After a hiatus of over three years, the Detroit Water and Sewerage Department (DWSD) announced its decision to recommence water shutoffs for customers with outstanding balances exceeding $5,000 who are not part of a payment plan. The process will commence next week beginning with those customers with the highest debts, residing in areas identified by U.S. Census data as having middle to high-income earners. Approximately 700 households, within these specified census tracts, are vulnerable to shutoffs if they fail to clear their balances or enter into a payment arrangement.
Statistics reveal that 700 households, each with a minimum of $5,000 in arrears, are located in these tracts and face potential water shutoffs unless they settle their bills or engage in a payment arrangement.
Notably, residents involved in the Lifeline Plan, a system that determines water fees based on income and usage, are shielded from the imminent shutoffs. However, their service may be halted in the future if they fail to address their lowered bills.
The termination of a pandemic-induced water shutoff moratorium at the close of 2022 left residential customers with $60 million in overdue fees. This amount comprises debt accrued during the nearly three-year moratorium and the current year. Presently, DWSD has a collection rate of roughly 89%, marginally below what was observed before the pandemic. As part of its debt assessment, the department pinpointed customers with outstanding balances ranging between $5,000 to $10,000. These individuals are situated in neighborhoods housing middle and high income earners, which, according to federal metrics, are households with earnings at or above 300% of the poverty threshold.
Using water shutoffs as a means of debt collection raises significant ethical concerns. Essential for life, water access is a fundamental right. Often, the inability to settle water bills can be an indicator of broader economic challenges. Thus, the decision to reinstate shutoffs is fraught with complications, even for those in higher income brackets. In a bid to inform and alert, DWSD representatives undertook door-to-door visits in early August, cautioning customers about potential shutoffs should they fail to engage with the department.
In an effort to keep residents informed, DWSD proactively reached out to at-risk households in early August, advising them of the impending shutoffs unless they liaise with the department within 10 days. Those enrolled in the Lifeline Plan, offering rates between $18 to $56 based on income and water consumption, remain exempt from these interruptions for now. To date, 22,000 households, encompassing an estimated 60,000 individuals, have joined the program. Of these, 87% have been billed $18. Since its inception last month, DWSD has allocated $28 million to the Lifeline Plan and hopes to receive state budget support for the initiative.
Seeking Assistance?
For those requiring financial support or payment plan options:
- The 10/30/50 program provides the opportunity for an upfront payment followed by installments. This plan is not based on income. For details, call 313-267-8000 or visit bit.ly/DWSDWaterPaymentPlan.
- For information on the Lifeline Plan, residents can reach out to the Wayne Metropolitan Community Action Agency at 313-386-9727 or access www.waynemetro.org/dwsdlifeline.
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