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Summer 2014 Water Woe

May 10, 2014

Slowly the public is understanding the complexities
involved with the DWSD servicing Michigan this summer.
The Detroit Water and Sewage Department (DWSD) is broken.

DWSD is estimated to have provided water services
to roughly 40% of ALL the residents in the state of Michigan.
Another statistic exists showing roughly 50 % of all DWSD accounts
are delinquent to the sum of $142.5 million dollars.

A.) People will just have to pay more
for water services and infrastructure.

B.) DWSD as an entity, has little or no value, anymore.
It is next to impossible, in its current condition,
to issue new bonds, borrow money, or acquire new investors.
The DWSD has $5.5 Billion of bond debt hanging over its head.

C.) New federal air quality regulations go into
effect March 2016. Any entity involved with sewage
will have to deal with a new BioSolids Dryer Facility
near the treatment plant along West Jefferson
in order to stay in compliance.

D.) Less people equates to less consumption
and hence less revenue. Recent studies show the demand
for water flow is about half of what it was 15 years ago.
Some communities, like Flint,
will soon get water from the Karegnondi Authority.

E.) New players exist in addition to Wayne, Macomb, and Oakland.
The SouthEastern Oakland County Water Authority and a separate
Western Townships Utility Authority also want a seat
at the table for negotiations

F.) The sale of water department is a very remote possibility.
It would cost the department its tax-exempt status
and make it ineligible for some forms of federal funding;
simply not available to private companies.

Supply Area for DWSD

Supply Area for DWSD

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