A recent financial plan from JXN Water, the court-appointed receiver in charge of rebuilding the capital city’s water and sewer infrastructure, is now proposing Jackson sell the systems altogether. The idea comes amid the utility’s call for yet another set of rate increases.
In February, U.S. District Court Judge Henry Wingate, who is overseeing the receivership, greenlit a 12% rate increase after a drawn-out debate. Through court hearings that spanned nearly a year, JXN Water faced pushback from local advocates and city officials who blamed the utility for driving up costs to a point where rates would become unaffordable for residents.
Pay your water bill kiosk at the JXN Water office building, located at 1054 Greymont St. in Jackson, Tuesday, Aug. 25, 2026. Credit: Vickie D. King/Mississippi Today
JXN Water is now saying it needs to increase rates again in 2027 by 10%, followed by 9% and 8% hikes in 2028 and 2029, respectively. Those numbers are a stark jump from figures the utility mentioned in court hearings last year, where it said it would need 3% annual rate increases from 2027 to 2029.
But Ted Henifin, the head of JXN Water, said the city could reduce the need for rate increases if it sold its water and sewer infrastructure. With the revenue it would get from selling those assets, the city could pay off significant debt that’s driving the need for rate increases, Henifin explained in the August financial plan.
“What it does is create greater financial stability for the system, which lessens the need for larger rate increases in the future,” JXN Water told Mississippi Today.
The idea comes as city and state officials, as well as Wingate, are deliberating what to do with Jackson’s water and sewer systems once JXN Water’s interim control is over, which the utility projects to be in 2027. The Mississippi Legislature approved a plan this past session to put the systems under a regional authority, but Wingate halted the state law in June.
Under the judge’s orders, Henifin has to propose his own transition plan, which is due near the end of September.
Jackson City Council members, who repeatedly have publicly criticized JXN Water over the last year, pushed back at the utility’s latest proposal. Ward 7 Councilman Kevin Parkinson said while he doesn’t think the city is ready to regain control of the water system, Henifin’s idea to sell it is a bridge too far.
“ I think the city is not well positioned to take over that water system anytime soon, but I don’t think that should mean the city has absolutely no say and should be forced to sell off its assets,” Parkinson said. ”I’m all for creative solutions, but I’m hoping that those can involve the city having a seat at the table.”
Jackson City Council member Kevin Parkinson listens during a council meeting at City Hall in Jackson on Tuesday, April 21, 2026. Credit: Eric Shelton/Mississippi Today
Ward 2 Councilwoman Tina Clay went further, arguing the infrastructure should return to city control once JXN Water’s term has ended.
“ I am totally against the concept saying that the city of Jackson can’t run its own water department,” Clay said. “ When it left the city, it was run down, it was torn up, it was broken, the city had no money. But now that it’s fixed, the city can run the water department. Anything that’s broken and with no money, nobody can run effectively.”
The councilwoman disagreed with recent comments from Mayor John Horhn, who said it was unlikely the systems would come back under city governance.
“That should not be a thing of the past,” she said. “ Jackson State (University) has an engineering department. We have a lot of resources that we can reach out to. We don’t have to give up and give away things.”
Ward 2 City Councilwoman Tina Clay asks questions of City Attorney Drew Martin about a draft regarding data centers at a City Council meeting held Monday, July 6, 2026, at City Hall in Jackson. Credit: Vickie D. King/Mississippi Today
Under the proposal, whatever authority assumes control after JXN Water would take out a tax-exempt bond to give the city the $121 million needed to pay off its outstanding debt. Henifin said the tax benefit “hinges on the new authority not being connected to the city or under city control.”
“(T)he Internal Revenue Code allows the bonds issued to finance the acquisition price to be issued on a tax-exempt basis, as long as JXN Water (or its successor) is not related to the City for federal tax purposes,” according to the financial plan.
Horhn’s office did not respond to repeated requests for comment.
Mississippi Today asked to clarify whether JXN Water outright supported the idea of Jackson selling its infrastructure, to which the utility responded in an email, “Yes.”
Other council members said they needed a chance to review JXN Water’s proposal, but most were skeptical about increasing water rates again. Ward 1 Councilman Ashby Foote said the collection rate — which the utility said has now climbed above 80% — needs to improve before charging more to those who already pay their bill.
JXN Water offices, located at 1054 Greymont St. in Jackson, Tuesday, Aug. 25, 2026. Credit: Vickie D. King/Mississippi Today
Ward 4 Councilman Brian Grizzell said the city should have increased rates earlier to avoid the huge jumps customers are seeing now. The increases Henifin proposed are too much for Jacksonians, he said.
“At some point, we have to recognize that affordability matters just as much as financial sustainability,” Grizzell said.
“Ratepayer input and city ownership of the assets are not mutually exclusive,” JXN Water said in response to concerns over the city losing its voice in governing its water and sewer systems. “This proposal does not mean ratepayers go unrepresented, and it does not mean the city loses its voice in how the system is run.”
The utility told Mississippi Today it is still drafting its transition plan, and will “have more to share as it progresses.”
