The Hattiesburg City Council has formally approved the municipal operating plan for the 2027 fiscal year, adopting a $136.2 million budget that secures pay increases for local first responders and municipal workers while adjusting residential sanitation rates. Although the total spending package reflects a decrease of nearly $15 million compared to the prior year, core day-to-day operations will experience modest growth through an expanded general fund.
The final budget proposal was authorized through a unanimous 5-0 vote during a special-called council meeting held on Tuesday, Sept. 15. In-person votes were cast by Ward 1 Councilman Jeffrey George, Ward 2 Councilman Eric Bonet, Ward 3 Councilwoman LeAnn Vance, and Ward 4 Councilman Dave Ware. Ward 5 Councilman Nicholas Brown, who was unable to attend the session in person, participated remotely and cast his affirmative vote by telephone.
With the council’s unanimous backing, the new fiscal roadmap is scheduled to take effect on Thursday, Oct. 1, marking the formal start of Hattiesburg’s 2027 fiscal calendar. Municipal leaders highlighted that the newly ratified plan carefully balances vital investments in city personnel with long-term infrastructure obligations.
Overall citywide expenditures will fall by approximately 9.8%, declining from the $149.4 million allocated during fiscal year 2026 to $136.2 million in the upcoming term. City officials emphasized that this top-line reduction does not signal a contraction in standard municipal services, as the vast majority of the spending decline stems from a $14.5 million decrease in capital outlay appropriations.
Capital outlay funds are designated for substantial, non-recurring projects and infrastructure endeavors that fluctuate from year to year. A major factor driving the lower capital outlay figure is the complete conclusion of the city’s COVID fiscal recovery fund, which previously accounted for nearly $9.5 million in expenditures and has now been reduced to zero.
Additional capital reductions were realized through the near-completion of long-running facility initiatives, including the 2019 Fire Station Construction Fund. Dedicated funding for that project dropped by 66.9%, decreasing from $5.6 million down to $1.8 million as rebuilding efforts for Hattiesburg Fire Station No. 2 enter their final stages.
The original Fire Station No. 2 was destroyed by a severe tornado in 2017, necessitating a comprehensive reconstruction effort that is anticipated to conclude by the end of 2026. Because major construction benchmarks have been achieved, the allocation of capital resources toward the facility was substantially scaled back for the 2027 cycle.
Addressing the shifts in the balance sheet, Councilman Ware explained that major public works endeavors naturally create large fluctuations in annual spending totals. He noted that once significant projects, such as overpass developments, are completed, their associated revenues and expenditures roll off the city's accounting ledgers.
Council leadership also signaled that the overall expenditure total is not entirely static and could expand as new infrastructure grants and initiatives materialize. Ware indicated that the city council expects to introduce formal budget amendments in the coming months as funding for additional large-scale municipal projects is finalized.
In contrast to the declining capital budget, the city’s general fund—which underwrites essential everyday operations, administrative services, and municipal payroll—will expand by 0.5%. The operational fund will rise to $68.1 million for the 2027 fiscal year, up slightly from approximately $67.8 million in the previous budget cycle.
The modest rise in operational expenditures is largely driven by adjustments to municipal employee compensation. In an informational address shared via Facebook on Sept. 10, Hattiesburg Mayor Toby Barker announced that all personnel within the Hattiesburg Police Department and Hattiesburg Fire Department will be receiving salary increases during the 2027 fiscal year.
Under the approved compensation plan, full-time sworn first responders as well as civilian support staff working within the police and fire departments will receive a $1,200 annual raise. Mayor Barker acknowledged that the pay enhancements were achieved despite a relatively lean fiscal climate in which recurring general revenues remained largely flat compared to the previous year.
City council members strongly endorsed the targeted salary adjustments, pointing to the vital role public safety personnel play in the community. Ware emphasized the city’s strategic goal of remaining a regional leader in compensation for law enforcement officers and emergency personnel, framing the raises as a direct reflection of municipal priorities.
Beyond public safety staff, the budget addresses lower-wage municipal labor by establishing a higher pay floor across several city departments. Barker confirmed that entry-level hourly compensation has been elevated to a minimum of $15 per hour for eligible workers in the public works department as well as the parks and recreation department who previously earned below that benchmark.
To maintain structural fiscal balance without overburdening property owners, city administrators opted to leave local property tax rates unchanged. The city will instead address rising operational expenses in community maintenance through an adjustment to residential sanitation rates.
Beginning in the 2027 fiscal year, the monthly garbage collection fee will increase from $17 to $21 per month. The rate adjustment marks the first revision to the city's sanitation fee in 18 years, having remained fixed at $17 per month since 2008.
Explaining the necessity of the utility rate adjustment, Barker pointed out that when the $17 fee was originally established in 2008, it generated roughly $2 million annually, which fully offset the cost of waste collection at the time. Over the ensuing nearly two decades, the annual cost of running Hattiesburg's sanitation division expanded significantly to $3.8 million, creating a widening structural deficit.
The four-dollar monthly rate increase is projected to generate between $500,000 and $600,000 in new recurring annual revenue. According to municipal officials, these newly captured funds will be dedicated primarily toward modernizing the city’s waste management fleet through the regular, annual purchase of updated sanitation equipment.
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