City faces financial crisis amid low water collection rates

In a recent government meeting, officials discussed the assessed property value in Jackson, which stands at $1.294 billion, covering fiscal years 2022 through 2025. The meeting highlighted the financial implications of this valuation, particularly for the Parks and Recreation Department, which has reached its maximum revenue cap of 2%. Future increases in funding for this department will depend on property value growth, which has been described as moderate.

Additionally, the meeting addressed the fiscal performance of the sanitation billing and collections managed by Jackson Water. As of June, the department has billed $13.5 million but only collected $9.2 million, resulting in a collection rate of 69%. Officials noted ongoing discussions with Jackson Water regarding payment discrepancies, particularly concerning the timing of transfers between the city and the water utility. The city has been forced to cover shortfalls in water and sewer collections, indicating a reliance on the general fund to support the enterprise fund.

These discussions underscore the financial challenges facing the city, particularly in managing utility collections and ensuring adequate funding for essential services.