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From YouTube: Dearborn Heights Study Session - 1/25/22
Description
The Dearborn Heights Study Session regarding the Water and Sewer Rate Analysis presented by Plante Moran taking place Thursday, January 25th 2022 at Riverside Middle School and over Zoom.
A
B
B
You'll
see
the
template
that
shows
cash
available
on
screen
for
those
that
are
viewing
online,
so,
overall,
the
water
and
sewer
agreed
upon
procedures.
It's
a
report
that
we
issue
there's
a
letter.
That's
also
provided
to
the
council.
The
letter
does
inform
just
over
all
the
procedures
that
we've
performed
and
what
it
basically
some.
B
Excuse
me
over
the
next
few
years,
so
we
get
the
information
from
dua
in
order
to
see
okay,
how
much
is
the
water
supposed
to
be
increase
every
single
year?
We
look
at
the
information
from
the
city
engineering
as
well
as
weight
trim
to
see
okay.
How
much
will
you
need
to
spend
capital
expenditures
over
the
next
few
years
and
all
that
information
is
summarized
the
letter
summarizes
the
information
that
we
did
or
like
the
procedures
that
we
performed.
B
It
also
provides
an
overall
summary
of
what
the
average
expected
water
and
sewer
rate
increase
would
be
over
the
next
year
if
you
were
to
approve
this
budget
for
this
upcoming
year
as
well
as
future
years.
So
with
that,
let
me
go
through
the
template
that
shows
the
cache
available.
So
that's
the
thicker
of
the
documents.
It's
a
15-page
document.
B
The
model
is
based
off
of
your
cash
needs
within
the
water
and
sewer
fund,
just
like
in
the
past.
The
city
is
very
forward
thinking
and
forward,
looking
as
you
have
been
over
the
last
few
years,
so
it's
always
looking
at
the
next
five
years.
What's
going
to
happen,
what
are
our
cash
needs
in
the
next
five
years?
So
at
the
very
top
of
this
page
it
shows
the
overall
cash
that
you
have
currently
in
water
and
sewer
fund.
B
The
very
top
line
shows
37
million
dollars
in
cash.
I
will
explain
momentarily
why
that
balance
is
so
high
and
then
at
the
very
bottom
it
shows
a
calculation
of
how
much
money
do
you
really
need
to
run
the
water
and
sewer
department
and
then
the
minimum
balance,
essentially
at
the
very
bottom.
It
shows
that
you
need
about
approximately
6.9
million
dollars
at
any
point
in
time
to
have
a
relatively
healthy
water
sewer
fund.
The
reason
that
dollar
amount
and
the
dollar
amount
does
seem
pretty
high.
B
I
would
say
in
general
like
if
I'm,
if
I
had
that
kind
of
money
in
my
bank
account
I'd,
probably
be
living
on
the
beach
somewhere
right
now,
but
the
water
and
sewer
fund
is
a
very
big
department.
You
have
a
very
big
city,
you
have
very
like
you
have
old
infrastructure
throughout
many
areas,
so
you
do
need
a
certain
amount
of
capitals.
Certain
amount
of
money
to
keep
the
water
and
sewer
fund
healthy.
B
The
beginning
calculation
shows
that
you
essentially
need
90
days
of
operating
expenses
at
any
point
in
time
to
pay
your
current
expenses.
So
that's
payroll
primarily
just
overall
utilities,
certain
things
that
are
just
due
at
any
point
in
time
within
the
water
and
sewer
fund.
The
reason
you
need
that
cash-
you
can't
wait
for
collection
of
water
and
sewer
bills
to
come
in
and
then
finally
be
able
to
make
your
payroll.
You
have
to
have
a
minimum
balance
of
cash
at
any
point
in
time,
so
that
comes
out
to
about
4.1,
4.2
million.
Okay,.
A
Martin,
yes,
so
I'm
going
to
allow
for
council
members,
I'm
allowed
for
questions
during
the
session
instead
of
waiting
towards
the
end.
But
let's
just
keep
in
mind.
We
have
about
an
hour
of
this,
so
keep
that
in
perspective.
So
we
don't
have
way
too
many
questions.
The
reason.
What
is
the
reasoning
behind
I
mean?
I
know
you
kind
of
mentioned
it,
but
it
still
seems,
like
a
large
amount,
seven
million
dollars
in
reserves.
B
Yeah,
so
it
is
high,
so
one
is
the
four
million
dollars
of
any
at
any
point
in
time.
Your
overall
operating
expenses
you
need,
because
you
need
to
make
sure
that
you
again
you
have
to
keep
your
payroll.
You
can
pay
your
vendors
and
so
on
the
other
there's
another
percentage.
That's
calculated,
it's
basically
for
emergency
replacement
for
capital
for
water
and
sewer
mains
breaking
for
because
you
do
again
have
an
aging
system.
B
That's
calculated,
based
on
your
overall
net
book
value
of
your
capital
assets,
which
is
about
100
million
dollars,
and
it's
about
2.25
of
that
balance.
So
it's
another
2.2
million
dollars.
So
you
have
that
money
just
in
case
water
and
sewer
remains
break
and,
as
you
know,
that
does
happen
quite
often
and
it's
very
expensive
to
fix.
A
E
Martin,
I
got
a
quick
question
for
you.
Thank
you
so
much
when
you
say
you
know
having
the
six
point:
nine
or
the
seven
million
dollars
in
reserves.
You
said
that
we're
supposed
to
have.
That
is
that,
if
is
that
a
law,
is
it
federally
regulated,
or
are
you
just
saying
hey
to
be
on
the
safe
side?
Let's
put
seven
million
dollars
in
reserves
on
the
side.
In
case
of
you
know
the
very
aging
infrastructure
that
we
have
it's
the
best
best
practice.
B
So
there's
no
law
best
practice
is
definitely
to
have
90
days
of
operating
cash
so
that
4.1
4.2
million
dollars
that's
best
practice
best
practice
for
emergency
replacement
for
water
and
sewer
mains,
and
so
on.
That
is
very
common.
To
have
that
two
to
two
and
a
half
percent,
some
communities
have
a
higher
percentage.
Some
communities
can't
and
they'll
have
a
smaller
percentage.
It's
completely
up
to
the
city
to
decide
what
that
percentage
is.
E
My
last
question:
I'm
so
sorry
go
ahead
of
that
seven
million
dollars
and
if
we've
held
that
every
year
or
seven
million,
how
often
do
we
use
that
actual
seven
million
dollars?
So,
let's
just
say
it's
at
seven
million
we
used
two
million.
Do
we
go
back
and
add
another
additional
two
million
to
keep
it
close
to
the
seven
million?
Do
we
have
any
history
in
the
last
20
years
to
show
hey
every
year
we've
had
to
use
six
million.
So
that's
why
we're
keeping
six
million?
E
B
So
it's
to
be
honest:
it's
not
like
a
reserve
that
you
use
per
se
it's
a
minimum
cash
balance
that
you
should
have
in
order
to
be
able
to
meet
your
expenses.
So
it's
kind
of
like
if
you
had
like
a
certain
amount
in
your
checking
account
you
need
so
much
for
mortgage
payment
insurance.
You
know
utilities,
groceries
and
so
on.
So
you
know
that,
let's
just
say
it's
two
thousand
dollars
or
three
thousand
minimum
that
you
have
to
have
per
month,
because
if
you
fall
under
that
you're,
probably
not
making
the
next
payment.
A
B
So
the
full
amount
is
liquid
funds
that
you're
just
using
in
operations.
It
is
not
set
aside
in
a
separate
fund
balance
or
a
separate
checking
account
or
anything
like
that.
It's
just
the
bare
minimum.
So
that
way,
you
can
make
sure
that
you're
staying
above
that
red
line
that
you're
not
drowning.
Okay,
that's
all.
B
D
B
B
C
G
B
B
It's
a
lot
less
and
so
in
the
very
first
bolded
number,
the
42
million
that
you
see.
Yes,
that
comes
out
to
be
how
much
funds
do
you
really
have
and
the
reason
that
number
is
different
than
your
cash.
So
we
start
out
with
cash
and
we
say:
okay
you're
going
to
collect
receivables
because
you
have
all
the
water
sewer
bills
that
haven't
collected,
that's
another
8
million.
Then
you
have
payables.
You
have
to
pay
vendors,
another
3
million,
that's
taken
away
from
that
essentially
end
up
at
42
million
the
next
year.
B
So
that
would
be
my
one
caution
to
observe
it's
nothing
that
necessarily.
I
would
miss
like
jump
into
immediately
because
we're
already
six
months
into
the
year
and
you'll
see
where
things
shake
out
at
the
end
of
the
year,
but
things
may
need
to
be
adjusted
in
the
future
years
to
make
sure
you
don't
fall
too
low
so
that
we
can
make
sure
that
your
payroll
is
paid.
B
Vendors
are
paid
etc,
but
at
the
end
of
the
five
year
period,
based
on
this
calculation,
you
will
be
at
that
6.9
million
that
you
should
have
in
order
to
keep
the
fund
healthy.
So
with
that,
let
me
go
in
into
the
biggest
drivers
of
this
model.
So
page
two
through
four
shows
various
assumptions
made
in
the
model,
many
of
which
are.
How
much
is
the
water
gonna
cost?
You
know
from
you
know
when
we
purchase
it,
how
much
is
the
sewage
going
to
cost?
B
B
However,
the
biggest
driver
in
this
model
is
your
capital
outlay,
so
the
2021
capital
improvement
bonds
were
issued
for
a
certain
purpose.
The
csos,
as
well
as
your
water
meters,
that's
going
to
consume
a
big
part
of
your
budget
and
that's
why
that
huge
decrease
over
the
next
24
months
in
this
model
from
your
cash
in
order
to
see
the
details
of
the
fixed
assets,
it's
on
the
very
last
page,
page
15
in
the
appendix.
B
So
these
numbers
are
given
by
year
of
how
much
you're
planning
on
potentially
spending
from
the
water
and
sewer
fund.
The
very
first
column
is
items
that
have
been
approved
in
last
year's
budget
that
haven't
been
actually
spent
yet
because
whether
there
were
delays
or
whatever
happened
so
those
that
money
hasn't
been
spent,
that's
a
total
of
12
million
dollars
at
the
very
bottom
12
million
185
thousand.
So
that's
so
that's
made
up
of
the
highland
and
ann
arbor
trail,
a
2.2
million.
B
Then
you
have
the
virgil
avenue,
enjoy
road,
880
000,
and
then
you
have
cso
l42
nine
million
dollars
so
that
money
has
not
been
spent,
as
you
know,
so,
that's
already
kind
of
on
hold
and
that
that's
built
into
the
model.
Then
future
years
2022,
you
can
see
the
breakdown
of
all
the
capital
outlay.
That's
projected
as
well
as
future
years.
B
G
B
G
A
A
What's
your
projections
at
this
particular
point
with
the
new
water
meters
as
to
what
that
percentage
will
probably
go
down
to
and
is
that
enough
of
a
fix
or
is
there
more
fixes
needed
major
fixes?
That
is
so
it's
you
always.
I
remember
you
saying.
I'm
sorry
interrupt.
I
remember
you
saying
a
few
years
back
that
no
matter
what
you're
always
going
to
have.
Obviously
water
loss
you're
always
going
to
have
a
percentage.
So
another
thing
I'd
like
to
address
is
what
is
ideal.
B
Yeah,
so
I'm
definitely
far
from
an
engineer,
so
I'm
not
gonna.
I
can't
wear
that
hat.
However,
based
on
discussions
with
the
city
with
weight
trim,
the
numbers
should
go
down
with
new
water
meters,
because
the
water
meters,
the
older
they
become
the
more
off
they
are,
and
it's
usually
they're,
not
measuring
enough
of
usage,
so
that
number
should
go
down.
My
understanding,
based
on
the
discussions
should
be
somewhere
in
the
single
digits.
Is
it
nine
percent?
Is
it
five
percent?
I
don't
know
what.
A
Happens,
what
is
it?
What
is
it
so
one
way
you
could
project
is,
if
you
had
obviously
a
brand
new
infrastructure
that
is
with
new
cities.
You
know,
cities
are
relatively,
you
know
new.
You
know,
hypothetically
canton,
et
cetera,
et
cetera
or
brownstown
yeah.
What
is
the
percentage?
Is
there
as
far
as
water
loss,
because
I
know
there's
always
going
to
be
a
water
loss.
The
issue
is
what
percent?
What
is
it
in
in
the
more
ideal
cities
where
there
is
a
lot
less
older
infrastructure
like
we
have
here,
yeah.
B
So
like
looking
at
something
like
canton,
I
don't
know
offhand.
We
as
playmaran
do
audit
that
township,
but
I
I
don't
participate
in
audit.
I
would
expect
probably
between
like
four
and
six
percent
of
summer
in
that
range.
Thank
you
constantly.
The
thing
is,
I
do
want
to
add
too?
Is
it's
not
just
the
infrastructure,
that's
aging
that
causes
water
loss.
A
A
So
if
you
don't
mind
repeating
it
for
other
residents
that
with
these-
or
maybe
I'm
repeating,
I
guess
kind
of
with
these
older
water
meters,
if
anything,
because
I've
heard
it
from
dpw
also
and
from
the
water
department,
if
anything,
it
undercharges
the
residents
not
over
charges
based
on
the
fact
that
they're,
older
meters,
so
with
the
newer
meters,
it
can
be
a
little
bit
more.
Accurate,
obviously
account.
B
It'll
be
accurate,
so
my
understanding
on
water
meters
and
again,
I'm
not
an
engineer,
but
my
understanding
with
speaking
with
a
lot
of
municipalities,
is
the
older,
the
water
meter,
the
slower
it
right
registers.
So
if
you
use
a
thousand
units,
it
might
register
that
you
only
use
990
or
something
right.
I
don't
know
what
the
numbers
are,
but
right.
I
I
J
So
when
you,
obviously,
when
you
have
a
water
main
break
you're,
not
measuring
the
amount
of
water
that
that's
that's
lost,
but
it
is
safe
to
say
that
less
than
half,
I
think
the
issue
we
have
is
that
most
of
our
water
losses,
the
11
percent
that
we're
talking
about
are
due
not
just
to
the
meters.
It's
a
small
percentage
of
the
meters,
it's
mostly
the
infrastructure,
as
we
replace
more
of
the
older
pipes.
That's
where
the
unknown
brakes
and
leaks
are.
J
I
mean
we
have
an
old
infrastructure
and
we're
just
so
we
when
we
address
them,
we
put
a
categories
on
them,
so
we
the
older
the
ones.
The
troubled
locations
are
being
replaced
first,
so
that
combined
with
the
new
meters,
which,
by
the
way,
are
smart
meters,
so
they
detect
unknown
flow
and
warn
us
on
it.
So
we
should
be
able
to
reduce
that
percentage
loss
quite
a
bit
between
the
two.
I
J
Themselves,
they
detect
a
flow
unusual
flow,
so
the
part
of
the
specifications
we
put
for
the
new
meters,
similar
to
what
dte
is
doing.
They
actually
have
smart
meters
that
actually
send
signals
and
detect
unusual
consumption,
so
it
be
a
pattern
produced
for
each
location
and
that
pattern
will
follow.
So
any
deviation
from
that
pattern
down
or
up
so
down,
meaning
someone
is
bypassing
the
meter
or
up
meaning
you
have
unusual
losses
will
be
reported
immediately
to
our
collectors.
So
we
have
wireless
collectors,
they're
all
part
of
the
specification
score.
I
J
K
B
B
B
You
know,
of
course,
it's
a
slower
usage
period
for
the
residents
because
you're,
not
watering,
alarms
or
anything
like
that-
and
you
know
if
you
end
up
making
it
effective
march
1st,
it's
not
going
to
have
a
significant
impact
to
the
model,
but
overall
it's
6.7,
6.76
water
and
sewer
rate
increase
versus
the
past
rates.
Last
year's
model
was
projecting
out
about
6.9
increase
that
would
occur
this
year,
so
it
is
slightly
less
not
much,
but
it
is
slightly
less
and
the
item
that
I
did
want
to
highlight.
B
Overall
what
the
expected
is.
What's
the
expectation
is,
I
guess,
when
it
comes
to
your
overall
bills,
so
the
calculation
based
on
my
notes
here,
the
water
and
sewer
rate
would
increase
to
sixty
dollars
and
seventy
five
cents
per
thousand
cubic
feet
and
sewer
rate
would
increase
to
72
dollars.
What
that
means
to
your
average
monthly
bill.
G
G
B
B
Basically,
what
it
changes
is
about
a
one
percent
in
your
water
and
sewer
rates,
so
just
kind
of
give
you
context
the
overall
debt
for
the
new
kepler
improvement
bonds
and
that
the
capital
improvement
bonds
are
shown
on
page
nine
at
the
very
top.
The
overall
debt
payment
is
about
1.2
1.3
million
dollars
for
the
full
25
million
roughly
of
bonds
on
an
annual
basis.
B
B
G
What
they're
really
paying
for
is
the
whole
water
system
absolutely,
and
I
believe
that
that
should
be
broken
down
in
a
bill
that
shows
them
what
they're
paying
for,
because
I
don't
believe
one
home
should
pay
more
for
a
water
meter
that
cost
a
thousand
dollars
pay
more
than
their
next
door.
Neighbor,
because
it's
still
the
same
water
meter,
it's
still
gonna
cost
the
same
amount
of
money
to
install
it.
But
yet
this
guy
uses
more
water
because
he's
got
five
kids
and
this
one
has
only
one
child.
G
I
I
mean
to
me:
it's
not
fair
and
same
with
the
cso.
I
mean
we're
paying
for
for
for
a
a
project
to
upgrade
the
the
system,
but
yet
I'm
going
to
be
charged
more
because
I
use
more
water
and
I'm
I'm
actually
in
a
in
an
area.
That's
already
half
cso.
So
now,
why
should
I
pay
for
it,
but
we
we
separate
that
for
the
whole
city
to
make
it
affordable
and
fair.
So
I
truly
believe
that
you
know
as
much
work
has
been
done
on
this.
B
B
G
G
I
mean
you,
you
you
get
billed
six
times
a
year
and
and
you
divide
that
amount
and
you're
still
going
to
have
the
cash
flow
coming
into
the
system,
and-
and
it's
just
to
me
a
fair
way
to
do
it
a
transparent
way
to
show
people
what
they're
paying
for,
because
all
I
know
is
that
everyone
here
has
heard
it.
Our
water
rates
are
too
high,
I'm
paying
too
much
for
water,
well,
you're
paying
for
a
lot
more
than
just
water,
but
should
you
be
paying
more
for
a
more
for
for
a
specific
service?
G
F
G
Know,
that's
that
that's
something
I
really
want
to
push
for,
because
it
it
you.
You
want
to
make
the
cost,
and
I
I
understand
the
water
we
get
increases
every
year.
Okay
and
it's
just
like
our
five-year
plan
gets
thrown
out
the
window
every
year,
because
you
know
you
make
a
five-year
plan
and
then
next
year
we
got
to
start
a
new
five-year
plan,
because
water
rates
always
go
up
and
nobody's.
Nobody
can
really
tell
me
what
next
year's
water
rate
is
going
to
be
percentage-wise.
G
A
Would
be
we
could
do
a
starting
session?
I
have
no
problem
with
that.
We,
I
do
want
to
point
out
to
all
you
guys
that
we
have
about
maybe
25
35
minutes
left.
So
just
keep
that
in
mind
with
the
questions,
but
just
so
now.
I
always
like
to
not
sum
it
up,
but
address
it
to
the
average
joe
public
that
does
not
deal
with
3
000
billion
numbers
all
over
the
place,
so
they're
that
you
know
they
may
or
may
not
be.
B
H
A
The
only
reason
I'm
saying
that
is
because
sometimes
when
we
throw
around
a
lot
of
numbers,
then
people
lose
touch
as
far
as
what
it
is
specifically
we're.
Addressing
at
this
particular
point,
the
increase
is
roughly
556
dollars
per
average
household
per
month,
correct.
That
is
correct.
Okay,
what
is
the
primary
reason
for
the
increases
because,
like
councilman
ray
musket
is
people
are
always
mentioning?
Our
water
bills
are
going
up
too
higher
water
bills
are
too
high.
Our
water
bills
are
too
high
and
you
know
we're
voting
for
too
much
increases.
Well.
A
If
we
accept
this
particular
proposal
today,
as
council
members,
the
proposals
basically
to
raise
the
water
bill
by
five
dollars
and
fifty
cents
per
30
days
now,
we
can
reduce
it
to
the
ridiculous.
Take
it
over
30
days,
it's
even
crazier
crazier.
What
is
the
primary
purpose
for
the
increases?
Is
it
just
based
on
the
great
lakes
water
association,
giving
us
that
type
of
an
increase?
So
what
is
the
primary
purpose
for
the
increase.
B
So
gliwhat
would
be
an
increase
they
they're
projecting
about
four
percent.
Next,
you
misspoke
using
the
acronym
earlier,
so
gliwi
is
about
4
per
year
and
historically
the
last
few
years,
they've
kept
to
their
word
and
everything.
So
it
has
been
much
more
in
check
versus
prior
years,
so
I
feel
that
you
know
pretty
strongly
that
should
be
it
should
come
through.
Then
the
other
big
component
is
purely
the
capital
outlay.
The
improvements
that
you're
projecting
within
the
city
over
the
next
five
years
are
very
significant.
B
A
B
So
capital,
obviously
purely
fixed
asset
purchases,
so
water
main
replacement.
The
cso
corrections
that
you're
planning
on
doing
the
water
main
the
water
meter
purchases,
so
those
consume
majority
of
those
improvements.
Then
you
also
have
expenses
associated
with
sewer
lining
those
are
projected
per
year
x
amount
of
dollars.
Those
collectively
represent
a
significant
number
of
dollars.
B
A
Okay,
next
quick
question:
what
if
we
as
a
council
body,
decided?
Okay,
you
know
what
we're
not
going
to
have
any
more
increases
for
our
water
bills
and
hypothetically
we
rejected
this
five
dollars
and
some
in
50
cents
on
average
per
average
household.
Let's
say:
hypothetically,
we
turn
this
down.
What
would
that
happen?
What
is
the
potential
risk.
B
So
the
potential
risk
is
you:
it
will
deplete
your
cash,
your
cash
balance
or
you
don't
make
the
improvements.
So
if
you
don't
make
the
improvements
you're
going
to
have
more
water
loss
so
that
11
will
likely
keep
multiplying
over
so
you're
going
to
have
a
bigger
water
loss,
you're
going
to
have
bigger
and
increased
costs.
J
J
All
three
cso's
have
to
be
separated.
We
did
one
we
have
two
more
so
the
cost
that
you're
talking
about
is
part
of
the
bonds
that
we
sold
and
we
have
that
money
dedicated
for
these
projects.
It
isn't
just
the
water
meter,
that's
one
of
the
list
of
projects
that
we
we
are
operating
under
consent
judgment.
E
It
has
been
so
I
got
a
question
and
I
don't
know
who
can
answer
this
maybe
led.
Maybe
the
mayor
maybe
ray,
maybe
martin
well,
my
next-door
neighbor
keeps
telling
me
every
you
know
30
days
moby.
Why
am
I
paying
so
much
money
for
water
and
I
tell
them
it's
gonna
be
lower
next
month,
because
literally
that's
what
I
tell
them
next
month-
don't
use
too
much
water.
E
You
know
it
came
from
dearborn
and
I
say,
but
you
pay
more
money
in
taxes,
I'm
giving
you
a
little
bit
of
a
higher
intra
water
rate,
but
you're
not
paying
as
much
in
taxes
and
that's
always
an
argument
because
he
pays
less
taxes
in
yearbound
heights
than
he
does
in
dearborn,
but
the
person
living
on
that
stater
tells
me
you
know
I
paid
20
000
taxes
and
I
got
a
500
water
bill
every
month.
Why
is
my
water
bill
always
so
high?
E
What
is
what
can
I
tell
them
that
we're
going
to
try
to
do
to
either
a
lower
that
water
bill
or
b,
hey?
Listen,
we
got
an
aging
infrastructure
and
until
we
can
fix
every
pipe
in
the
city
which
we
probably
are
not
going
to
be
able
to
do
in
the
next
10
15
years
until
that
is
all
completely
done,
there's
no
way
of
lowering
your
water
bill,
you're.
B
So
I
completely
understand
that,
and
to
be
honest,
I
hear
that
in
every
community
I
speak
with
and
that
I
work
with
everybody
says
they
have
the
highest
water
bill.
My
answer
is:
that's
not
right,
because
I
have
the
highest
water,
but
in
all
honesty
it
is
at
the
end
of
the
day,
it's
very
hard
to
compare
community
to
community,
because
various
communities
build
differently.
They
have
different,
fixed
charges,
there's
many
communities
that
have
property
taxes
that
pay
for
various
bonds
within
water
and
sewer
funds.
B
So
an
individual
that
pays
water
and
sewer
bill
here
in
the
city
of
dearborn
heights.
We
don't
have
a
property
tax
that
pays
for
your
capital
improvements.
I
know
this
happened
many
years
ago,
but
you
don't
have
that
anymore.
So,
basically,
all
the
debt,
that's
within
the
water
and
sewer
fund,
all
the
capital,
improvements,
etc,
are
purely
funded
by
water
and
sewer
rates.
There's
communities-
and
I
I
don't
know
off
hand
which
ones,
but
they
have
capital
bonds
that
are
purely
paid
by
property
taxes.
B
G
You
know,
but
you
know
this
is
where
I
get
back
to
my
point
of.
If
we
put
on
our
water
meet
our
bills,
what
we
actually
pay,
I
think
the
residents
can
better
adjust
to
it.
Knowing
that
you
know
out
of
the
500
two-month
water
bill
that
175
breakdown
of
the
percentages,
yeah
175,
is
going
toward
a
cso
that
we
have
to
do.
We
just
didn't
decide
that
hey
we're
going
to
do
this.
This
is
something
that
was
mandated
by
the
state
to
do.
G
We
need
new
water
meters,
so
this
is
what
it's
costing
you.
So
people
can
accept
a
more
detailed
transaction,
so
people
can
accept
the
fact
okay,
so
my
water,
I'm
not
really
paying
that
much
for
water,
but
if
again,
but
if
we
incorporate
the
price
of
of
a
water
meter
into
the
amount
that
you're
going
to
use,
that's
wrong.
That's
that's
to
me!
It's
totally!
A
Okay,
so
mayor,
maybe
you
could
look
into
it
with
the
administration.
If
that
can
be
maybe
clarified
on
the
water
bills,
it
had
to
be
a
percentage
obviously,
but
where
the
the
percentage
is
on
the
water,
what
percent
goes
towards
what
if
it
can
be
done
in
the
water?
But
you
had
something
to
ask
which
america.
F
Actually,
thank
you.
Council
chair.
I
was
going
to
make
a
comment,
but
the
council
chair
pro
tem
already
mentioned
this-
is
something
is
mandated
by
the
state.
Obviously,
and
you
know
one
of
the
biggest
things
I
mean,
we
cannot
say,
don't
say
that
statement
hey.
You
know
your
water
bill
is
going
to
be
better
next
time
because
you
might
be
taking
longer
showers.
F
I
understand,
but
I
just
want
to
make
sure
don't
we
can't
make
that
statement
and
the
reason
why
is
because
if
the
bill
is
comes
in
as
if
it's,
if
they're
reading
the
water
meters,
this
is
an
actual
read.
This
is
the
water
usage
that
they're
using
so
when
we
replace
all
the
water
meters,
it's
going
to
resolve
a
lot
of
issues,
because
every
every
business
every
house
will
have
the
new
water
meters
and
we're
getting
state
of
the
art
water
meters.
F
This
is
something
that
we're
doing
right
now,
we're
doing
an
assessment,
because
we
want
to
be
able
to
read
the
water
meters
and
some
of
the
stuff
that
we've
had
some
concerns
with
in
the
past.
I
know
real
estate
agents
will
actually
appreciate
this
when
they
close
on
a
house.
They
have
to
get
an
actual
water
meter
reading
and
sometimes
you
have
to
wait
days.
A
F
F
J
So
what
we're
doing
to
currently-
and
we
just
set
up
the
second
of
demonstration-
we're
looking
at
the
best
available
technology
that
our
staff
can
use,
as
the
mayor
indicated,
we're
looking
for
state-of-the-art
equipment,
wireless,
instant
reading
capabilities
and
then
collectors,
so
that
got
us
into
how
many
collectors
we
need
antennas.
You
know
cell
towers,
use
those
to
collect
the
signals
and
then
process
it.
We
set
up
one
demonstration
already
in
december.
J
We
have
two
coming
up
this
month,
actually
to
the
top
three
water
meter
manufacturers
are
presenting
and
then
our
staff,
all
our
staff,
the
dpw,
the
people
in
accounting.
You
know
everyone
to
look
at
that
and
make
sure
they
select
the
product
that
we
have
to
live
with
for
the
next
100
years.
But
if.
A
J
D
J
J
So,
as
the
mayor
indicated,
the
policy
we
have
enough
is
to
all
capital
projects,
and
that's
that
will
you
know
again
help
our
bottom
line.
The
reason
our
rates
are
high
is
because
we
put
all
these
expenses
into
it,
which
is
where
they
belong
water
sewers.
But
if
you
have
a
capital
program
that
you
fund
separately,
these
costs
will
go
into
the
program
not
into
the
operating
rate
and
that's
our
going
forward.
That's
our
plan.
F
Well
that
department,
we
all
know
it's
short
staffed,
so
the
people
that
we
have
currently
we
would
have
to
obviously
train
you
know
with
the
new
water
meter.
So
we
would
still
use
the
the
same
staff
to
do
the
repairs
of
knee
tools
and
the
water
meters
and
also
they'll,
be
doing
the
readings
and
everything
else.
So
the
process
is
going
to
be
a
lot
better
and
one
of
the
things
that
I
was
going
to
actually
mention
is.
F
We
were
looking
at
this
neighboring
city
that
had
water
meters,
so
we
were
fixated
on
the
city
what
they
had,
but
all
of
a
sudden
that
city
actually
updated
to
something
what
we
want.
So
this
the
technology
is
even
this
one
city
we
looked
at,
it's
already
changed
their
water
meters
twice
in
the
last,
what
like
five
years
or
so
it's
because
they
found
something
better
and
that's
what
we're
looking
at
something
better.
So
we're
we
benchmark
and
we're
going
best
in
class
water
meters,
and
this
is
something
that
we're
looking
at.
I
I
just
felt
you
know.
I
was
made
aware
that
the
city
of
lincoln
park
has
a
39
water
loss.
That's
pretty
high,
I
mean,
I
guess,
we're
kind
of
lucky,
but
we
should
get
down
a
couple.
Things
is
every
year
we,
you
know,
we
get
increases
for
our
water
use.
What
we
pay
for
water-
and
the
first
question,
don't
answer
is
what
can
we
do
on
our
end
to
offset
that
increase
without
get
increasing
the
water
bill
and
second
one,
the
water
costs
compared
to
water
treatment?.
J
J
We're
currently
looking
at
a
totally
different
model,
and
we
have
been
going
back
and
forth.
This
friday
was
like
half
the
day
going
on
methodology
to
see
what
we
can
do.
Seven,
six
or
seven,
I'm
gonna,
say
six
communities
have
already
out
of
the
14
put
sewer
meters
on
them
on
their
sewers,
so
they
can
actually
measure
how
much
sewers
are
going
out
of
the
community
and
they
pay
based
on
that
measurement.
Yeah.
J
This
house,
part
of
the
methodology
that
we're
looking
at
now,
is
to
don't
report
all
of
our
water
sales
throughout
the
year
we're
looking
at
a
average
winter
use,
so
we
will
only
report
the
winter
use
and
take
that
average
until
we
have
until
we
have
enough
time
to
actually
go
and
and
put
meters
in
place.
You
know
to
put
meters
in
place.
You
also
have
to
keep
in
mind
that
meters
will
require
maintenance
and
will
require
you,
know,
capital
expenditures
or
will
require
other
things.
J
So
we
have
to
balance
the
two:
is
it
better
to
put
meters,
or
can
we
just
use
a
winter
average?
I've
got
these
the
operators
to
agree
to
winter
average.
Now
so
by
next
year,
23
we
will
use
winter
average,
just
the
three
months
of
the
winter
and
then
forget
all
the
readings
in
the
summer,
so
we'll
just
take
that
one
time
average
winter
we'll
use
and
and
base
our
discharge
on
that
number.
I
H
A
F
What
I
wanted
to
say
is
when
they
were
talking
about
that
the
treatment
you
know,
one
of
the
biggest
things
right
now
we're
having
issues
with
that
has
cost
most
money
more
money,
as
the
14
communities
mr
deep
mentioned,
is
that
people
putting
sanitary
wipes,
you
know
flush
them
down
the
toilet,
so
they
say
flushable
wipes.
So
those
are
costs
against
money
because
it's
they're
it's
causing
issues
at
the
treatment
center
with
pumps-
and
you
know
they
have
to
process
that.
So
this
is
a
huge
problem.
A
Yeah,
if
you
ever
get
a
chance,
I'm
not
sure
maybe
mr
deep
can
maybe
arrange
for
some
of
the
council
members
to
do
this.
I
know
myself
councilman
ray
musket.
I
think
councilman
robert
constant,
some
of
the
previous
council
members
also,
we
went
and
did
a
tour
of
the
water
treatment
plan
boy.
Is
that
interesting?
A
Yeah
yeah
definitely
wear
a
mask.
Somebody
like
me,
that's
ocd.
That
was
a
little
special
going
through
that
particular
treatment
plant,
but
it
sounds
interesting.
Maybe
mr
deep
can
maybe
make
arrangements
for
some
of
the
newer
council
members
if
they'd
like
to
take
a
tour
of
that
plant
and
wind
up,
I'm
not
mistaken
on
the
river
very
interesting.
If
nothing
else
at
least
it'll
give
you
a
different
perspective
as
far
as
what
we're
dealing
with
okay.
So
what
I'm
gonna
do.
A
F
A
F
A
Then
then,
to
respect
the
time
and
then
to
be
able
to
finish
on
time,
we'll
do
five
minutes
with
martin.
I
only
need
about
a
minute
so,
okay,
beautiful
and
then
we'll
do
about
three
to
five
minutes
or
three
to
six
minutes
with
whoever's
online.
If
they
have
any
zoom
questions
and
then
after
that,
we'll
go
ahead
and
go
ahead
with
you.
Then,
after
that
we'll
we'll
be
breaking
at
20
minutes
to
7
sharp
glad.
B
So
real
quick,
we
talked
about
the
rates,
the
impact,
etc
in
the
past
the
last
couple
of
years.
This
presentation
was
done
earlier
in
the
year,
probably
august
september
timing.
I
would
recommend
looking
at
that
again
as
your
as
brian
kemler
pm
gap
is
going
to
come
in
and
help
out
with
the
finances,
accounting,
etc.
You'll
have
cleaner
records,
faster
records,
faster
accounting
information,
so
I
would
recommend
doing
the
same
kind
of
thing.
B
G
A
B
B
K
K
H
K
The
communities
would
say:
oh
the
city
of
detroit,
they
sent
us
a
big
increase,
but
now
that
it's
regionalized,
you
have
the
wholesale
rate
from
great
lakes,
water
authority
and
then
the
bulk
of
the
additional
charges
that
come
from
the
city
of
dearborn
heights.
Those
are
for
our
capital
improvements.
Is
that
a
fair
way
to.
B
Summarize
for
the
expenses-
yes,
so
there
is
so
there's
a
component
of
the
increase
is
based
on
the
leewah
purchases
so
that
the
water
rate
increase
from
that
is
approximately
four
percent
projection
for
next
year
and
the
future
years,
because
every
year
four
percent
increase
it's
not
just
one
year
and
then
the
other
good
component.
You're,
absolutely
correct
is
the
capital
infrastructure
within
the
city.
B
Yeah,
so
the
property
tax,
the
what's
called
like
the
over
levy
over
the
years
that
is
actually
built
into
the
model
to
be
completely
consumed
in
your
first
debt
payment
on
those
2021
water
and
sewer
bonds.
So
your
first
payment
is
four
and
a
half
million,
something
like
that
majority
of
that
is
from
that
over
levy,
and
then
you
still
have
to
make
up
some
difference,
but
that
is
consumed
all
within
the
first
year.
Okay,.
F
B
Yes,
so
so
these
kind
of
list
out
all
over
all
our
procedures
that
we
did
and
this
one
in
particular
talks
about
not
only
the
water
usage
that
you
had,
but
also
there's
unbuilt
components.
So
in
order
I
believe
the
last
bill
came
out
like
let's
just
say:
may
then
there's
a
month
of
unbilled,
so
that's
actually
included
in
this
calculation
as
well,
because
the
next
bill
doesn't
come
out,
I
believe,
until
end
of
july,
so
this
portion
of
it
has
to
relate
to
the
previous
year.
D
B
H
B
D
E
B
A
A
Nobody
great
so
we're
gonna
councilman
tom
again,
madame
clerk,
can
you
let
on
whoever's,
got
questions
on
zoom
and
for
those
on
zoom
we're
going
to
limit
it
to
two
to
three
minutes?
Please,
because
we're
very,
very
limited
on
time
we
have
another
presentation
and
then
a
little
mini
break
and
then
the
next,
the
next
council
meeting.
So
we're
limited
on
time.
L
A
A
A
L
M
On
my
computer,
okay,
because
it's
the
problem
is
with
with
your
microphone
at
the
school,
not
with
me,
but
anyway,
you
know
in
a
lay
man,
language
right
now,
the
whole
a
proposal
is
based
on
the
water
usage,
which
not
a
fair
measurement
for
the
water
rate,
which
include
capital
investment
that
it's
gonna
be
covered
by
about
18
million
dollars.
You
know
of
grant.
M
I
recommend
that
the
water
and
sewage
rate
being
separated-
you
know,
with
the
maintenance
of
the
system,
our
our
water
rate
can
be
presented
fairly
to
the
to
the
resident
of
dearborn
heights,
and
this
can
be
probably
most
likely
about
40
to
50
percent
less
so
the
people
know
what's
the
true
rate
for
their
cost
of
the
water
in
the
sewer
system,
plus
maintenance.
Now
the
capital
investment
can
be
actually
fairly.
M
B
H
M
Looking
anymore
for
cash
flow,
we
are
not
borrowing
from
the
water
fund
to
cover
the
city
shortfall
of
cash
flow.
The
city
is
in
good
shape
for
cash
flow.
We
have
about
six
million
dollars.
We
need
to
build
the
models
transparent
to
the
residents
that
we
are
in
you.
We
are
a
new
vision
for
the
city.
We
are
a
new
administration.
M
A
A
Okay,
thank
you.
Hassan
jamal.
Was
there
any
other
questions
on
zoom?
No
okay,
so
thank
you
for
those
I'm
doomed.
So
now
we're
gonna
have
there's
a
walk-on
item
that
the
mayor
feels
is
necessary
to
put
on
today's
council
meeting.
But
before
we
do,
we
have
the
gentleman
for
plant.
Moran
is
gonna,
I'm
not
sure
exactly
what
specifically,
but
the
mayor
is
more
familiar
yeah,
so
go
ahead.
Come
on
up.
A
C
Yes,
so
no
change
to
our
proposal
from
the
last
time
that
I
was
here
speaking
with
you
last
time,
I
was
here,
council
approved
us
with
the
understanding,
though,
that
we
would
finalize
the
no
go.
Excuse
me,
the
negotiation
through
the
corporate
council
and
so
for
the
past
two
weeks.
We've.
I
think,
we've
come
to
a
compromise
where
two
of
the
three
suggestions
that
mr
miyaki
made
have
been
incorporated.
I've
signed
the
addendum
to
the
engagement
letter
that
includes
two
of
those
three
senate
back
for
signature.
C
A
K
K
A
Right,
but
I
would
still
feel
personally,
at
least
not
speaking
on
behalf
of
the
body
more
comfortable
having
our
attorney
letting
us
know
that
he's
comfortable
enough
with
it.
I'm
sure
the
mayor
is
comfortable
with
the
other
ways
he
wouldn't
have
brought
it
forward,
but
either
way
I
would
like
to
hear
from
our
counselor
was
there
did
anybody
else?
Have
any
questions
for
the
gentleman.
F
E
F
A
A
Martin
as
usual,
you
present
it
in
a
way
where
your
average
household
can
understand,
and
I
do
appreciate
that
because
sometimes,
if
we
go
into
too
much
technicalities,
we
could
have
people
that
are
not
a
part
of
the
government
totally
get
lost
as
far
as
what's
being
presented.
So
thank
you
very
much.
Thank
you.
Everyone
at
this
particular
point
we're
going
to
go
ahead
and
take
a
break
and
we
will
begin
at
7
pm
the
regular
council
meeting.
Thank
you,
ladies
and
gentlemen,.