Detroit suspends water shutoffs for 15 days

[Bob Of Burleson]

By Brent Snavely and Matt Helms
Detroit Free Press Business Writer

The Detroit Water and Sewerage Department is suspending its water shutoffs for 15 days starting today to give residents another chance to prove they are unable to pay their bills.

“In case we have missed someone who has legitimate affordability problems this will allow them to come to us to see if they can work out payments,” department spokesman Bill Johnson said. “We’ve always maintained that what we were doing was a collection effort — not a shutoff effort.”

The decision comes after the city has put into national spotlight for a policy that has been framed as a human rights issue for low-income residents who can’t afford to pay their bills. It also was announced n the same day that a group of Detroit residents filed a lawsuit in the city’s bankruptcy case asking U.S. Bankruptcy Judge Steven Rhodes to restore water service to residential customers.

The residents, backed by a coalition of activist and community groups, allege that the city is violating the constitutional rights and contractual rights by shutting off water for those who owe back payments.

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[Bob Of Burleson]

Detroit pensioners back
grand bargain in bankruptcy vote

By Nathan Bomey and Matt Helms
Detroit Free Press Staff Writers

Detroit retirees voted to accept pension cuts and allow the Detroit Institute of Arts to spin off as an independent institution, reflecting a critical endorsement of the city’s restructuring blueprint to resolve the largest municipal bankruptcy in U.S. history.

Detroit retirees voted to accept pension cuts and allow the Detroit Institute of Arts to spin off as an independent institution, reflecting a critical endorsement of the city’s restructuring blueprint to resolve the largest municipal bankruptcy in U.S. history.

With all votes counted, the two separate classes of pensioners — civilians and police and fire — voted “yes” to back the grand bargain, giving the city significant momentum in its fight against holdout financial creditors.

“The voting shows strong support for the city’s plan to adjust its debts and for the investment necessary to provide essential services and put Detroit on secure financial footing,” Detroit emergency manager Kevyn Orr said in a statement. “I want to thank city retirees and active employees who voted forcasting aside the rhetoric and making an informed positive decision about their future and the future of the City of Detroit.”

What pensioners voted to accept

■ General pensioners: 4.5% monthly pension cuts, the elimination of annual increases, a clawback of excessive annuity payments from 2003-13 and a 90% reduction in retiree health care benefits.
■ Police and fire pensioners: No cuts to monthly pension checks, a reduction in annual increases from 2.25% to 1% and a 90% reduction in health care benefits.

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