Problem is when cities use utilities to increase the General Fund (Denton, TX for example) as opposed to actual costs and reserves for repair and replacement of facilities. Rates skyrocket far faster than inflation and actual costs of doing business.
Detroit needs to reanalyze its fees and costs, then figure out a way to allow the citizens to recover their service. Bet it is still using the fee structure from the old administration with its hidden fees, costs, etc that went to cronies.
Water, sewer or other utilities fees for service in Washington state can only be used to pay for the O&M, capital projects, and administration of the utility by law. What happens is agenies typically transfer more money for administration then is actually required, which is a big no no.
As a public works director I have fought my administrators over this practice as it creates un-nessasarily high rates. Since they are barred by law of this practice they do have authority to raise the taxes on the utility that can be used to support the general fund. Of course once they get caught by the public for paying the high cost of water and sewer they elected officials blame staff for the high rates!
But I know that the meter manufacturers are or have been developing low flow meters that only provide enough water for life, health, safety purposes. Essentially it locks the meter almost closed but will allow people to get water for drinking. As for bathing and toilet flushes it will take a while to fill the tank or tub. No water for showers, yards or other high flow needs.