DETROIT – Highland Park has approved a tentative deal that could end the yearslong saga with the Great Lakes Water Authority over the city’s unpaid water bills, which have amounted to millions of dollars and frustration for Metro Detroit residents.
With help from Michigan Gov. Gretchen Whitmer, the city of Highland Park -- a Detroit enclave -- has agreed to a tentative agreement for resolution related to its 10-year battle with the water authority. For years, the city did not pay GLWA for water or sewer services, claiming its payments to GLWA were capped by settlement agreements made in 1996.
The state of Michigan stepped in 10 years ago and shut down Highland Park’s water treatment plant due to water quality issues, placing the city under GLWA’s service on an emergency basis. The water authority said last year that the city had paid less than 1% of its water bill and half of its sewer bill since 2012.
The lack of payment from Highland Park had caused other cities to pay more for their services to cover the debt, creating frustration among Metro Detroit residents. It is estimated that everyone living in the Metro Detroit area has likely paid between $75 and $100 each for Highland Park’s unpaid bills.
Enmeshed in legal battles for years, a Wayne County court last year ordered Highland Park to repay its water debt to the utility company. Under court order, the city currently owes $24 million to GLWA, and has so far paid $1 million of that debt after both parties reached an interim agreement in June this year.
However, if the latest deal is approved by all parties involved, the ongoing lawsuits would be dismissed entirely, including the $24 million judgement. More specific details of the tentative deal have not yet been shared, so it’s unclear how much money the city would still owe to GLWA.
The tentative deal will be brought to GLWA’s board of directors during a meeting scheduled for Oct. 25. In a statement, the water authority said it is glad to see the city take “the important action of approving the agreement.”
“While all parties involved agree that much work remains, there is also concurrence that this agreement represents a fresh start for our collective relationships as we work together into the future,” a GLWA spokesperson said.
Several communities, including Macomb Township, voted last year to withhold funds from GLWA that are meant to cover Highland Park’s costs, and instead place that money into escrow. Officials said in April 2022 that Macomb Township had already paid $1.43 million because of Highland Park, and was expected to pay another $178,000 in the next fiscal year -- and the township was refusing to do it.
GLWA officials said in May 2022 that nearly half of their sewer rate increase approved months before was to help recover Highland Park’s sewer service debt. Highland Park asked the governor to approve municipal bankruptcy in April 2023, and declared a state of emergency over its $24 million water bill the following May.