Should the customers of Special Service Area #1
Pay Twice for their Sewer District?
Submission from Kurt Prenzler, April 24, 2026
If the Madison County Board votes to sell Special Service Area No. 1 sanitary sewer district (SSA #1) to Illinois American Water Co. (IAW), its customers would end up “paying twice” for their sewer district.
How can I say that? Let me explain.
SSA #1 was created in the 1970s to provide sanitary sewer service to users in the American Bottoms – primarily to customers in Chouteau and Nameoki townships. The legal mechanism of “special service area” was used to create the district and left Madison County as the owner – although the users / customers paid for the infrastructure and operation.
The customers of SSA #1 – by paying their monthly sewer bills – have already paid for all the assets of the district. For more than 50 years, the customers have paid for the pipes, pumps, lift stations, trucks, buildings, etc. And more! At the end of 2025, SSA #1 had $11 million in the bank – all funded by customers. And the district has no debt.
Here’s the problem. SSA #1 is technically owned by Madison County – not the customers. County Board Chairman Chris Slusser says that for several months he has been meeting with IAW about selling SSA #1. Last month IAW made an offer of $35 million.
This news caught many people by surprise.
This sale would require the approval of the county board. If the sale is approved, who are the winners? The county – which will be $35 million richer – and IAW – which will have acquired a well-maintained sewer district, in a good location. IAW will have the legal right to recover its investment and make a nice profit.
But the customers of SSA #1 would be the losers. They will have to pay for their sewer district AGAIN.
You see – IAW is not a charity. IAW is a business and it will have to recover its $35 million investment.
Investors estimate “payback” – the time it takes to repay the purchase price. The customers of SSA #1 will have to pay the purchase price of $35 million – in order for IAW to recover its investment.
And that’s not all. The customers will also have to pay the costs of operating the district – and – enough for IAW to make a profit. IAW hires highly paid Chicago lawyers who will surely convince the Illinois Commerce Commission to approve healthy rate increases.
IAW is a part of American Water Works Co. which is traded on the New York Stock Exchange (AWK). As of today, it has a market capitalization of more than $25 billion.
During the past 6 years, the City of Granite City sold its sanitary sewer collection system and its large wastewater treatment plant to IAW. But Granite City was in a different situation, because its police and firemen pension funds needed additional funding. The result? Significant rate increases for sewer services for residents of Granite City.
But Madison County has no debt. Madison County doesn’t need to sell SSA #1.
If SSA #1 was a normal water district – owned by the customers – and the water district decided to sell its assets to IAW, the customers would receive checks in their mailbox.
But that’s not the case here. Because the county is the legal owner of SSA #1.
If the county board approves the sale of SSA #1 to IAW – and the purchase goes into the county coffers – it would not be fair to the customers of SSA #1 – who have faithfully paid their sewer bills for more than 50 years.
The customers of SSA #1 should not have to pay for their sewer district AGAIN.
What to do?
Attend the meeting of the Sewer Facilities Committee of the County Board, which has a meeting scheduled for Monday, May 4, 4:00 p.m. at the Special Service Area No. 1 building at 301 E. Chain of Rocks Road, Mitchell.
And call or email the members of the committee:
Denise Wiehardt, Chairman (R – Granite City)
(618) 550-0099, dlwiehardt@madisoncountyil.gov
Shawndell Wilson (D – Granite City)
(618) 250-5364, skwilson@madisoncountyil.gov
Bob Meyer (R – Granite City)
(618) 444-8040, rtm7320@yahoo.com
Nick Petrillo (D – Granite City)
(618) 779-1164, petrillon45@gmail.com
John Janek (R – Granite City)
(618) 779-2970, jjjanek@madisoncountyil.gov
Fred Schulte (R – Edwardsville)
(618) 304-3064, fschulte@madisoncountyil.gov
Jason Palmero (R – Glen Carbon)
(618) 954-1653, madisoncountyboardjason@gmail.com
If you have questions, feel free to call / text me: 618-514-2599.
Kurt Prenzler
