The house on Juliana is a rental, and Paolucci points out that various inhabitants use water in different ways, so a rapid change in water usage isn’t always a warning flag for him. New people may have moved in and drastically modified water usage. A larger family, for example, is likely to do more laundry, shower more, and use the dishwasher more frequently than a single person.
At Tuesday’s Eastpointe City Council meeting, Councilman Cardi DeMonaco Jr. moved to void the $49,439 water bill issued to 16104 Juliana in July of 2019. The motion was unanimously approved.
Water bills have always been paid on time until July of this year. However, the account was delinquent from the summer of 2019 to August 9, 2021. Krok, the home’s owner and landlord, said her renters were responsible for paying the house’s water bills, and that she paid the $3,194 outstanding for the months of July 2019 to July 2021 last month after learning they hadn’t been paid.
Because the “catch-up bill” and following monthly payments were disregarded, late fees and penalties accumulated, according to Eastpointe Finance Director Randy Blum, and the $49,439 was recently added to the property tax bill. After getting a letter from Blum in November 2019 addressing the defective MTU and providing her a 48-month payment option in which she would be expected to pay current monthly costs plus an additional $745, Krok said she made several calls to the city.
“The letter said I had one month to determine how I wanted to pay, so I called the office to find out what was going on,” Krok explained. “Through that payment plan in the letter, I was offered a discounted price of $36,000, but I was never able to contact with anyone who could explain why I had received this charge or what was going on.” “I guess all I had to say was ‘OK.'”
Krok claims she and her renters had no idea something was wrong with the MTU until the city’s letter arrived.
“What concerns me the most is that this went on for eight years and the city didn’t notice it,” Councilwoman Sarah Lucido said. “That means that everyone in this room, as well as everyone who is listening to this meeting, should go out and check their water meter, because we may be looking at a $50,000 water bill.” I might understand if it was only for a few months or perhaps a year, but eight years is extraordinary.”
Residents should compare their water bill to their meter to ensure the numbers are correct, according to Paolucci. It might not only detect an MTU fault, but it could also lead to a rebate for a resident.
He claims that the city intends to modernize the MTU system, which was previously approved by City Council, but that the upgrade has been delayed due to a chip shortage. He anticipates that the new MTUs will be far more reliable and accurate than the ones currently in use.
Why is Michigan’s water bill so high?
- The rising cost of water and sewer service is a problem throughout Michigan, but particularly in low-income areas.
- The percentage of Michigan households that spend more than 5% of their income on water and sewer services has increased from 1.6 percent in 1980 to 6.7 percent in 2018.
According to a new analysis, the rising cost of water and sewage service is eating a higher share of household income in Michigan, resulting in mounting financial difficulties for both households and communities, particularly those with high poverty rates.
According to the report, the escalating affordability problem extends beyond the well-publicized instances of Detroit and Flint. Costs have risen in rural areas, small towns, and suburbs as well, though at a slower rate than in cities. The authors of the research argue that now is the right time to learn more about who is harmed by costly water, as Michigan agencies prepare to spend hundreds of millions of dollars in federal infrastructure and pandemic relief funding in the coming years.
Some of those gaps are filled in by a report by the University of Michigan Water Center, Michigan State University Extension, and the consulting firm Safe Water Engineering. It discovered that the number of Michigan residents spending more than 5% of their income on water and sewage services has increased dramatically. When adjusted for inflation, that figure increased from 1.6 percent of families in 1980 to 6.7 percent in 2018.
The paper makes six policy proposals that policymakers should think about. In broad terms, these include regulatory measures such as requiring utilities to provide data on water shutoffs and customer debt, as well as forbidding utilities from turning off water to economically needy homes. Government assistance, such as technical and financial assistance to low-income areas and utilities, is also addressed in the suggestions. Forgiveness of consumer debt and community participation in planning processes are two further factors to consider.
Some of these suggestions have been offered and rejected in Michigan. Water and sewer providers would have been required to report annually on water rates, average monthly bills, and the frequency of water shutoffs by ZIP code and census tract under House Bill 5093, which was filed in 2015. It was not approved by the committee.
Utilities are in a tight spot as they try to strike a balance between essential rate hikes and delivering affordable service. They’re hiking prices to keep their systems running smoothly and to meet regulatory standards for preventing sewage spills and removing toxins like PFAS chemicals from drinking water. They are still not going to spend enough. The research anticipates a $19.8 billion funding imbalance over the next 20 years. The discrepancy between estimated needs and estimated spending is this. These are modest predictions, according to Read, and do not include expected government assistance from the newly passed infrastructure plan.
A state-funded assistance scheme might assist customers with high bills while also allowing utilities to make necessary investments, but it would come at a cost. Depending on how an expensive water bill is defined, the yearly cost to the state of reducing high-burden water bills to a more reasonable level is estimated to be between $78.3 million and $146 million, according to the research.
A year ago, Congress passed the first-ever federal water bill assistance program in response to rising water costs and financial burdens associated to the outbreak. It was critical, according to Rep. Dan Kildee, whose district includes Flint.
“No one should go without water because they can’t afford it,” Kildee remarked on November 29 at the Michigan Water Infrastructure Forum.
More than $1.1 billion in water bill aid was passed by federal lawmakers in the last year, with Michigan receiving $36.3 million. The American Water Works Association’s Michigan chapter estimates a total of $252 million in past-due water bills across the state. However, the new federal program’s administrative process is lengthy. None of the monies were distributed to low-income families.
The rising cost of water and sewer service, as well as households’ ability to afford it, are issues that affect people all around the country. In 2019, a four-person household in the bottom 20% of the income distribution spent an average of 12.4 percent of disposable income for water and sewer, up from 10.9 percent two years prior, according to a nationwide affordability study. After taxes, housing, health care, food, and home energy, disposable income was defined as the money left over.
In recent years, the concept of water affordability has widened. Initially, regulators and public-interest groups were concerned about community-level affordability, or whether a town’s citizens could collectively gather enough money to operate and maintain their systems while still fulfilling all water quality criteria. When utilities analyze the cost of mitigating sewage pollution, the US Environmental Protection Agency requires a community affordability analysis.
Affordability at the community level is still a problem. The health repercussions of inadequate funding for system repair are illustrated by the problems of areas like Benton Harbor, a low-income, predominantly Black community grappling with a dwindling population and high levels of lead in its drinking water.
A new dilemma has surfaced, which is whether individual families can afford their water and sewer rates, in addition to concerns about cities’ ability to maintain their infrastructure.
For years, water rates were so low that the cost of service was a small part of a family’s monthly budget. However, as water utilities have been forced to deal with a backlog of pipe repairs, treatment plant upgrades, and other requirements during the previous two decades, water rate rises have outpaced rate increases for other vital services like broadband and energy. At the same time, low-income people’s incomes have remained basically unchanged in purchasing power since the 1970s, putting financial hardship on them in addition to rising housing, health-care, and other demands.
According to Raftelis, a utilities consulting business, “this creates a situation where affordability difficulties will develop.”
Despite the increased focus on affordability in Michigan and around the country, there is no consensus on how the term should be defined. Is a water and sewer cost that equals 3% of household income excessive? Is 4% correct? What about 5% of the total?
According to Manny Teodoro, an associate professor of water policy at the University of Wisconsin, Madison, the threshold for an inexpensive water bill is something that each city must choose. Detroit’s economic situation differs from that of Denver or Dallas.
Teodoro has proposed alternatives to the percent-of-income statistic, which he co-authored in the 2019 national water affordability report. The number of hours worked at minimum wage to pay for water and sewer, as well as the cost of water and sewer as a percentage of disposable income, are among the options.
When it came to determining what constitutes an affordable bill, Read of the University of Michigan noted that the authors of the report did not believe it was their obligation because financial circumstances differ greatly between homes and communities. She believes that the process of defining it should be open to the public.
Read noted that “it’s a policy dialogue that needs to happen between neighborhood groups, utilities, and the state.”
Why are water costs in Detroit so high?
Detroit, Michigan Water rates are slated to rise on Thursday, with many cities imposing raises that will be higher than the regional Great Lakes Water Authority’s 1.5 percent increase for water and 0.6 percent drop for wastewater.
The ultimate water bill that residents receive reflects both community and water authority expenses. Local towns have their own water-related costs, and the Great Lakes Water Authority has little influence over those rates.
According to David Miller, the township’s director of public works, Shelby Township homeowners saw a 13 percent rate raise take effect in January.
The hikes will take effect days after floods and basement backups wreaked havoc on several Metro Detroit neighborhoods, leading Gov. Gretchen Whitmer to declare a state of emergency and seek federal assistance. Meanwhile, the governor stated that she will continue to press state lawmakers for an infrastructure spending proposal.
Birmingham has likewise aggressively raised its rates. In the posh Oakland County community, water costs $5.30 per 1,000 gallons, up 7% from $4.95 in 2020. Sewer charges have risen to $8.57 per 1,000 gallons, up 4.4 percent from last year’s $8.21/1,000 gallon cost.
According to the city’s website, the price rise for water is due to increased maintenance costs, increasing depreciation, and a “new residential cross-connection inspection program.”
The rise in sewage rates is due to a 6% cost increase from GLWA and the Oakland County Water Resources Commissioner’s office.
Water volume prices in Detroit, Michigan’s largest city, will increase by 2% to $26.60 per 1000 cubic feet, up from $26.08 per 1000 cubic feet. Its disposal rate and sewerage service charge are the same as they were a year ago.
“Since 2016, the DWSD leadership has sought to keep rate increases below 4%, and the combined increase has averaged 3% yearly,” said Bryan Peckinpaugh, a spokesperson for the Detroit Water and Sewerage Department. This is one way to keep the overall increase to less than 2%.”
“Prior to 2016, the average rate increase was 9% over the previous 20 years, with some years in double digit hikes,” Peckinpaugh said.
The increase in drainage rates per impervious acreage on the Detroit water bill in 2021 will be the most significant adjustment. This is up from $626 to $677, an increase of 8%.
The hike is “based on the annual volume to manage and treat stormwater and pay off the debt on the nine wet weather treatment facilities,” according to Peckinpaugh.
The sewer system in Detroit is undergoing a $240 million, two-year renovation.
When the upgrades were announced last month, Detroit water department head Gary Brown said, “We are conducting the greatest water and sewer upgrade initiative in more than 80 years.”
According to the water department, more than 1,100 lead service lines have been replaced, and 50 miles of sewer collection infrastructure has been restored or lined.
Communities such as Livonia and Highland Park have stated that they will pass on the GLWA price hike but will not raise water rates on their own. Livonia has raised its base rate by 2% and increased its commodities charge by 1.9 percent, which is the cost to a customer from the volume of water delivered during a monthly bill period.
According to a Detroit News assessment of water authority data, Highland Park’s basic fixed rate is increasing by nearly 1.5 percent, while its commodity fee is increasing by 0.4 percent.
Highland Park Mayor Hubert Yopp remarked, “You have to consider about the residents you’re taking that money from.” “(A price increase) is the last thing our community needs.”
The community’s annual necessary revenue to the GLWA system increased by $1.8 million as a result of the water use exceedances in Shelby Township.
“The Shelby Township Department of Public Works was forced to establish specific controls to guarantee these exceedances do not recur,” Miller said.
The town has passed a mandatory irrigation code that limits the amount of time homeowners can water their lawns and landscapes, and work on a $3.5 million gallon water reservoir and pumping infrastructure has begun. This is being built to reduce long-term rate increases from the GLWA and to offset future peak demands on the system.
According to Miller, the $14 million facility will actually cut water prices in six years. He claims that having a water reserve will prevent him from utilizing GLWA water during peak hours. It will protect against system price increases and provide a backup water supply in the event of a disaster, such as a fire, he said.
The irrigation ordinance in the township was passed in March and is in effect from May 1 to October 1 every year. Sprinklers can only be used to irrigate lawns between 11 p.m. and 5 a.m., and even- and odd-numbered properties must alternate days.
While Shelby Township received a penalty for excessive peak-time water use, the GLWA claims that low water use raises members’ per-capita costs.
“The only expenditures that fluctuate with water use are chemicals to purify the water and electricity to pump the water, and those costs typically account for around 10% of the annual budget,” according to GLWA.
Personnel, debt service, and maintenance are among the remaining 90% of fixed expenditures.
According to GLWA, demand is on the decline. Its five water treatment plants have the capacity to produce 1.7 billion gallons of water per day, but 565 million gallons were consumed on the most recent peak day.
According to the GLWA, rightsizing can take two forms. GLWA is replacing antiquated, over-sized machines at the remaining plants with machines matched to the present workload, in addition to decommissioning one of the five treatment facilities during the next “10 to 15 years.”
: Leaky/Running Toilets
In the average American home, toilets account for around 31% of indoor water use. It’s no wonder, then, that they offer a significant leak risk. A leaking or running toilet can waste up to 6,000 gallons per month, costing hundreds of dollars in water.
- Simply walk up to your toilet and listen to the sound. If you hear a strange hissing sound, you may have a leak and should double-check the tank flapper, water line connections, and seals.
- The Dye Test: You’ll need some food coloring or a dye tablet for this test. Remove the lid from your toilet’s tank and add a few drops of food coloring (or a dye tablet). Wait 15-20 minutes after putting the dye in the tank before checking the toilet bowl for dye. If there is dye in the bowl, there is a leak allowing tank water to flow into it.
A malfunctioning flapper in the toilet tank is the most common cause of these leaks. This is a simple remedy that only takes a few minutes of labor and a quick trip to your local home hardware store.
: Leaky Faucets & Fixtures
Another typical reason of high water costs is leaking faucet fittings. The more water that is wasted as a result of the leak, the higher the water bill will be. Over the course of a day, a faucet that drips roughly one drip per second can waste about 17 gallons. A leaking faucet, thankfully, is relatively simple to detect and repair.
A simple visual inspection of your faucets, showerheads, and other fixtures is all that is required to detect a leak. A defective rubber washer in the faucet handle is the most typical cause of a faucet leak. Most leaky faucets may be repaired by turning off the water, unscrewing the handle, removing the faulty washer, and replacing it with a new one.
: Leaky Washing Machines or Dishwashers
You might have a greater problem than missing socks: It’s possible that your washing machine is leaking. Many people are unaware of them since they are hidden in closets and corners. So make careful to look beneath it. Consider investing in a high-efficiency washer, which can save up to 50% on water compared to older models.
So, how’s that dishwasher working out for you? It’s also possible that it’s leaking, so keep an eye on it. But keep in mind that a newer dishwasher uses less water than hand-washing. You still don’t believe us? According to CNET,
Which utility bill is the most expensive?
$413.14 for Hawaii As previously stated, Hawaii has the highest average electricity bill in the US. Hawaii homes pay an average of $168.21 per month for energy. Connecticut, with $150.71, is the only state that comes close.
In Grand Rapids, Michigan, what is the average water bill?
The quarterly cost of water and sewer for the average user in Grand Rapids is expected to be $236.15, up 3.5 percent from the current quarterly average of $228.16.
In Michigan, how much do utilities cost?
The amount of money you spend on utilities each month is heavily influenced by where you reside. Nevadans spend an average of $377 per month on home utilities, whereas Alaskans spend an average of $500 per month. The difference is $123 each month, or just less than $1,500 per year. Some areas have high gas prices, while others have skyrocketing energy costs. We’ll look at monthly utility costs by state in the table below.
Alabama
Alabama citizens pay $377.69 per month on average for their utilities. Alabama, which ranks 35th from best to worst in terms of living costs, is one of the states with high living costs. In Alabama, at least, the average waste charge is comparable to the national average. It’s not all bad news for residents of Alabama, since the state has the lowest tax burden of any state in the US.
Alaska
Alaska has the cheapest gasoline, but the highest average natural gas bill. With an average utility cost of $437.63 per state, the Last Frontier is virtually the most expensive jurisdiction for housing costs.
Arkansas
The average cost of apartment utilities in Arkansas is $323.04, putting the state in a respectable 10th place nationwide. Water bills in the state are particularly inexpensive – around $22. Arkansas is also one of the states with the lowest per-gallon gas prices.
California
California has one of the highest utility costs in the US, at $384.64 per month, making it one of the most expensive states to live in. Californians have the highest average cable price, resulting in a monthly cable and internet payment that is skyrocketing.
It’s worth noting that, at around $190 per month, the average phone bill in California is much higher than the national average. The same may be said for the average California cell phone bill.
Colorado
Colorado’s average utility cost is $325.74, making it one of the most affordable states for homeowners. Colorado’s average trash cost is comparable to the national average, and the state’s average power bill is around $90.
Some areas of the state are even less expensive to live in. For a 900-square-foot apartment in Colorado Springs, for example, the typical monthly utility bill is around $176.