WUOMFM

Detroit, suburbs reach deal on regional water system

Sep 9, 2014

Credit user rob zand / Flickr

A big piece of Detroit's bankruptcy puzzle was put in place today: the newly-created Great Lakes Water Authority, as the city finally came to agreement with Wayne, Oakland and Macomb counties to create a regional water authority to provide water to some 40% of Michiganders.

Michigan Radio's Sarah Cwiek says the agreement stipulates that the rate increases for all the customers will be limited to no more than 4% a year over 10 years. 

That won't necessarily mean that 4% would be the cap of the rates for all communities, since different communities set their own water rates, including taxes and surcharges. 

"How much you will actually spend depends on where you live," says Cwiek.

As Detroit gives up control of direct operation and leases out the assets that are outside the city limit, the revenue of $50 million a year is expected to be committed to capital upgrades for the Detroit water system itself. 

* Listen to the full interview with Sarah Cwiek above.