Friday, January 17, 2014

County leaders divided on Detroit water deal, warn of huge rate hikes

County leaders divided on Detroit water deal, warn of huge rate hikes | Detroit Free Press | freep.com:
"A potential deal for greater suburban control over Detroit’s water system is running up against political recriminations from two of southeast Michigan’s top elected officials, who on Thursday accused negotiators for the city’s emergency manager of withholding critical data about the long-term costs of any such agreement.

The divisions erupted as the leaders of Detroit, Wayne, Oakland and Macomb counties spoke before a Detroit Economic Club luncheon.
Thursday’s comments reflected frustration over apparently stalled talks about the water system, which is among the most contentious issues in Detroit’s bankruptcy."

.....One issue is unpaid water and sewer bills in the City of Detroit, which have averaged $40 million annually. Suburban leaders want assurances that they won’t face rate increases to pay those bills.

The city of Highland Park, for one, owes the system about $18 million and has shown no means of paying it. 

The department can’t shut off water to the whole city, so suburban leaders want that issue resolved before agreeing to anything.

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