Regional Water Network on hold
The formation of a regional water authority may have to wait
according to Michigan Governor Snyder, Detroit Mayor Duggan,
and other leaders.
Kevin Orr’s expected exit date is September 25, 2014.
Mayor Mike Duggan’s office does not support extending the
time of an emergency manager for The City of Detroit.
U.S. Bankruptcy Judge Steven Rhodes has ordered mandatory mediation
concerning any proposal to form a regional water authority
for Wayne/Oakland/Macomb counties.
U.S. District Judge Sean Cox is leading negotiation sessions
between The city of Detroit and surrounding counties.
Water rates are guaranteed to go up for everyone to cover
new infrastructure costs and old legacy pension plans.
The entire issue of forming a regional water authority
can and should be – separate – from the bankruptcy proceedings.
Martha Kopacz of Philadelphia-based Phoenix Management Services
is the – “financial expert” – appointed by
U.S. Bankruptcy Judge Steven Rhodes
to review The City of Detroit’s financial assumptions.
The economic data associated with deals the city has struck
with city unions seems to be a major sticky widget for Martha Kopacz.
The current DWSD’s $5.7 billion water and sewer debt
is in danger of falling to a “D” rating if the bankruptcy court
approves the Emergency Manager’s current plan of adjustment.
A bond hits rock bottom at D, no rating could be lower.