It makes financial sense that the City dispose of the ownership of the Detroit Water and Sewage Department (DWSD). It is in need of significant capital improvements and it is too costly to operate.
The DWSD needs to make significant capitol improvements and it is not in position to do so. The cost of borrowing money by the DWSD is high because of its affiliation with Detroit. Time has also shown that the DWSD is not able to raise utility rates. The anticipated capital improvement program over the next four years totals $1.2 billion dollars, which the City does not have.
The DWSD needs to make significant capitol improvements and it is not in position to do so. The cost of borrowing money by the DWSD is high because of its affiliation with Detroit. Time has also shown that the DWSD is not able to raise utility rates. The anticipated capital improvement program over the next four years totals $1.2 billion dollars, which the City does not have.
The tentative plan, created prior to Kevyn Orr, calls for the city to annually receive $50 million to transfer the DWSD's assets to a to be formed regional Authority.
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