The city of Detroit launched a new program for Detroit residents, nonprofits and businesses behind on their water bills.
Dubbed the EasyPay program, the interest and penalty free plan is meant for all types of customers and does not have income restrictions. Customers can enroll by putting down a $10 deposit, then paying off their overdue balance over 36 months on top of their regular bill. The program spares them from a water shut-off as long as they make payments.
"We don't care whether you're a church, a nonprofit. We don't care what your household income is. We don't care if you're a small business or large business. If you're behind in your payments, we have a plan for you," said Gary Brown, director of Detroit Water and Sewerage Department (DWSD), during Mayor Mike Duggan’s charter-mandated citywide community meeting Monday.
Two hundred people have already signed up, Brown said, but the goal is to enroll 30,000 customers by October.
How the new 36-month payment plan works
The average monthly water and sewerage bill for a three-person household is $85, with a past due balance of $1,240. After the household enrolls in EasyPay, they would pay $10 the first month. For the following months of the program, they would pay $34.17 in installments to bring down their overdue debt, plus their current bill of $85. That would bring their total average monthly bill to about $119.17 in total.
"This is very economical for the customers that are not below poverty," Brown said.
Once enrolled, customers have up to 10 days to make the deposit. Parking lots and vacant buildings with an overdue drainage account can also apply, according to a news release.
EasyPay replaces DWSD's 10/30/50 program, through which customers were able to make a down payment — of 10%, 30% or 50% of the past due amount — and pay off the delinquent balance in installmentsover 6 to 24 months, on top of their regular bill.
That program had only 3,000 customers, who struggled to remain enrolled, Brown said. Within the first 90 days, people who had signed up, dropped out, he said.
"Our customers were having a difficult time coming up with 10%. If they failed in the program, they'd have to come up with 30% and then they'd have to come up with 50% and that was too much of a burden for those customers," Brown said.
The water department also has another affordability program for income-eligible residents called the Lifeline Plan, which offers bills as low as $18 a month and wipes away water debt. So far, 30,000 households have enrolled in that program, with 85% getting an $18 bill, according to Brown.
He said there are 60,000 customers who are not eligible for Lifeline because their income is too high, but who are still struggling.
Detroit community advocates have long called for income-based affordability solutions and an end to service shut-offs.
In 2014, Detroit’s shut-off practices drew international attention, spurring the United Nations to declare that cutting off water for those with a “genuine inability to pay” is a human rights violation.
Last summer, after a three-year moratorium on water shut-offs because of the COVID-19 pandemic, DWSD resumed the practice. Customers enrolled in assistance programs, such as Lifeline, are exempt from shut-offs as long as they remain on the plan and pay their monthly bill. EasyPay enrollees must make their payments as well to avoid shut-offs.
Since August 2023, about 1,000 households had their water service interrupted for nonpayment, according to the department. DWSD has been focusing on large delinquent balances of at least $5,000, although its policy is that any account with an overdue balance of $150 or more and that is 60 days behind is at risk of a water shut-off for nonpayment.
DWSD’s collection rate plummeted over the last few years, Brown said. Before the pandemic, the water department collected 93% of what it billed, closer to the national average collection rate of 95%, he added.
“In the last four years, we have not collected close to $200 million in revenue that we would use to be able to continue to rebuild our system,” he said.
Sylvia Orduño, director of the People's Water Board Coalition and a community organizer with the Michigan Welfare Rights Organization, said she's glad the city is replacing the 10/30/50, noting that it "was a disasterfrom the start."
"It had the reverse effect of convincing residents that the water department was trying to help when each step to restart a payment plan was harder and punitive. Many Detroit residents above the 200% poverty levelhave said over the years that they need a program to help manage their bills too," Orduño said in an email. In 2024, a three-person household at 200% of the federal poverty level earns $51,640.
EasyPay can also help small businesses, nonprofits and local churches that have struggled with drainage and wastewater charges, she said, but the new program shouldn't be available to corporate customers.
"Water affordability was always intended as programs and payment plans to ensure residential customers were treated fairly and not subjected to disconnections when they couldn't afford to pay. Corporate water customers can afford to pay and should pay up in full regularly," Orduño said.
How to sign up for payment plan
To enroll in the new EasyPay program, call 313-267-8000 and say “Easy Pay" or go to the DWSD Customer Self-Service Portal at csportal.detroitmi.gov. For more information about the program, go to detroitmi.gov/easypaywater. Those who are part of the 10/30/50 program can enroll in EasyPay.
The water department is hosting eight town halls, where customers can enroll in person. The first event will take place 4 p.m.-8 p.m. Thursday, Aug. 8, at Second Ebenezer Church, located at 14601 Dequindre St.
Contact Nushrat Rahman: nrahman@freepress.com. Follow her on X:@NushratR.
