This is What Happens When A City Doesn't Pay Its Bills For 10 Years

The City of Highland Park decided it was going to refuse to pay its water bills for 10 years, claiming it was being overcharged.  

That didn't stop them from using the water all that time, collecting payments form the city residents, and racking up $24 Million with an M in non-payment.   Other municipalities in the region were getting soaked with Highland Park's unpaid bills through higher water rates to their residents.

Now the Piper (of water) has demanded to be paid:

Since the ruling, Highland Park officials have said the bill will financially sink the city. The majority Black city has a population of 8,900 residents, a per capita income of $19,401 and a 41% poverty rate in 2021, according to the Census Bureau. The estimated $24 million tab, the exact amount with interest is still being determined, is two and a half times larger than the $9.6 million Highland Park collects annually in property tax revenues.The Detroit News: Highland Park mayor: City in state of emergency

Yet another Democrat-run city, now hoping for a state-level bailout for its profligate actions. They certainly could have escrowed their water payments over those 10 years, but they apparently spent it on whatever corrupt local units of government spend stuff on, and now they have to come up with the money - or get bailed out.

So of course our dear Governor Whitmer instead of having them responsibly handle the situation of their own making,  suggested the city should be bailed out: 

Whitmer's office for months has suggested that GLWA could help solve the debt issue by tapping a $25 million state clean drinking water grant that the Democratic governor and Republican-led Legislature approved last year. Whitmer's office didn't immediately respond Thursday to a request for comment.

So instead of using that grant money for the purpose that it was appropriated for - ensuring clean drinking water for the region (kinda an important use of the funds, yes?), the governor wants to use it to bail out a Democrat scofflaw city that failed to pay its water bills for 10 years.

So the politicians and city that messed this up for 10 years should face no consequences and should be bailed out for their failure. That's Michigan under Whitmer for you.

If There's No Consequences For Non-Payment, Don't Be Surprised When There's A Lack Of Payments

Ah, Detroit.

To no one's surprise, or at least to no one who was paying attention, when  Detroit announced a moratorium on water shut offs at the start of Covid, Detroiters stopped paying for water.

How much didn't they pay?  $38 Million dollars worth.  

Not pocket change, and a pretty large receivable resulting from the moratorium.

Payments dropped 20% after the moratorium was announced.

So they're now going door-to-door asking the scofflaws to pay.

The Detroit News: Detroit's water department will go door-to-door as shutoff moratorium losses for city mount

Asking people to pay nicely, when there's no penalty for doing so, is likely not going to do much.  

The moratorium for any consequences for non-payment continues.

Of course, the Detroit community organizers expect water should be free: 

"Water is a human right," said [former city council member now community organizer JoAnn] Watson. "We don't have to pay for sunlight. We don't have to pay for the air we breathe. I don't believe anybody should have to pay for water."

That's the standard Detroiter, if not also the standard Democrat, mentality right there.

Sunlight and air don't need expensive pipes, water treatments, maintenance, and skilled personnel to get water to people. 

If you want free water you can always trot down to the Detroit River with a bucket, but to have it piped to your home and having it arrive safe to drink takes skills, equipment and the money to pay for it.  See Flint for what happens when shortcuts are taken.

No worries though, with the glories of regionalism, it is highly likely the rest of us will end up being the ones paying for the Detroit water debt.

Regionalism = Blue Area Bailouts Yet Again

Water rates in Southeastern Detroit are going up yet again.  The Great Lakes Water Authority, successor to the corrupt Detroit Water and Sewage Department, as regionalised in the Detroit bankruptcy bailout, just announced a 3.7% rate hike - and to continue to increase at that rate each year for the next five years.

The Detroit News: Regional water authority OKs 3.7% water rate hike.

Why are they increasing among the entire region?  Well, half of the increase is because one Democrat-controlled city,  Highland Park, just isn't going to pay its water bill, making an audacious argument that it should only have to pay for water at rates set in 1996 ignoring all increases since then.

Almost half or about 1.15% of the 2.4% sewage rate hike in 2023 owes to Highland Park's debt, officials said. The unpaid debts are passed on through rates to GLWA's remaining member communities. The rates go into effect July 1. 

Regionalism is, and has always been, a slickly advertised scheme for blue cities/areas that have mismanaged their funds via living beyond their means giving unsustainable benefits and pensions in return for votes, or by straight-out corruption, to be able to not just kick the can down the road, but to get other people to bail them out and pay for their largesse.

As Predicted, Regional Water Department Siphons Off Suburbs' Funds For Detroiters

Regional - a term floated by many in the southeastern Michigan area, is a euphemism for having the suburb counties pay for Detroit's financial losses caused by corruption and malfeasance.

And so it is with the The Great Lakes Water Authority, our Regional water department borne out of Detroit's bankruptcy and incompetence.

As predicted, The GLWA, formerly the DWSD, is now going to siphon money from the suburbs to subsidize Detoiters.

The Detroit Free Press: Detroit to get $1.2M to help households pay past-due water bills, aid conservation education

The Great Lakes Water Authority is transferring more than $1.6 million to Detroit and Flint for conservation education and to help customers pay past-due water bills.

Board members transferred the Water Residential Assistance Program funding from uncommitted 2019 bill assistance funds from Wayne, Oakland and Macomb counties.

Yep, using suburban ratepayers funds for Detroiters who either can't or more truthfully prefer not to pay for their own water. Regionalism at its best. Interesting that they were open this about it, I expect that 1.6 million to be just the beginning, and given how they've been charging the suburbs more for water than Detroit from the start its really not surprising that they're now openly diverting money from the suburbs to the city.

In another example of how regionalism works in this area, the Detroit Institute of Arts is looking to continue their regional millage - and renew it where Oakland and Macomb pay twice the amount of Wayne County where the DIA is located:

If approved, the renewal will draw about $13.6 million from Oakland County taxpayers annually, $5.8 million from Macomb County residents and $8.5 million from Wayne County taxpayers.

Expect more calls for Regionalism as they push for a regional transit system with Oakland and Macomb counties footing the bill for transit in Detroit.