The TRUTH about the DuPage Water Commission

Recent campaign mailings, blog posts, and candidate statements regarding the DuPage Water Commission have been misleading.  It’s time the TRUTH be told about the relationship between DuPage County government and the DuPage County Water Commission.

The DuPage Water Commission was created by Illinois State legislative action to oversee the purchasing of Lake Michigan water from the City of Chicago and provide for its distribution to Water Commission member municipalities.  The member municipalities appoint 6 commissioners to the Water Commission Board, and the DuPage County Board Chairman, with the advice and consent of the DuPage County Board, appoint 6 members.  The DuPage County Board Chairman appoints the Water Commission Chairman.

The Water Commission is funded through a countywide sales tax since its inception.  It has the ability to raise a property tax as well, but has abated that property tax and relied solely on the sales tax funds and the funds from member water purchasing.  The members of the water commission purchase water from the Water Commission at a rate set by the Water Commission Board.

The Finances of the Water Commission are controlled by the Chief Financial Officer, the Finance Committee, and the Board of the Water Commission.  DuPage County government has no authority over the funds of the Water Commission, and does not have authority to approve or disapprove the Water Commission budget.  It has been alleged that the DuPage County Public Works Department has authority over, or responsibility for, the Water Commission and its finances.  That claim is completely false. 

The DuPage Water Commission has undertaken an investigation of the improper accounting of funds that led to a revelation that the Water Commission budget had a $19million deficit.  Though preliminary reports from Water Commission Board meetings indicate that the money is not missing, but instead was used to pay bills and not appropriately accounted for, the final outcome of the investigation is still forthcoming.

DuPage County government became a member of the Water Commission in 2008, in order to provide Lake Michigan water to unincorporated residents with tainted wells.  DuPage County pays the same water rates to the Commission as the other Commission members.  Not all municipalities in DuPage are Water Commission members.  Some, like West Chicago, have built, and maintain, their own water system for their municipal residents. 

DuPage County was given $15 million annually (of the approximately $30 million received by the Water Commission) for five years from the countywide quarter cent sales tax collected by the Water Commission.  That transaction required state legislative action, which was in fact authored by State Senator Dan Cronin. Cronin was one of only three DuPage County legislators to vote in favor of that legislation.  The other two were State Senators John Millner and Kirk Dillard.

At the end of those 5 years, the Water Commission member municipalities then took a one-time $40 million lump sum from Commission funds and distributed it among the member municipalities.  No further funds were distributed to DuPage County government.

The accounting problem was identified in the fall of 2009, which is approximately two years after the $40 million distribution was made.  It is unclear as of yet how far back the accounting errors/omissions go.

The Water Commission Board voted in December to approve a $30 million short-term borrowing plan to be able to continue to abate the property tax.  The long-term budget impacts are still to be determined.

At this time, the Water Commission is conducting an investigation, and until that report is presented to the Commission, it is premature to hold hearings or speculate on the impact to unincorporated residents on Lake Michigan water.

Debra Olson, DuPage County Board Member and candidate for County Board Chairman, has stated in interviews over the past three months that she believes it is appropriate to relieve the Executive Director of his duties once the investigation is final (the CFO has already left the Commission).  Anyone found culpable or derelect in duty should also be relieved of their position. Debra has spoken to Water Commission commissioners, and believes the Water Commission should adopt better safeguards, accounting and reporting procedures, and checks and balances to insure all funds are properly accounted for and transparency is paramount. 

“It is unfortunate that my opponents have sought to distort the truth and my statements on this issue, as they have done with so many issues in this campaign.  I encourage voters to become thoroughly informed on this issue through the Water Commission members and website, and to learn my positions on issues from me, rather than my opponents.” 

For further information, check the DuPage Water Commission website at  www.dpwc.org, and the DuPage County Government website at http://www.dupageco.org/searchResults.cfm.