Detroit Water and Sewerage

Here is a story about the potential value of the city's water and sewerage department. At the start of the bankruptcy, there were speculations that this system could be sold or rented for substantial sums. That now seems unlikely. And the Genesee County solution apparently saved customers no money. Does this area face the charges for greatly modernizing and aging water and sewer infrastructure?

http://www.nytimes.com/2014/05/26/bu...dayspaper&_r=0

Yes. We have operated the water system at a loss for years because people have complained about hikes. This led to not keeping up with infrastructure needs and general mismanagement. I still remember calling the water board to try to figure out why billing went from quarterly to monthly and never getting a good answer. Water in the Detroit metro remained cheap for decades while other areas were investing. Instead of raising taxes, many suburbs added outrageous fees when it came time to increase the cost of water and blamed it on Detroit causing even more polarization.

Water should have been regionalized back in the 1960's. We dug our own grave.

The move from quarterly to monthly billing was simply a revenue generator. That $10 usage fee is now tacked on monthly rather than quarterly. Still, the fact you called anyone in any department at DWSD and managed to get thru is nothing short of a miracle.

Ah ha! That explains why it went up 20 percent when is was only supposed to go up about three. Sneaky bastards.

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Originally Posted by DetroitPlanner

Ah ha! That explains why it went up 20 percent when is was only supposed to go up about three. Sneaky bastards.

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Never underestimate the rent-seeking ability of government -- especially when they need the cash to maintain staffing levels and resist efficiency initiatives. Who needs efficiency! We make money! [[Oops, we spent it all. More, please. Gotta pay wages increases for us. Pensioners? Who?)

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Originally Posted by renf

Here is a story about the potential value of the city's water and sewerage department. At the start of the bankruptcy, there were speculations that this system could be sold or rented for substantial sums. That now seems unlikely. And the Genesee County solution apparently saved customers no money. Does this area face the charges for greatly modernizing and aging water and sewer infrastructure?

http://www.nytimes.com/2014/05/26/bu...dayspaper&_r=0

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This is a pretty poorly done article. No mention of the state statute that prohibits DWSD from making the "profit" necessary to fund the $47mm payment, and no mention of either undercollection from Det residents or the overstaffing suggested by the US district court. Smh

Or the fact that suburbs are making lots of money off of DWSD water, by adding often outrageous extra fees. And then turn around and blame it on Detroit when residents complain. But are giving up none of that extra money they generate in order to maintain or improve the system.

As for the regionalization of the water system, that has long been out there as a possibility, as long as the suburbs paid us a fair price for the system we paid to build and maintain for them. They just could never agree to do so. Even now, when they're gaining governance rights for the system at a well below market fire sale price, many are still moaning and groaning at having to pay "those people in Detroit" anything at all.

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Originally Posted by Wesley Mouch

Never underestimate the rent-seeking ability of government -- especially when they need the cash to maintain staffing levels and resist efficiency initiatives. Who needs efficiency! We make money! [[Oops, we spent it all. More, please. Gotta pay wages increases for us. Pensioners? Who?)

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Hey I resemble that remark!! Whaddya wanna do? Make me lose my job?

DetroitYES Home » Non Detroit Issues » Thom Hartmann » Hey Detroit - Running Water is a Human Right!

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Originally Posted by EastsideAl

Or the fact that suburbs are making lots of money off of DWSD water, by adding often outrageous extra fees. And then turn around and blame it on Detroit when residents complain. But are giving up none of that extra money they generate in order to maintain or improve the system.

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Brooksie is the worst at that

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Originally Posted by EastsideAl

Or the fact that suburbs are making lots of money off of DWSD water, by adding often outrageous extra fees. And then turn around and blame it on Detroit when residents complain. But are giving up none of that extra money they generate in order to maintain or improve the system.

As for the regionalization of the water system, that has long been out there as a possibility, as long as the suburbs paid us a fair price for the system we paid to build and maintain for them. They just could never agree to do so. Even now, when they're gaining governance rights for the system at a well below market fire sale price, many are still moaning and groaning at having to pay "those people in Detroit" anything at all.

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EA. 'You' didn't build the system. A governmental entity created by the State did. That would be called 'We'.

Do you want your governmental management entity to be a profit-making, capital-grabbing corporation in which you have an equity stake? If so, how is this not the evil of privatization by another name.

Detroit didn't build the system. Detroit managed the building of a public asset using money raised on the public bond market.

So you recommend 'everyone for themselves' dog-eat-dog? I advocate public utilities for the common good.

btw, do you think the suburbs asked for regionalization, they wanted to 'own' the system? They didn't care about ownership. They just wanted a well-run system. And of course as money-sucking governments all do, they wanted the political power and jobs-granting power for themselves instead of Detroit.

Time to stop the divisiveness. Can we just please have a water board that provides water at actual cost to all citizens. I don't care who 'owns' it or thinks they have 'equity'.