Highland Park seeks bankruptcy following hefty water bill
HIGHLAND PARK, Mich. (CBS DETROIT) - The feud between the Great Lakes Water Authority and the City of Highland Park reached its boiling point. On Monday, the city council approved a resolution to file for Chapter 9 bankruptcy.
Mayor Glenda Mcdonald attended Monday's meeting and spoke to residents and the council, adding that if another measure isn't taken, the city's water could be shut off.
"To go into chapter nine mainly because if we do not the citizen's houses will be levied and our water could possibly be shut off," Mcdonald said.
A Michigan Supreme Court ruling ordered the city to pay around $20 million in unpaid water bills.
CBS News Detroit reached out to GLWA, the organization that alleges Highland Park hasn't paid its water bill in years.
In a statement, GLWA general counsel Randal Brown says:
"Highland Park has a history of not making timely and full payments of its sewer bills from Detroit and now the Great Lakes Water Authority (GLWA). This has resulted in litigation in the 1940s, 1990s, 2014 and 2020. Currently, Highland Park is making partial sewer payments because of a May 2022 Court Order.
The state of Michigan shuttered Highland Park's water treatment plant in November 2012. Since November 2012, Highland Park has received water services from Detroit, and now GLWA. Highland Park has made nominal payments for these services. Highland Park has not made a water payment in over a decade.
If Highland Park pays its balance, GLWA's impacted member partner communities would be reimbursed."
McDonald said if the bankruptcy is approved, it will allow the city a restart.
"We can wipe out our debts, get a clean start and everything will be ok for citizens of Highland Park," she said.
During Monday's meeting, residents pleaded with council members to vote in favor of the bankruptcy resolution, mainly to avoid a potential levy on the city.
"So think about our senior citizens who are on fixed incomes who can't increase their incomes," said one resident.
Others believe it's the state's responsibility to step in.
"Residents, we do not owe this money and the State of Michigan should pay this debt," said a one long-time Highland Park resident.
Council did approve the resolution 3-2, with council member Khursheed ash-Shafii giving the final vote deciding in favor.
"I have no choice but to vote yes," ash-Shafii said.
GLWA services other municipalities throughout Southeast Michigan. When Highland Park doesn't pay its share, other communities foot the bill. GLWA says if Highland Park pays its balance, impacted member partner communities would be reimbursed.
The bankruptcy petition has to be approved by Gov. Gretchen Whitmer in order for the process to begin. The city is hoping Whitmer will approve the petition by April 20.
After Monday's meeting in Highland Park, GLWA issued the following statement:
"It has been reported to the Great Lakes Water Authority (GLWA) that a speculative statement has been made that the Authority wants to shut off water service to the City of Highland Park. That statement is untrue and counterproductive. GLWA hopes, for the entire region, that an amicable solution can be achieved in the near future."
