Customers of JXN Water may face a significant rate increase as interim Third-Party Manager Ted Henifin proposes a 24 percent hike in metered usage rates. This proposal comes amidst dwindling federal funds, as outlined in Henifin’s February 28, 2025, Financial Management Plan.
The proposed increase would see the average residential customer’s bill rise by approximately $9 per month. Despite this adjustment, JXN Water’s financial outlook remains precarious, with the system likely to encounter acute financial challenges in the near future, necessitating further financial assistance within the year.
The financial plan reveals ongoing cash flow issues, with monthly expenses surpassing revenues, resulting in an operating deficit. JXN Water has already had to “borrow” from local ARPA match funds, which must be replenished to fully leverage the Mississippi Municipality and County Water Infrastructure Grant Program Act.
A portion of Jackson’s local match funds, initially intended for water and sewer system repairs, has been used to sustain JXN Water. These funds need replenishment to access additional state dollars. The city also faces the challenge of 14,000 customers who have metered service but are not paying their bills, a factor critical to the utility’s long-term sustainability.
This increase is the second since JXN Water assumed control of the city’s water system in late 2022. Under a court order, Henifin must consult with the mayor before implementing rate hikes, and the mayor must then present the proposal to the Jackson City Council. The council abstained from voting on the previous request, allowing the new rate structure to proceed.
Ward Five Councilman Vernon Hartley opposes further increases, citing JXN Water’s lack of responsiveness and unaddressed infrastructure issues. Mayor Chokwe Antar Lumumba has criticized the current rate structure as a “regressive tax,” disproportionately impacting those with fewer water-using amenities.
To address these concerns, Henifin plans to adjust fees for customers receiving Supplemental Nutrition Assistance Program (SNAP) benefits. However, efforts have been stalled as the Mississippi Department of Human Services and the U.S. Department of Agriculture have withheld SNAP recipient information, despite a federal judge’s order to release it.
The proposed rate hike will not affect the fixed availability fee but will increase charges for water consumption by about 25 percent. Current rates are $6 per hundred cubic feet (CCF) for the first 50 CCFs, $14.96 for the next 100 CCFs, $17.45 for the subsequent 200 CCFs, and $19.95 for usage above that.
Henifin emphasizes that even with the proposed increase, additional revenue is necessary to address the utility’s financial challenges. He warns of a projected negative cash balance of approximately $13 million by the end of 2025 unless further adjustments are made. Plans to improve collections, seek additional grants, and reduce debt are underway to mitigate these financial issues.
