is a "special fund" and how does the city create one?
Mississippi cities maintain various dedicated funds (utility funds, enterprise funds, debt service funds) separate from the general fund. Section 19-5-109 lets the city use a special fund authorized by Section 19-5-21 or 21-19-2. Your municipal attorney can confirm whether your existing fund structure qualifies or whether the council needs to set up a new one.

Are public schools and city agencies still entitled to free service?
Yes. Section 21-27-27 requires Mississippi cities to charge for waste services, but it carves out specifically listed entities including municipal agencies and public schools. That carve-out is unchanged.

Background and statutory framework

Mississippi cities are statutorily responsible for collecting and disposing of garbage and rubbish under Sections 17-17-5(1) and 21-19-1(2). They may contract with a private hauler to perform the service.

To pay for the service, Section 21-19-2 lets a municipality collect fees and charges from residents or levy an ad valorem tax. Section 19-5-109 supplements this with the funding-source list:

Each county and municipality shall make a good faith effort to estimate the cost of garbage and rubbish collection and disposal services. These costs may be met, in amounts necessary to defray the cost of the system, by any combination of generator fees, ad valorem tax revenues as authorized under Section 19-5-21 or Section 21-19-2, or county or municipal special funds as authorized under Section 19-5-21 or 21-19-2.

Before the 2016 amendment, the list included general funds. The legislature removed that source. Earlier AG opinions (Barber 2020, Webb 2016) referenced the pre-amendment text; those opinions are modified to conform with the current statute.

Section 21-27-27 separately prohibits municipalities from giving away free waste service, except to listed entities (municipal agencies, public schools) or under an exemption ordinance under Section 21-19-2(d). The exemption must be defined clearly in the ordinance and applied consistently. Section 21-27-11(b) defines "system" to include garbage and rubbish disposal, tying these statutes together.

The AG also noted the office's standard limit under Section 7-5-25: official opinions address prospective state-law questions, not the validity of specific local ordinances. Cities should run draft ordinances through the city attorney before adoption.

Citations

• Miss. Code Ann. § 17-17-5(1) (municipal duty to collect and dispose of garbage)
• Miss. Code Ann. § 21-19-1(2) (same; private contracting authorized)
• Miss. Code Ann. § 21-19-2 (fees, charges, ad valorem tax for waste services)
• Miss. Code Ann. § 21-19-2(d) (volume-based exemption ordinance authority)
• Miss. Code Ann. § 19-5-109 (authorized funding sources, post-2016 amendment)
• Miss. Code Ann. § 19-5-21 (county-side ad valorem authority)
• Miss. Code Ann. § 21-27-27 (no free service except for listed entities and exemption ordinances)
• Miss. Code Ann. § 21-27-11(b) (definitions, including "system")
• Miss. Code Ann. § 7-5-25 (scope of AG opinions)
• MS AG Op., Jones (Apr. 22, 2016) (age-based senior discount fails Section 21-19-2(d))
• MS AG Op., Barber (Aug. 31, 2020) (modified to extent inconsistent)
• MS AG Op., Webb (2016) (modified to extent inconsistent)

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2025/01/G.-Flaggs-December-30-2024-Municipal-Garbage-Fee-Increase.pdf

Original opinion text

December 30, 2024

The Honorable George Flaggs, Jr.
Mayor, City of Vicksburg
1401 Walnut Street
Vicksburg, Mississippi 39180

Re: Municipal Garbage Fee Increase

Dear Mayor Flaggs:

The Office of the Attorney General has received your request for an official opinion.

Questions Presented

May the City of Vicksburg ("City") allocate a portion of its general fund to help cover the rising costs of its waste disposal services, thereby preventing the need for further increases in fees or taxes on its residents?

Brief Response

The City may adopt an ordinance granting an exemption of a portion of the fees or charges for certain generators of garbage and/or rubbish pursuant to Mississippi Code Annotated Section 21-19-2(d). However, the City may only use monies as authorized under Sections 21-19-1, 21-19-2, and 19-5-109, and therefore, may not use general funds.

Applicable Law and Discussion

Municipalities are responsible "for the collection and disposal of garbage and the disposal of rubbish" and may do so by contract with a private contractor. Miss. Code Ann. §§ 17-17-5(1) and 21-19-1(2). Municipalities may defray the cost of providing these waste disposal services either by collecting fees and charges from its residents or by levying an ad valorem tax pursuant to Section 21-19-2. Section 19-5-109 further provides that:

Each county and municipality shall make a good faith effort to estimate the cost of garbage and rubbish collection and disposal services. These costs may be met, in amounts necessary to defray the cost of the system, by any combination of generator fees, ad valorem tax revenues as authorized under Section 19-5-21 or Section 21-19-2, or county or municipal special funds as authorized under Section 19-5-21 or 21-19-2.

Pursuant to Mississippi Code Annotated Section 21-27-27, municipalities are prohibited from providing free waste disposal services, except to specifically listed entities, such as municipal agencies and public schools, or in accordance with an exemption as allowed by Section 21-19-2(d), which provides:

The governing authority of a municipality may adopt an ordinance authorizing the granting of exemptions from the fees or charges for certain generators of garbage and/or rubbish. The ordinance shall define clearly those generators that may be exempted and shall be interpreted consistently by the governing authority when determining whether to grant or withhold requested exemptions.

See also Miss. Code Ann. § 21-27-11(b) (defining system to include garbage and rubbish disposal systems). When asked whether a municipality had the authority to exempt senior citizens from municipal garbage fees, our office opined that the exemption in Section 21-19-2(2)(d) must be tied to differing volumes of garbage, not on factors such as age. MS AG Op., Jones at *1 (Apr. 22, 2016) (further stating that "[w]hile Section 21-27-27 prohibits the provision of free utility services, we have previously opined that the specific language of Section 21-19-2(2)(d) is controlling over Section 21-27-27.") (internal citation omitted).

Accordingly, it is the opinion of this office that pursuant to the above cited authority, the City may adopt an ordinance exempting its residents from a percentage of the fees or charges for waste disposal services. However, the City must comply with Sections 21-19-1, 21-19-2, and 19-5-109, which specify the monies that can be used for waste disposal services. In 2016, Section 19-5-109 was amended to remove general funds as a source of funds for this purpose, thus, the City may not use general fund monies to cover these costs. Additionally, we note that opinions of this office are limited to prospective questions of state law pursuant to Section 7-5-25. We do not by official opinion opine on or approve the terms of local ordinances. We suggest that you speak with your municipal attorney to determine whether any ordinance the City is seeking to adopt is in compliance with Section 21-19-2 and any other applicable statutes.

If this office may be of any further assistance to you, please do not hesitate to contact us.

Sincerely,
LYNN FITCH, ATTORNEY GENERAL
By: /s/ Beebe Garrard
Beebe Garrard
Special Assistant Attorney General

[Footnote 1: MS AG Op., Barber at 2 (August 31, 2020) and MS AG Op., Webb at 4 (2016) cite the pre-amendment version of Section 19-5-109. To the extent that these or any other opinions conflict, there are modified prospectively to conform herewith.]