Lake in the Hills might sell portion of water system serving nonresidents

Lake in the Hills is considering selling the village's unincorporated water main system south of Algonquin and Pyott road upsetting area residents.

The village sent letters Feb. 12 to residents informing them about possibly transferring ownership of that portion of the water system to Central States Water Resources, a private water and wastewater utility company. The village would sell water to the company for the area for $2.69 per 100 cubic feet.

The water main serving the area was installed in the 1950s by the original Lake in the Hills Water Co. before being purchased by the village. The system serves 71 customers, of whom four are village residents, and generates roughly $30,000 yearly from water sales, village documents show.

Concern from some residents about how the proposed sale could affect service has prompted the village board to twice delay the vote.

At the Feb. 23 village board meeting residents complained of not having enough time to fully review and discuss the matter. The issue was tabled again last week.

Residents pleaded their case to state Rep. Allen Skillicorn, who urged village officials to give affected residents' more time "to fully understand the ramifications."

The village board gave residents another month to shop around for alternate water suppliers.

Officials want to eliminate the village's liability of replacing the aging water system and fire hydrants - expected to cost roughly $1.8 million. The pipe is made of obsolete asbestos-composite material so fragile that basic flushing maintenance causes water main breaks - 45 percent of all water main breaks occur in this area, documents show.

"It's costing us a heck of a lot of money to go in there and make repairs," Village President Russ Ruzanski said. "The burden it is putting on us and the taxpayers ... it's not fair. It's time to cut the strings. The best interest of the remaining 29,500 residents of our village is to sell this portion off."

Unincorporated residents have been paying a quarterly $6 water main replacement fee. Officials plan on refunding 10 years worth of fees to each property owner for a total of $20,880.

"But what of the promises made to all of the residents over 50 years ago when the village purchased the water system for maintenance and upkeep, along with the bonds to do so?" Skillicorn said. "The majority of Lake in the Hills residents who live in the incorporated areas have had their water system updated, but not the unincorporated area. Those residents are being pushed aside because it 'does not turn a profit.' "

Any transfer of ownership must be approved by the Illinois Commerce Commission, which would set the rates residents pay. The village board will review the matter in April.

"We really don't know where the residents' cost is going to go for their water," Ruzanski said. "Right now they are paying 1½ times what regular Lake in the Hills residents are paying for our service. Central States is willing to do the infrastructure work in the area. It's the right thing to do right now."