Michigan Supreme Court rejects Highland Park's request to appeal unpaid water, sewer charges
(CBS DETROIT) - The Michigan Supreme Court rejected the city of Highland Park's request to appeal a ruling last year that the city must pay over $20 million in unpaid fees to the Great Lakes Water Authority.
Last year, the Michigan Court of Appeals ruled in a 2014 case filed by the city of Detroit and the GLWA against the city of Highland Park that Highland Park must pay $21 million in unpaid water and sewer fees, along with $3 million in interest. The interest is due to the city's failure to pay the water and sewer charges fully.
Highland Park asked the state Supreme Court to hear the case, and on Tuesday, March 4, they denied the city's request to appeal the 2022 court ruling.
Macomb County officials are applauding the Supreme Court's ruling.
"Simply put, this has always been a fairness issue. Although there is always a willingness to help our neighbors, it is unacceptable to expect that other communities should be paying for another who is unwilling to do so," said Macomb Executive Mark Hackel. "We will continue to work together as a region to keep costs fair and reasonable for everyone."
Public Works Commissioner Candice S. Miller said, "The court came to the right decision denying Highland Park's appeal, and we hope this allows the Great Lakes Water Authority to proceed with collection -- whatever form it takes -- and we call on the state to assist Highland Park so the city can rightly pay what it owes."
In the spring of 2022, GLWA officials proposed rates to its member communities that would include an increase in 2023 to those communities to absorb the debt, and Hackel and Miller urged communities in Macomb County that contract with the GLWA to withhold the part of their increase related to Highland Park's debt.
These two officials suggested that leaders in these 18 communities should put the money in escrow to show good faith, hoping a solution would be reached. Many of these communities voted to do this.
"Then in May 2022, Hackel and Miller urged the GLWA Board of Directors to allocate the full $25 million the authority was slated to receive from the state under the American Rescue Plan Act, as a partial reimbursement to GLWA's member municipalities," according to Macomb County officials.
In June 2022, GLWA officials voted to delay a rate hike of $6.7 million. This was under the presumption that Highland Park would start to make full payments again. Because of this partial victory, Macomb County officials urged the local communities not to withhold any payments.
Highland Park did resume making payments, but the payments were only partial payments of less than 50%. Because of this, the city's debt continues to grow at $3.5 million each year.
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