Third-party water and sewer utility JXN Water clarified on Wednesday that its manager Ted Henifin isn’t considering a resignation following a dispute with the federal judge who appointed him to the role in 2022.

During a status conference Tuesday, Henifin told U.S. District Court Judge Henry Wingate he would weigh whether to step down after the judge pushed back on the manager over two issues, including a rate increase JXN Water first proposed five months ago to keep its daily operations funded.

“I think it has been a difficult week for JXN Water, specifically the leadership,” Aisha Carson, the utility’s communications officer, told Mississippi Today. “But I think (Henifin) is very much committed to the work we’re doing in Jackson. I just think he’s also very protective and can sometimes get frustrated by the process that decisions have to go through.”

Carson said Henifin cleared up any confusion to JXN Water staff after the status conference, adding it’s “safe to say” the manager isn’t considering resigning at this time.  

“We know (the rate decision) will continue to move through the legal process, and there’s really nothing we can do about it per se,” she said. “We trust the legal process no matter how frustrating it can be. We don’t want to regress on progress. (Henifin) is still acting as the interim third-party manager, and will be for the foreseeable future unless he states otherwise.”

Wingate said at another hearing earlier this month, and reiterated Tuesday, that he wouldn’t consider the rate hike before locating every dollar from a $90 million settlement the city of Jackson executed with Siemens in 2020. The judge argued it’s unfair to ask for more from Jacksonians when there may be more money that could help JXN Water. 

“Constantly I ask the question: Where is that money? Where has it been deposited?” Wingate said. “I’ve been disturbed about this matter, highly disturbed.”

Henifin, though, has repeatedly pointed out to Wingate that even if he had every cent from the settlement – which was $60 million after the city paid its lawyer fees – the utility would still need to raise rates. Jackson City Attorney Drew Martin also suggested at the last hearing that the city has already spent almost all of the remaining settlement money. 

The third-party manager is proposing a 12% rate increase, or about $9 per month on average, it says, in addition to 4% increases from 2027 to 2029 to cover costs of inflation. It would be the second time in as many years JXN Water has raised its rates.

The utility says it needs $148 million a year in revenue, which includes $115 million for operating expenses, about $24 million for debt payments, and $9 million to build reserves. Henifin has said the utility initially underestimated how much revenue it needed due to the poor accounting it received from Jackson officials when it took over after the 2022 water crisis. 

Henifin and Wingate also butted heads after the manager sent the judge a list of names for a potential voluntary board that would be needed if JXN Water were to borrow money through bonds. While Carson, JXN Water’s spokesperson, said Henifin did so merely to show the judge what the governance structure would look like, Wingate told the manager the board selection process should be independent of Henifin. JXN Water declined to share the list of names Henifin submitted. 

It’s unclear still when Wingate will rule on Henifin’s proposal for a rate increase. During Tuesday’s status conference, Jackson’s Deputy City Attorney Terry Williamson said he’s still reviewing documents from the Siemens settlement. Wingate issued subpoenas to several parties to track the funds down, most recently on July 22. Several of those subpoenas have yet to be returned, court filings show. 

Jackson’s City Council voted in April against the water rake hike, saying the utility first needs to improve its bill collection rate of 71%. Henifin, though, maintains that even with 100% collections JXN Water would be short of its revenue needs by at least $33 million this year. He said Tuesday that it would take three years to bring it up to 95%. 

Henifin also said Tuesday that the city itself owes about $4.6 million in water bills, and Wingate said the Jackson Zoo owes $2 million. 

Reporter Maya Miller contributed to this story.