Jackson Jambalaya

 JXN Water enjoyed a collection rate of 86% while the water system's performance continued to improve reported JXN Water in its quarterly status report Friday.  

Highlights of the Report: 

* The collection rate was 86% based on revenue collected v. the amount billed.   It was 60% in the last quarter of 2023.  Meanwhile, the collection rate based on the number of payments versus bill was 63%. It was 54% in the last quarter of 2023.  

Revenue collection has been above 80% since September but for January.  

* Cutoffs. JXN Water cut off 3,106 accounts for non-payment in Q1, a sharp increase from the 7,961 accounts cut off last year.  832 cutoffs took place for homes with no account.  JXN Water terminated 880 non-accounts in 2025.  Translation: JXN Water is getting really serious about cutoffs.  Let the shrieks begin. 

* Water loss is estimated at 50%, a substantial reduction from the better than 65% in October 2023. If water loss can be reduced by 17 mid, the savings is approximately $5.4 million. 

* Water production is 26% lower than it was three years ago.  As leaks are fixed and plants restored, water needs are less.   Water production was approximately 50 mgd when JXN Water assumed control of the system.  Manager Ted Henifin said he would like to get it below 30 msg. 

Mr. Henifin said water production varies from 30 to 35 million gallons per day.  It averaged 37.5 mpg last quarter.  He said he would like to get the average down to 30 mpg before shutting down the Fewell water plant. The manager said that should occur when the projects at O.B. Curtis water plant and distribution network occur in the next two years.  

* Reducing water production below 40 mgd will allow JXN Water to close Fewell, saving $5-7 million per year.  

* System pressure is 78 PSI.  When JXN Water assumed control, the pressure was 90 PSI as it had to maintain such pressure to compensate for leaks and water loss.  As the system is restored, the required pressure falls. 

* Revenues still do not cover operating and debt service costs.  JXN Water has no cash reserves. 

* Congress authorized JXN Water to re-direct $54 million of federal funds to operational costs.  The EPA was working on providing those funds through a grant.  

* JXN Water opened a walk-in customer service center in March at the Jackson Medical Mall.  It served 296 customers in March who paid their bills or sought repayment plans. 

* Total expenses were $22.6 million, $6.1 million less than the budgeted amount. Total drinking water expense was 14% under budget.  However, the court fights cost as JXN Water spent $109,00 on legal fees when it budgeted $60,000 for such expenses.  

* Although U.S. District Judge Henry Wingate approved JXN Water's rate increase, it will be some time before JXN Water can dig itself out of the financial hole. 

* JXN Water owes $17.7 million to Jacobs Engineering.  The report states the re-directed funds will be used to pay Jacobs in full when they are available.  JXN Water also owes $9.4 million to Veola for operating the Savannah Street wastewater treatment plant.  However, the federal funds can not be used to pay Veola.  The report states JXN Water will try to lower the amount owed through negotiations.