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With Half Of City Residents Delinquent, Detroit Restarts Water Shut-Offs

Tyler Durden's picture




 

"Utility disconnection is always considered a last resort, obviously because of consequences for households," but as Detroit News reports, but water-providers can expect more controversy, as a month-long moratorium against shutting off water for those behind on their bills expired last night. Halting service to people that don't pay generate outrage among not just Detroit residents but a wider audience who proclaim 'water should be a right'. However, as one utility director noted, "We've seen a lot more payments...They need that little kick in the pants to get in here and do it." Water industry experts say cities with high delinquency rates sometimes have few other effective options for getting customers to catch up on their bills. Roughly half of Detroit’s 170,000 customers were delinquent as of last spring.

 

Water utilities in Detroit can expect more controversy as Detroit News reports,

...a monthlong moratorium against shutting off water for those behind on their bills expires at the end of the day Monday.

 

Crews are set to resume water shutoffs Tuesday after weeks of promoting how residents behind on their bills can get on a payment plan or get help paying.

 

Other Metro Detroit cities, facing a financial pinch from unpaid bills, have gotten results by halting service to people who don’t pay.

With some success...

“Last summer, we shut it off for the first time ever,” Square said. Service was stopped to 150 homes, and 350 other customers paid up to avoid being cut off.

 

The result: Hamtramck’s water fund now has a $1.8 million surplus, Square said.

 

“We’ve seen a lot more payments,” said Randall Blum, Eastpointe’s finance director. “They need that little kick in the pants to get in here and do it.”

But [shutting off water], which has produced some positive results,
generated outrage among some people in Detroit and beyond, who say
access to water should be a right

But as the companies themselves note, its simply not viable...

“It’s not viable to let paying the water bill come to be seen as an option,” said Tom Curtis, deputy executive director of government affairs for the American Water Works Association, which represents more than 4,800 water systems nationwide.

 

“The utilities have an obligation to the broader city to make sure the utility is viable and sustainable to serve all the residents and business,” Curtis said. “You can’t let uncollected bills go on and on without a significant consequence.”

 

Utilities have fixed costs, and someone must help cover those expenses to maintain service, said Bob Raucher, who studies the economics of water for Stratus Consulting of Boulder, Colorado.

 

“There’s so much neglected infrastructure and so many regulatory requirements that the problems are compounding. If they aren’t selling water and people aren’t paying their bills, they still have these fixed obligations,” said Raucher. “It’s a real conundrum everywhere. Detroit is an extreme case.”

The numbers remain high...

In a release Monday, the department said about 24,400 residents are on payment plans.

 

Detroit suspended water service to nearly 17,000 residents from March to late July, when officials temporarily halted shut-offs.Many of those whose service was cut brought their accounts up to date quickly, and their water was restored.

 

Detroit’s average residential delinquency is $540 and the average monthly household bill is about $75.

 

Roughly half of Detroit’s 170,000 customers were delinquent as of last spring.

 

...

 

“We give customers a certain amount of leniency in their bills,” said spokeswoman Sarah Holsapple.

 

“Of course, if they haven’t paid after a certain amount of time, we’d have to shut off their water. That’s our absolute last resort.”

*  *  *
Free water is a right? And so are 49ers season tickets... oh wait.

 

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Tue, 08/26/2014 - 16:39 | 5146472 Son of Loki
Son of Loki's picture

My neighbor's son tells me over 30% pf people stopped paying their property taxes in east Austin [East Austin is the more diverse area]. But the city and state are afraid to do anything about it b/c they don't want Al and Jesse on their backs. After all, Austin is their state Capital and it might tarnish the image.

Tue, 08/26/2014 - 14:13 | 5145866 snr-moment
snr-moment's picture

but a wider audience who proclaim 'water should be a right'.

 

FREE ENERGY!! FREE ENERGY!!  NO BLOOD FOR OIL!!! NO BLOOD FOR OIL!!! 

Tue, 08/26/2014 - 14:26 | 5145922 Handful of Dust
Handful of Dust's picture

Ask the local politicians there who have looted so much money to cough up some $$$ to pay for these folks.

Tue, 08/26/2014 - 14:32 | 5145942 swmnguy
swmnguy's picture

I wonder if they're talking about just water, or water+ sewage, or water+sewage+garbage?  I live in Minneapolis. My city utility bill is about $85/mo., including water + sewage + garbage/recycling.  Water is about $25 for 600ccf, sewer is the same, garbage is about $25, and then there's about $10 in the mysterious fees that add drag to every economic transaction in our sclerotic late-stage finance economy.

The City of Detroit website ia a bit cryptic, but it looks like if an average bill is $75, that would be water + sewer, only.  Looks like water is a little cheaper there than in Minneapolis, but they charge about twice as much for sewage as water.  I wonder what the deal is with garbage disposal in Detroit?

And it's the property owner who gets the utility bills, not renters (usually).  If not paid, it usually goes on the tax bill as a special assessment, at least everywhere I've lived.  If you don't pay your city utility bill, eventually the city will take your house away from you.

If half the households in Detroit aren't paying their water bill, that's incredibly fucked up.  That isn't renters; that's homeowners and landlords, not paying the bill. And the City has just been letting them not pay, for years? Say what you like about the concept of property taxes, that's beyond fucked up, that's so dysfunctional.  I love to complain about the City of Minneapolis, but at least it more or less works.  We can argue forever about priorities, values, etc., but at least the city does more or less what it says it does.

Tue, 08/26/2014 - 14:33 | 5145955 Dingleberry
Dingleberry's picture

Attach the water bill to the cable bill and see how fast it gets paid.

Tue, 08/26/2014 - 14:37 | 5145974 jacship
jacship's picture

Shut them off

( Water used x 2- Two for Sewer ) + 20% service charge, per month

Service charge and water costs is thanks to K Kilpatrick's city robbery of eight years

RICO finally took him down

Where else can this be used to help the us taxpayer?    

 

Tue, 08/26/2014 - 14:40 | 5145983 Otto Zitte
Otto Zitte's picture

How much did obarassment ask for for the border jumping gangbangers?

Tue, 08/26/2014 - 14:45 | 5146002 ms8172
ms8172's picture

I bet every one of those 170,000 has an iphone too.

Bullshit, disconnect your phone or don't drink water!!

Tue, 08/26/2014 - 16:18 | 5146397 directaction
directaction's picture

And lots of tattoos, an EBT card in their wallet, and plenty of money for dope, cigarettes, beer, wine, pot and a five-year-old Cadillac in the driveway with 24" chrome wheels. But no money for water. It'll be riot time. Can't wait. 

Tue, 08/26/2014 - 14:51 | 5146028 insanelysane
insanelysane's picture

The water is free.  It's the transportation charge from the reservoir to your faucet that's the cost.  Long buckets!

Tue, 08/26/2014 - 15:24 | 5146190 GrinandBearit
GrinandBearit's picture

And you guys thought Ferguson was bad... just wait.

Tue, 08/26/2014 - 15:26 | 5146195 thetruthhurts
thetruthhurts's picture

When the majority want something they just call it a "right".

Tue, 08/26/2014 - 15:29 | 5146206 world_debt_slave
world_debt_slave's picture

but, but, I thought the white knight, UN coming to the rescue

Tue, 08/26/2014 - 15:49 | 5146283 Nue
Nue's picture

Whenever someone says that a Product of Human labor should be a right what they really mean is that they want someone else to pay for it.

Tue, 08/26/2014 - 16:14 | 5146385 directaction
directaction's picture

This will not sit well with the all-powerful FSA. In Detroit, they run things. 

Tue, 08/26/2014 - 16:44 | 5146490 DullKnife
DullKnife's picture

Knew a guy.

Lived in a "utilities-included" apartment.

Always seemed to have the heat on.

Needed the heater on to keep warm (winter) as he liked just wearing shorts and t-shirt.

Me?

In my place, with me paying the utilities, I wore a sweater so not to need the heater so much.

When one gets something free, one often is not responsible in using it.

Free rent?

Asking for the place to be trashed.

Thinking utilities should be free?

The Free Sh*t Army at work.

Civilization's collapse not far away.

 

Tue, 08/26/2014 - 17:49 | 5146813 Zgangsta
Zgangsta's picture

There's plenty of free water for everyone in Detroit.

All they have to do is go to the Detroit River and get it.

Tue, 08/26/2014 - 17:52 | 5146830 yellowsub
yellowsub's picture

If you're not contributing to their pensions, your water is being shut off!

Tue, 08/26/2014 - 18:41 | 5146953 Dre4dwolf
Dre4dwolf's picture

Honestly, if they cut costs of water distribution by removing the toxic fluoridation process that costs millions . . . water should be a human right in this day and age.

the 5 or so mega banks get 80+ Billion dollars in Federal Reserve Aid for free essentially a month, but the average American cant even get 50$ worth of water.

Whats wrong with that picture? ^^.... its not like Heating or Electric where the energy actually has to come from somewhere, for the most part it costs trivial amounts to pump the water from point A to B. . . . yet somehow it costs us billions to pump digital ones and zeros into FDIC Member bank accounts each month.

Tue, 08/26/2014 - 19:02 | 5147006 falconflight
falconflight's picture

Leave the cities, so that the battle lines are plain and obvious.  

Tue, 08/26/2014 - 21:02 | 5147359 Rootin' for Putin
Rootin' for Putin's picture

Start a riot, the water cannons will come out and you can catch that.

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