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Council questions sustainability of disposable bag fee as grant revenue declines
Summary
Council members pressed county staff about the Disposable Bag Reduction Fee fund, noting declining revenue, growing grant payouts and the fund's use to pay for positions. Administration said the fund will decline but currently supports environmental grants and one partially funded permanent position.
Council members asked detailed questions about the county's Disposable Bag Reduction Fee fund, expressing concern that falling revenues would make it an unreliable source for grants and to pay staff.
The Office of Community Sustainability reported FY26 projected disposable‑bag fee revenue of roughly $600,000 with an existing reserve of about $350,000 and noted the fund will decline as consumers use fewer single‑use bags. The administration said it awarded about $519,000 in grants last year to environmental, community and faith groups and used fund money to support one full‑time climate/community outreach position (75% from the plastics fund and 25% from the general fund) and two fellows in the Chesapeake Climate Conservation Corps. The fund also supported pilot projects such as electric landscaping equipment conversions and other outreach.
Council members said the fee's decline could force larger general‑fund subsidies to preserve grant programs or positions, which some members opposed. One councilmember said the initial intent of the fee was to reduce disposable bag use, and if the fee succeeds the revenue will decline — calling into question the fund’s long‑term role in paying staff or recurring programs.
Administration said they expect the fund to shrink but not disappear immediately and that they plan to progressively shift some personnel costs to the general fund (the community outreach position is currently 75% plastics fund/25% general fund) as revenue declines. The office forecasted increased competitiveness for grant awards and said it will prioritize projects with strong waste‑reduction outcomes.
Why it matters: The bag fee was enacted to change consumer behavior and fund waste reduction work. Council members said the county should avoid creating recurring obligations (positions or programs) reliant on a declining, behavior‑driven revenue stream and requested a list of grant recipients and a clearer plan for transitioning any staff costs to the general fund or other sources.
Next steps: Administration agreed to provide an updated list of planned grant recipients, the latest noncompliance rate for fee collection, and scenario estimates showing how long the fund balance will sustain current commitments under multiple revenue trajectories.
