City of Hattiesburg Sees Financial Impact for Infrastructure from 2018 Special Legislative Session

City of Hattiesburg Sees Financial Impact for Infrastructure from 2018 Special Legislative Session

Hattiesburg, Mississippi — On Friday morning, Mayor Toby Barker was joined by Senator Billy Hudson, Senator Juan Barnett, Representative Percy Watson, Representative Chris Johnson and Representative Missy McGee to announce the 2018 special legislative session’s impact on the City of Hattiesburg.

“The 2018 special legislative session will be remembered as one of the most consequential in modern times,” said Barker. “It will also prove far-reaching and impactful for Hattiesburg and its future. As we continue to ramp up investment in our own infrastructure, having the state open up a dedicated funding stream will significantly further our ability to push Hattiesburg to the next level.”

House Bill 1, also known as the Mississippi Infrastructure Modernization Act, includes a diversion of use tax for local infrastructure improvement, with a growing percentage year over year through year 4.

  • 2019: 3.75% in Year 1 = $475,000
  • 2020: 7.5% in Year 2 = $950,000
  • 2021: 11.25% in Year 3 = $1,425,000
  • 2022: 15% in Year 4 and beyond = $1,900,000

Funding levels are based on: after a $10,000 diversion to all cities, half of the remainder is based on proportion of municipal population, with the remaining half based on proportion of sales tax diversion in the previous fiscal year.

This funding requires the city to maintain its average spending levels from 2013-2018 on roads, bridges and water/sewer improvements. This required maintenance of effort ensures that this additional state investment enhances current local investment.

Barker also announced the following lite item spending authorization in Senate Bill 2002, also known as the BP Settlement Bill.

  • Hardy Street will receive $400,000, allowing for the section between 21st Avenue and Downtown Hattiesburg to be resurfaced as early as 2020.
  • North 38th Avenue will receive $100,000 toward its improvement.

“We are proud this money is coming to Hattiesburg,” said Senator Barnett. “We didn’t go to Jackson with parties on our mind. We went to Jackson with the people of Hattiesburg at heart. As a result of that, we came back with monies for projects that will impact the residents the most.”

Residents will begin seeing a direct impact of this funding as early as 2020.