TLDR: Congress approves $600MM headed to Mississippi’s Capital City, Jackson to be used for capital improvements for the city’s water system. But the timing of the impactful legislation is contrasted by escalating problems with the city’s water system as citizens experience a boil water notice and low pressure challenges on Christmas Day.
Jackson, Mississippi has been experiencing a rush of attention for a myriad of reasons this year but one in particular is not a source of pride for those that share a love for Jackson. The challenges that ultimately lead to the failures of the water treatment and distribution systems in Jackson have been brewing for quite a while and didn’t go over well on the national news circuit. Although Mayor Lumumba and Governor Reeves responded as if this would be a joint effort with utmost urgency to provide a solution and stability, the situation appeared to be escalating and heading in the wrong direction as press conferences got tense and the unified approach deteriorated. For many, watching it play out on local news was tough to watch and reached a low when Gov. Reeves was captured on video at an event in Hattiesburg stating it was, “a great day to not be in Jackson.”
Both appeared to have a different idea about what would be the best path forward as Gov. Reeves expressed a state takeover of the city’s water system was on the table meanwhile Mayor Lumumba made it clear capital investments to improve the system was the best way the state could help. Mayor Lumumba has stated several times that it would require close to $1 billion to address all the needs associated with the city’s water system and his office has been diligent in securing the support and capital needed to restore Jackson’s water system. For a while it appeared that Mississippi’s capital city was on a similar path as Flint, Michigan but with the support of the NAACP and some influential voices on capital hill (ironically some of Mississippi’s own representatives did not support this bill), a bit of light could be seen as one of the last bills for this congress was announced.
The omnibus spending bill is hearty and implements a number of changes and allocations worth reviewing separately but one that caught our attention is the $600,000,000 that was allocated to the City of Jackson. This bill would be a major step in the right direction by providing the necessary resources and tools for the independent third-party manager, Ted Henifin (assigned by the Department of Justice earlier this year), to oversee the city’s compliance with the EPA’s requirements. Majority of the funds are earmarked for capital improvements with the remainder reserved for technical assistance and training.
Of course these resources don’t come without strong oversight by the EPA who will produce an annual report to the House and Senate until the funds have been obligated.
Jan. 2023 - Update (1/28/23):
Earlier this month Mayor Lumumba hosted a press conference with Henifin to announce the passing of the bill that will send $600MM in federal dollars to Jackson. In the same press conference he announced that through other efforts his office has been able to raise another $100MM dollars in grants and funding.
Just this week Henifin released the fiscal plan that outlines the timeline, budget, and strategic actions for addressing Jackson’s water infrastructure and customer experience. There were two points in the plan we thought would be worth sharing:
Water Meters & Bills - Henifin seems to understand the public has completely lost faith in Jackson’s metering system. Instead of fighting the uphill battle to restore the public’s confidence, he proposes a system of billing based on an assessed value. "For some, it will be high, but for many, it will be low," Henifin said. "We know we can generate the revenue we need with this particular model." Henifin said the assessment plan will generate $20 million a year in capital improvements money year after year.
This is something we have experienced first hand as we push forward with our development plan for our Jackson portfolio. We received new meters but have still experienced incorrect bills with no service.Debt - Henifin plans to use $290 million to pay off existing debt. Although it only costs about $50 million to operate the water and sewer system, there is an additional $23 million in debt that is added to the balance sheet. Paying off this debt would remove that burden while still leaving enough resources to put toward capital improvements.