Jackson faces water rate hike as city strives to avoid default
THAT’S NOT A GOOD SOLUTION. WHERE’S THE MONEY? IF THEY SEND IN ALMOST $1 BILLION, LET’S START HAVING SOME ACCOUNTABILITY. MISS SPIVEY IS IN NEED OF RESOURCES AND HELP TO GET HER WATER BACK ON JACKSON. KENDALL JONES, 16, WAPT NEWS. JACKSON CITY COUNCILMAN BRIAN GRIZZELL SHARED HIS THOUGHTS ON THE JACKSON WATER RATE INCREASE. HE SAID HE’S DEEPLY DISAPPOINTED IN THE RULING TODAY. WHILE I RECOGNIZE THAT A REASONABLE INCREMENTAL INCREASE MAY BE NECESSARY TO ADDRESS THE REALITY T
Jackson faces water rate hike as city strives to avoid default
Jackson Mayor John Horhn demanded stronger accountability from JXN Water following approval from a federal judge of a 12% rate hike.Horhn announced Monday that the city is preparing to make upcoming debt service payments tied to its water system while urging JXN Water and federal partners to pursue better collections and clearer communication with residents “The determination of a 12% increase, equivalent to an additional $20.4 million in annual revenue, is not an arbitrary figure snatched out of the clouds. Nor was it an easy decision, in spite of the present necessity for this move,” U.S. District Judge Henry Wingate wrote in the ruling.In a Feb. 19 letter to the mayor, Ted Henifin, interim third-party manager for JXN Water, advised that because $54 million in federal funds reallocated by Congress in November 2025 are still not flowing to the utility, the city must pay more than $1.5 million in bond debt service on March 1, to avoid default. The letter also said that the city should be prepared to make an additional payment of more than $2.3 million on June 1, even with a court-approved rate increase, because new revenue would not arrive in time to cover those obligations in full.”Jackson families are already carrying a heavy load, and that is why I opposed this 12% rate increase,” Horhn said in a statement. “At the same time, we cannot and will not allow our city to default on its water debt. My responsibility is to protect residents from unnecessary hardship while keeping our system solvent and honest about what we owe.”The court also ordered many of Horhn’s requested actions to ensure that every reasonable alternative is pursued before additional burdens are placed on residents. JXN Water should expedite the identification and billing of currently unmetered or unbilled properties and provide quarterly progress reports detailing the number of new accounts added and the specific revenue impact of these additions. JXN Water should establish and maintain a physical, in-person site within the city where residents can bring complaints, resolve billing disputes, and receive help understanding their bills.JXN Water should create and make publicly available a simple “sample bill,” so residents can see, line by line, how charges are calculated and what each part of the bill means. The utility should also study the feasibility of the intervenors’ proposed tier threshold adjustments, including shifting the first tier from 50 CCF to 30 CCF, to be implemented once the system achieves initial solvency, so lower-volume users are better protected.JXN Water should develop and refine a strong but fair collections strategy for the estimated $74 million in outstanding arrears, with quarterly public reports on progress. This strategy should focus on collecting from those with the ability to pay, offering reasonable options for those who genuinely cannot pay, and reducing the need to lean on across-the-board rate increases.”Our position is simple,” Horhn said. “Jackson residents deserve a water system that is funded fairly, not on the backs of the people who can least afford it. We will meet our legal obligations, but we will also keep pushing for solutions that use existing tools like better collections, honest billing, and already-approved federal funds before asking every household to pay more each month.”The mayor said the city will advocate for transparency measures, such as quarterly reporting on new accounts, arrears collections, and the revenue impact of these efforts. “As this process moves forward, we will keep the people of Jackson informed,” Horhn said. “You will hear directly from us about what is happening, why decisions are being made, and what support is available. My commitment is to affordability and long-term stability for our water system.”
Jackson Mayor John Horhn demanded stronger accountability from JXN Water following approval from a federal judge of a 12% rate hike.
Horhn announced Monday that the city is preparing to make upcoming debt service payments tied to its water system while urging JXN Water and federal partners to pursue better collections and clearer communication with residents
“The determination of a 12% increase, equivalent to an additional $20.4 million in annual revenue, is not an arbitrary figure snatched out of the clouds. Nor was it an easy decision, in spite of the present necessity for this move,” U.S. District Judge Henry Wingate wrote in the ruling.
In a Feb. 19 letter to the mayor, Ted Henifin, interim third-party manager for JXN Water, advised that because $54 million in federal funds reallocated by Congress in November 2025 are still not flowing to the utility, the city must pay more than $1.5 million in bond debt service on March 1, to avoid default. The letter also said that the city should be prepared to make an additional payment of more than $2.3 million on June 1, even with a court-approved rate increase, because new revenue would not arrive in time to cover those obligations in full.
“Jackson families are already carrying a heavy load, and that is why I opposed this 12% rate increase,” Horhn said in a statement. “At the same time, we cannot and will not allow our city to default on its water debt. My responsibility is to protect residents from unnecessary hardship while keeping our system solvent and honest about what we owe.”
The court also ordered many of Horhn’s requested actions to ensure that every reasonable alternative is pursued before additional burdens are placed on residents.
- JXN Water should expedite the identification and billing of currently unmetered or unbilled properties and provide quarterly progress reports detailing the number of new accounts added and the specific revenue impact of these additions.
- JXN Water should establish and maintain a physical, in-person site within the city where residents can bring complaints, resolve billing disputes, and receive help understanding their bills.
- JXN Water should create and make publicly available a simple “sample bill,” so residents can see, line by line, how charges are calculated and what each part of the bill means.
- The utility should also study the feasibility of the intervenors’ proposed tier threshold adjustments, including shifting the first tier from 50 CCF to 30 CCF, to be implemented once the system achieves initial solvency, so lower-volume users are better protected.
- JXN Water should develop and refine a strong but fair collections strategy for the estimated $74 million in outstanding arrears, with quarterly public reports on progress. This strategy should focus on collecting from those with the ability to pay, offering reasonable options for those who genuinely cannot pay, and reducing the need to lean on across-the-board rate increases.
“Our position is simple,” Horhn said. “Jackson residents deserve a water system that is funded fairly, not on the backs of the people who can least afford it. We will meet our legal obligations, but we will also keep pushing for solutions that use existing tools like better collections, honest billing, and already-approved federal funds before asking every household to pay more each month.”
The mayor said the city will advocate for transparency measures, such as quarterly reporting on new accounts, arrears collections, and the revenue impact of these efforts.
“As this process moves forward, we will keep the people of Jackson informed,” Horhn said. “You will hear directly from us about what is happening, why decisions are being made, and what support is available. My commitment is to affordability and long-term stability for our water system.”