The city of Highland Park has made a $1 million payment to the Great Lakes Water Authority (GLWA) as part of an interim agreement, according to GLWA officials. This agreement, which was announced on Monday, aims to address the $24 million outstanding debt owed to GLWA for water and wastewater services dating back to 2014. Highland Park has committed to paying $1 million by Friday, and this amount will be deducted from the total judgment of $24 million.
GLWA provided an update stating that their Board of Directors will convene a meeting on June 28, during which they will propose a method for issuing credits to eligible member partner communities, totaling $1 million. These credits are anticipated to be distributed in the first quarter of fiscal year 2024.
Officials emphasize that when Highland Park fails to pay its portion, neighboring communities end up bearing the financial burden. GLWA serves multiple municipalities in Southeast Michigan, and if Highland Park fulfills its payment obligations, impacted member partner communities will be reimbursed accordingly.
Suzanne Coffey, CEO of GLWA, clarified that the $1 million payment will not directly benefit GLWA, but rather it will be used to initiate reimbursements to member partner communities that have absorbed portions of Highland Park’s outstanding debt. Coffey made this statement to highlight the importance of understanding the purpose behind the payment.
With the $1 million payment made, officials at GLWA have stated that Highland Park may request a stay, which is a temporary suspension of legal proceedings, until October 1. Both GLWA and Highland Park will jointly request a stay for the ongoing 2020 case, which pertains to the debt incurred after 2014, as well as seek an adjournment of the trial scheduled for July.
In April, the Highland Park City Council passed a resolution to pursue an expedited bankruptcy process. Additionally, they asked Governor Gretchen Whitmer to review the city’s financial situation. As part of the interim agreement, the state intends to file a position statement in the 2014 case, expressing support for the stay and explaining its involvement and plans to assist in resolving the issue.
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