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Legality of Water-Sewer Plan Uncertain

Complaints over increased water and sewer rates have continued, even after the Jackson City Council passed the 2013-2014 fiscal-year budget.

Complaints over increased water and sewer rates have continued, even after the Jackson City Council passed the 2013-2014 fiscal-year budget. Trip Burns

The city of Jackson's water and sewer rate increases included in the city's 2014 budget will go into effect in 30 days, and the first bill to reflect those rate increases will go out in December. Right now, it's unclear if the promised relief for residents on fixed incomes will be available at the same time—or how it can legally be done.

The program includes at least $175,000 for low-income people who can prove they cannot afford the extra expense for the increased rates. The task of setting up the program, which city leadership hopes to have in place before bills reach customer mailboxes this month, is left to Michael Raff, director of Jackson's Health and Human Services Department.

Raff said he's "hopeful" that the program will be in place, but indicated that the program has to clear legal hurdles, and that the city attorney's office is still looking at the proposal. Details are not available, but former City Attorney Pieter Teeuwissen, who officially left his post Sept. 30 to take a similar job as an attorney for the Hinds County Board of Supervisors, explained that the city can't simply give money to its citizens.

"The program was proposed last year," Teeuwissen said. "At that time, our legal department opined that it would be considered a gratuity if the city came up with the system and distributed the funds, and you just can't do that; however, non-profits are allowed by statute. We give money to Stewpot, Habitat for Humanity, and the Boys and Girls Club, so this system would have to be set up similar to those programs. They'll have to develop their own rules and procedures, but it should work well."

The Hinds County Human Resource Agency, a non-profit entity, has offered to distribute the funds at no cost to the city. The organization already distributes funds through 10 separate income-based programs, including one that helps low-income Hinds County residents pay their energy bills.

Mayor Chokwe Lumumba raised water and sewer rates as part of his first budget, which a majority of the Jackson City Council approved Sept. 12. The increases are necessary in light of the city's crumbling infrastructure and a $380 million consent decree from the Environmental Protection Agency to fix the wastewater management system.

Jackson, by comparison, has some of the lowest rates in the southeast. City statistics state that the average monthly sewer bill in Jackson is $15.66. With the increase, that number doubles to $31.33, which is still lower than Atlanta; Birmingham or Huntsville, Ala.; Charleston, S.C.; Little Rock, Ark.; Louisville, Ky.; New Orleans and St. Louis, Mo. (See sidebar).

If you combine water and sewer payments, the total increase is 40 percent. For the average Jackson homeowner, the bill increases from $52.76 a month to $73.92. Even with the extra $21.17, Jackson's rates are still well below those other city's rates. After the increase, the average annual water and sewer bill is roughly $887.

What the city has done is not unusual. Faced with a similar situation, Baltimore increased its rates 42 percent on water and sewer last year. Birmingham raised its water rate 4.9 percent this year, and the leadership of Shreveport, La., voted to raise its water and sewer rates by 13 and 55 percent, respectively.

But the reality is that many Jackson budgets don't have a lot of leeway. U.S. Census data reveal that the city's per capita income in 2011 was $19,301, and the median household income was $34,567. Nearly 28 percent of Jacksonians live below the poverty level.

The rates in other cities don't mean much to Jackson resident Joe Harvey. The Jackson retiree, who lives at 4031 California Ave. in the heart of Jackson, was one of the concerned citizens who attended the mayor's town hall meeting at Progressive Missionary Baptist Church Sept. 11.

"Those numbers they are putting out aren't worth the paper (they're) printed on," Harvey said. "Atlanta is a big city. There's a lot of industry and a lot of jobs. That's why they pay more. Right now, we have people coming into Jackson, earning income, and taking their money to McComb, Vicksburg, Meridian, Rankin County and Madison. I say we find a way to get them to help. They run on the roads, use the water, and go back and spend their income and pay their taxes somewhere else."

Harvey had heart surgery in 1995 and has been living on disability and Social Security ever since. He lost one of his kidneys, and is required to drink a lot of water every day. The water at his house, he says, is undrinkable, so he buys $40 worth of bottled water every week at Sam's.

"We have Medicaid and Medicare, but I have had bypass heart surgery, a kidney stone, and now I have an aneurysm, and they say I have to go back," he said.

"My wife gets $500 a month, and our total income is $1,600 a month. I am paid up now on my medical bills, but we are already scraping by, so my expense on water is really affecting us."

Harvey said his average water bill is around $100. While he is looking into getting his household on the city's payment assistance program, he said he has been denied in the past because he was told his household income is too high.

The city bills water customers every two months, and Jacksonians will see the first bills with the new rate for October. September's portion of the bill will be at the old rate. Ratepayers will see the full increase in November/December bills.

For folks like Harvey, details of the city's plan an assistance program cannot come fast enough. At this point, it's unclear whether he would even qualify for the program, much less how to access the benefits.

"I'm not the only one that this will hurt," Harvey said. "I talk to people in my neighborhood all the time that have it tough. If all the people that got their rates increased would get up off their behind and show up, there could have been standing room only (in the town hall). I'm not the only one sitting on fixed income. People needed to let them know how they felt."

How Jackson's Rates Stack Up

City Avg. Bill Avg. Income

Atlanta, Ga. $50.06 $43,903

Louisville, Ky. $42.10 $33,175

Little Rock, Ark. $40.09 $40,976

Birmingham, Ala. $38.00 $28,646

Huntsville, Ala. $34.48 $45,018

Baltimore, Md. $33.19 $38,721

St. Louis, Mo. $32.95 $32,570

Jackson, MS* $31.33 $19,301

New Orleans, La. $29.80 $35,041

Charleston, S.C. $27.50 $49,284

*This is a monthly breakdown of average water bills. Jackson sends out bills every two months, so the average bill in Jackson is $62.66 for two months of service.

Comments

justjess 10 years, 6 months ago

*Many Churches here in Jackson are reporting long lines of people waiting each Sunday morning to be approved for help or full payment of their utility bills. I'm sure that by now, this Administration is aware of the fact that they can not use tax payer dollars to pay the utility bills of others.

The sum of $178,000 was given as the set-aside fund for people with financial hardships and the inability to pay their bills. Based on the number of people/families living in poverty here in the City of Jackson, that fund would be exhausted during the the first 2mo. billing cycle. This is crazy! "The Can Being Kicked Down The Road" or slogan adapted by this Administration needs to be re-thought-out. What this really meant was an opportunity for citizens in Jackson to participate in a workable payment plan. Having an increase of 108% will severely impact many people who are struggling to keep their heads above H2O. This is not a community of people being difficult: It is a community of people sharing their reality.

Please remember that this State has rejected the expansion of Medicaid. Many people will be trying to find funds to pay medical bills and to buy Rx Drugs.

Just saying.

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Knowledge06 10 years, 6 months ago

justjess, I understand the concern of you and others regarding the rate increase but I believe a more constructive conservation would be finding ways to increase the set-aside for those with financial hardships. The City's initial funding amount can be built upon by opening the fund up to contributions from individuals, businesses and those churches with the long lines. As stated in the article, a nonprofit has already come forward to offer their infrastructure in disbursing those collected funds as needed. The organization already distributes funds (from federal grants) for people who have financial hardships with electric and gas bills. This is a simple answer to a complex situation.

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justjess 10 years, 6 months ago

@Knowledge

"....The organization already distributes funds (from federal grants) for people who have financial hardships with electric and gas bills. This is a simple answer to a complex situation."

The problem here is that $178,000 of tax payer dollars have already been set aside .
according to this Administration's budget report. The reality of this situation is that this money can not be used to pay the utility (water) bills for people who are experiencing hardships.

Until the "City's initial funding amount" can be built upon, we must deal with what is real and also what is reasonable. There hasn't been any dialogue about grants, approaching businesses or churches to put funds in place for this function of City government.

I just don't think that this has been a well thought out course of action.

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