Madison County (ECWd) –
Letter to the Editor
(This letter to the editor is in response to a letter written several days ago by County Board Chairman Chris Slusser.)
Many people were surprised by an April 13 newspaper article which reported the county had received a $35 million offer from Illinois American Water Co. to sell Special Service Area #1 – a sanitary sewer system serving 5,500 households and businesses north, northeast and east of Granite City.
The customers of SSA #1 were surprised that the county would sell “their” system, because “they” – the customers of SSA #1 – paid for all the assets of SSA #1 – all pumps, pump stations, pipes, trucks – everything.
The county owns the “legal title” to the system only because of the history of how the system was built. SSA #1 was built in the 1970s and funded by bonds issued by the county. The bonds required that the county be the “legal owner” – but the bonds were paid back by the customers / users. The county financial statements break out SSA #1 as an enterprise fund.
That’s why people are calling it “unfair” that Slusser has been working – for more than a year – on a plan to sell the system for $35 million to Illinois American Water Co. – and the county would pocket the sales price.
A customer of SSA #1 told me the following story to describe the situation.
He said: It’s like a father with a 16-year-old son. The son comes to the father and says, “Dad, I need a car to get to my job, but I don’t have any money, and I’m too young to get a loan.” The father responds, “No problem, just put the car in my name, I’ll get the loan, and you can make the car payments.”
Three years later, after the car loan is paid off, the father says, “Son, I’ve decided to sell the car and put the money in my pocket.” The son responds, “But dad – that’s MY car. I paid for it.” But the father says, “Look at the title son. That’s my name on the title and I have every right to sell it.”
The April 13 article quotes Slusser as saying that Illinois American approached the county “several months ago.” But an email – discovered through a FOIA request – shows Slusser meeting with Illinois American Water more than 14 months ago.
Another email shows that on May 1, 2025 – more than a year ago – Illinois American Water says their offer is already “75% complete.”
What do we see here?
First, it’s “unfair” that the county would sell SSA #1 and pocket the money – because the customers have paid for all the assets and operating expenses. If the county wants to be reimbursed for some expenses SSA #1 is able to do that – because SSA #1 has $11 million of cash in the bank – and no debt.
Second, the emails reveal a lack of transparency. Slusser has been working on this for more than year – not for “several months.” And more than several county board members said they just learned about the idea last month.
Third, if the county sold SSA #1, Illinois American would have every right to recover its $35 million investment, plus substantial profit, plus the costs to operate the district – from the customers. Sewer rates would certainly triple – and it would be a replay of what happened to the residents of Granite City after the city sold its sewer system to Illinois American.
Both the boards of Nameoki and Chouteau townships unanimously passed resolutions opposing the idea of the county selling SSA #1 to Illinois American. But the county board will make the decision, therefore citizens should contact county board members.
Kurt Prenzler, CPA
Former (2016 – 2024) Madison County Board Chairman
618-514-2599
