DETROIT – Unpaid bills was a logical place for the city of Detroit to start in generating revenue.
In this case, it's electricity bills owed by churches, schools and other for-profit organizations.
"These are commercial organizations that for sometimes over 2 years, sometimes 3 years, have not paid for the electrical services that they were provided," said Butch Hollowell, Detroit's corporation counsel. "It totals about $29 million."
The city identified 38 organizations who owed on past bills. Ten have entered payment plans while another 18 are in negotiations with the city. Last week, the city filed lawsuits against 10 others.
"We have to be able to collect the monies that are due to the city so we can balance this budget," said Hollowell.
Among those the city is suing are: Considine/Little Rock Family Life Center, which is part of Rev. Jim Holley's church; the Rutherford Winans Academy, which is a charter school affiliated with Pastor Marvin Winans; the Woodward Academy; and CJC Cruises, which operates the Detroit Princess riverboat.
Those four organizations alone owe a total of $240,000. Hollowell said for the city to stay in compliance with the bankruptcy agreement it will aggressively go after the money owed.
"Every dollar that we collect is a dollar that can be spent for core city services -- for a police officer or a firefighter or toward bus service. It's important that as we move forward people know that if there are monies that are owed to the city of Detroit, you know, you have to pay those bills," said Hollowell.
Hollowell said the city has collected $17 million in unpaid bills in just the past year.