Shut off my water?

Yes, it's true. Many municipalities can shut off residential water for non-compliance with local ordinances that are intended to protect the public water supply.
We know what "backwash" is in our juice and soda bottles, right? (eew!) Well, it can happen in the water pipes that come in from the city. So if our neighbor has a leak in her sprinkling system, her fertilized water may "backwash" into the city water - including ours! No worries, though, the city has backflow devices to prevent that.
However, as with anything, backflow devices can fail. So municipalities require that they be tested every three years. About one-third of homeowners receive a letter each year requiring them to get their devices tested.
Testing must be performed by someone who has earned a Certificate of Award from the Michigan Plumbing Board. Godwin has multiple testers, who are listed on the Michigan Plumbing & Mechanical Contractors Association site.
The Michigan Safe Drinking Water Act of 1976 has more information.