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Topic: EM Law in Highland Park =s higher sewer bills for others

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untanglingwebs
El Supremo

Highland Park was operating under a consent agreement with the state under the emergency manager law when they fell seriously behind in their water bill to Detroit. A May 16, 2016 Detroit News editorial (Highland Park should pay its own water bill, 13A) cited how Highland Park had not mailed out water bills for three years, forcing other communities to subsidize the $30 million dollar debt.

"Highland park isn't paying its water bills, so everyone else in southeast Michigan will have to pay each month to cover the shortage. When it comes to water and sewer services, that's what "regional" looks like", lamented the editorial.

Highland Park has not sent water bills to it's customers since 2012. Many regional customers will have a 5% sewer bill increase, of which 3.2% will cover the shortage from Highland Park. All but $4 million of Highland Park's debt is for sewer charges. Their debt is growing at a rate of $400,000 a month.

While a Wayne County Judge ordered Highland Park to pay $20 million of their debt, the judge refused to attach the judgment upon the customers property taxes.
Post Thu Jun 02, 2016 1:38 pm 
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untanglingwebs
El Supremo

Flint attaches unpaid water and sewer charges each May to the property taxes of customers when unpaid taxes are sent to the county. The editorial noted that the state has accepted responsibility for Flint in it's lead crisis. The state may also make all taxpayers pay for the debt that accumulated under state management of the Detroit Public Schools.

The question raised by the editorial board is whether or not the state should have stepped in and helped resolve the problem in which they in control of?

It appears that a dispute between the Michigan Department of Transportation and Highland Park is one issue of the debt. Other communities have payment agreements with MDOT to cover the cost of water runoff into the sewers from interstate highways and other freeways. Highland Parks wants MDOT payment for the treatment of water coming from I-75 and the Davison Freeway.
Post Thu Jun 02, 2016 1:47 pm 
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untanglingwebs
El Supremo

It is my belief that Detroit may also be in arrearage of it's payments to the water and sewer funds. The Detroit water and sewerage infrastructure, as well as others in the now Great Lakes Water and Sewerage Department, are in need of many costly infrastructure improvements. All partners will share in these infrastructure costs.

Flint is now in a precarious situation. I understand the state has forbidden the Flint River to be used as a secondary water source. Detroit, under the original 35 year contract, was to build Flint a secondary line and they never complied. During the KWA controversy Detroit threatened to build the secondary line and bill Flint.

Even with KWA, will Flint have a secondary water system? Will our water and sewer rates continue to climb? Is water the "new gold" of the future?
Post Thu Jun 02, 2016 1:55 pm 
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