Jackson Mayor John Horhn announced Feb. 23 the city is prepared to cover JXN Water’s million-dollar bond payment due March 1, while pushing for stronger accountability, improved collections and clearer communication from the utility and federal partners.
Horhn made the announcement Monday via a press release shortly after U.S. District Judge Henry Wingate approved a 12% water rate increase request brought forth by JXN Water.
The rate hike will raise the average residential water bill from approximately $76 to $85 per month, a $9 increase or roughly 12%. For most residents, that is an extra 30 cents a day. The rate increase is to cover operating costs and debt service, JXN Water said.
JXN Water — the utility headed by Interim Third-Party Manager Ted Henifin — previously informed the city via a Feb. 19 letter that it could not cover the March 1 bond payment of around $1.5 million due to insufficient revenue.
The utility also noted 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.
Horhn noted in the press release that a delay of $54 million in federal funds reallocated by Congress in November 2025 to JXN Water is forcing the city to pay the bond debt service to “avoid an event of default.”
The payment will mark the second time the city has covered the bond debt.
“Jackson families are already carrying a heavy load, and that is why I opposed this 12 percent 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.”
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Horhn noted that, despite the increase, Wingate granted several administration requests to avoid future rate hikes.
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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.
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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.
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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.
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JXN Water 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.
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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 wrote. “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.”
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Mayor John Horhn listens during a Jackson City Council meeting as seen in this Friday, Dec. 19, 2025, file photo.
Horhn said the city will continue working with federal partners to access the $54 million in reallocated funds to support the system and ease pressure on ratepayers.
Horhn said he will also continue pushing for transparency measures like quarterly reporting on new accounts and their revenue impact.
“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.”
Pam Dankins is the breaking news reporter for the Clarion Ledger. Have a tip? Email her at pdankins@gannett.com.
This article originally appeared on Mississippi Clarion Ledger: Jackson mayor on making bond payment despite JXN Water rate increase
