The battle over Jackson’s water system has reached a boiling point, and it’s not just the pipes that are under pressure. Interim Third-Party Manager Ted Henifin has fired back at the city’s recent financial report on JXN Water, calling it 'rich and hard to stomach.' But here’s where it gets controversial: Henifin argues that the city’s suggestions—like improving collections to avoid rate hikes—are not only unrealistic but also ignore the deep-rooted issues that led to the system’s failure in the first place.
In a detailed seven-page response, Henifin didn’t hold back. He pointed out that the city handed over a water system, sewer system, and billing system that were all broken. 'How could we reasonably expect customers to pay for services that didn’t work?' he asked. And this is the part most people miss: Henifin claims the city’s own mismanagement—like using general funds to cover water and sewer debt instead of relying on collections—is what led to the 2022 utility collapse.
The city’s report, made public on Monday, criticizes Henifin for not prioritizing billing issues sooner. But Henifin counters that restoring basic services had to come first. 'You can’t shut off water to force payment when the system itself is failing,' he explained. He also disputes the city’s claim that improved collections could eliminate the need for rate increases. Even if all customers paid their bills, he argues, the revenue wouldn’t cover operational costs, let alone the city’s massive debt obligations.
Speaking of debt, Jackson currently owes $169 million in water and sewer bond debt. While the city insists it’s never defaulted, Henifin reveals a troubling truth: the city has been supplementing its water and sewer fund with general funds for years. Is this sustainable? Or is the city just kicking the can down the road?
Adding to the tension, Henifin has withheld sanitation fees owed to the city after it failed to pay its own water bills—including a staggering $7 million bill from the zoo. 'Why should JXN Water do the city’s work for it?' he asks. Meanwhile, the city is exploring ways to collect sanitation fees separately, such as through property taxes. But here’s the kicker: Henifin agrees with one of the city’s points—rates for customers outside city limits should be reviewed. However, he wants this done alongside in-city rate increases to ensure fairness for all.
Central District Commissioner De’Keither Stamps remains cautious, saying Henifin must prove the system can be effectively governed and scaled. But the bigger question remains: Can Jackson’s water system be saved without significant rate hikes or external funding? Henifin is open to legislative grants and bond refinancing but insists a rate increase is unavoidable in the meantime. What do you think? Is Henifin right, or is there another way forward? Let us know in the comments—this debate is far from over.
