JXN Water, the third-party manager of Jackson’s water and wastewater systems, said in a quarterly report filed Friday that it will move forward with a rate increase on water bills it first requested this spring. The increase will go into effect by Dec. 15, the report said.

The rate increase, on average, would raise Jacksonians’ monthly bills — which also include costs for sewer and sanitation — by 12%, the utility said.

Ted Henifin, who heads the utility, has reiterated JXN Water is rapidly losing money because of inadequate revenue. In September, the utility said it was “currently insolvent.”

Henifin could not be reached Friday to confirm the utility’s plans to raise rates. JXN Water communications officer Aisha Carson said the report does not serve as an official notice of a rate increase. The quarterly update said JXN Water will issue an official notice to customers by Nov. 15.

Both Jackson’s mayor and city council have spoken out against the proposal, arguing it’s unfair to ask more from those who are contributing while about 30% of customers aren’t paying their bills. The city council voted in April against the increase, and Mayor John Horhn reaffirmed his position last week during a meeting with state lawmakers.

But under a federal court’s stipulated order that outlines the scope of Henifin’s powers and responsibilities, the court allows the utility to proceed with a rate increase without the city’s approval and as long as more than a year has passed since the last rate hike. JXN Water first increased rates in February 2024.

U.S. District Court Judge Henry Wingate, who appointed Henifin to his role in 2022, said during hearings this summer the utility should explore all other avenues for funding, including collections from apartment complexes with large debts, before raising rates. Over the last year, JXN Water has pressured apartment complexes to pay their debts leading to shutoffs and ongoing lawsuits. It’s been months, though, since Wingate has last discussed the proposal, and it’s unclear if he plans to address the matter anytime soon.

Henifin’s frustration with the judge’s stance came out during a July hearing where the utility manager threatened to quit, although he walked back the statement soon after.

In response to Wingate and city officials, Henifin maintained that even if all customers paid their bill at the current rates, JXN Water would still lose money. The utility estimated in September that it was losing $3 million a month.

The quarterly update also addressed $54 million the utility asked Congress to reallocate for operating funds. The money was originally part of $450 million in federal funding set aside for larger projects.

While the money was held up as part of the ongoing federal government shutdown, JXN Water said it expected Congress to pass the funding bill “in the coming days,” and that the Environmental Protection Agency would issue the money to the utility in a new grant. But, the report added, the utility wouldn’t be able to access the $54 million until early 2026.

Mississippi Today reached out to Wingate’s office for a comment Friday but did not hear back.