Walthourville's city council voted Wednesday night to eliminate its fire fee and authorized a $400,000 settlement payment split across two installments in 2027, just hours after a class action lawsuit was filed calling the charge illegal, according to a report published Thursday by The Current GA. The 4-0 vote means water customers in Walthourville and neighboring Allenhurst will no longer be billed for the fire fee starting October 1. The decision comes as the city faces questions about potentially unpaid payroll taxes that one councilman estimates could total $1 million.
The lawsuit, filed at 12:50 p.m. Wednesday on behalf of Allenhurst resident Steve Wright in Liberty County Superior Court, labeled the fire fee "an illegal tax" and demands refunds with interest under Georgia's Refund Statute, plus legal fees and costs. The fee had been charged to hundreds of customers on Walthourville's water system who receive service from the Walthourville Fire Department. The settlement calls for payments of $200,000 on June 1, 2027, and another $200,000 on December 31, 2027. It's not clear how ending the fee will impact the city's revised 2026 budget, which had anticipated receiving $468,249.85 in General Fund revenue from the charge.
According to Councilman Patrick Underwood, the city allegedly failed to pay three years of payroll taxes due to an unidentified error, with the arrears discussed during Wednesday's lengthy executive session. The potential financial problems arrive during Walthourville's first balanced budget in several years, following months of effort by the mayor, council, staff, and accountants to restore the city's finances to sound footing. A check of state filings revealed no active or pending state liens against the city. The report notes that city officials immediately after the meeting said they didn't recall the name of the person suing them.
The fire fee's elimination removes a revenue stream the city had counted on for nearly half a million dollars this year, while the settlement and potential tax liabilities add hundreds of thousands—possibly over a million—in new obligations. Underwood expressed frustration that no one caught the payroll tax error earlier, though the report doesn't specify whether City Hall staff or the accounting firm bore responsibility for the alleged shortfall. The executive session discussions were described as both lengthy and loud at times, with gavel raps punctuating the private talks, and Underwood briefly storming out before returning. No elected officials mentioned payroll taxes during the public portion of the meeting.
The city also voted Wednesday to hire accounting firm CKH and authorized its attorney, Luke Moses, to represent Walthourville in the lawsuit. For water customers who've been paying the fire fee, the immediate effect is clear: no more charges starting next month. For the city, the path forward involves managing a budget hole, a six-figure settlement, and potentially seven-figure tax obligations—all at once.