WALTHOURVILLE, Ga. — Walthourville City Council has agreed in principle to pay $400,000 to settle a class-action lawsuit challenging the fire-protection fee charged to water customers in Walthourville and Allenhurst.
City Attorney Luke Moses said the agreement has not been finalized. Details about how affected customers could receive refunds also remain undecided and may be determined by the court or a settlement administrator. The lawsuit seeks refunds, interest, attorney fees and other costs.
The fire fee will be removed from customers’ water bills beginning Oct. 1. Revenue from the charge helped fund the Walthourville Fire Department, which provides fire protection to both communities.
Walthourville’s approved 2026 budget projected approximately $468,250 in revenue from fire-fee charges.
City officials have not announced how the fire department will be funded after the charge is eliminated or whether the budget must be revised. The city’s official budget lists the projected fire-fee revenue.
The lawsuit was filed on behalf of Allenhurst resident Steve Wright.
It argues that the fire fee operated as an illegal tax and seeks class-action status for other customers who paid the charge.
The proposed $400,000 settlement is expected to be paid in two installments of $200,000 each during 2027.
The first payment is scheduled for June 1, and the second for Dec. 31.
The settlement comes as city officials address a separate issue involving unpaid state or federal payroll taxes.
Mayor Sarah Hayes said the problem was discovered by the city clerk and resulted from a miscommunication during a transition between accounting firms.
The city reportedly believed its outside accountants were handling the payroll-tax filings, while the accounting firm believed the city was responsible.
Officials said Walthourville has begun repaying part of the amount owed. Moses said there is no pending lawsuit specifically involving the payroll taxes, but the city could face penalties and interest connected to the unpaid filings.
The total amount owed has not been publicly confirmed, and city officials have not provided a timeline for resolving the payroll-tax issue.
The fire-fee settlement must still be finalized before reimbursements or other payments to affected customers can begin.
Yolonda Harris
News Now Georgia
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