Highland Park city leaders are asking Gov. Gretchen Whitmer for approval to file for municipal bankruptcy.
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The request comes as the city tries to deal with a debt of more than $19 million owed to the Great Lakes Water Authority. Highland Park does not have the funds to cover the debt.
Mayor Glenda McDonald urged the city during a council meeting Monday night to file for Chapter 9 bankruptcy.
“If we are allowed to do Chapter 9, we can wipe out our debts, get a clean start and everything will be okay for the citizens of Highland Park,” McDonald said. “I am calling on the Governor right now to expedite this decision.”
McDonald believes if the city doesn’t file for bankruptcy, a court could impose a levy that would triple property taxes. The mayor also said the Great Lakes Water Authority could shut off service to Highland Park., though GLWA CEO Suzanne Coffey denies that claim.
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