State law says trash fee legal

Despite the claims of critics of Shelbyville's new controversial trash fee, a state law does exist which requires that the fees be paid, according to the city treasurer.

However, Gary Cantrell stated that state finance officials have been giving out "conflicting information" that could account for some of the confusion surrounding the issue.

The law is TCA 68-211-874, which states that each county, solid waste authority and municipality "shall account for financial activities related to the management of solid waste in either a special revenue fund or an enterprise fund established expressly for that purpose."

Cantrell explained to the T-G that the law states that Tennessee's comptroller of the treasury, "is directed to develop a uniform financial accounting system conforming to generally accepted accounting principles..."

The accounting system is subject to the approval of the state commissioner of finance and administration, and after approval, each county must establish and maintain the uniform solid waste financial accounting system.

Any of these entities which operates a landfill or incinerator must account for its financial activity in an enterprise fund as well, the law states.

Confusion

However, Cantrell explained that "various people at the state" tell him that there are loopholes to the law, but the treasurer said "I see no loophole in that."

"I don't see any ifs, ands or buts," Cantrell said about the law.

But Cantrell added that the state distributes manuals to auditors to see if a city conforms to GASB, which stands for Governmental Accounting Standards Board -- the source of generally accepted accounting principles used by state and local governments.

Part of the manual says that according to GASB, each separate fund has to be accounted for, Cantrell said, but later in the same manual, it states if it is solid waste, "it's not a legal special revenue fund ... roll it back into the general fund."

The treasurer says that the audit manual is in conflict with the law, explaining that it's confusing because state officials "are giving you two different directions."

Cantrell says he is going to conform to the law "the best I can" as it's written because "it says what it says."

The law also prevents "double-dipping," which was claimed by members of the public during a public meeting on Monday, Cantrell said.

The treasurer said he is frequently a critic of the legislature and the GASB rules, but he believes this law is a good one that protects the taxpayers because the money can not be misappropriated for any other purpose.

"That's one reason I want to comply with the law," Cantrell said. "So I don't get fired or sent to jail."