City of Highland Park pays $1 million to GLWA, meets deadline in interim agreement
HIGHLAND PARK, Mich. (CBS DETROIT) - The Great Lakes Water Authority says it received the $1 million payment from the city of Highland Park on Friday as part of an interim agreement.
The agreement, which was announced on Monday, includes $24 million owed to GLWA for unpaid water and wastewater services in a 2014 case. Highland Park agreed to pay $1 million by Friday, which will be applied to the $24 million judgment.
According to an update from GLWA, the Board of Directors will hold a meeting on June 28, where the department will propose a method of issuing credit to eligible member partner communities in the amount of $1 million. The credits are expected to be issued during the first quarter of fiscal year 2024.
Officials say when Highland Park doesn't pay its share, other communities foot the bill, officials say. GLWA, which services other municipalities in Southeast Michigan, says if Highland Park pays its balance, impacted member partner communities would be reimbursed.
"It is important for everyone to understand that GLWA will not directly benefit from the $1 million, rather it will be utilized to begin to reimburse those member partner communities who have absorbed portions of Highland Park's bad debt expense," Suzanne Coffey, CEO of GLWA, said in a statement.
GLWA officials say with the $1 million paid, the city may request a stay -- a temporary suspension on legal proceedings -- until Oct. 1.
The GLWA and Highland Park will so request a stay for the 2020 case -- money owed post-2014 -- and an adjournment of the trial that is scheduled for July.
In April, the Highland Park City Council passed a resolution for an expedited bankruptcy. Additionally, the city council asked Gov. Gretchen Whitmer to look into the city's finances.
As part of the interim agreement, the state intends to file a position statement in the 2014 case, stating it supports the stay and explaining why it is involved and how it plans to help resolve the issue.
