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You can find the current article at its original source at http://www.theguardian.com/world/2014/sep/22/detroit-water-shutoffs-challenged-bankruptcy-court
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Detroit authorities defend water shutoff policy in bankruptcy court | Detroit authorities defend water shutoff policy in bankruptcy court |
(about 2 hours later) | |
Detroit’s water department defended its shutoff policy Monday and warned that free service to people with unpaid bills could be “very devastating” to the bottom line. | Detroit’s water department defended its shutoff policy Monday and warned that free service to people with unpaid bills could be “very devastating” to the bottom line. |
Judge Steven Rhodes set aside Detroit’s bankruptcy trial to hear evidence in a controversy that has been boiling all summer. A coalition representing low-income residents is asking Rhodes to suspend water shutoffs and restore service to people who have lost it. | Judge Steven Rhodes set aside Detroit’s bankruptcy trial to hear evidence in a controversy that has been boiling all summer. A coalition representing low-income residents is asking Rhodes to suspend water shutoffs and restore service to people who have lost it. |
The water department would be violating Michigan law and breaking agreements with bond holders if forced to supply water and ignore overdue bills, attorney Sonal Mithani said. | The water department would be violating Michigan law and breaking agreements with bond holders if forced to supply water and ignore overdue bills, attorney Sonal Mithani said. |
The “humanitarian concerns are very compelling” but fairness is critical, too, Mithani said, noting that 60% of Detroit residents are paying for water on time. | The “humanitarian concerns are very compelling” but fairness is critical, too, Mithani said, noting that 60% of Detroit residents are paying for water on time. |
Opponents essentially are arguing that “every resident has the inherent right to free water,” she said. | Opponents essentially are arguing that “every resident has the inherent right to free water,” she said. |
The water department stepped up shutoffs in March, and about 15,000 customers had service cut from April to June. Criticism and protests followed, even appeals to the United Nations. | The water department stepped up shutoffs in March, and about 15,000 customers had service cut from April to June. Criticism and protests followed, even appeals to the United Nations. |
Detroit stopped shutoffs for about a month this summer but they resumed in August after Mayor Mike Duggan encouraged people to put down 10% and sign up for a payment plan. | Detroit stopped shutoffs for about a month this summer but they resumed in August after Mayor Mike Duggan encouraged people to put down 10% and sign up for a payment plan. |
“It could potentially be very devastating” to the water department’s budget if the city is ordered to stop shutoffs, director Sue McCormick told the judge. | “It could potentially be very devastating” to the water department’s budget if the city is ordered to stop shutoffs, director Sue McCormick told the judge. |
Carol Ann Bogden said the new policy hasn’t helped her. She said she bathes in the sink with water purchased at a store since being cut off in July. She owes $1,120 but lost her identification and has been unable to get into a payment plan. | Carol Ann Bogden said the new policy hasn’t helped her. She said she bathes in the sink with water purchased at a store since being cut off in July. She owes $1,120 but lost her identification and has been unable to get into a payment plan. |
“I cried for a while,” Bogden said of her woes. | “I cried for a while,” Bogden said of her woes. |
As of 31 July, at least $86m was owed on accounts overdue for at least 60 days. | As of 31 July, at least $86m was owed on accounts overdue for at least 60 days. |
An economist, Roger Colton of Belmont, Massachusetts, testified for critics of Detroit’s shutoff policy, saying a consumer’s income should be a factor in how the city regularly collects water bills. | |
He predicted that Detroit’s payment options will be “unsuccessful and ineffective” in the long run as poor people miss more payments down the road. | |
John C Smith said he and his mother could lose water as soon as Tuesday after being cut off for a few months last winter. He owes about $1,100. | John C Smith said he and his mother could lose water as soon as Tuesday after being cut off for a few months last winter. He owes about $1,100. |
His spending habits were questioned by attorney Thomas O’Brien, who asked about his cellphone bill. Smith said his sister pays it. | His spending habits were questioned by attorney Thomas O’Brien, who asked about his cellphone bill. Smith said his sister pays it. |
The hearing will end Tuesday after testimony from water department officials and closing arguments. |