JXN Water's failure to get a rate increase will cripple the system in a few years. So says JXN Water's quarterly status report. The report points out many improvements such as lower water production and system pressure. However, the report states the system will operate at losses of tens of millions of dollars if the rate increase is not approved.
Highlights of the report are:
* Water production is down 20% since two years ago.
* Although collections are increasing, they will only cover operating expenses if all accounts are paid in full. Collections alone would not be enough to cover debt service or bonds.
* Legislation to redirect $54 million in federal aid to operational expenses is stalled in Congress thanks to the shutdown.
* JXN Water owes $22.3 million to contractors:
- Jacobs Engineering: $12 million
- Wicker Construction: $1.2 million
- SP Meters: $516,342
- Veolia: $8.5 million
The $54 million package would cover these contractors but for Veolia.
* JXN Water can not obtain loans from MDEQ because it does not have enough revenue to qualify.
* Mr. Henifin said the system desperately needs the rate increase first proposed in April. U.S. District Judge Henry Wingate did not approve the rate increase as Jackson's leaders lobbied against it. The table below shows what JXN Water says will happen without the rate increase:
As one can see, the rate increase will put JXN Water in the black in 2027 while losing $14 million if the rate increase is not approved.
* The water system operates at a pressure of 78 PSI. It was 90 PSI in December 2022. Mr. Henifin attributed the lower water pressure to repairs and the system's increased stability.
* JXN Water will be able to close the Fewell Water Plant when daily water production falls below 30 million gallons per day. Closing Fewell will save $5 to $7 million.
* Billings have increased as the number of accounts rose from 48,000 accounts two years ago to 54,000 in 2025. Average monthly billings increased from $6 million to $9 million while the number of payments per month rose from 26,000 to 30,000.
* Revenue (collections) have increased 70% since December 2023, rising from $3.7 million per month to $5.5 million per month. The collection rate was 60% in December 2023. It rose to a monthly average of 70% in 2025.
* 4,400 meters have been turned off from March 2025 to September 2025.
* JXN Water operated $5 million over budget (p.12). Repairs drove most of the difference. (p.10)
* Water loss is estimated at 50%, down from 65% two years ago. The reduction saved $4 million per year. See p. 14 for more information.
* More than 11,000 accounts do not pay their bills. JXN Water is focusing on these accounts.
39 comments:
With all due respect to the Judge, the rate increase must happen. Once the shutdown is over, those outstanding contracts can be paid. Numbers are looking much better. "More than 11,000 accounts do not pay their bills" That is dumbfounding. City of Jackson-pay your damn bills. Apartment complexes--Judge, get out of the way and let this process work. Pay or get shut off.
The problem - The left believes water should be free and so they, including Judge Wingate, won't raise rates. The solution - The State legislature should create a regional water authority with the majority of the members appointed by the Governor and Legislature so the lack of financial sense of the Left can be circumvented. What is the Legislature waiting for?
Raise the rates. And move on. Jackson's rates are still lower than Madison and much lower than Brandon.
Why does JXN Water advertise? Who pays for that?
Restaurants leave Jackson asp
My understanding is the Court requires them to advertise and engage in community outreach.
KF didn't the court give Jxn Water the
right to raise rates when the judge signed the order the parties agreed to.
It doesn't say he has to go back to the
judge to get approval. In other words
the court has already given their approval.
KF you are right.
The city is legally obligated to raise rates.
"water loss is estimated at 50%" wait, what!? Are you saying that half of the water treated and pumped through the system is just...lost? And that is a major improvement? Under NO circumstances should anyone associated with Jackson city government EVER be allowed to have any say so in anything to do with the water system again.
Non-payers and straight-pipers have driven a stake through the heart of the Jxn water system.
Why can't the court understand. It's really simple.
How does a regional water authority solve the problem where 11,000 accounts do not pay their bills? Wingate is obstructing an increase on paying customers. I'm in favor of increasing rates to any levels sufficient to operate the system but not if that means simply charging the paying customers more to offset those who don't pay at all.
I pay a "water access fee" of $40 each month on my home water bill and on my yard sprinkler bill. That's $80 per month BEFORE I get one drop of water from the City of Jackson. No, they don't need to raise rates on their paying customers. They need to make current customers PAY THEIR WATER BILLS or else get them CUT-OFF! THAT would free up the water the City says they don't currently have. Use your brains, officials!!!
Wingate needs to retire. He is 78 years old. Heck, he was appointed by The Gipper.
My Bear Creek Water Assoc. water bill is $14.29 per month. No "access fees," no extras, just $14.29 per month. 2,300 sf home on 1/2 acre. Y'all in Jackson are getting hosed.
What happened to settlement?
@1:59pm it has been stated over and over and over again that even if the collection rate was 100%, the current rate isn't enough to cover all of the expenses of the system. Pay attention.
@201pm, the water availability fee for an irrigation system at the same address is $10, not $40. They need to correct that on your bill.
2:01 PM You're lucky mine is over $100 after all that with 2 people in the house lol
12:50 it goes by what size meter it is.
Bear Creek most definitely has a monthly access fee of $12.25 for water and $17.75 for sewer. Each of these fees includes up to 2000 gallons of usage. You pay this fee even if you use no water in a month. The link to their rates is below.
https://www.bcwaterms.org/rates-fees
2:50 it goes by meter size. Check their
website for cost. I don't see $10.
2:54 does that include garbage?
What happened to the Federal money committed to the City of Soul? Can't that be used to supplement JXN Water's operations?
3:52 they want let him.
God willing, because I’m sick to death of Ted and his G00N Squad.
JXN water loves to waste money.
Regardless, my bill is $14.29 per month.
This billing is ridiculous. I still can’t get over the chorus desperate for another pile of manganese (s•hit) from JXN Water.
@3:32 is correct. You can call it an availability fee, or a monthly access fee, or a monthly base rate. But Jackson, Madison, Ridgeland, Bear Creek, CMU, Brandon, Flowood, etc. all have a flat fee even if you have ZERO usage. It is common in the water/sewer industry.
They are now “The City with Vision and Results.” That certainly sounds perfect for them
3:45, It could be that one of his meters is for irrigation. We use to have 2 bills: house bill with sewer and garbage pickup and a second one with only water usage (no sewer or garbage).
Carlton Reeves too.
Your reading comprehension is so piss poor you obviously missed where I wrote " I'm in favor of increasing rates to any levels sufficient to operate the system". Grow a brain.
One thing I find interesting....the one utility handled by the city of Jackson is totally screwed up.
All the other utilities (electricity, gas, cable) seem to have no problem providing a service, billing for that service, and shutting it down if not paid.
The one utility handled by Jackson.....feds took control because of the gerimandering, Ted comes in, does a good job UNTIL he decides that certain people need to pay more (remember the water cost associated with property). Legislature shut that down, so he decided that everybody but a select group had to pay the meter charge and fought everybody on that one. So. Ted, stop being a liberal, do the damn job you were hired to do. You came in rolling like a steam engine, fixing everything in sight. It was breathtaking. Now stop trying to force Peter to pay Paul. Its water. It doesn't have a race, it doesn't have a political party. Supply water, bill for it, collect for it, shut off if not paid.
And I will give Ted this, he has had to deal with every SOB who has tried to game the system to get free water for "their" friends.
@ 331, yes it does depend on what size the meter is. BUT, the smallest meters (5/8") are $40 per month - and the price goes UP from there depending on the meter size.
If the charges are both $40, as was claimed, then the irrigation meter should be reduced to the $10 fee. If the irrigation meter was larger, then the fee would be much higher than the $40 claimed. If it is the smaller size (which is the $40 fee for the first meter) then it would be lowered to the $10 if it is a second (irrigation) meter,
Judges aren’t qualified to know whether a rate increase is needed. Wingate got out of his swim lane on this one.
You people trust Bear Creek? I just read in the Journal that they're building a brand new office complex on their 'campus'.
Not to worry - They're at least as trustworthy as Entergy.
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