Wastewater treatment facility

On January 9, 2014, the Hattiesburg city council voted 4-1 to award Groundworx a 30-year contract for the construction and operation of a new wastewater treatment facility. Once the facility is built it will use partially treated wastewater to irrigate approximately 10,000 acres (15.6 sq mi, 40 km²) of agricultural land in Forrest and Lamar counties. The water will soak into the ground and be used by vegetation, rather than the traditional method of treating wastewater then discharging it into a waterway. The facility will be used in addition to the existing wastewater lagoons, and will expand Hattiesburg's treatment capacity by 12 to 13 million gallons per day.

Construction of the new facility is estimated to cost $141 million. The city of Hattiesburg will pay Groundworx about $17 million per year for 30 years to cover the cost of construction and operation of the facility. Officials estimate that residents' sewer rates will increase by between 60% and 70% to pay for the contract. The single council vote against the contract was cast by Deborah Delgado, who cited the increased costs and higher rates that residents would have to pay, particularly low-income residents. However, city officials said that the city was obliged by the Mississippi Department of Environmental Quality (MDEQ) to upgrade their current system or face heavy fines, so increased costs were inevitable either way. On February 18, 2014, the city council voted 3-2 to approve a rate increase that would raise sewer rates from 100% of water usage to 250%. The minimum total bill for water and sewer service would rise from $22.06 to $38.61, a 75% increase. On February 27, Mayor Johnny DuPree vetoed the sewer rate increase, saying the cost was too much for many residents to afford, preferring instead a 1% sales tax increase.

The proposed 1% sales tax increase was never approved by the Mississippi state legislature. On June 19, Groundworx filed a $6 million lawsuit against the City of Hattiesburg for breach of contract, saying the city had not met its obligations to find a revenue stream to pay for the project. On August 5, the city terminated its contract with Groundworx.

According to a court order, the city had until September 1, 2015, to create a plan to improve its wastewater treatment, but after no plan was presented the city had to pay a $1500/day fine for every day after the deadline that the city did not present a plan. On November 30, 2015, the city council approved opening a $25 million line of credit to begin paying for the new system, whether it be the mechanical treatment or land application system.