A Village of Bourbonnais Sewer Sale Review
Regarding the renewed interest in the Village of Bourbonnais sewer sale, and in response to false narratives online, the Village Board would like to clarify and remind residents of the transparent information previously provided and directly shared with each household.
Our Analysis
Based upon a conducted study of the Village of Bourbonnais’ existing sewer (wastewater) system, it was determined that a minimum of $9 million would be required to make necessary improvements and upgrades to 38 miles of clay tile and concrete sewer line.
Following a year and a half of considerable discussions, review and industry research, the Village Board faced a significant challenge:
1. Raising the flat-rate sewer rate substantially, which was inequitable and proven to be unsustainable, or
2. Selling the sewer system to a utility company with the financial resources and capacity to maintain and upgrade the system.
After evaluating these options and numerous public meetings to gather input, the Village Board determined that selling the sewer system was in the best interest of residents for the long-term financial health of the community and to meet the future needs of Village improvements.
The Sale
• Public Engagement – As a community that promotes community engagement, multiple opportunities were provided to share public input at three meetings: October 22, 2020; November 2, 2020; and November 16, 2020. Additionally, informational correspondence was mailed to every household in the Village along with frequently asked questions for further clarification. An open house was hosted with Aqua Illinois on July 22, 2021.
• December 7, 2020 - The Village approved an asset purchase agreement with Aqua Illinois – a state-regulated water and wastewater utility service provider already serving Kankakee County - for the sale of Bourbonnais’ sewer system, pending approval by the Illinois Commerce Commission (ICC).
• August 31, 2021 - Following approval by the ICC, Aqua acquired the sewer system on this date for the purchase amount of $32.2M.
• $9 Million Upgrades – Aqua’s agreement commitment for system improvements over the next ten years
Community Benefits
- Debt Reduction & Financial Relief
- $16.2M relief of Village debt with pay offs of 2016 & 2017 Sewer Bonds, 2016 KRMA Bonds (village portion), KRMA IL Finance Authority Bonds (village portion) and Bank of Bourbonnais Sewer Loan
- $2.3M in reimbursements for General Fund G.O. Bond, General Fund cash flow and sewer sale expenses
- $1.75M saved from forgiven agreement regarding a sewer extension along the east side of Interstate 57 to become development-ready for industrial use.
- Increased Financial Stability for the Future
- $13.5M remaining for investment and continuing to accrue interest
• Strategic Asset Retention & Development Control
- Preserved ownership of three million gallons of sewer capacity at the Kankakee River Metropolitan Agency (KRMA), an asset valued at approximately $30M-$40M and continuing to appreciate, to support future economic growth
- Maintained largest amount of sewer capacity in Kankakee County to welcome new development to Bourbonnais
- Maintained authority of sewer expansion outside of Village corporate limits, ensuring continued control over growth and development
- Continued recapture policy with new development to reimburse Village for sewer line
- Sold a fixed asset to invest in other fixed assets (i.e. Career Center Road expansion
- Employment Stability
- No job losses - sewer personnel were reallocated to other municipal roles.
Capital Project Clarification
Funding for the $20M outdoor entertainment venue and state-of-the art gathering space, The Grove, DID NOT come from the sewer sale. New funding sources were identified and instated with the project which includes revenue generated from business districts within the Village. Proceeds from the sewer sale were used exclusively for municipal infrastructure and financial stability.
Conclusion
The decision to sell the sewer system was made after careful study, financial analysis and public input to ensure the best outcome for Bourbonnais residents. Benefits to taxpayers include debt elimination, fiscal stability, infrastructure investment and long-term economic growth.
By partnering with Aqua Illinois, the Village secured a longstanding solution for sewer system management, allowing Bourbonnais to focus on future community improvements, smart growth and development, and the well-being of its residents.
Thank you for following factual information!
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