Jackson’s water and sewer systems would remain outside city officials’ control under a proposal by a federally appointed manager that would establish an independent, customer-governed authority to oversee the troubled utilities.

The 36-page transition plan JXN Water released Thursday blamed Jackson leaders for “decades of failure and the ultimate collapse of the water system.”

The manager, Ted Henifin, was especially blunt: “At bottom, there is no case to be made to return governance to the City in the foreseeable future.”

Henifin’s proposal would create a separate governing entity from the Metro Jackson Water Authority state lawmakers established earlier this year. A federal judge has partially blocked the state-created authority amid a legal challenge from Jackson officials over who should control the utilities once federal oversight ends.

During his State of the City address earlier this week, Jackson Mayor John Horhn acknowledged the ongoing strife.

“Our relationship with JXN Water has been tested. We are now having serious conversations about what comes next when the current arrangement ends,” he said.

“Let me be clear: Jackson owns these water assets. Jackson carries the debt. And the people of Jackson have a legitimate interest in the future of their water system.”

Henifin, who is expected to step down by July 2028, would be replaced by a court-appointed chief executive to lead the new authority – which could be in place as soon as next year.

The proposed authority, which would need court approval, would assume responsibility for the utilities while remaining under federal oversight. That oversight could end by December 2029.

In 2022, U.S. District Judge Henry Wingate placed Jackson’s struggling water system under Henifin’s control following a crisis that left much of the city without reliable running water. The following year, he placed Jackson’s sewer system under Henifin’s control, also.

Under Henifin’s plan, a federal judge would appoint the initial members of the authority’s governing board, with future members elected by ratepayers.

While Henifin considered privatizing the water and sewer systems, he concluded that doing so could prioritize profits over much-needed long-term investments.

Earlier this year, Henifin floated the idea of selling the city’s water and sewer system to an independent authority. The proceeds, he said, could help the city retire roughly $121 million in utility debt, potentially reducing the need for future rate increases.

The idea drew opposition from City Council members, some of whom argued that Jackson should not be forced to surrender ownership of its infrastructure.

Henifin’s transition plan outlines several possible scenarios for governing Jackson’s water and sewer systems.

His recommendation to establish an independent authority, he said in the report, would make it easier to get financing for infrastructure improvements and protect the system from political influence.

That influence is a key reason for his rejection of the legislative remedy adopted earlier this year. The Metro Jackson Water Authority would have board members appointed by  the governor, lieutenant governor and the mayors of Byram, Ridgeland and Jackson. Jackson’s mayor would also serve as a non-voting ex-officio member.