JXN Water manager Ted Henifin told U.S. District Court Judge Henry Wingate Tuesday that the utility plans to sue the neglectful apartment complexes that owe millions between them on their water bills and left tenants with little choice than to move immediately.
During a two-day status conference this week where the utility proposed to raise rates for the second time in as many years, residents and city officials told Wingate that JXN Water should first have to raise its collections rate — which is around 70%, far below the national average — before charging more to those who do pay.
“To inflict another rate increase on the people who are playing by the rules is onerous to the city and its economic development,” Jackson Ward 1 Councilman Ashby Foote said.
Henifin emphasized repeatedly that even with 100% collection, the current rates would leave the utility about $33 million short of its annual budget needs when accounting for paying off debts and building reserves.
Ted Henifin speaks during a press conference at City Hall in Jackson, Miss., Monday, December 5, 2022. Henifin was appointed as Jackson’s water system’s third-party administrator. Credit: Eric Shelton/Mississippi TodayThe utility announced the proposal earlier this year after realizing it would soon run out of the $150 million in federal funding it received for operations. Henifin said he’s hoping to tap into some of the $450 million Jackson received for project spending, but added that will only cover operations for the short term. Wingate has the final say over the rate proposal, and said he would make a decision as early as next week.
JXN Water initially said the average single-family residence would see a roughly 12% increase, or about $9 a month, although it came out during the status conference that renters in apartment complexes may see a steeper rate hike.
In one exchange, Wingate asked Foote where else the money could come from. The recently reelected councilman shrugged, suggesting JXN Water look for other sources.
“That sounds really good,” the judge replied sarcastically. “What miracle do you have in mind?”
Hearing Foote’s and others’ concerns, though, Wingate asked Henifin how the utility plans to collect unpaid water bills from those who owe the most. There are 15 apartment complexes, largely run by out-of-state landlords, that owe a combined $5.7 million, JXN Water said. Henifin said he plans to sue them to force payment before considering shut offs. He estimated there are roughly 7,500 residents living on those properties, and said the landlords are “calling our bluff” as far as shutting off water to that many people.
In total, Henifin added, about 15,000 of the city’s water accounts — or about one in five — are still not paying.
A sign marks the entrance to Chapel Ridge Apartments, Thursday, June 12, 2025, in Jackson, Miss. Credit: Eric Shelton/Mississippi TodayAn “affordable” combined water and sewer bill, according to Environmental Protection Agency’s recommendations, is no more than 4.5% of a person’s income. The proposed increase, Henifin said, would bring bills to 2.4% for the median Jackson household, but 5.7% for the city’s bottom quartile of earners.
The utility’s SNAP recipient discount, which the utility hasn’t fully applied due to a legal roadblock, would bring that number down to 3.7%, he said, and he hopes to partner with the Mississippi Department of Human Services to boost enrollment in the benefit.
Robert Ireland, an attorney with Jackson law firm Watkins & Eager PLLC who said he represents tenants in several apartment complexes, presented data during Monday’s status conference suggesting such customers would see a much steeper increase with the new rate hike than the average resident JXN Water described.
The utility uses a tiered rate structure that charges more per gallon for higher levels of water consumption. Because tenants in those complexes share a meter with the rest of their building, Ireland explained, their consumption is grouped together and is thus more expensive than it would be if they had separate meters. Ireland estimated for the 15,000 accounts at Jackson’s largest apartment complexes, they would see an average increase of $21, or more than double the increase JXN Water presented.
“I’m trying to push back on the notion that this is just going to be a small increase,” he told Wingate.
Aisha Carson, the utility’s communications officer, said JXN Water didn’t have an average for how much tenants of complexes would be paying under the new rates. Rates for complexes are calculated differently depending on the size and number of meters there, she explained.
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