Alisa Priddle and Matt Helms

Detroit Free Press

DETROIT — The city's program to cut off water to residents who have not paid their bills has given the city a bad reputation in the eyes of the world, bankruptcy Judge Steven Rhodes said as he used his courtroom to demand that Detroit better address the problem.

Detroit's bankruptcy hearings took a detour Tuesday into public policy as Rhodes, the judge overseeing the city's historic bankruptcy filing, has become all too familiar with many of the city's problems. He acknowledged being unsure whether it was within his authority to deal with the water shutoff issue.

On Wednesday, the first day of hearings over legal issues with Detroit's bankruptcy restructuring plan, Rhodes questioned a firefighters union that wants to block the city from imposing a new pension plan for active employees. A five-week trial on the city's debt-cutting plan of adjustment starts Aug. 14.

The city cut off water to thousands of residents in recent months, part of a program launched in the fall to go after unpaid bills after years of lax enforcement.

"Your residential shutoff program has caused not only a lot of anger in the city and also a lot of hardship," Rhodes told Darryl Latimer, deputy director of the water department. The other issue: "It's caused a lot of bad publicity for the city it doesn't need right now."

He told water officials to be back in court Monday to update him on city initiatives to help residents in arrears keep their water on.

Failure to collect undermines the financial stability of the water department and forces higher rates on customers who pay, water officials have said. The city also is stepping up collections against commercial customers.

Many residents who receive shutoff notices do not contact the city for help in paying their bills, Latimer said. He acknowledged the department does not have the staff to visit those people before contractors are sent out to disconnect water service.

The average Detroit water bill is $40 to $70 a month, and the average delinquency is 90 to 120 days, Latimer said. A bill of $150 or more that is 60 days past due will trigger a water shutoff.

Rhodes said the city needs to create a "much more aggressive plan" to inform residents about overdue bills, payment plans and financial help.

Emergency manager Kevyn Orr's office had no immediate comment Tuesday.

Activists have fought the shutoff program, prompting condemnation of the city's effort as a human rights violation by a United Nations commission and criticism from politicians. Mayor Mike Duggan, who doesn't have control over the water department, has said the shutoffs were handled poorly and should have come with more public notice and information.

Detroit filed for bankruptcy protection a year ago, citing debts and projected long-term liabilities of $18 billion.