The compliance breakdown is already in the public record
EPA said in January 2025 that Driggs agreed to a $400,000 penalty and a major wastewater upgrade after chronic Clean Water Act violations. The federal consent decree says the underlying complaint alleged 3,237 permit exceedances and multiple non-effluent violations tied to sampling, quality-control, and recordkeeping.
Driggs' own wastewater page does not deny the core compliance problem. It says the plant has long struggled to meet ammonia limits, that the facility is out of compliance, and that the city is pursuing a major expansion and process upgrade to get back within federal and state rules.
Victor turned the billing and oversight fight into a lawsuit
Victor filed its complaint against Driggs on March 5, 2026. The lawsuit says the 2011 inter-city agreement required compliant treatment and annual independent audits, but that a neutral audit did not happen until 2024 and found Victor had been overpaying debt service tied to wastewater and trunk-line improvements.
Victor's complaint says Driggs failed to fully cooperate with the audit, overbilled Victor on debt service and operations, and kept passing costs through a relationship where Victor's wastewater accounts for roughly 44.1 percent of the plant's influent.
Both cities are now spending toward separation, not trust
Victor's official wastewater page says the city now expects its own plant to cost about $35 million and says it approved the purchase of a 40-acre parcel for the future treatment site in August 2025. Victor presents that move as the direct consequence of failed mediation, contract uncertainty, and cost exposure tied to the Driggs system.
Driggs says its own rebuild was estimated at $31.6 million at the 30 percent design stage and that Victor withdrew from the joint path in March 2025. The current record shows two neighboring cities moving into separate multimillion-dollar infrastructure tracks while one city sues the other.
The court fight sits on top of a ratepayer split
The lawsuit reaches beyond city hall. Victor residents are being told their city needs a new plant and new debt exposure because the shared arrangement no longer protects them, while Driggs residents are already living with a federally enforced upgrade path and a facility the city admits is out of compliance.
The breakdown is no longer theoretical. The dispute has already become a question of who pays for years of compliance failure, delayed oversight, and the collapse of regional trust.
