DuPage: OK for Villa Park sanitary district to stay in business

Salt Creek Sanitary District no longer is facing the possibility of being consolidated out of existence.

DuPage County officials say the sanitary district in Villa Park has fixed problems raised in a 2012 report and should remain a stand-alone entity. That conclusion was reached after an engineering firm hired by the county recently completed a lengthy assessment of how Salt Creek is being run.

"I'm pleased with the changes that they've made," county board Chairman Dan Cronin said Tuesday. "I think it's certainly a more accountable and transparent operation."

Organized in 1928, Salt Creek provides sanitary sewer service to 7,250 properties in Villa Park.

Four years ago, an analysis by the county found the district was deficit spending, not generating enough revenue to cover expenses and lacking transparency.

A year later, state lawmakers gave DuPage the power to eliminate Salt Creek and 12 other local government entities.

So the county in 2014 hired Christopher B. Burke Engineering to do the assessment of Salt Creek and evaluate whether consolidation was necessary.

But Nicholas Kottmeyer, DuPage's director of public works and operations, says the study found that the district's plant is in good shape and is well-run.

Meanwhile, Salt Creek's management has taken steps to address all the concerns raised about the district.

"There has been tremendous improvement financially at Salt Creek," Kottmeyer said. "They have righted the ship financially."

The agency has reduced its operating expenses and increased revenue over the last three years. It also has developed a plan to repay its debts.

While the district has had rate increases, its customers still are paying less than they would pay if the district was consolidated with the county or neighboring Elmhurst.

"It didn't seem worthwhile to make the change," Kottmeyer said.

Even though Salt Creek won't be consolidated, county officials say the review of the agency resulted in many positive changes.

The district, for example, restructured the health insurance for its full-time employees and eliminated insurance benefits for members of its three-person board of trustees. The district also adopted the county's ethics ordinance and is using a credit card policy that limits access and improves safeguards.

Jim Listwan, the sanitary district's manager, said the review by the county "made us look at our finances."

"By doing that, we were able to get a more focused direction," he said. "It gives us a more clear vision of the future."