U.S. District Judge Henry Wingate is considering a proposed rate increase submitted by JXN Water. WLBT reported:
A federal judge says whether he approves JXN Water’s proposed rate hike could depend on how Jackson spent some $60 million in Siemens settlement money. On Monday, U.S. District Judge Henry Wingate held a status conference to discuss the Siemens settlement and the subpoenas he issued seeking information on that settlement last week. He told the court that he’s looking into how that money was used, in part, to see if the funding is still available and could be used to offset a rate increase proposed earlier this year by Interim Third-Party Manager Ted Henifin.Judge Wingate pontificated about the rate increase:
Before saddling the public with a rate increase, [we] wanted to be sure this court has investigated every potential source of funds for water and sewage matters to ensure that a rate increase is absolutely necessary. As I said before, ‘Once this court obtained power to address [the] water and sewer problems here that bedeviled the system, this court asked what financial resources are available here to take care of the water and sewer plants, to make them financially self-sufficient’ ... And constantly, the court was reminded of the Siemens settlement, and constantly, this court was reminded of the question, ‘What exactly happened to those settlement funds?’ ... This court has waited for information on these matters since the time this court started working with these particular problems, and the court has just not received it... Thus, this court has taken this action of submitting these subpoenas to various people.
WLBT continued:
Henifin told the judge that JXN Water is projected to end the calendar year with about a $36 million deficit. He said he is currently working with Congress to reallocate a portion of the $450 million in State Revolving Fund dollars to cover operations and maintenance costs. “If we had that $60 million, we could reduce the amount of shortages for the next three years to approximately $12 million. Then, we would be seeking $12 million through Congress, which would significantly reduce the amount of borrowing we’d have to do.” Congress allocated some $600 million in federal funds for Jackson’s water system in late 2022. The funds included $150 million in technical assistance dollars, which Henifin used for operations and maintenance needs. The remaining $450 million came to the city in the form of State Revolving Fund dollars, which have to be used on specific projects.... Article
Kingfish note: Any serious person knew it was going to take more than a year or two to straighten out the water/sewer system's finances.
33 comments:
That lemon already done been squeezed and the juice sent way down the line.
The judge's decision henges on Siemens money.
So, if it turns out either nobody knows where the money went or the Lumumba Empire squandered it, what does the judge do with Ted's request that has nothing to do with Lumumba, but is critical to the operation?
If some of the money hasn't been spent it still wouldn't be enough.
Jackson wanted Siemens. Jackson required unqualified contractors to do the installation work. Jackson through errors and omissions failed to get a working billing system. Jackson chose to allow customers to receive free water by suspending cutoffs. Jackson allowed others to get free water with the "e-code" system, or by simply not having an account. Jackson willingly chose to allow the system to collapse. Jackson was not denied any other opportunity that is afforded to other systems. Jackson chose to enter a terrible deal for the proceeds of the settlement. Jackson chose not to use the settlement money to pay down the bond debt. Jackson is the only water system in the state that required outside intervention.
The constant throughout the entire ordeal is the elected government of the City of Jackson, which had complete control of all the system until it was abundantly clear that the elected officials were unwilling to make the tough choices. Jackson created the entire ordeal and now it's time for the citizens of Jackson to pay their way out of trouble: at a rate that is still cheaper than some of the neighboring communities. I've yet to see anyone hold their elected officials accountable for the mess that they created.
Looking for "LIKE" button......
What is going on in the Rudy Warnock trial? I cannot find ANY up to date information.
More on the DOJ serving subpoenas for Siemens records. https://www.mississippifreepress.org/justice-department-subpoenas-jackson-for-records-on-how-the-city-spent-a-90-million-siemens-settlement/?utm_medium=referral&utm_source=nextdoor.com&utm_campaign=nextdoor_news
@12:36, trial was delayed because someone involved got sick. Supposed to resume today.
Is LaddCo so hard up for eyeballs that you had to spam them here?
There is nothing in the link you offered that is new and hasn't already been reported here at JJ and elsewhere.
The DOJ didn't serve subpoenas.
The DOJ received a subpoena from the judge.
a tremendous positive -- cut off water to city freeloaders until back bills paid.
What other municipal water systems in MS get these massive federal dollars or grants. Why is the COJ so entitled?
@1:56 other systems don't. The truth is that Jackson has consistently gotten preferential treatment. But that's not enough for them. They want even more. It's never enough for them.
As part of the percentage that's paying my share with no discounts, just raise the fucking rates. The only people bitching about it are the ones that don't want to pay for water in the first place. I don't care how poor you are, if you can afford a smartphone, you can prioritize water and sewer services. You'd be expected to pay for it anywhere else.
@12:25 Yes. You are 100% correct. Jackson has gotten exactly what they voted for, pushed for, and wanted. They are the ones responsible for the operation of the water/sewer system. And they failed. Let them bail themselves out of their own failures.
Like number two for 12:25. Perfectly said.
And sadly, these plain facts wont matter to anyone in charge.
Just hold your hand out and ask Uncle Sugar Sam to pay up. That is all Jackson wants.
This. This is the truth. We are all funding this shit hole in Jackson and they just want more and more.
There is no leader willing to make the hard decisions required and nobody that will face the cries of racism when Jackson is expected to behave like the rest of the state.
WLBT showed a comparison and even after the proposed rate increase, Jackson is paying less than many suburbs.
Its real hard to give a damn about the whining when so many have paid nothing for years, too.
Welcome to the non-Kush land. You get to pay a reasonable prices for services used like the rest of us.
$60 million or however much it was shouldn't be hard to track. How hard is it to pull some bank statements?
Excellent post.
Judge Wingate should be investigating where all that money went not just for deciding whether water rates will go up or not. He should hold accountable those who were entrusted with it.
Breaking: Wingate issues subpoenas for Siemens-Gate.
KF. We are now going on 3 years since Ted’s assignment and collections are not that much better.
This token rate increase of $7M per year pales in comparison to the $20-30M he ain’t collecting!!!
And now he’s begging Congress to do something. Good luck with that!!!
Informal poll:
Who gets their subpoena first?
A. The former Mayor
B. Sister R
C. One or more of the non-profits where Sister R appears on the IRS filings
D. All of the above at the same time!
You must choose, but choose wisely.
I have a feeling that none of the money is left. I seem to remember reading where a good portion of the money that JAckson received went to bond payments.
Jackson isn’t the only city in Mississippi that had similar issues with the Siemens water meters. Cleveland is, or was, in a lawsuit with Siemens over faulty water meters.
Taxes have to go up to cover the costs.
Even if everybody was paying it still wouldn't be enough to operate the system and pay debt
How much does it cost to keep a car running once it has 150,000 miles on it?
How much more does it cost if you have been 'saving money' by not doing the proper mainteneance and needed repairs?
That's the same lame argument given by lawmakers advocating for raising the gasoline tax. "Our roads and bridges need fixing," they say. "We have a crisis." But the truth is, there never was a shortage of money for roads and bridges. They just foolishly spent it on other stuff. Only Jackson could ignore the disappearance of $89 million and just say, "eh...let's just raise taxes."
Talking about the pot calling the kettle black. Does Judge Wingate know how parties in his courtroom feel when it takes him years to rule on motions in their cases?
The fundamental bedrock of our society is paying the bills. The city borrowed money to fix the water system and the govt officials squandered the money paid back to the city. That money is gone. The obligation doesn’t end. Some form of justice will come to the mayor and his cohorts and maybe the feds will help and the state too….but in the end taxes are there to be raised to pay these debts. The entire world relies on bond payments. I’m not happy about it either.
A water rate increase has nothing to do with taxes.
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