Hallsville residents voted on Tuesday to authorize the city to sell its sewer system.

Hallsville has faced ongoing problems and expenses related to the sewer system, including those relating to spillage from its sewer lagoon into a nearby creek. It has resulted in legal action against residents.

The city’s sewer system has a debt of $1.32 million. The city’s current annual revenue is $1.197 million. The current sewer rate is $19.35 for the first 1,000 gallons and $5 for each subsequent 1,000 gallons.

Missouri American Water proposed paying $2 million for the city’s system and making $3.3 million in investments over five years. Rates would increase to $38.75 per month.

Liberty Utilities submitted a proposal proposing it buy the system for $1.7 million and asked the city to raise its sewer rate to $28 for the first 1,000 gallons. Boone County Regional Sewer District proposed paying $1,000 for the city’s system and freezing rates for one year.

The ballot did not specify a company the city would sell the system to.