Detroit and Suburbs Reach Water Deal
Published on by Water Network Research, Official research team of The Water Network in Government
Deal Has Been Reached Between the Detroit, Wayne, Oakland and Macomb Counties and the Governor to Create the Great Lakes Water Authority to Manage Water and Sewer Operations in the Tri-county Area
The deal continues Detroit's ownership of its assets while providing suburban communities a greater voice in the operation of the regional system. The agreement also guarantees funding to rebuild the system's aging water infrastructure, as well as financial assistance for customers throughout the region who are struggling to pay their bills. The annual revenue required rate increases charged by GLWA are expected to be limited to 4 percent a year for the next 10 years.
Governance
The regional authority will be governed by a board made up of two members appointed by the mayor of Detroit and one appointed from each from Wayne, Oakland and Macomb counties and the governor. Major decisions, such as rate increases, will require five of the six votes to be approved.
In order for the provisions of the agreement to take effect, Detroit City Council and at least one of the counties must approve the creation of the Great Lakes Regional Water Authority. If the authority is not approved, the Emergency Manager could make a decision himself on the fate of DWSD and could hand it over to a third party.
Funding to replace broken mains
If the new authority is established, the city of Detroit will retain ownership of its 3,000 miles of local pipes and lease its 300 miles of suburban pipes to the local communities in which they are located. Five water treatment facilities also would be operated by the Regional Authority.
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