Mayor John A. Horhn announced today that the City of Jackson is preparing to make upcoming debt service payments tied to the city’s water system while pressing JXN Water and federal partners for stronger accountability, better collections, and clearer communication with residents.
In a February 19 letter to Mayor Horhn, the 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, 2026, to avoid an event of default. The letter further notes that the City should be prepared to make an additional payment of more than $2.3 million on June 1, 2026, 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 percent rate increase,” Mayor Horhn said. “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 Mayor Horhn’s requested actions to ensure that every reasonable alternative is pursued before additional burdens are placed on residents.
1. Identify and bill unmetered and unbilled properties
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.
2. Restore an in-person customer service presence
JXN Water should establish and maintain a physical, in-person site within the City of Jackson where residents can bring complaints, resolve billing disputes, and receive help understanding their bills.
3. Provide a clear “sample bill” to the public
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.
4. Study a fairer tiered rate structure
JXN Water should 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.
5. Pursue a vigorous, fair collections strategy for past-due accounts
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,” Mayor 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 City will continue to:
- Coordinate with federal partners to unlock the $54 million in reallocated funds so they can support the system and relieve pressure on local ratepayers.
- Advocate for transparency measures such as quarterly reporting on new accounts, arrears collections, and the revenue impact of these efforts.
- Provide clear, simple information to residents about the timing and impact of any rate change on typical bills and where to seek assistance if they are at risk of falling behind.
“As this process moves forward, we will keep the people of Jackson informed,” Mayor 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.”
For more information, please contact the Mayor’s Office of Communications at (601) 960-0462.
