Opposition grows to proposed sale of Madison County sewer system

Madison County Board discussions about the potential sale of Special Service Area 1 to Illinois American Water Co. appear to be moving from the county's Sewer Committee to the Executive Committee, but any action is still months away, according to Madison County Board Chairman Chris Slusser.

On June 12, Slusser said the Executive Committee, made up of the chairs of all the county board committees, is likely to begin discussing the potential sale, in part because the county subsidizes the special service area, referred to as SSA 1, and any proceeds from the sale would affect the entire county.

"We're still in the negotiation phase there, and the lawyers are still kind of handling things at this point, and so we really don't have anything to present," Slusser said June 12. "But I'll just reiterate what I said at the county board meeting. There's a lot of misinformation being put out; they're trying to cause panic and blowback.

"At the end of the day, until we find we get to a point where it makes sense for all the taxpayers of the county and we can provide long-term rate protection for the customers down there, we're not bringing anything forward to the board."

If it gets to that point, Slusser said he will be "very transparent about it."

SSA 1 provides sewer service to the American Bottoms area north of Granite City, including the Pontoon Beach and Mitchell areas. It was formed in the 1970s to issue bonds for what Slusser previously called a "much-needed" sewer system. Those bonds were paid off many years ago, and the county "owns" the system.

Today, the system operates 114 miles of sanitary sewer lines and 76 lift stations.

Illinois American approached the county about a year ago regarding the potential sale of the system and made an offer several months ago.

The tentative offer is $35 million but is subject to multiple appraisals. The sale also would have to be approved by the Illinois Commerce Commission, a process that could take more than a year.

Madison County sewer sale proposal draws opposition

The idea has sparked controversy and opposition, in part because of concerns that the sale would lead to large increases in sewer rates and that the approximately 5,200 SSA customers have already "paid for" the system over the years.

Among the opponents is former Madison County Board Chairman Kurt Prenzler, who has been criticizing the potential sale on social media.

Among the complaints are that it could potentially "triple" sewer rates for affected residents, with many pointing to what happened to Granite City after Illinois American purchased its system.

Both the Chouteau and Nameoki Township boards have also passed resolutions opposing the sale at their May meetings.

"I think they shouldn't sell the thing," Chouteau Township Supervisor Eddie Lee said Monday. "I think it should be operated just like it is. It's more than just a sewer service; it's part of our local community, and this is a small community here, and everybody works together."

Lee acknowledged that, regardless of whether the sale goes through, customers are likely to see an increase.

Slusser said part of that will be the expiration of the contract with the Granite City sewage treatment facility to treat SSA's wastewater. The contract is set to expire in 2030.

"I don't think it's a good idea," Nameoki Township Supervisor Eric Foster said. "But I think the county has a responsibility to consider the offer."

Foster, who was a County Board member and chaired the Sewer Committee when the last contract with the sewage treatment plant was negotiated, also said there would have to be some kind of rate increase, but residents he's talked to said they want to retain some control.

Madison County sewer sale concerns called overstated

Slusser also said concerns about dramatic rate increases are overstated, especially comparisons to Granite City.

He noted that Granite City's sewer system had a great deal of deferred maintenance at the time of the sale and that the city needed the money in part to fund deficient pensions.

"They're apples and oranges comparing the two," Slusser said. "They kicked the can down the road for 30-plus years down there and didn't do it (needed improvements and maintenance)."

Slusser also said a sale would include some kind of assistance or rate relief for existing customers.

He also said that more information would be made public once the lawyers have reviewed everything.

"I want to make sure everything's accurate so when I put it forward my Board has everything they need to make an informed decision, and the public will be fully aware of that too," he said.

Slusser also said he doesn't expect much action from the committee on the issue for some time, and that it would then go to the full board. After that, it would have to go to the Illinois Commerce Commission for approval, so the entire process would take more than a year.

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