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Mayor says federal, state help needed to sever Southaven's sewer tie to Memphis; city recovered $2.3M in tax diversions
Summary
Mayor delivered a detailed report on a congressional trip and state-legislative developments, urging federal and state funding to meet a 2031 deadline to disconnect sewer service from Memphis, and reporting about $2.3 million recovered after a state sales-tax diversion error.
The mayor told the Southaven Board of Aldermen that recent meetings with U.S. senators and representatives focused on securing federal and state funding to resolve a DURA sewer issue that requires the city to disconnect from Memphis by 2031. He said federal programs and state grants were discussed and that the state has committed to review funding options.
The mayor said the state awarded $10 million toward the sewer work but added that the total local need is far greater; he said the project’s estimated cost remains substantially higher than the funds secured so far. He characterized the situation as time-sensitive and urged continued pursuit of additional funding.
The mayor also reported a correction to the city’s sales-tax diversion records, saying the Department of Revenue reviewed and returned roughly $2.3 million that the city had not been receiving because of tracking errors. "We found 65 other businesses in Southaven that were not getting sales-tax diversion," the mayor said, adding that the state corrected the record and paid back the identified amounts for the allowable period.
On state legislation, the mayor summarized outcomes this session: extension of the tourism/restaurant tax used for parks, successful opposition to proposals that would have removed city authority over streets (HB1664 amendments were secured), and defeating a measure described in the minutes as HB4045 that would have capped local taxable value for certain economic developments. He framed those outcomes as wins for the city and for local revenue retention.
The mayor said Representative Rodney Hall helped secure $750,000 for West End redevelopment and noted ongoing efforts to pursue an automatic school-residency registration mechanism and other local priorities that did not pass this session but remain under consideration.
The mayor closed by asking the board to authorize bidding for the Starlanding–Sweeney roundabout; the council approved the motion by roll call. The board then moved on to the remainder of the agenda.
