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Board and public press for clarity on PSA trash fees, reserve account and contracts
Summary
County staff explained the history and current balance of the Russell County PSA collection account and reserve used in water/sewer consolidations; members of the public disputed some figures and asked for contract records. A supervisor asked the county attorney to review PSA contracting language.
County Administrator Lonzo Lester and members of the public spent significant time at the meeting discussing the county's relationship with the Russell County Public Service Authority (PSA), an environmental waste collection fee created by the county in 2006, and the status of funds collected on the county's behalf.
Lester outlined the ordinance's history and how an account created under the disposal ordinance was used as a debt reserve during consolidation of Castlewood water and sewer. "As of today... they have $484,698.06 in this account," he said, and explained the reserve cap in the financing agreements is about $705,000 for the two lenders involved. Lester said the reserve funds were used to secure favorable refinancing that saved the county interest costs on roughly $16 million in consolidated loans.
Public commenters pushed back on elements of that account history and the authority's handling of collections. Dave Miller, a county resident who said he has reviewed the records, said the amount collected on behalf of the county in one year was larger than the figure the county administrator cited: "The money that the PSA collected on behalf of the county is not 75,000, but a $105,777.76," Miller told the board. Miller also said the PSA improperly disconnected water service for customers in 2023 and that the PSA and the county had told him the PSA is a separate corporate entity with contractual obligations.
Supervisor Nate Kaiser asked the county attorney to review the PSA contract and the governing ordinance to confirm the county is operating under correct language. "I would like the attorney to look into the PSA contract, and see what we need to do to get that remedied," Kaiser said, and he asked that the board ensure its ordinances and any contract language align with practice.
Lester said auditors and bond counsel have reviewed aspects of the financing and that the PSA's 2024 annual report lists restricted assets and reserves; he also described monthly contributions from the PSA toward replenishing reserves. The board did not take a formal voting action on the PSA account at the meeting, but a supervisor requested an attorney review and further documentation for the next agenda.
