1. Water / Sewer Options Systems Viability Act Illinois Municipal League Conference Friday, September 18th 3:30 p.m. Stevens Salon A-4   Jim Bilotta Aqua Illinois Bob Johnson Illinois American Water

2. Illinois Overview and Challenges
6,994 forms of government – Ranked #1 Nationally,
1,299 municipalities (19,492 nationally) – Ranked #1
102 Counties
1,432Townships Source: National League of Cities Website
Illinois is $164 billion in debt (per usdebtclock.org)
Municipals struggling to meet pension funding liabilities
Diminishing municipal revenue streams (LGDF, sales tax, EAV)
Utility and other grant dollars decreasing, replaced with loans
EPA enforcement actions and regulatory changes, especially sewer
Qualified utility labor and certified operators harder to find
Municipalities commonly not charging true cost of service for water or wastewater, subsidizing from other funds which are increasingly difficult to generate
Lack of necessary rate increases (political)

3. Illinois Water Utilities Overview
PWSIDs
Population Range
Number of Systems
17 – 499
665*
500 – 999
318*
1,000 – 1,999
269*
2,000 – 2,999 96
3,000 – 3,999 66
4,000 – 4,999 49
5,000 – 9,999
120
10,000 – 19,999
100
20,000 +
113
1,796 total
* 70% of all Public Water Suppliers serve less than 570 customers (Per IL EPA)
Investor Owned Utilities in Illinois serve approximately 1.2 million people
November 17, 2018

4. Systems Viability Act House Bill 1379 Public Act 98-0213
Signed by Governor Quinn in August 2013, expires June 2018
Illinois Commerce Commission regulatory oversight
Rates
Customer Service
Prudency of Investment
Option for municipalities 7,500 connections (meters) or less
IOUs must have 30,000 connections or more (economies)
Original cost vs. Appraisal valuation (RCNLD)
Contributed property
Depreciation rates
Capital investment incentives
Consolidation into existing service area creating greater economies of scale for capital investment and rates

5. Although many are similar, no two municipalities are alike
Systems Viability Act
Although many are similar, no two municipalities are alike
Allows for municipalities to focus on core function
Police
Fire
Roads
Social Services
Economic Development
Shift liabilities
Maximizing value of assets - hidden cash to reinvest into community
This is an OPTION which did not exist until 2013 and expires in 2018