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

The opinion holds that a city may not use general fund monies to cover waste disposal costs. It holds the city "may only use monies as authorized under Sections 21-19-1, 21-19-2, and 19-5-109," and that Section 19-5-109 was amended in 2016 to remove general funds as a source. The authorized sources it lists are generator fees, ad valorem tax revenues under Section 19-5-21 or 21-19-2, and county or municipal special funds authorized under those sections.

For municipal attorneys drafting garbage rate ordinances

The opinion holds that a city may adopt an ordinance under Section 21-19-2(d) granting exemptions from a portion of fees or charges for certain generators of garbage or rubbish, that the ordinance must "define clearly those generators that may be exempted" and be "interpreted consistently." It holds, citing the AG's prior Jones opinion, that the Section 21-19-2(d) exemption must be tied to differing volumes of garbage, not factors such as age, and that Section 21-19-2(d)'s specific language controls over Section 21-27-27's bar on free service.

On older AG opinions

The opinion modifies prior opinions prospectively: it notes its Barber (2020) and Webb (2016) opinions cite the pre-amendment version of Section 19-5-109, and "to the extent that these or any other opinions conflict, [they] are modified prospectively to conform."

For Mississippi residents watching their garbage bills

The opinion holds that a city cannot draw on its general fund to offset waste disposal costs; the funding has to come from generator fees, ad valorem tax revenues, or special funds authorized by the cited statutes.

Common questions

Why can't a city spend its own general fund on garbage?
The opinion holds that the city "may only use monies as authorized under Sections 21-19-1, 21-19-2, and 19-5-109," and that the 2016 amendment to Section 19-5-109 removed general funds as a source. The general fund is therefore no longer an authorized source for waste disposal costs.

Can the city give a discount to senior citizens?
The opinion holds that the Section 21-19-2(d) exemption "must be tied to differing volumes of garbage, not on factors such as age" (citing the AG's Jones opinion). An age-based senior discount does not qualify under that subsection.

Can the city raise its ad valorem tax to cover the gap?
The opinion lists ad valorem tax revenues authorized under Section 19-5-21 or 21-19-2 as one of the permitted funding sources in Section 19-5-109.

What funding sources are allowed?
The opinion quotes Section 19-5-109: the costs "may be met . . . 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."

Are public schools and city agencies still entitled to free service?
The opinion notes that Section 21-27-27 prohibits municipalities from providing free waste disposal services "except to specifically listed entities, such as municipal agencies and public schools," or under a Section 21-19-2(d) exemption ordinance.

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.]