JACKSON, Miss. (WJTV) – State Auditor Shad White’s Office released an analysis of the audits of the City of Jackson from the last two decades. According to White, the analysis shows a concerning financial situation for the city.

“While my office is legally prohibited from auditing cities, cities like Jackson are audited by private CPA firms,” said White. “We can, however, analyze the results of city audits. Our analysis of Jackson’s audits shows serious and fundamental financial issues that have to be straightened out. Every concerned taxpayer should be reading this report.”

White said the analysis highlighted the following key problems in the capital city:

• Despite a population loss since 2003, Jackson’s revenue continues to increase.
• Continued revenue increases are being outpaced by expenses.
• The city’s largest source of revenue, property taxes, is being paid by fewer individuals.
• There has been an explosion of unpaid water bills. The city’s accounting treats many of these bills as if they will never be paid.
• The city is not collecting all its water bills, and if it does not collect water bills, it does not have the revenue to fund day-to-day operations.
• The General Fund and Siemen’s settlement dollars are footing the bill to keep the water system functioning.
• There has been a large increase in water connections added by the city despite population loss.

“Jackson is our state’s capital, and we cannot have a strong state without a strong capital,” said White. “Cities in other Southern states, like Atlanta in Georgia or Birmingham in Alabama, are growing fast and fueling the economies of their states. Jackson can generate growth for Mississippi, but not until it gets its fiscal house in order.”

Jackson Mayor Chokwe A. Lumumba said the analysis of Jackson’s audit are nothing new.

“The City’s finances were further stretched by the decision to hire Siemens Industry, Inc. That endeavor led directly to a water billing crisis that we are still recovering from. We were able to recoup some of the money from that contract, but as we’ve said before, it’s not enough. The Auditor’s analysis also does not take into account the $600 million in federal funds that Jackson was able to secure to address issues around the city’s water infrastructure,” said Lumumba. “Saving Jackson residents money while providing valuable services will always be our priority.”