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untanglingwebs
El Supremo
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Brown's Financial and Operating Plan of 1/15/2012 indicated the recently implemented rate increases were nearly enough to cover the operations of the Water Fund. The report stated the shortfall was in the $700,000 range although it did not include the legacy costs related to the pension fund. The deficit in this fund was projected to increase to $13.2 million when these costs and depreciation were factored in..
The report also predicted increases of the Sewer Fund deficit from less than $500,000 to more than $7 million when depreciation and other pension related costs are included.
Three days ago Detroit Free Press writer John Wisely wrote that the detroit Board of water Commissions had announced an overall increase in water rates by 8.5%. However, this rate is not uniform and will be different for most communities serviced by theis water supplier.
One reason for recent increases has been reported to be the decreasing sales because of the poor economy and increaed foreclosure rates. When fewer units of water are sold the rate per unit must increase to pay for fixed costs of operating the system.
Bart Foster, a consultant of the Detroit Water Department cited lower operational costs in 2011 than in 2002 and the declines in sales leveling off so they were not factored into the increase.
"Part of this yea's increase is to cover an expected increase in operational expenses. The department also wants to raise revenue to shore up its balance sheet and help its bond rating
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Flint will find out next month how much our increase will be. Will Flint have to increase the bills again? |
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Sun Jan 22, 2012 8:45 pm |
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untanglingwebs
El Supremo
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The City of Westland is tentatively looking ata 12.1 % increase in their water bills to cover the increases projected coming from Detroit and wayne Countty. Of this 12.1% rate increase, 6.5 % is the fixed cost increases that are coming from Detroit and Wayne County.Westland is considering adding a local fixed rate charge.
Fixed costs increases from Detroit and Wayne County represent a nearly 70 % increase and generates no money to improve the local infrastructure. In this relatively mild winter, westland experienced 100 water main breaks that resulted in a 10% budget amendment. Aging infrastructures need increased maintenance costs.
This rate increase will not be finalized until Detroit and Wayne County approve the rates.
This article from the January 12 edition of Hometownlife highlights the situation of other communities tied to the detroit water line, including Flint and Genesee County. How do you provide funding for a proactive approach to improving the water and Sewer infrastructure when the fixed costs of the detroit system is constantly increasing. This years incrases don't represent an increased cost to detroit, merely a desire on their part to improve their financial status. |
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Sun Jan 22, 2012 9:08 pm |
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untanglingwebs
El Supremo
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Since 1977 the Environmental protection Agency lawsuit over the Clean Water Act and the pollution of the Detroit River by the southWest Detroit Wastewater Treat,ent Plant has been unresolved.
In November of 2011 US District Judge Sean cox ordered a reorganization of the Detroit Board of Water Commissioners in order to make the board more independent of the City of Detroit.
Detroit owns the Water delivery system although nearly three quarters of the users are in the suburbs. Detroit leaders have fought the issue of regional oversight and have said they will not give up control of the system.
Critics of Detroit control look at the federal indictments and bid-rigging allegations involving former detroit mayor Kwame kilpatrick, former detroit Water Chief Vincent mercado and Kilpatrick friend contractor Bobby Ferguson as evidence that Detroit corruption involving the water system present a case for more oversight by the users of the system.
A Detroit news story a year ago alleged the Detroit System had one of the lowest wholesale rates for water in the nation.
(Water rates to rise in Detroit, suburbs as intense debate over regional control continues, Jonathon Oosting, 2/1/2011) |
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Sun Jan 22, 2012 9:26 pm |
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untanglingwebs
El Supremo
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Got a message from Jeff Wright, Genesee County Drain Commissioner, about the projected rates of the water increases from the Detroit Water Board. Because Flint and Genesee County are the furthest from Detroit's Water Distribution Centers and we have a higher elevation. Our minimal projected increases are 15% per year for a minimum of 5 years.
There is no industrial growth without water because industry needs a reliable source of water, lots of water!
Look at how Birch Run had development come to a screeching halt when there was not enough water permits for thm to continue to grow. They had to wait for an alternate source of water.
Because of our own deficits in the water and sewer funds as well as our need to improve our local infrastructure, these increases must be forwarded to the residents. And this area has no viable resource to help all of our residents when they are unable to pay their water bills. |
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Tue Jan 24, 2012 10:06 am |
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Adam
F L I N T O I D
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| Why can't we use the Flint river? |
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Wed Jan 25, 2012 1:51 pm |
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untanglingwebs
El Supremo
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The Anderson report, which was paid for by the Mott Foundation under Woodrow Stanley,had an analysis that said Flint could either use the Flint River water or they could sell the water to Genesee County. It seems the flow and quantity was not adequate for both.
The flow and depths of the Great lakes makes for a better and healthier water source.
Also there is a clause in our contract with Detroit that their water can never be comingled with water from another source.
Reducing the number of users in the equation with Detroit is tricky as they are saying they increased the rates in the past because foreclosures and lost populations decreased the number of users needed to pay for their fixed costs. The Detroit suburbs, Flint and Genesee County have fought for greater control in the Detroit Water board. Detroit's position is they built it and they want to keep control.
Detroit threatened to build our area a secondary water system,which they were to do nearly 30 years ago, and make us pay for it. |
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Wed Jan 25, 2012 2:08 pm |
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Adam
F L I N T O I D
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| Can Mike Brown get us out of the Detroit contract? Our water and sewer bills are rediculous! I also heard Oakland County water rates are abut half of what we pay but I'm unable to confirm. |
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Fri Jan 27, 2012 9:20 pm |
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untanglingwebs
El Supremo
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| The contract is said to have a clause that either Detroit or Flint can end the contract with a 30 day notice. However, Flint buys from Detroit and sells to Genesee county. There is no available water supply large enough for both. |
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Fri Jan 27, 2012 9:58 pm |
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Adam
F L I N T O I D
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| Why doesn't Flint let the county build their own pipeline and use the river? |
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Sat Jan 28, 2012 3:25 pm |
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untanglingwebs
El Supremo
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Probably because most people don't like the idea of using Flint River water. About 40 years ago, the river was very contaminated. Water quality is greatly improved.
Also the water supply will come from the Holloway dam and reservoir. There is an issue that the Richfield Landfill is leaking from it's clay cap and may contaminate the water. Can you imagine how angry the sports fishermen will be when you take large quantities of water from the dam. |
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Sat Jan 28, 2012 3:33 pm |
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untanglingwebs
El Supremo
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| I almost forgot the most important issue. Flint needs a secondary water system in case one fails. That means we will propbably have to continue buying some water from Detroit. They have threatened some huge increases if the number of users declines significantly. |
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Sat Jan 28, 2012 3:35 pm |
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Adam
F L I N T O I D
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What about drilling wells like they did for the city of Davison? Our water table should be pretty high.
Does the city of Davison have a backup water source for their well? |
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Sat Jan 28, 2012 7:55 pm |
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untanglingwebs
El Supremo
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The city won't give out permits for well drilling if there is a municipal water system such as Flint has. I have wondered about that as there is an underground river that runs through Flint. But then I wonder about sinkholes, etc.
That may be a moot point as Brown is discussing selling our water and sewer plants as well as the operating systems. With the systems in private hands who will safeguard the residents?
Previous estimates of the needed repairs to Flint's water and sewer infrastructure ran between $50 to 75 million. Plus we have the revolving loan fund from the state to repair for upgrading the water plant.
How will privitizing save residents money? I see more vacant homes on a daily basis so fewer residents to cover even Flint's fixed costs means local increases. Most of the staff in these plants require state licenses and there are few exceptions. Cut their salary and benefits and watch them relocate to a more beneficial working environment.
What will the impact ont the county be as they buy their water from Flint? They have their own sewer plants. Who covers the fines and expenses when the sewer plants discharge raw sewage into the river, and it happens on far too regular a basis.
How will thes private corporations make a profit? Will higher water costs prohibit manufacturing jobs from coming to this area? |
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Sun Jan 29, 2012 9:10 am |
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Adam
F L I N T O I D
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quote:
untanglingwebs schreef:
Previous estimates of the needed repairs to Flint's water and sewer infrastructure ran between $50 to 75 million. Plus we have the revolving loan fund from the state to repair for upgrading the water plant.
I realize there may be concerns with water safety but how many people really drink tapwater anyways? Why would Flint go in on a shared
$300 million pipeline
(assuming no cost overruns) when they could be a sole owner of the water plant? |
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Sun Jan 29, 2012 2:40 pm |
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untanglingwebs
El Supremo
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You need the water for other uses than drinking and cooking. But not everyone can afford to drink bottled water. Residents will be required to pay a minimum water bill irregardless of how much they drink.
Flint will not bear the costs of the karegondi water system alone and the costs will be spread out over time.
I will look up the letters between Wright and Detroit that are posted on the internet. Wright explains the issues.
In these communications is Detroits plan to increase a secondary water line, but under false pretenses. The addition, which Flint will help pay for , will mainly improve water distribution to Oakland and maconmb counties.
In my other posts, I show how water rates increase when privitized. After all companies like american water are a business and their shareholders expect a profit. Plus don't expect the sale price to come all at once, probably only a sizable upfont fee. |
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Sun Jan 29, 2012 2:57 pm |
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