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Flint Water Plant

(MLive.com File)

FLINT, MI - Water rates could double within five years unless changes are made to the water system already charging the highest rates in the nation, state Treasurer Nick Khouri said Friday.

Khouri presented the initial findings of a study of Flint's water rates Friday, May 13, to the Flint Water Interagency Coordinating Committee, which showed large rate increases are likely for city residents unless changes are made.

Khouri said leaders will need to find ways to reduce operating costs, find low- to no-cost financing for infrastructure upgrades and find a cost-effective source of water moving forward to curb the cost increases.

"If we don't do anything, rates are going to double again," Khouri told the committee.

The study focused solely on residential water rates and did not consider sewage fees that are included in residents' regular water bills.

Average monthly water bills in Flint are currently $53, Khouri said. That amount would likely increase to $110 by 2020 in order to cover the costs of the system if no changes are made.

The study included cost comparisons to other municipal water systems. The comparison showed that Flint residents are often required to pay to maintain more infrastructure and water loss than customers on other municipal systems.

An average municipal water system typically contains 80 feet of water pipe per customer, Khouri said. The Flint system, which was built for a population nearly double the city's current size, features roughly 96 feet of water pipe per customer.

However, it isn't just the size of the system causing problems, according to Khouri.

Only 50 to 60 percent of the water purchased by Flint is actually billed to the customers for use. The other systems included in the study had billing rates closer to 90 percent.

Unbilled water includes those resources used in processes such as hydrant flushing. It also includes water loss from leakage and theft.

Khouri said he is unsure what percentage each of those three factors play into the unbilled rate, but previous city audits have showed the system is leaking as much as 40 percent of its water.

He added that Flint also transfers more money from its water fund - roughly 17 percent - to other city funds than other municipal systems. The average municipal system only transfers about 7 percent.

"There are no short-term fixes," Khouri said.

A study released Feb. 16, by Washington, D.C.-based Food & Water Watch showed Flint residents were already being charged more for water than any other customers in the nation's 500 largest community water systems.

The task force is expected to present an evaluation of water source of backup options for the city, including a study of the Karegnondi Water Authority and the Great Lakes Water Authority. No timetable has been set for that presentation.