The city of Jackson, Mississippi, will continue its residential collection service from Richard’s Disposal after reaching an agreement to pay the company $4.8 million it was owed for a previous six months of work. The company had filed a federal lawsuit this summer seeking payment.

According to local news station WLBT, the city has agreed to keep using Richard’s services “at least until the Mississippi Supreme Court rules in the council’s case against the mayor regarding veto powers.”

WLBT reported late Friday that the city council was unsure where and how it would get the money to pay the settlement. Discussion is ongoing; the council is scheduled to meet Tuesday morning.

The agreement — not a contract — came a day after Richard’s said it would stop providing service in light of the debt. When the city shared the announcement on Facebook about Richard’s intent to stop service, it was met with hundreds of comments and shares, many outraged at the city’s handling of the issue.

Elsewhere in the Southeast, NOLA.com has reported that Louisiana-based Richard’s has had compensation disputes with the city government in New Orleans, which is considering re-bidding Richard’s contract covering about half of the city. New Orleans’ other hauler, Metro Service Group, filed for bankruptcy protection last week, blaming the city for failing to enact emergency provisions that would have provided federal funding for additional collection costs triggered by the coronavirus pandemic and Hurricane Ida.