MississippiHB 16772026 Regular SessionHouseWALLET

Metro Jackson Water Authority Act; create.

Sponsored By: Shanda Yates (Independent)

Signed by Governor

State AffairsWays and MeansEnergy

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 4 benefits, 2 costs, 6 mixed.

New authority to run Jackson water

The law creates the Metro Jackson Water Authority to plan, run, and fix water and sewer systems. A majority of its board starts the authority, and it takes control when the federal court ends the interim manager or earlier by court order. The authority can lease Jackson’s systems, with the lease lasting at least until all bonds are paid. The state may pay reasonable consultant costs and, until takeover, the president’s salary, subject to funding. Pending permits move to the authority, and the city stays the recorded owner for property tax purposes unless the lease says otherwise.

Stronger protections for water system bonds

The law strengthens financing for the new water and sewer authorities. Authority property and bond income are exempt from state and local taxes, except inheritance and gift taxes. Bonds are paid only from pledged system revenues and are not state debt. They are legal investments for banks, insurers, and trustees, and can secure public deposits. Trustees and courts can protect bondholders, including appointing a receiver to operate systems, and validated bonds cannot be challenged later.

Water rates and late penalties

The authority sets water and sewer rates to cover operations, repairs, reserves, and debt. It must do an independent rate study every two years; if two in a row say an increase is needed and rates have not risen in two years, it must raise rates. When it sells bonds, it can promise to set rates high enough to meet payments. If you do not pay, service can be cut off and fines up to $100 per day can apply.

City property tax for garbage service

Your city can add a property tax up to 4 mills to fund garbage and rubbish service. It applies only to taxable property inside the service area. A mill is $1 per $1,000 of taxable value. The tax appears as a separate line on your tax notice.

Bonds and refinancing for water systems

The authority can borrow and sell revenue bonds and interim notes, with bond terms up to 40 years, to fund water and sewer projects. It can pay or refinance city water and sewer bonds. Beginning July 1, 2026, it can issue special revenue bonds to refinance existing debts. It can also issue refunding bonds to retire old bonds. Most new bonds must be validated in chancery court with public notice to affected communities.

Cities can pledge garbage fees to debt

In cities with 100,000+ people, part of garbage fees may be pledged to pay bonds for water, sewer, or drainage until the bonds are paid. Those bonds get an automatic lien on the pledged fees. Cities may borrow against future garbage taxes or fees and must set aside monthly revenues for operations, repairs, bond payments, and a contingency fund.

Garbage fees: who pays and notices

Cities can charge single‑family homes and, when there is no private contract, businesses and multi‑family properties for garbage service. Cities may hire others to bill and can add fees as a separate line on county tax bills. Before raising garbage taxes or fees, they must run a big‑print newspaper notice for three weeks and put a notice on the first bill. Cities may pass ordinances to exempt clearly defined groups from fees.

Stronger collection on unpaid garbage bills

Unpaid garbage fees can be collected from the generator and the property owner. Unpaid fees become a lien on the property; the city must mail a lien notice. You can clear a lien by filing proof of payment or by depositing the claimed amount with the tax collector. Cities can sue to collect. If the city reports your delinquency within 90 days, the county will block your motor vehicle registration renewal until you pay.

Where the authority can serve

The authority cannot offer water or sewer in areas already served by a certified utility. In Ridgeland as of January 1, 2026, the authority oversees wastewater service, while the city keeps control of its rate structure and pays its share of system costs. The authority can build and run stormwater projects. Builders must get the authority’s certification for water and sewer plans before state permits are approved.

Formal way to dispute water bills

The Authority must run a formal process to dispute water and sewer bills. You can file a dispute, get a review, and fix billing errors. The process must be published and followed.

More transparency and some old bill relief

The authority can write off uncollectible bills from before November 29, 2022 and bills uncollectible after three years of efforts. It must post audited annual and quarterly financial statements online and send yearly reports on water quality and finances. It must quickly share key health or environmental notices with the public.

How the water board is chosen

A nine‑member board runs the authority, with seats appointed by state and local leaders. All initial members must be named by May 1, 2026. Members must have real experience and cannot be elected officials or authority employees. Any rate increase or spending over $5,000,000 needs a two‑thirds board vote.

Sponsors & Cosponsors

Sponsor

Shanda Yates
Independent • House

Cosponsors

Clay Mansell
Republican • House

Roll Call Votes

All Roll Calls

Yes: 256 • No: 77

House vote • 3/30/2026

Conference Report Adopted

Yes: 79 • No: 41

Senate vote • 3/30/2026

Conference Report Adopted

Yes: 34 • No: 15 • Other: 1

Senate vote • 3/11/2026

Passed As Amended

Yes: 43 • No: 8

House vote • 2/11/2026