Highland Park facing financial crisis, bankruptcy possible option
Highland Park owes roughly $20 million to Great Lakes Water Authority.
The Whitmer-Gilchrist Administration helped broker a tentative deal between the Great Lakes Water Authority (GLWA) and Highland Park last month to end a 10-year dispute over unpaid water bills.
The city of Highland Park is teetering on the edge of a massive financial crisis. Local officials say the city owes roughly $20 million to the Great Lakes Water Authority and brings in half that amount annually in property tax revenue.
The Highland Park City Council wants the state to review the city’s finances, a process that can take several months to complete. The city could then seek mediation over its payments or enter into a consent decree with the state.
The state could also appoint an emergency manager to temporarily assume operations of Highland Park, or the city could file for bankruptcy.
Emergency managers have overseen either the city or its school district several times during the past few decades. Detroit became the largest U.S. city to file for Chapter 9 bankruptcy in 2013, both by population and debt.
Read: Detroit one step closer to investment grade status after Moody’s rating upgrade
Michigan Gov. Gretchen Whitmer says she is working with the state treasurer to determine options for Highland Park’s finances.
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