Jackson MS Water has $6M in outstanding bills but only $73K in the bank - Clarion Ledger

Jackson MS Water has $6M in outstanding bills but only $73K in the bank

JXN Water owes $6M in outstanding invoices raising concerns over trust, reputation, judge says
Pam Dankins

JXN Water has $6 million in outstanding bills and contractor invoices but has only $73,000 in the bank, federally appointed Third-Party Jackson Water Administrator Ted Henifin told federal U.S. District Judge Henry Wingate in a Tuesday status conference.

Henifin said the budgetary shortfall is making it difficult for the company to pay contractors in an early and timely manner.

The current time window JXN Water has to pay a contractor is within 30 days, but Henifin said he would like to pay contractors for the completed work within one-to-two weeks.

Henifin supports state controlled water: Jackson MS water system takeover by state supported by water administrator Ted Henifin

To settle payments earlier rather than later, Henifin said JXN Water has reached out to the Environmental Protection Agency to receive approximately $10 million in grant funds. But since the end of December and into January, Henifin said JXN Water has been in "limbo" regarding if and when the funds to pay off the balance would be allocated.

In light of that situation, Wingate drew parallels to the City of Jackson's previous problems with delayed payments. Wingate raised concerns over whether the "awful reputation" Jackson has with paying bills would affect JXN Water's ability to maintain trust with contractors and the citizens of Jackson.

"We can't set up a system without accountability," Wingate said.

In response to those concerns, Henifin said the company is committed to maintaining a good reputation and strong relationships with their contractors and the people of Jackson. But without the necessary funds, the company is backed into a tough situation.

"That's not how you build trust; that's not how you build relationships," Henifin said.

Karl J. Fingerhood spoke on behalf of the plaintiffs in the case, which includes EPA, saying the grant process is "complex." He said the agency would like to explore discussions further with all parties involved in the matter before any legal action is enforced by the defense.

Legislators on control of water system: Jackson MS water system faces second takeover attempt in Mississippi Legislature

Frank Paul Calamita III, one of Henifin's lawyers, said that Henifin is working to change "decades" of reputation and is "competing" with surrounding utilities to maintain contractors. Calamita said without the proper funds, Henifin won't be able to fund the contractors doing "good work" for the city, which will impact the citizens of Jackson.

"Our citizens have suffered far too long," Calamita said. "Paying promptly isn't in 30 days."

Fingerhood said the agency believes that a 30-day window to pay contractors is a reliable solution, considering to his knowledge JXN Water has not had any issues with paying in the time frame.

He said it could be two-to-three weeks before EPA's final decision on whether JXN Water will receive the grant.