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untanglingwebs
El Supremo
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Flint water system study recommends water, sewer rate increase
Raftelis Financial Consultants, Inc., shared the results of its water and sewer rate study at Flint City Hall on Thursday, April 11
Dominic Adams | dadams5@mlive.com
int
Dominic Adams | dadams5@mlive.com By Dominic Adams | dadams5@mlive.com
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on April 10, 2014 at 8:47 PM, updated April 16, 2014 at 11:23 AM
FLINT, MI – Water and sewer bills in Flint may have to increase more than $50 a year to pay for the services, a consultant's report says, because the rates customers are charged now aren't enough to support the city's water and sewer system.
A study, completed by Raftelis Consultants Inc., was revealed during the Flint City Council’s public works committee meeting Thursday, April 10, at City Hall.
“If we kept the rates in place that we have today, we would be running a deficit,” said Tom Beckley, a senior manager for Raftelis. “That deficit would increase each year. The story we’re conveying here is existing rates cannot support the system.”
Beckley outlined a suggested $52.56 annual increase to water and sewer rates for the average residential customer in 2015.
That amounts to a combined $4.38 increase per month for water, sewer and fixed charges.
If adopted, those rate increases would be lower using the Flint River and Karegnondi Water Authority than they would be if the city continued to buy water from Detroit.
The city is currently in the process of creating its 2015 and 2016 budget.
State officials on Thursday signed off on the permits needed for the city to begin using the Flint River for drinking water beginning next week.
The moves come because Flint contract to purchase water from Detroit will terminate on April 17. City officials have not said specifically when Flint will flip the switch to river water, although it has said publicly the goal is April 17.
Raftelis said if Flint water and sewer rates were raised by the amount the company suggests, such an increase in 2015 still would be $4.57 less per month than with Detroit water, $10.17 less in 2016 and $10.68 less in 2017.
The study also revealed Flint’s need to repair its aging system that was built to service nearly 200,000 residents.
“We have water lines and sewer lines – some of those lines in the city are well over 75 years old,” said Bill Stannard, Raftelis president and chief executive officer. “Things won’t get better if we ignore those problems.”
There will be a public forum to allow residents to ask questions about the study on Thursday, April 17.
“I think it’s a form of manipulation,” said Councilman Wantwaz Davis. “I don’t believe in the validity of it.”
He added that the study came out to what the city administration wanted.
“If you’re paying for the study, why wouldn’t you think it’s going to come out to your benefit?” Davis said.
Emergency Manager Darnell Earley approved $49,730 to fund Raftelis’ work.
Councilman Eric Mays wanted to know if Raftelis could do a study about what it would look like to drop customers’ rates by 20 percent.
“We can do the analysis, we can’t make the decisions,” Stannard said. “You’ve been the only one to ask that question.”
Staff Writer Ron Fonger contributed to this report.
Dominic Adams is a reporter for The Flint Journal. Contact him at dadams5@mlive.com or 810-241-8803. Follow him on Twitter, Facebook or Google+. |
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Sun Aug 03, 2014 1:45 pm |
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untanglingwebs
El Supremo
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Facts and figures to know about recommended water rate increases in Flint
Raftelis Financial Consultants, Inc., shared the results of its water and sewer rate study at Flint City Hall on Thursday, April 11
Dominic Adams | dadams5@mlive.com
On April 15, 2014 at 4:00 PM, updated April 16, 2014 at 11:21 AM
FLINT, MI – Flint residents could be paying more than $300 more per year for water and sewer services in five years if city officials enact rate recommendations delivered by a financial consultant.
Raftelis Financial Consultants, Inc., was tasked by Emergency Manager Darnell Earley to study the adequacy of existing water and sewer revenues, water and sewer financial plans, complete a cost of service study and proposed rates, the impact of transitioning to the Karegnondi Water Authority and explore water and sewer operations and best management practices.
There will be a public forum at 5:30 p.m. on Thursday, April 17, at Flint City Hall. Residents will be able to ask questions about Raftelis' study.
The average residential customer pays $115.37 per month or $1,384.44 annually, according to figures provided by Raftelis Thursday, April 10, as part of a presentation on the study during the Flint City Council public works committee.
Here is a look at water and sewer rates over the next five years:
•2015: $1,473.96 annual bill or $122.83 per month
•2016: $1,562.16 annual bill or $130.18 per month
•2017: $1,655.76 annual bill or $137.98 per month
•2018: $1,734.48 annual bill or $144.54 per month
•2019: $1,786.44 annual bill or $148.87 per month
The increases include:
•2015: 5 percent increase in water rates, 7.5 percent increase in sewer rates
•2016: 5 percent increase in water rates, 7 percent increase in sewer rates
•2017: 5 percent increase in water rates, 7 percent increase in sewer rates
•2018: 5 percent increase in water rates, 4.5 percent increase in sewer rates
•2019: 3 percent increase in water rates, 3 percent increase in sewer rates
The reason for the rate suggested rate increases, according to Raftelis, is because the current rate models would lead to a $55 million combined deficit in the water and sewer funds.
For every dollar of revenue in both water and sewer funds, at minimum, 52 cents goes toward operations and maintenance.
Here’s a closer look at the expenditures per dollar of revenue:
•2015 water: 61 cents goes to operations and maintenance, 38 cents to capital and 1 cent is transferred to operating reserves 2015 sewer: 76 cents goes to operations and maintenance, 18 cents to capital and 6 cents is transferred to operating reserves
•2016 water: 58 cents goes to operations and maintenance, 33 cents to capital and 9 cents is transferred to operating reserves 2016 sewer: 70 cents goes to operations and maintenance, 37 cents to capital and there is a 7-cent deficit from operating reserves
•2017 water: 57 cents goes to operations and maintenance, 43 cents to capital and nothing is transferred to operating reserves 2017 sewer: 65 cents goes to operations and maintenance, 30 cents to capital and 4 cents is transferred to operating reserves
•2018 water: 56 cents goes to operations and maintenance, 42 cents to capital and 2 cents is transferred to operating reserves 2018 sewer: 65 cents goes to operations and maintenance, 35 cents to capital and nothing is transferred to operating reserves
•2019 water: 54 cents goes to operations and maintenance, 40 cents to capital and 6 cents is transferred to operating reserves 2019 sewer: 52 cents goes to operations and maintenance, 30 cents to capital and 18 cents is transferred to operating reserves
Officials said when Flint was buying water from Detroit, there were 5 percent annual increases here. The annual increases, Raftelis said, would be less through the KWA.
City officials plan to begin using the Flint River as a primary drinking source Thursday, April 17, while the KWA pipeline is built.
Here is a breakdown of much less those monthly increases will be via the KWA for the average residential water and sewer customer in Flint:
•2015: $4.57
•2016: $10.17
•2017: $10.68
•2018: $10.41
•2019: $10.73
A final decision on rates has not yet been made by the city and will be done as part of the budgeting process, officials said.
Dominic Adams is a reporter for The Flint Journal. Contact him at dadams5@mlive.com or 810-241-8803. Follow him on Twitter, Facebook or Google+. |
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Sun Aug 03, 2014 1:49 pm |
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untanglingwebs
El Supremo
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On March 10, 2014 he Journal printed this:
FLINT, MI – Water and sewer bills in Flint may have to increase more than $50 a year to pay for the services, a consultant's report says, because the rates customers are charged now aren't enough to support the city's water and sewer system.
A study, completed by Raftelis Consultants Inc., was revealed during the Flint City Council’s public works committee meeting Thursday, April 10, at City Hall.
“If we kept the rates in place that we have today, we would be running a deficit,” said Tom Beckley, a senior manager for Raftelis. “That deficit would increase each year. The story we’re conveying here is existing rates cannot support the system.”
Beckley outlined a suggested $52.56 annual increase to water and sewer rates for the average residential customer in 2015.
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Five days later that annual amount of increases rose to $300 per year. The monthly water bill would rise to $148.87 per month by 2019. Remember that is a basic water bill and larger families would face higher increases.
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FLINT, MI – Flint residents could be paying more than $300 more per year for water and sewer services in five years if city officials enact rate recommendations delivered by a financial consultant.
Raftelis Financial Consultants, Inc., was tasked by Emergency Manager Darnell Earley to study the adequacy of existing water and sewer revenues, water and sewer financial plans, complete a cost of service study and proposed rates, the impact of transitioning to the Karegnondi Water Authority and explore water and sewer operations and best management practices.
There will be a public forum at 5:30 p.m. on Thursday, April 17, at Flint City Hall. Residents will be able to ask questions about Raftelis' study.
The average residential customer pays $115.37 per month or $1,384.44 annually, according to figures provided by Raftelis Thursday, April 10, as part of a presentation on the study during the Flint City Council public works committee.
Here is a look at water and sewer rates over the next five years:
•2015: $1,473.96 annual bill or $122.83 per month
•2016: $1,562.16 annual bill or $130.18 per month
•2017: $1,655.76 annual bill or $137.98 per month
•2018: $1,734.48 annual bill or $144.54 per month
•2019: $1,786.44 annual bill or $148.87 per month
The increases include:
•2015: 5 percent increase in water rates, 7.5 percent increase in sewer rates
•2016: 5 percent increase in water rates, 7 percent increase in sewer rates
•2017: 5 percent increase in water rates, 7 percent increase in sewer rates
•2018: 5 percent increase in water rates, 4.5 percent increase in sewer rates
•2019: 3 percent increase in water rates, 3 percent increase in sewer rates |
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Sun Aug 03, 2014 1:59 pm |
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untanglingwebs
El Supremo
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Sun Aug 03, 2014 2:08 pm |
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untanglingwebs
El Supremo
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The Inflationary causes for the increases :
Largely associated with personnel costs
annual COLA to salaries and medical
Legacy Costs
pension and retire healthcare
generally increases with salaries, usually higher ased on pension funding levels
Also related to cost of materials and supplies
cost of chemicals for water & wastewater
utilities -primarily electric
increases in cost of services provided via the general fund ie. overhead cost
allocations |
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Sun Aug 03, 2014 2:41 pm |
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untanglingwebs
El Supremo
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Downtown is the only vision of hope projected by the administration. North end residents were told at a meeting in the North Side precinct that any progress for their community was 25 to 30 years away. Interesting when the master Plan is only a 20 year plan.
I am convinced the population of Flint is far below the projections. I see an increase in abandoned homes throughout Flint, but especially in the near north. Even as blighted homes are being removed, adjacent homes are being vandalized. Apartment complexes are abandoned and other complexes are almost begging for residents to move in. No credit check and additional perks spell trouble for nearby residents. Landlords are telling me they are dumping their homes in an effort to get out of Flint, primarily because of the water policies and increased special assessments.
My water bill is now nearly three times what is was about 7 years ago. This increase is unacceptable. The value of our homes are being reduced every year and the cost of living n Flint is increasing. Is it worth living in Flint? |
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Sun Aug 03, 2014 2:56 pm |
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untanglingwebs
El Supremo
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From a posting in 2012:
Lawler complained about infrastructure and stated the money was there for the infrastructure. This resolution 2012 EM 233 atates the infrastructure was halted because of need to locate a new funding source to complete the infrastructure.
So does this mean that Walling and Eason (and heads of DCED) dis not adequately plan for the infrastructure of this new development?
This contract for $594,567.90 is the balance required after the water and sewer funds from Flint were used. Lawler should get more information.
BY THE EMERGENCY MANAGER:
RESOLUTION TO ENTER INTO A CONTRACT WITH D1PONIO CONTRACING, INC.
IN AN AMOUNT NOT TO EXCEED $594,567.90.
The City has identified that $805,929.72 is necessary for infrastructure improvements on Avenue A, Root,
Chippewa, and Wood Streets in the Smith Village neighborhood. The work is to be completed by a combination
of contractors and city crews. These infrastructure funds are necessary to support the new housing development
currently underway.
The City previously bid out the work and selected DiPonio Contracting, Inc. to install the infrastructure. DiPonio
Contracting has completed some of the infrastructure work utilizing water and sewer funds. Work was stopped
until additional funding was identified. The City of Flint allocated Community Development Block Grant funds in its 2011-12 Action Plan of the
Consolidated Plan for the Smith Village infrastructure project.
A new contract is necessary for the work that will now be completed utilizing Community Development Block
Grant funds.
Funds for the Smith Village infrastructure project are set aside in revenue account number 272-748.181-502.748
and expense account number 272-748.181-805.101.
IT IS RESOLVED, that City of Flint officials are authorized to do all things necessary to enter into a contract
with DiPonio Contracting, Inc. in an amount not to exceed $594,567.90 for infrastructure work in the Smith
Village neighborhood with funds to be made available in revenue account 272-748.181-502.748 and expense
account number 272-748.181-805.101.
Post Sat May 26, 2012 9:22 am
View user's profile Send private message Edit/Delete this post Reply with quote
untanglingwebs
F L I N T O I D |
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Sun Aug 03, 2014 2:58 pm |
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untanglingwebs
El Supremo
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The infrastructure should have been paid with the federal money. Three sets of developers, several changes in engineering and other mismanagements of this project have been costly. The city administration lacks transparency in telling us the real cost of paybacks to HUD.
Also, could the misused Enegry Grant have been used to reduce costs to the water and wastewater plants? |
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Sun Aug 03, 2014 3:03 pm |
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untanglingwebs
El Supremo
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| In the latest report t the state, Earley notes it is unlikely there will be a decrease in water and sewer rates in the foreseeable future. Water rates are 6.5% higher this year and will be 6% higher next year. Earley claims future increases will be less than those we would receive if we had stayed with Detroit. |
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Mon Aug 04, 2014 8:02 am |
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