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untanglingwebs
El Supremo
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Governor Snyder obviously selected the wrong person to be the emergency manager for Flint. Brown seems to have given up on the story that he is waiting for Andy Dillon and the Governor to make the decision on karegondi.
There is a certain group of dissidents that will not agree with Karegondi no matter what is presented. The Flint Council signed on to a resolution with karegondi prior to Brown's appointment . The Genesee County Drain Commission has made two presentations to council.
The one sticking point is Flint wants more control over the newly formed consortium. Flint sells to Genesee County and they don't want to lose that control. But, they will have no control when the project goes on without them and there is no guarantee the consortium members will let Flint sign on after the fact once the pipeline is built. Flint can't stop the water pipeline from being built
Flint and Genesee County doesn't have a seat on the water board in Detroit now and won't get one. Detroit can shut off the water at anytime with a 30 day notice. Detroit has resisted changing the power hierarchy and say they built the pipeline and they are going to keep the control. Right now the cost of water for Detroit has gone down because of a decline in usage, but fixed costs have increased and Detroit wants increased revenue to improve their financial bottom line. So they raised our rates and will continue to raise rates.
Brown needs to get some cajones and make the decision. He is acting like a candidate for office afraid to make a decision prior to an election.
Bottom line is Flint can be a real victim the longer this goes on without a decision. Outcounty residents are saying they are tired of the racial politics of Flint.
Flint will never have control or a voice in the Detroit system. Woodrow Stanley felt he had a chance when Dennis Archer was Detroit mayor, but those days are gone.
Flint emergency manager Michael Brown considers town hall meeting on water
Published: Thursday, February 23, 2012, 7:00 AM
By Kristin Longley | klongley1@mlive.com
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FLINT, Michigan -- Emergency manager Michael Brown lists it as one of the most critical matters facing Flint: water.
The city's water rates continue to rise because of aging infrastructure and increased costs from Detroit, and the city is at an important crossroads regarding its future source of drinking water, Brown said.
Now, the emergency manager said he's planning a town hall meeting in Flint to talk about everything water -- how much it costs, where it comes from and how to process it.
Brown says water is "vital" to the future of Flint and Michigan.
"We've got several options," Brown said about the future of the city's water and sewer system. "I won't make that choice alone."
Brown said he wants to seek public input on the Karegnondi Water Authority, a regional group interested in building a $600-million water pipeline to Flint from Lake Huron.
The city hasn't signed on to the project, but Brown said it's one of Flint's options for future drinking water.
Another option involves using Flint River water, either permanently or for a couple years until the water pipeline is built, which would allow the city to break away sooner from the Detroit system.
Doing so would take about $60 million in upgrades to the water treatment plant, but there's a possibility Flint could make money by treating the water from the Karegnondi pipeline if the upgrades are made, he said.
"You're talking major costs here no matter which option," he said.
Bringing raw water to Flint also has the potential to spur economic development, Brown said, especially in the food processing industry.
"That (pipeline project) has some real prospects beyond drinking water," he said.
Brown said the town hall meeting will also touch on the city's water rates.
Several Flint residents have spoken out against the increased cost of water, which went up 41 percent last year with separate increases in January and then in August.
Brown said the city is auditing its water and sewer fund to better understand the rate increases and also to figure out why the city is distributing more water than it's getting paid for.
Flint is losing at least 30 percent of its water, he said, because of leaks, illegal hookups or other issues.
The main reason for the rate hike, he said, is the increases from Detroit. Flint buys its water from the Detroit water department, which has upped its charge for the water every year.
Brown said there were five years when the city didn't pass along those rate increases to Flint residents, and the city is now making up for lost time.
"The fact is, the cost of water has gone up," he said. "Is that the only reason it's gone up? No."
The city has begun work to repair some of its major leaks, including the 72-inch line at Genesee and Richfield Roads, said Howard Croft, director of infrastructure and development.
Brown said the city has also applied for a $1 million low-interest loan from the state.
"Those are funds that will be critical to addressing the water-sewer issues in the city," he said. |
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Thu Feb 23, 2012 11:22 am |
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untanglingwebs
El Supremo
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The City of Detroit water and Sewer system, despite price increases designed to boost their bond status, had their bond ratings lowered significantly.
Since 2000 there has been a movement to privatize the Detroit Water and Sewer facilities. The Makinac center for Public Policy printed a report on the subject in 2000. Flint talk reported studies recently that demonstrated nearly all privitization of these utilities raised the cost of these services.
Detroit already anticipated double digit increases for Flint over an extended period of time. Now Brown is raising rates 25% beyong the exorbitant increases last year. Citizens can barely pay their bills now and there is no fund to help those struggling to maintain their water.
Genesee County is in the engineering phase of the karegondi Pipeline. Flint has until the end of the year to sign on.
The Women league of Voters is hosting a forum on the Karegondi and I recommend that everyone attend. |
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Mon Apr 23, 2012 8:50 pm |
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untanglingwebs
El Supremo
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April 9 (Reuters) - Moody's Investors Service on Monday downgraded the ratings on Detroit's water and sewer debt, citing a heightened risk of default and bankruptcy by the city.
"Should the city file for bankruptcy, the assets of the water and sewage disposal systems would not likely be subject to an automatic stay, however, the water and sewage disposal systems' assets and finances may not be immune from additional pressure given the city's deteriorating fiscal condition." the credit rating agency said in a statement.
In addition, the water and sewer systems could be liable for some portion of an estimated $350 million Detroit may have to pay after a termination of the city's interest rate swap agreements was triggered when Moody's last month cut the city's general obligation bond rating further into the junk category to B2.
A Detroit official has said the city will continue to hold discussions with swap counterparties to avert any negative financial impact.
Moody's cut the rating on Detroit's senior lien water and sewerage disposal debt to Baa1 from A1 and the rating on second lien debt to Baa2 from A2.
The water and sewer debt ratings remain under review for a further downgrade pending a review of a recently approved consent agreement aimed at putting Detroit on a stronger financial footing, as well as other matters, according to Moody's.
A Michigan review team charged with recommending a plan to improve Detroit's sagging finances and the Detroit City Council approved a consent agreement last week that averted a state takeover of the city. The deal provides some state oversight, tighter financial controls and calls for more uniform collective bargaining agreements.
(Reporting By Karen Pierog) |
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Mon Apr 23, 2012 8:52 pm |
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Adam
F L I N T O I D
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Tue Apr 24, 2012 12:58 pm |
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untanglingwebs
El Supremo
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Flint needs two sources for water in case of an interruption in the main system. At the current time we only have Detroit and the Flint River.
General Motors needs an affordable and plentiful supply of water for the Chevrolet plants on VanSlyke. I am not sure if that area is Flint City or Flint Township,but they get their water from Flint. In fact, if I remember correctly, Flint put in infrastructure to insure adequate water for the increased production of the Chevrolet plants.
Will higher water costs influence the future decisions of GM when it comes to continuing and building new plants? |
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Tue Apr 24, 2012 2:37 pm |
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