HIGHLAND PARK, Mich. (WXYZ) — A decade-long dispute over unpaid water bills between the Great Lakes Water Authority and the city of Highland Park could finally be over. This after the state of Michigan has agreed to invest $30 million into infrastructure and offset costs to residents.
The $55 million debt results from two separate case settlements for unpaid water bills. One of the cases is from 2014 and the other is from 2020. GLWA says the city owes them approximately $55 million in back pay. GLWA says in the last decade, the city has paid less than 1% of their water charges.
However, Highland Park maintained the debt was “manufactured overcharges.”
After much back and forth, Governor Whitmer’s office stepped in to help.
The state says water infrastructure in Highland Park is nearly 120 years old and utilizes antiquated or obsolete water mains to deliver water throughout the city. They also say it is estimated that the city loses about 70% of its water due to inadequate infrastructure.
Wednesday, Highland Park city council voted to unanimously approve a tentative deal.
Under the tentative agreement, the State of Michigan has committed to:
- Fund installation of master water and temporary sewer meters in Highland Park.
- Fund water main and service line replacement efforts within Highland Park.
- Release a $25 million sewer infrastructure grant for GLWA that was previously appropriated.
- Fund a $5 million grant for GLWA for drinking water infrastructure.
- Revise the administrative consent order to include settlement terms under EGLE.
As a part of the deal, the state says the ongoing lawsuits would also be dismissed including a $24 million judgment against the city.
The GWLA Board of Directors still has to approve the deal before it is finalized.
“That debt we accrued, or acquired, it was not good for the city or the residents. We’re paying our water bill but yet and still the city is not paying their bill. Why are we paying and they’re not paying,” said lifelong resident Chico Hamilton.
Hamilton says the water debt issue is one he has watched closely for the last year as taxpayers were set to saddle the brunt of the debt.
“I’m glad. So, we can have a fresh start. The new administration, they can have a fresh start and they don’t have to worry about past problems and we can go forward hopefully and build the city back up,” said Hamilton.
Henrietta Key has lived in Highland Park since the 50s. She says as a senior, paying high water rates would have been challenging for her.
“I feel good about that. That is really good that it’s wiped away because it relieves some of the stress we all have had,” said Key.
Residents say they’re hopeful this deal, once approved by GLWA, will help push the city forward.
“It’s a complicated issue. We appreciate the State of Michigan doing the best they can to resolve it, and we hope that Highland Park will now pay their water and sewer bills going forward,” said Macomb County Public Works Commissioner Candice Miller.
GLWA says they plan to present the tentative agreement to our Board of Directors at their regular meeting on October 25, 2023.
