Highland Park mayor: City in state of emergency

Highland Park — Highland Park Mayor Glenda McDonald said Monday she would declare a state of emergency for this small Wayne County community if the City Council rejected hiring a law firm with municipal bankruptcy expertise to represent the city in talks over its estimated $24 million water and sewer bill.

The council rejected hiring the firm at a Monday night council meeting.

"I have no choice but to declare a state of emergency," McDonald said at the packed meeting before the body rejected her request. "And in the state of emergency, we will move forward with what we have to do."

The council rejected hiring the firm Troutman Pepper. After the vote, council member Khursheed Ash-Shafii said, "Let the mayor have her state of emergency."

The mayor could not be reached for comment after the council vote. McDonald's declaration is the latest maneuver by Highland Park officials as they scramble to deal with an estimated $24 million water and sewerage bill to the Great Lakes Water Authority.

The city and GLWA have been in a years-long legal fight over the bill. Last month, the Michigan Supreme Court rejected Highland Park's contention that GLWA has overcharged the city for years.

Since the ruling, Highland Park officials have said the bill will financially sink the city. The majority Black city has a population of 8,900 residents, a per capita income of $19,401 and a 41% poverty rate in 2021, according to the Census Bureau. The estimated $24 million tab, the exact amount with interest is still being determined, is two and a half times larger than the $9.6 million Highland Park collects annually in property tax revenues.

On April 19, a Wayne County Circuit judge gave Highland Park and GLWA, the regional authority that serves more than 80 communities, until May 31 to negotiate a debt payment plan. Highland Park and GLWA need to present the potential payment plan to the court on June 6.

The court-ordered mediation is set to begin May 8, Highland Park officials said Monday night. McDonald urged the council to approve the law firm for the mediation. Mayors traditionally declare a state of emergency after a natural disaster or a major civil disturbance. In 2021, the mayor of Flint Sheldon Neeley declared a state of emergency due to the rise of gun violence.

Highland Park officials also are asking Michigan Gov. Gretchen Whitmer for help. Last month, the city requested the state government begin the process to declare a financial emergency. A week later, Highland Park raised the stakes, requesting Whitmer's help with an expedited Chapter 9 municipal bankruptcy filing.

That process is rare and usually takes months of financial reviews, among other considerations. The city still awaits the state's response to the request, city officials said Monday night.

McDonald has said she supports filing for bankruptcy.

laguilar@detroitnews.com