Highland Park moves to issue $3 million bond to repair sewers after meter data shows years of overbilling

Highland Park city officials voted to advance the first steps of a roughly $3 million capital-improvement bond package aimed at repairing the city's aging sanitary sewer system, after staff said new meter data shows the city has been overbilled for sewer service for years.

City staff told the council the program would rehabilitate approximately 15,900 linear feet of sewer using cured-in-place pipe lining, replace about 6,066 linear feet of sewer and repair manholes in multiple locations (south of 4th Street, east of Hamilton Avenue). Staff said master meter readings and 19 sewer meters reduced the city’s previously reported sewer flow from about 5,254,000 gallons to roughly 2,891,000 gallons, and that accepted meter data supports claims the city was overbilled by about $2,800,000.

"We've been overbilled $2,800,000," a staff presenter said while urging the council to accept state funding and low-interest financing to fix leaks and inflow that increase the billed volume.

Ron Lisonbee of Miller Canfield, the city's bond counsel, told the council the financing package approved in principle is for $3 million (with a $250,000 buffer), of which about $540,000 would be principal forgiveness. Counsel said the typical structure would be a 30-year term at roughly 1% interest and estimated annual debt service in the $95,000–$99,000 range. Because the city has several emergency loans maturing in 2026–27, counsel said the new bond would likely reduce near-term debt service pressures by roughly $200,000–$300,000.

Lisonbee said, "We expect to issue $3,000,000, of which $540,000 is principal forgiveness," and described how the payment is structured through a trust that peels debt service off the city's state revenue-sharing distributions.

Council members pressed staff on technical points: which leaks represent groundwater infiltration vs. water-main breaks, how quickly billed rates would decline and whether rate increases imposed by the regional utility could offset savings. A staff technical briefing warned that reductions to the city's sewer bill would likely be gradual because the regional utility continues to propose annual increases and billing methodologies the city must negotiate.

Council members also discussed long-running disagreements with the regional utility over sewer charges dating to the mid-20th century. Staff said the new meter data gives Highland Park empirical evidence to press for lower bills and that repairs should reduce the inflow that drives higher charges.

The motion approved initial bond issuance steps; additional council actions will be required to finalize issuance and acceptance of specific financing documents. The council later moved to reconsider the vote to ensure the record and procedural steps were complete.

If finalized, the funds would be used to rehabilitate the underground sewer system; staff said those repairs are intended to reduce billable flow to the regional utility and create infrastructure better suited to support redevelopment above ground.