In March 2014, the Detroit Water and Sewerage Department (DWSD) accelerated efforts to shut off water at homes with accounts more than 60 days late and that owe at least $150. The shut offs were the latest DWSD effort to cover $89 million in overdue bills. So far DWSD has shut off service to 17,000 to 18,000 residential customers; only 60 to 70% of those accounts have been restored although some of these accounts serve vacant properties. The city has gained significant international attention for the water shutoffs, with the United Nations calling it a violation of human rights. DWSD struggles to cover its operating costs in the midst of bankruptcy proceedings and the realities of low-income residents who struggle to find jobs and transportation as well as cover basic living expenses; according to the U.S. Census Bureau, 38% of Detroit residents live in poverty (American Community Survey 5-year estimate). The number of delinquent accounts has built up over years due at least in part to the department's history of tolerance for unpaid bills. The Detroit City Council approved an 8.7% rate increase in June 2014 to cover uncollected bills from the previous year. DWSD says it is working with customers to prevent shut offs, and enrolling more than 17,000 customers into a payment plan designed to fit each customer's financial needs. However, community organizations are concerned that DWSD accommodations are insufficient, and the most vulnerable populations including children, the sick, and the elderly are losing access to clean water.

 
Oversight of DWSD was officially transferred from Detroit Emergency Manager Kevyn Orr to Detroit Mayor Mike Duggan at the end of July, 2014. The DWSD shutdown policy was suspended on July 21, 2014 and the current moratorium lasts until today, August 25, 2014. Major Duggan has announced a new plan for addressing water bill collection in Detroit that includes expanding hours of operation and staff to assist customers with delinquent accounts, and improving notification to customers. The city has created the Detroit Water Fund to accept donations for those in need, which has already received over $200,000.  

For more information, contact Elin Betanzo, Senior Policy Analyst at the Northeast-Midwest Institute.