Jackson finally released its 2020 financial report and it contained both good news and bad news for the water/sewer department. The good news is the water/sewer department didn't have a $17 million loss as it did in 2019. The bad news is the water/sewer department still operated at a $10 million loss. Ouch.
Unpaid water bills play no small part in drowning Jackson's water system. The system would operate at a healthy profit if customers would pay their bills - when properly billed. The system's accounts receivables fell by $3 million but were $46 million. The accounts receivables skyrocketed after 2013, doubling in only five years. It is no coincidence that the water system lost millions ever year as accounts receivables reached $50 million. The city instituted a moratorium on cut-offs in 2020 due to the pandemic. The moratorium did not end until September 2021 so expect a similar picture next year.
The water/sewer system was flat broke in 2018 and 2019 as it reported literally zero cash on hand. 2020 was kinder to Jackson as it reported cash on hand of $17 million. That was probably due to the Siemen's settlement. The report states litigation settlement of $14.7 million in the non-operating revenue column.
Water/sewer rate increases generated the large increases in cash shown in the chart. However, the system ran out of cash as accounts receivables skyrocketed. Remember the accounts receivables? They are a major driver of this fiasco. The system went broke because it did not collect payments.
The water sales declined but still remained at a healthy $48 million but make no mistake, water sales are declining. Less sales means less revenue unless of course there is yet another rate hike.
What do all these fancy figures and charts mean? They mean Jackson's water/sewer system operated at a $10 million loss in FY 2020.* The system should generate a healthy profit for Jackson and did so for many years until the Siemens deal blew up the system. The charts show everything started going in the wrong direction after 2014, Harvey's legacy to Jackson.
The bottom line is the water/sewer system was broke before 2020 and remained broke in 2020. The Siemen's settlement was a nice little windfall but such pots of gold are rare. The moratorium remained in effect through most of FY 2021 so it is probably reasonable to expect Jackson to show similar dismal numbers when the 2021 annual report goes to the printer.
Meanwhile, the sanitation department, remember the garbage collection?, operated at a loss of $2.2 million in FY 2020.
* The operating loss includes a $17 million depreciation expense, however, it reports a similar expense every year.
Raw Data
Accounts Receivable
2003: $6 million
2004: $8 million
2005: $6 million
2006: $7 million
2007: $7 million
2008: $13 million
2009: $15 million
2010: $18 million
2011: $20 million
2012: $24 million
2013: $25 million
2014: $40 million
2015: $41 million
2016: $50 million
2017: $44 million
2018: $56 million
2019: $49 million
2020: $46 million
Water/Sewer Cash on Hand
2003: $25 million
2004: $5 million
2005: $8 million
2006: $11 million
2007: $27 million
2008: $9 million
2009: $18 million
2010: $12 million
2011: $9 million
2012: $13 million
2013: $4 million
2014: $13 million
2015: $7 million
2016: $5 million
2017: $0.2 million ($182,000)
2018: 0
2019: 0
2020: $17 million
Water Sales
2003: $42 million
2004: $40 million
2005: $39 million
2006: $45 million
2007: $43 million
2008: $47 million
2009: $41 million
2010: $42 million
2011: $47 million
2012: $47 million
2013: $44 million
2014: $69 million
2015: $59 million
2016: $63 million
2017: $61 million
2018: $57 million
2019: $50 million
2020: $48 million
Operating Income (Loss)
2003: $7 million
2004: $9 million
2005: $10 million
2006: $13 million
2007: $13 million
2008: $9 million
2009: $5 million
2010: $8 million
2011: $11 million
2012: $6 million
2013: ($0.9 million)
2014: $22 million
2015: $19 million
2016: $37 million
2017: $6 million
2018: ($80,000)
2019: ($17 million)
2020: ($10 million)
42 comments:
If we can’t trust the water billing system, the mayors press releases, the city crime reports, or any other statistics about Jackson, can we trust their accounting reports on themselves??
But But But it's the racist white people's fault. Where is that $90mil settlement money? More importantly, where is the $30mil siphoned off the top to Lord Antar's buddies in Chicago with a legal case that could have been won by a Jr. Atty. Where is Marcus Wallce these days? Lots of people to blame other than they one's they are blaming.
It took from 12/31/2000 until 3/16/2022 to get these numbers. That is 14 1/2 months. This is as appalling as the results.
Who cares. Water should be free anyway. God’s property.
If only the law allowed the city to bill residents for their water consumption.
The financials are released just as the state Legislature enters the home stretch on possibly giving Jackson money to make water & sewer system repairs. If you were a legislator, would you give money to a this city administration that mismanages everything it touches?
I’m sick of the mayor the leadership all are hired based on race. Funny how when black leadership is in charge they tend to hire blacks. White leadership example the burbs hires on quality generally example is charlotte seals madison co schools superintendent. I mean Jackson and it’s leaders are blatantly racists.
Any news on the PARKING METER shortfalls ? Lol, Jackson could fug up an iron ball with a rubber mallet.
1152, you can have all the free water you want. Suck it up out of the ditches, or carry a bucket to the Pearl. But if you want it treated, and delivered - you gotta pay for that service. Along with giving you a disposal system for when you piss it out - thats part of the invoice as well
Jackson only receives crumbs and pittances while Lumumba is in office.
Mayor hires white folks. Hired Bob Miller. Planning and zoning director is white. Press sec is white. Head of arts and museums is white. City council president is white.
Now at
"Who cares. Water should be free anyway. God’s property. "
I agree - that's why it's free if you capture runoff from your roof after it rains, or carry a bucket down to the stream/lake/river/whatever and carry it back any time you want to.
If, however, you want the convenience of someone else (i.e., the taxpayers) paying to pump it to your kitchen faucet, write that check before we sent anything. Freeloading days are over.
Forgive me for the thread-jack.
I will agree that Antar is worthless as a mayor. And as Kingfish stated, he does hire plenty of whites. But the problems in Jackson are cultural.
Bowever, I have been convinced by Thomas Sowell’s Black Rednecks, White Liberals that the culture of Jacksonians is a distinctly Southern culture that was brought to America by the white settlers.
Click the links below for a recitation of Thomas Sowell’s take on the degenerate nature of Southern Culture.
Black Rednecks, White Liberals - Clip 1
Black Rednecks, White Liberals - Clip 2
The PW deputy director over the water sewer department is a white lady also. Chockweed hires a few to sprinkle around his administration so as not to look completely racist.
@1 hour 21 minutes
I don't want the convenience. Thanks for the offer, though.
@12:59 PM
Um, empty bucket?
KF, you're the ONLY white person in the City of Jackson who receives absolutely none of the white privilege. Think about that for a second.
11:52 : Water is free numbnuts. You are paying for it to be delivered into your home thru engineering. Avoid it by building a well.
My screwed up water bill still uses an estimated reading showing
me using over 19,000 gallons per month for 2 half bathrooms at my office/shop
You talk to a bunch of ignorant people at water billing department when you ask them to do a physical reading of your meter
They always say I have a leak ( which I don't)
No telling hom much of the A/R is over-billed accounts
1:08 : Are they though ? All progressive shills to the "Mayor". Bootlickers if you weeeel. Color is so subjective now a days KF. :)
Why is it that we send our payments to Memphis? This is got to be a payback!!
Hey 11:52,
There's your free water in the picture of yesterday's blog "OINK! OINK! OINK!" .....
Drink up, you can have all you want!!
KF, Mayor has in fact hired some white folks - you have mentioned some. But he has also chased off plenty because they wouldn't be "yessirboss" employees. (applies as well to some folks that are not department heads, including some that you have previously pointed out -- lets say maybe some precinct commanders and others within the JPD??) And, the Mayor has nothing to do with who is President of the Council - remember, he doesn't get a vote there, so that herring you tried to drag across the road stunk before it ever got hooked.
Issue here isn't whether the Mayor has actually employed some white people in his administration, its the manner of transacting the city's business.
I make comments here all the time about PARKING METERS and the loss of income from them not being maintained. Why does no one comment on this glaring error by Jackson ? Why does this site not focus on this wasted income stream ?
How in the world has Lumumba slipped under Biden's radar for a high government position ?
KF: "City Council president is white"; is she an appointment of the mayor? Or elected by Council members?
Mayor ran off all whites in JPD command staff. Vance retired because He wouldn't demote Deputy Chief Alan White. Mayor put in Tonari's cousin as Interim Chief. Moore immediately kicked the whites off the command staff. One white remained as precinct commander, they treated him like crap until he finally retired in frustration.
Ever since the Mayor ran Vance and everyone else in his command staff off, crime has done nothing but skyrocket as blood flows through the streets of Jackson.
@2:17
Have you ever seen Kingfish? He’s a quarter white at best. Swarthy af.
There is only one thing that may save Jackson-Receivership.
Dang, if loosing $10,000.000.00 USD instead of loosing $17,000.000.00 USD a year is "good news" then only loosing $27,000,000.00 USD in two years should be great news.....right?
@5:05 PM
I seent him maybe once or twice. Didn’t pay too much attention to him. I do recall he couldn’t look me in the eyes. Fear of man grows on trees.
@3:38 PM
Let me get this right: You’re saying I can drink the water in the photograph? You know, I never realized it. This is ground-breaking stuff. Thank you. Matter of fact, I’m not only gonna “drink up” but also take a cigarette lighter and hold it up to the photograph and grill me some pork chops.
I’ll save the pig feet, pig ears and chitterlings for your momma.
My head hurt reading the comment of @6:29. Our education system must do better. Or maybe it's doing fine but kids don't pay attention in class.
hey @6:29 - the word is 'losing' - didn't JA teach you that?
So what's the deal with the non-timely filing of reports? What about crime stats reports? Are there no State sanctions for not filing reports on time?
Oh well, different rules for different people.
"All animals are equal" but some animals are more equal.
With apologies to George Orwell.
@ March 16 7:22 pm
There are 2 things that are needed to improve Jackson, one short term and one long term:
(1) Receivership, as you suggest, would deliver a short term, immediate improvement.
(2) Gentrification.
the state of emergency needs to be issued for the whole public works department especially the bankrupt water department
I hate to imagine what makes up $26.6 million in "Other services and charges". Cut that in half and you are making a profit.
Wonder if folks are still paying their bills in cash ? Guaranteed to be pocketed over there at the Metro Center.
Why is it that we send our payments to Memphis?
And Detroit before Memphis. When payment is remitted out of state are those operations beyond the reach and direct review of the State Auditor?
Given their billing system, I can’t believe it’s only 10 million.
Your check goes to Memphis because that's where the city has a lockbox. What I don't understand is that when I mail them a check it takes 3 weeks for them to deposit.
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