Industrial decline contributes to increases in Ypsilanti area residents' water bills
Residents in eastern Washtenaw County will soon see higher water bills, and the director of the Ypsilanti Community Utilities Authority says the area's declining industrial base is partly to blame.
The Detroit Water and Sewer Department increased YCUA's water rates by 18.6 percent this year, which is then partially passed on to customers.
YCUA Director Larry Thomas attributed half of that figure to the area’s declining industrial base.
“That’s really because of changes in our usage patterns,” Thomas said.
Historically, water rate increases passed on from Detroit have largely resulted from improvements to the infrastructure. Thomas said new management arrived in Detroit roughly 15 years ago and began making needed infrastructure updates. Prior to that, rates were relatively low because Detroit wasn’t fully maintaining its infrastructure, he said.
Water rates are on the rise, which officials attribute to increases from Detroit and different usage patterns.
Lon Horwedel | AnnArbor.com
From 2001 to 2004, rates increased at an average 15 percent annually. From 2004 to 2008, increases were much lower, and after YCUA renegotiated its contract with Detroit in 2008, rates dropped by 7.1 percent.
But in the last two years, the rate increases have doubled to 9.6 percent in 2009 and 18.6 percent this year.
Thomas said that’s where the drop in industrial usage comes into play. Detroit looks at several factors in its calculation of the water rate. The difference in the average amount of water used and the peak usage is one consideration. The greater that difference, the higher the bill.
“Our maximum day use to average day use increased, and a lot of that is due to the reduction of industry in our service area,” Thomas said.
He said GM’s Powertrain and Ford plants used the same amount of water every day during the winter and summer to build cars.
Conversely, residents' usage patterns fluctuate more. The typical resident requires much more water on a hot summer day, and those fluctuations cause increases in rates.
In fiscal year 2005, industrial sales accounted for 15 percent of YCUA’s water use, while that figure dropped to 6.8 percent in fiscal year 2009.
But YCUA only passed on a 12 percent increase to its customers - which are in Ypsilanti, Ypsilanti Township, Superior Township, Augusta Township, Pittsfield Township and York Township - this year because the authority has been able to reduce distribution costs, Thomas said.
As YCUA replaces old mains, costs associated with water loss, upkeep and water main breaks are reduced. That drives down the cost of providing water to customers.
In the city of Ypsilanti, an average customer’s bimonthly bill will only rise by 1.75 percent, or $2.18. That’s because a surcharge for debt service formerly at 76 percent has been adjusted to 71 percent to account for the increase in funds YCUA is collecting for water. The drop in the surcharge offsets much of the cost associated with the rate hike.
Residents in Ypsilanti Township will see the full 12 percent increase, equating to $4.88 per bimonthly bill. The larger increase is because the debt surcharge rate, set at 5-percent of the bimonthly bill, is fixed.
Thomas said YCUA's other customers buy their water from the Ypsilanti Township division, and it's up to their respective boards to determine any rate increases to pass on to residents.
Thomas said he doesn’t expect a doubling in the increase of water rates again next year, and estimated Detroit would pass on a roughly 9 percent increase.
Tom Perkins is a freelance writer for AnnArbor.com. Reach the news desk at news@annarbor.com or 734-623-2530.
Comments
John Q
Tue, Aug 10, 2010 : 4:37 p.m.
"If capital improvements right now cost current users more with the eventual result of costing future users less in ten or twenty years, then that is a defensible and reasonable action for YCUA to take." It's not "cost current users more". It's "cost current users a lot more". You don't seem to have an understanding of the capital costs for a water system the size of YCUA. Those are costs that have to be borne entirely by the ratepayers of YCUA. "Lets see does this make sense Less customers equals Less Demand but we still need to raise our rates. HMMMMMMMMM" Yes it does. Less people paying for the same amount of infrastructure means higher rates. Pretty easy math to do.
Rita
Tue, Aug 10, 2010 : 3:59 p.m.
As the Michigan automotive industry declines, of course the industrial tax base has declined.....and auto workers have moved out of state, leading to less taxes collected.....as locals buy foreign cars, they don't see the consequences.....
speerhawk
Tue, Aug 10, 2010 : 9:47 a.m.
Lets see does this make sense Less customers equals Less Demand but we still need to raise our rates. HMMMMMMMMM
Mark
Tue, Aug 10, 2010 : 8:25 a.m.
John Q, you present a false argument. Prices are destined to rise regardless of which direction YCUA heads, so using the threat of rising utility costs as a reason to not sever ties with Detroit is a disingenuous at best point. The real point, the better point, is whether or not YCUA can find a way to stabilize utility costs. If capital improvements right now cost current users more with the eventual result of costing future users less in ten or twenty years, then that is a defensible and reasonable action for YCUA to take.
Mertie
Mon, Aug 9, 2010 : 11:38 p.m.
I love my well!!! and septic system (since sewage is included in the higher water bills).
watchingypsi
Mon, Aug 9, 2010 : 5:27 p.m.
I have lived in and out of Ypsilanti for many years and the water taste is very inconsistent. Sometimes it smells and tastes like lake water, but most of the time it tastes and smells like bleach. Yuck! That said, I don't mind paying more, YCUA is a non-profit and if they need more money to run the plant, then I believe them.
John Q
Mon, Aug 9, 2010 : 3:57 p.m.
"Why? Why won't it happen? Why can't YCUA simply plan to remove itself from Detroit over the next thirty years? How is that physically or fiscally impossible?" Nothing's impossible. Identify a sufficient source of water suitable to be treated for drinking water, build the facilities including wells, pumping stations, water treatment plant, etc. that will replace the water coming from Detroit. Then hand your customers massive water bill increases to pay for your new system and the ongoing costs to pay for that system. I'm sure people would be thrilled to have their water bills skyrocket for the luxury of getting water from Ypsi versus Detroit.
Mark
Mon, Aug 9, 2010 : 3:43 p.m.
Why? Why won't it happen? Why can't YCUA simply plan to remove itself from Detroit over the next thirty years? How is that physically or fiscally impossible?
Mikey2u
Mon, Aug 9, 2010 : 2:36 p.m.
I have lived in Los Angeles, Denver, Chattanooga, Tecumseh, Mi. and Ypsilanti. The water here in Ypsilanti is the best tasting by far. The water here almost has a sweet taste. The water in Denver (mountain snow melt) has no taste at all.
Cash
Mon, Aug 9, 2010 : 1:29 p.m.
I would agree that a water system of "our own" would be great,Mark. That's not going to happen. We get our water from Detroit...but Washtenaw county isn't given a seat on the board like other bordering counties are given. Thus we take whatever rates they throw at us. I think our representatives should be demanding a seat at the table where rates are established.
Craig Lounsbury
Mon, Aug 9, 2010 : 1:22 p.m.
Cash, Mark Hergott gets it. He wants his own car instead of borrowing his neighbors car and complaining about the mileage. That is your ultimate solution. Having said that I will back out of this thread as its not really my fight. My city has its own water and sewer system.
Mark
Mon, Aug 9, 2010 : 1:11 p.m.
The Ypsilanti Community Utilities Authority was formed in 1974 in order to wrest some control from Detroit. It is high time we severed all possible ties to the Detroit water system. Simply put, if we are doomed to pay more and more money to Detroit if things remain the same, we ought to pay more now in capital improvements and watershed sources and slowly, ever so slowly, turn of the tap from Detroit. A community with control of its resources is more in control of its destiny. It is high time that Eastern Washtenaw county stops being a colony of Detroit.
beaumont_slave
Mon, Aug 9, 2010 : 12:48 p.m.
pay more!!.. now if they would just make the water less nasty.. ughhhhhhhhh.. it gives heartburn and is so loaded with scum.. let it sit for 1 day and it gets slimy.. nasty nasty
Cash
Mon, Aug 9, 2010 : 12:20 p.m.
@Craig Lounsbury, A facility already exists. It is Detroit Water and Sewerage Department. Much of the metro area buys water from Detroit, including eastern Washtenaw County. Macomb and Oakland have, I believe, one seat on the board. The balance of the board are Detroit City representatives. The users from Washtenaw County should have representation of the Detroit Water Board. I don't see why anyone finds that unreasonable.
Woman in Ypsilanti
Mon, Aug 9, 2010 : 12:07 p.m.
@cash There hasn't been a lot of increased sprawl in the past 20 months. That is more a long term issue. But what has happened in the past 20 months is that people and businesses have moved out of the area reducing the amount of water used (and charged for). The amount of water demanded has been reduced but the infrastructure that is in place to meet the old demand still costs money. You have a situation where fewer people are paying for the same infrastructure. The short term solution is higher water rates. The long term solution could involve better planning when it comes to things like sprawl. Denser populations need fewer water mains and sewers and have lower infrastructure costs.
Ignatz
Mon, Aug 9, 2010 : 11:59 a.m.
I've seen some good reasoning in this thread and I've seen some incomplete reasoning. Here's the final effect: The rates are not going to go down. You can't layoff the water delivery infrasturcure. You can layoff the folks who repair the infrastructure, since it's falling apart. You can't layoff those who are making sure our water is safe, and it is safe, thanks to them. Let me be simplistic. It's not like at max usage we paid 10 guys to go down to the river with buckets and now that usage is down we can lay off a few. The whole system needs to operate as before. I wonder how many of those who are grousing about water rates buy bottled water even on a semi-regular basis. That's a worse deal than gasoline, since we can get water out of one of many taps in our domiciles and workplaces, again, thanks to our water departments.
Rasputin
Mon, Aug 9, 2010 : 11:52 a.m.
It doesn't matter that we have 20% of the world's fresh water when our infrastructure is crumbling and fails to deliver this abundant resource. Hence the added cost being past to consumers. Logic!
Craig Lounsbury
Mon, Aug 9, 2010 : 11:35 a.m.
@cashI believe you missed my point but that's OK. How about this. You live in Washtenaw county and your whining about Detroit and Lansing with respect to your water bill. Why don't you people build your own water system then you don't have to complain about Detroit and Lansing. Its a rhetorical question, I already know the answer. It would cost too much. Your like a guy who's too cheap to buy his own car so he always borrows his neighbors car then complains about the gas mileage his car gets.
Greggy_D
Mon, Aug 9, 2010 : 11:24 a.m.
"Continue to run your sprinklers at peak hours and you're going to see rates continue to go up. " Or continue to NOT run our sprinklers at all and still watch our rates go up. I have not watered my lawn once in over two years. I refuse to give them one extra dime for water that is used in a discretionary manner.
JSA
Mon, Aug 9, 2010 : 11:24 a.m.
I really hoped someone did their due diligence and investigated whether the increase from the Detroit Utility was justified or not. Detroit has a reputation for overcharging suburbs to cover their own problems above their costs. Anyone trusting anything out of Detroit at face value needs to look again.
John Q
Mon, Aug 9, 2010 : 11:14 a.m.
Water rates from Detroit are among the lowest in the country. Look for the Circle of Blue survey from this year online to see the numbers. As "Woman in Ypsilanti" correctly explained, reducing water consumption doesn't necessarily translate into lower water rates. The reduction has to occur during peak hours, which is when the utilities charge the highest rates to offset the highest costs. If communities were able to spread the usage out over a larger period of time, peak demand would decline which would be reflected in lower rates. Continue to run your sprinklers at peak hours and you're going to see rates continue to go up.
Cash
Mon, Aug 9, 2010 : 11:01 a.m.
Something else to consider regarding Detroit Water and Sewerage Dept. http://www.freep.com/article/20090614/NEWS05/906140498/Trustee-paid-for-job-he-doesn%5C-t-have-to-do Also don't forget Synagro....that contract later rescinded (after the guilty parties got caught) was with the Detroit Water and Sewerage Dept.
Cash
Mon, Aug 9, 2010 : 10:55 a.m.
Comparing Eastern Washtenaw county to a 3rd world country is a tad insulting. We don't bash our clothes on rocks when we do our wash. And we have had water coming from a faucet for quite some time now! We are a metropolitan area drawing water from Detroit. We aren't in Cambodia drawing water by donkey. That is a given. Just because we live in a metro area, doesn't mean we should blindly accept every fee increase without question, cowering down and thanking our stars for having water!! The issue for me is that Detroit Water Department is a mess and Lansing needs to do something about it. If you read the link I posted above you might agree.....or not. But for me, that's the issue. That department is out of control and attempts to improve it have failed. It would be great if the users in the surrounding metro area using that water,band together to pressure Lansing to arrange for suburban representatives on the Detroit Water Board. That mess needs to be cleaned up.
Craig Lounsbury
Mon, Aug 9, 2010 : 10:38 a.m.
@Woman in Ypsilanti, a voice of logic in the wilderness. the fact that we have affordable potable water delivered to our homes at the turn of a faucet and a toilet to whisk our waste water away is a marvel compared to most of the world. The fact that we have access to an Internet where we can weigh in on how blessed we are is also a marvel.
Cash
Mon, Aug 9, 2010 : 10:31 a.m.
Woman in Ypsilanti, I sure have not seen any sprawl in the past 20 months in the Ypsilanti area. Where did that occur this year?
Woman in Ypsilanti
Mon, Aug 9, 2010 : 10:23 a.m.
For those who are confused about why less consumption is leading to higher prices: There are two kinds of costs when it comes to providing something like water, fixed costs and variable costs. Fixed costs are those things that cost the same no matter how much water is consumed. That would include things like the mains and pipes as well as treatment plants. Even when there is less water being used, those costs stay the same and if enough less water gets used, it is easy for the fixed costs to drive up the cost per gallon (or cubic yard or however they bill based on usage) even though demand is less. Unfortunately, we are losing population in our area of the state and people are spreading out more. All of that sprawl out in the township comes with a price tag and that price tag is the increased infrastructure required to do things like provide water and sewage to an increasingly spread out population. Don't get surprised when other infrastructure costs go up because of our proclivity to move into large new construction homes out in the sticks. We're lucky the increases aren't bigger actually.
Cash
Mon, Aug 9, 2010 : 9:48 a.m.
Alain Danielou, What you suggest will increase our water costs even more. The rates are increasing due to less usage. Good grief...apparently we all need to go out in the front yard and run the sprinklers 24X7!
AlfaElan
Mon, Aug 9, 2010 : 9:40 a.m.
So because Detroit raised the rate 18.6% and the YCUA passed on only 12% of the increase we should fire the director? What is the YCUA supposed to do? Build their own source with wells and pipes? Take over Detroits water service? For historical reasons and the mismanagement of Detroit we are stuck. That's the fact and unless we can somehow help Detroit to get itself back on the road to prosperity so the fixed costs and assisted households go down, there is not much we can do. On the other hand a quick google search shows we still have some of the least expensive water in world, and it won't increase the way it will for areas like Southern California where the only source is headed to be desalination. It sucks that it is going up, but it could be much worse.
Atticus F.
Mon, Aug 9, 2010 : 9:39 a.m.
Andy Jacobs, when the price of uttilities inflates, and the wage of workers doesn't, we become poorer by comparison...Is that what you are advocating, that we make ourselves poorer?
uawisok
Mon, Aug 9, 2010 : 9:32 a.m.
This rate increase beats the alternative that 2/3rds the world deals with and that would be spending abour 5 hours a day walking to a potable water source and carrying your water back home.....sound like fun yet??
Cash
Mon, Aug 9, 2010 : 9:30 a.m.
For those who didn't read this article a month ago..... Here is but one of the fiascoes we are paying for: http://www.freep.com/article/20100716/NEWS05/7160379/Detroit-water-department-land-deal-has-suburbs-steaming We are surrounded by fresh water. We are one of the few areas in the world in that position. And yet, our water rates keep climbing. We have become an easy way for Detroit to get needed funds.
Peter A Webb
Mon, Aug 9, 2010 : 9:26 a.m.
I basically agree with Ignatz. It makes sense that the people who are using the water infrastructure are the ones that pay for it. The increases in individual cost are justified by the declining number of people and businesses using the system. The only long-term solution is to restore growth in Ypsilanti. I do worry, on the other hand, that some people Ypsilanti will begin to find their utility bills unaffordable in the meantime.
amazonwarrior
Mon, Aug 9, 2010 : 9:24 a.m.
It's not the water and sewage rates, it's the "surcharge" that is killing everybody, it's almost equal to the water and sewage rates. How much longer are we stuck paying the surcharge? We certainly haven't seen any "improvements" in our neighborhood, just ratty patch jobs that leave giant bomb craters in the streets.
Dante Marcos
Mon, Aug 9, 2010 : 9:22 a.m.
There are a few things to do, before hysteria: 1) put a rainbarrel at each of your downspouts, and use that water for your garden or, god forbid (and she does!; see #2) lawn 2) stop watering your lawn 3) better yet, remove your lawn and replace it with something like this: http://extension.oregonstate.edu/news/story.php?S_No=526&storyType=garden 4) take communal showers, but every other day 5) don't wash your car at home
Soothslayer
Mon, Aug 9, 2010 : 9:17 a.m.
Boo frikkity hoo. Everyone enjoys the benefits of the municipal water system year round, it is a very valuable service and there is no "profit" taking. With the way people use water here you'd think it was free anyway. As programs work and people begin to conserve resources more the revenue model to provide them should shift more toward fixed rate/taxation based. Same issue is happening with gas usage, gas tax and road repair income. Compared to the rest of the world we don't pay nearly enough for energy and water. Maybe when we get to 2 or 3x as much as where were at now we can fuss. Complaining makes us just look like spoiled brats to the rest of the world which is par for the course.
glimmertwin
Mon, Aug 9, 2010 : 8:43 a.m.
Another example of the costs of things in SE Michigan just don't make sense. This is a perfect example, combined with absurd property taxes of why Michigan doesn't stand a chance to keep our young professionals here. Very sad because it really is a beautiful state - to visit.
Steve Pepple
Mon, Aug 9, 2010 : 7:58 a.m.
A comment was removed because it was written in all capital letters, which is the online equivalent of shouting.
xmo
Mon, Aug 9, 2010 : 7:56 a.m.
So if you save water, you save the planet and you get a bigger water bill! I can hardly wait for congress to pass the new energy bill so all untilities cost more but we get less.
Kevin
Mon, Aug 9, 2010 : 7:47 a.m.
OMG they raise prices for less water being used, no wonder fire Larry thomas and get someone who can run the place right, the damn employee list is like a family reunion there, take a pay cut like the rest of us and lose the pensions, oh thats right you cant do that to family....yuca.. a FAMILY BUSINESS BROUGHT TO YOU BY THE TAX PAYER
Gorc
Mon, Aug 9, 2010 : 7:11 a.m.
If you use less water your bill increases? So much for the law of supply and demand.
Richard C
Mon, Aug 9, 2010 : 7:03 a.m.
from the article: "As YCUA replaces old mains, costs associated with water loss, upkeep and water main breaks are reduced. That drives down the cost of providing water to customers." Although a good thing in general, it will increase the difference between average daily use and peak usage - IF that usage is measured at the connection(s) from Detroit Water and Sewer to YCUA.
Ignatz
Mon, Aug 9, 2010 : 6:56 a.m.
The entire system still needs to be maintained. The water still needs to be treated for safety. The system, like the rest of our infrastructure, is deteriorating faster than we are willing to keep it fixed. There are fewer customers, especially the high use ones, to pay for it all. Seems reasonable to me, but then, I seem to be one of the exceptions.
DDOT1962
Mon, Aug 9, 2010 : 6:47 a.m.
I've lived in Ypsilanti Township for 10 years now. In my experience, YCUA is extremely organized, extremely reliable and extremely transparent. (Do you read their quarterly mailings?) I wish all utilities ran as efficiently as this one.
GoblueBeatOSU
Mon, Aug 9, 2010 : 6:14 a.m.
I say again, here in Michigan we have 20% of the world's fresh water supply around us. There is no other place in the entire world that can say that. Our rates should be the lowest of anywhere in the world. Why don't the News organizations do a comparison of the rates we are paying here to other places in the country? What does it cost here for a gallon of water vs Columbus, OH, Boulder, CO, Houston, TX...we need to see a comparison so we know if we are being riped off by the YCUA or if all is good because we do have low water rates.
Cash
Mon, Aug 9, 2010 : 6:04 a.m.
This is better than the excuses for raising gasoline prices! (Too much usage, not enough usage) Why don't they just say "We didn't collect money from half of Wayne County, therefore you must take the burden"? When we use "too much water" it is restricted and we are threatened with fines if we water our withering gardens. You know, the garden we are encouraged to grow to eat healthy and save money? If we don't use enough water, they double our rates over a 5 year period. And they say bottled water is bad. Ha!
racerx
Mon, Aug 9, 2010 : 6 a.m.
As with Ann Arbor, the logic kills me. Since customers are using less water, as the city had been promoting, the rates increased since people were using less water! I'm affected since I live in Pittsfield Township. ARGH!
AlphaAlpha
Mon, Aug 9, 2010 : 5:33 a.m.
Gotta love 'utility' monopolies. Their prices: non-negotiable...