A controversial, state-created water authority set to take over Jackson’s water and sewer systems is now limited by a partial federal injunction announced on Monday. By design, the Metro Jackson Water Authority would only take over after the end of an ongoing federal receivership.
U.S. District Court Judge Henry Wingate granted in part and denied in part a request from the city to enjoin the water authority from moving forward. State lawmakers created the authority, under House Bill 1677, this past legislative session. A nine-member board would run the new utility with appointees from state and local officials. Jackson leaders have protested the law for not giving the city a majority of appointees.
Under the injunction ordered Monday, the authority and its board cannot take any action other than appointing and seating board members.
“The Authority may not at this time, select a Board President, unless and until this court gives approval,” Wingate’s order said. “The Authority shall enact no regulatory measures, finalize no lease agreements, issue no bonds, and assume no managerial influence or deputy control over Jackson’s water and sewer systems unless and until this court explicitly alters this decree or determines to relinquish its ongoing authority over the systems.”
In its request for an injunction, the city argued HB 1677 interfered with the federal receivership Wingate initiated in 2022. In an order placing Jackson’s sewer system under the receivership, Wingate tasked receiver Ted Henifin with creating a transition plan by Oct. 5.
As things stand, the judge wrote, HB 1677 doesn’t interfere with his 2022 order because it only takes effect once the court allows Henifin and his company, JXN Water, to step down. Moreover, Wingate could reject the Metro Jackson Water Authority altogether.
“The state law, in this court’s eye, simply stands as an unexecuted contingency—a structure waiting in the wings,” Wingate wrote. “If this court decides to reject the Authority as a viable successor entity within the final transition framework, the Authority cannot assume control.”
Even so, the judge specified three ways the water authority law “attempts to encroach upon” his role overseeing Jackson’s utilities:
First, by creating a specific governance model, the state law attempts to narrow the options for a succession plan available to the court. Second, the state law says the president of the water authority would serve as Henifin’s deputy, disrupting the “inner management” of JXN Water. And third, the state law requires the authority to immediately negotiate a lease of the water and sewer assets with the city, in addition to allowing the authority to issue bonds as soon as July 1. Such actions would “infringe upon” the court’s rule overseeing the utility systems’ finances.“This court is persuaded that the potential insertion of a state-appointed official into the operational hierarchy of the (interim third party manager) risks creating an administrative dichotomy that could fracture the unified command necessary to rehabilitate Jackson’s infrastructure,” Wingate ruled.
Officials so far have named most of the nine board members. Lt. Gov. Delbert Hosemann chose Jackson businessman Sandy Carter, the city of Ridgeland named its city engineer, Paul Forster, and the city of Byram chose WGK engineer Tramone Smith.
Jackson Mayor John Horhn selected Daniel Walker, a water treatment professional, as well as longtime politico Austin Barbour and Jackson businesswoman Shirley Tucker. The Jackson City Council, though, still has to confirm the mayor’s picks.
Gov. Tate Reeves last month declined to name his two selections, citing Wingate’s initial temporary injunction against the water authority. Reeves and Horhn have to consult over the ninth board appointee.
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