Proposed regional water authority could be a $50M boost for Detroit

[Novine]

"The new entity could cut a check to the city for $50 million per year and still save rate payers the remaining $50 million per year of the $100 million dollar savings."

A claim is being made that the debt could be restructured and DWSD could get better interest rates. But no one has shown that the restructuring would make enough difference to make up the $50 million a year. Also, if anyone thinks a regional authority will lead to lower water rates, that's wishful thinking. The system likely has billions in upgrades that haven't been done because of the current setup. Those bills will come due when a regional authority takes over and identifies all of the deferred maintenance and improvements that will be needed.

[Vic01]

When Pontiac got an EFM, do I recall that he sold Pontiac's water and sewage system to a adjoining governmental body and used the revenue to substantially reduce Pontiac's obligation to bond holders? If an EFM is
appointed for Detroit, I am unclear about how much authority he or she
has to sell city assets such as parks or the city's electrical system. Does
any one know?

that may be true for Pontiac... but let's keep in mind that no one is talking "sale" in this proposal, the term is "lease"

[rb336]

The new entity could cut a check to the city for $50 million per year and still save rate payers the remaining $50 million per year of the $100 million dollar savings. It's a pretty simple legal structure that benefits everyone if done correctly, and something that should have been done a long time ago [[and probably would have, were it not for our region's sick aversion to regionalism).

Keep in mind that any new board would probably RAISE the water rates. Detroit has one of the lowest price points of any major metro area for water/sewer services [[especially if you look at the wholesale price the city gives other communities who then jack up the price to their citizens while blaming Detroit for the cost)