Given the way our rates are now structured and how this affects affordability of living in Ann Arbor, I wouldn’t be in favor of eliminating the discount unless this means we really are not paying the full cost of providing the service. Also, how would the additional cash be used? To expand service further into the townships? To subsidize developers who are building high-demand buildings in the downtown and require more capacity? I wish that we had a citizen advisory board to examine these water utilities issues. I gather that it is under the purview of the Environmental Commission, but I doubt that they examine the financial arrangements and equity issues.

Since by law, our bills are required to match the actual cost of providing the service (otherwise they are considered a tax), then any discount applied must be causing an operational deficit. Therefore, as long as this discount exists there will always be a revenue shortfall regardless of how high rates go.

Instead of raising rates across the board every year, how about simply reducing this on-time payment discount instead? I, for one, would be just as motivated to pay on time by a 1-2% discount or even no discount, but a small penalty for late payment.

I have been trying to keep up with the many different efforts to patch up our transportation funding with this long ungainly post (many updates). [link]

The Chronicle has been the major source of community information about the ongoing effort at the Washtenaw County (Board of Commissioners) level. The BOC has now set a public hearing on May 21 regarding a possible County road tax. [link] I would hope that a first step by the City Administrator will be to make the appropriate connections at the County level to learn how this tax will likely affect City of Ann Arbor taxpayers and residents, and the possible effect on Ann Arbor road funding.