August 2014


www.hamptonroadsmessenger.com


Detroit Water Department Places Moratorium on Shutoffs


Unemployment FROM PAGE 1 When business owners have to


pay higher minimum wages, they tend to select the more educated and experienced


applicants, Davies told Watchdog.org.


Another economics professor said the key to combating unemployment is instead focusing on economic growth.


“We need to be making sure those


who create jobs, small businesses, are in an environment friendly to them,” Brian Baugus, professor of economics at


Regent BY ZENOBIA JEFFRIES DETROIT — The Detroit Water


and Sewerage Department announced July 21 it will suspend its controversial water shutoffs for 15 days.


human rights by the U.N., have gained national and international


The shutoffs, called a violation of attention.


The announcement came following Federal Judge Steven Rhodes’ order for the department and Emergency Manager Kevyn Orr to come up with a solution to what he called an embarrassment to


the bankruptcy proceeding.


In court, July 15, Judge Rhodes, who presides over Detroit’s bankruptcy case, told DWSD deputy Director Darryl Latimer that there was more the department could do in assisting those who were facing shutoffs.


“There is much more you can


do, and I encourage you to work with community leaders to come up with a whole list of initiatives to resolve this problem,” Rhodes told Latimer.


department


Latimer had told Rhodes the was “reaching


out to


activists; mailing inserts letting you know what we offer; doing different things with the website; using the media as a platform.”


According to Latimer, the average


water bill delinquency was $540 and had accumulated anywhere from 90 to 120 days. The average bill for a Detroit residential customer is $40 to $50 month.


DWSD’s new shutoff program


implemented in late March occurs when a customer has a past due amount that exceeds $150 or the bill is over 60 days past due. A total of 14,000 shutoffs have taken place since March, where 1,500-3,000 customers have been shut off per week. DWSD says many customers have had service restored, some within 24 hours.


In a community meeting with


the Rosedale Park residents July 17, DWSD representatives told residents there would not be a moratorium on foreclosures. DWSD sub-contractor Charlie Fleetham also told residents there would not be an implementation


city and the


of an affordability plan because it was against the law.


“It’s prohibited by state law. By


state law, DWSD can only charge the cost of service, and if they implemented an affordability rate, they would be sued immediately, the next day by Oakland County and many other suburban wholesale customers, Fleetham said.


You can vote to change the law, he added. moratorium


Activists have called for a on the


the implementation affordability


plan the


submitted to the DWSD in 2005. At the July 17 meeting, DWSD


Chief Operating Officer Cheryl Porter said


increased due to the shutoff program.


“Since we’ve engaged in the process, we’ve seen an increase in revenue which will address roll over costs,” Porter said. “We had to do something.”


So far, DWSD has collected


nearly $2 million in 90-120 days, since the program began.


DWSD spokesperson Greg Eno says the department does not refer to the halt in shutoffs as a “moratorium.”


The “pause” in shutoffs, he says,


is a result of Judge Rhodes’ request to present ideas that would “better inform” residents of available water programs, Citizen.


Eno told the Michigan


He says residents should take the next 15 days to make arrangements with the department to prevent shutoffs because he does not foresee the time being extended or another opportunity to get their water service affairs in order without being subject to shutoff.


“It’s crucial (residents) take


advantage … we want to help them,” Eno said, adding that instead of shutting off water over the next 15 days, the shutoff crew will be focused on “illegal usage of water.”


“We will be way more vigilant


on people who are squatters or those who had their water turned back on following a shutoff,” says Eno.


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department’s revenue has University in Virginia


Beach, told Watchdog.org. To do that, Baugus said Virginia


can work on its occupational licensing by making it easier for people to get a business license.


“If it takes longer to get a license


and requirements are more severe, it protects those who are already licensed and drives prices up and keeps those who may want to engage in that profession out,” he said.


If the supply is low, Baugus


continued, that drives the prices up and forces people to look elsewhere.


of the water Refinancing shutoffs and


drafted and FROM PAGE 1


your account having multiple interest rates (such as one for your "purchase balance" and one for your "transfer balance"), so know how your payments will be classified. For instance, if you only pay the minimum required each month, a creditor can generally apply that payment any way it chooses. This includes applying your minimum payment to lower-rate balances first, which means higher-rate balances will keep accruing higher interest costs. Depending on the circumstances, a large balance transfer also may trigger fees for going over your credit limit until you can bring the balance down.


Other examples include


following: You


may be the assessed a


prepayment penalty if you refinance a loan before it matures.


If you trade in a car loan for a new one with a longer repayment period, perhaps for five or more years, you may get lower monthly payments but you might not save money in the long run. "You'll likely end up paying more in total interest, plus your car's resale value may fall below what you owe on the loan," noted Frances Tam, an FDIC


The Hampton Roads Messenger 3 Virginia has taken some steps to


create jobs, Gov. Terry McAuliffe’s office said. The most recent deal reported Core Health and Fitness LLC, a leader in developing and marketing advanced strength and cardio equipment for the fitness industry, will invest $2 million to expand the former Med-Fit operation in Grayson County.


This will create 250 new jobs, according to a press release.


Those kinds of investments aren’t


always in the state’s best interest, some say.


Baugus said businesses will often


come to the state for special benefits and tax breaks, but they’ll later leave because their business doesn’t remain sustainable.


“This is cronyism that’s floating around, it goes back to the problems mentioned,” he said. “The governor is first in line for all of this stuff. (It’s) having a negative effect on economic activity in general.”


But there is hope, according to


Baugus. “The market economy is an extremely resilient thing. Even when (you) throw a number of things at it, and caused it to slow down, or skew it in some state or form. The economy is the people, and the people want to start businesses. That’s the core of it all.”


Senior Consumer Affairs Specialist. "Then when you want to sell or trade in your car, you may have to put in additional money to pay off the loan."


While multiple federal student


loans may be consolidated (combined into one loan with a single monthly payment), individual federal loans generally can only be refinanced (paid off and replaced with a new loan) through a private lender, and that could result in the loss of important federal benefits. "Understand the benefits you may be giving up, such as loan forgiveness for entering public service and income-based repayment options, before refinancing a federal student loan," warned Heather St. Germain, an FDIC Senior Consumer Affairs Specialist.


If your credit score is low,


consider waiting to refinance until you can raise it. You can protect yourself by ordering a free copy of your credit report from each of the three major credit bureaus (visit www.AnnualCre- ditReport.com or call toll-free 1-877- 322-8228) and correcting inaccurate information.


Also remember that, for purposes of improving your credit score, the most important things are to be financially responsible and to correct any errors in your credit reports.


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Believing and Achieving Back to School


Giveaway and Community Flea Market Our goal is to supply 300 kids grades kindergarten - 6th with backpacks filled with school supplies to make sure less fortunate kids have a successful upcoming school year. When: Saturday August 30th 10am-2pm Where: In The Parking Lot Of The 645 Church St. Office Building in Norfolk, VA


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