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THE WATER AUTHORITY AS A MEANS OF SOLVING WATER SUPPLY SHORTAGES*

By W. J. ROBERTS, Engineer, State Water Survey, Urbana

The people of the Effingham area dedicated their new water supply reservoir on November 10, 1957. This project is the first to be constructed under the relatively new Illinois Water Authorities Act. It is a striking example of how this Act can be exercised to overcome some Illinois water supply shortages.

On August 2, 1951 the Governor of Illinois signed into law "an Act to provide for the establishment of Water Authorities and to define their powers and duties." Prior to the passage of this law there were several corporate authorities in Illinois that could deal with area-wide problems of soil and water conservation.

These units have their beginnings in the Levee Act and the Farm Drainage Act which became law in 1879 and provided for the construction, reparation and protection of drains, ditches and levees, across the lands of others, for agriculture, sanitary and mining purposes, and to provide for the organization of drainage districts. As the need became more evident more Acts providing for Sanitary Districts, Surface Water Protection Districts, River Conservancy Districts, Soil Conservation Districts and Public Water Districts were passed by the Illinois legislature. The Act closest in area of jurisdiction to the Authorities Act Is the Public Water Districts Act of July 25, 1945 which provides areas having a population of not more than 500,000 inhabitants with powers to construct or acquire "Water works properties," and by amendment of July 16, 1951, "sewerage properties."

The Water Authorities Act states that any area of contiguous territory may be incorporated as a water authority in the following manner: Not less than five hundred legal voters of the proposed authority shall petition the county court of the county In which the proposed authority, or the major portion thereof, is located defining the boundaries of the proposed authority, stating its name and requesting that the question of whether the proposed territory shall be organized as a water authority be submitted to the legal voters of the proposed authority.

The court shall enter an order fixing and determining the boundaries of such proposed authority and submitting to the legal voters thereof at an election to be held not less than sixty days thereafter the question of whether said proposed authority be organized and established as a water authority pursuant to the provisions of this act. If a majority of the votes cast upon said question shall be in favor of the same, said order shall declare said territory a duly organized water authority and a body corporate and politic. Every 'water authority so established shall be governed by a board of three trustees; provided, that such number shall be increased by one for each county, or part thereof, in excess of three included within the boundaries of the authority.

At first glance it might appear that the Water Authorities Act duplicates the provisions found in the Water Districts Act. Legally, both Acts cover the same type of facility. Some bonding companies prefer one Act over the other. However, to the engineer, there may be considerable difference between the two Acts. The Water Authorities Act has incorporated in it several detailed sections requiring the trustees:

1. To make inspections of wells or other withdrawal facilities and to require information and data from the owners or operators thereof concerning the supply, withdrawal and use of water.

2. To require the registration with them of all wells or other withdrawal facilities in accordance with such form or forms as they deem advisable.

3. To require permits from them for all additional wells or withdrawal facilities or for the deepening, extending or enlarging existing wells or withdrawal facilities.

4. To require the plugging of abandoned wells or the repair of any well or withdrawal facility to prevent loss of water or contamination of supply.

5. To reasonably regulate the use of water and during any period of actual or threatened shortage to establish limits upon or priorities as to the use of water. In issuing any such regulation, limitation or priority, such board shall seek to promote the common welfare by considering the public interest, the average amount of present withdrawals, relative benefits or importance of use, economy or efficiency of use and any other reasonable differentiation. Appropriate consideration shall also be given to any user, who has theretofore reduced the volume of ground water previously consumed by such user or who has taken care of increased requirements by installing and using equipment and facilities permitting the use of surface water by such user.

ABOUT THE AUTHOR

W. J. Roberts

Wyndham J. Roberts, or Jack as he is known to his friends, is an associate engineer with the Illinois State Water Survey. He came to the Survey in August, 1943, after a three-year hitch in the Army Air Corps. Jack graduated from Brown University in 1933 and while earning a master's degree in geology was an instructor in the geology department at Brown. Those in the viewing area of TV station WCIA know Jack as the friendly weather man, "Mr. Roberts." In the Society, Jack is past president of Champaign County Chapter, is an Associate Editor of the "Illinois Engineer," and has been loyal and helpful to the Illinois Society in numerous ways. Needless to say, he writes on water problems as an expert, as that is his profession. This paper was presented on March 21, 1956 at the Illinois Section Meeting of the American Water Works Association in Chicago.

6. To supplement the existing water supply or provide additional water supply by such means as may be practicable or feasible. They may acquire property or property rights either within or without the boundaries of the authority by purchase, lease, condemnation proceedings or otherwise, and they may construct, maintain and operate wells, reservoirs, pumping stations, purification plants, infiltration pits, recharging wells and such other facilities as may be necessary to insure an adequate supply of water for the present and future needs of the authority. They shall have the right to sell water to municipalities or public utilities operating water distribution systems either within or without the authority.

7. To levy and collect a general tax on all of the taxable property within the corporate limits of the authority, the aggregate amount of


* (Text of remarks presented at the 44th Annual Conference of the Illinois Municipal League, Springfield, Illinois, November 11, 1957).

Illinois Municipal Review 184 August, 1958


which for one year, exclusive of the amount levied for bonded indebtedness or interest thereon, shall not exceed .08 per cent of the full fair cash value as equalized or assessed by the Department of Revenue. For the purpose of acquiring necessary property or facilities, to issue general obligation bonds bearing interest at the rate of not to exceed 5 per cent per annum and payable over a period of not to exceed twenty years, the aggregate principal amount of which at any one time outstanding shall not exceed one-half of 1 per cent of the full fair cash value as equalized or assessed by the Department of Revenue of all taxable property located within the corporate limits of the authority and to levy and collect a further or additional direct annual tax upon all the taxable property within the corporate limits of such authority sufficient to meet the principal and interest of such bonds as the same mature. They shall also have authority to issue revenue bonds payable solely out of anticipated revenues.

8. To consult with and receive available information concerning their duties and responsibilities from the State Water Survey, the State Geological Survey, the Board of Natural Resources and Conservation, the Water Resources and Flood Control Board and any other board or commission of the state. Before constructing any facility for providing additional water supply, the plans therefore shall be submitted to and approved by the Sanitary Water Board or its successor and all operations of such facilities shall be conducted in accordance with such rules and regulations as may from time to time be prescribed by such Sanitary Water Board.

9. To have the right by appropriate action in the circuit court of any county in which such authority, or any part thereof, is located to restrain any violation or threatened violation of any of their orders, rules, regulations or ordinances.

10. To provide by ordinance that the violation of any provision of any rule, regulation or ordinance adopted by them shall constitute a misdemeanor subject to a fine in any court of competent jurisdiction of not to exceed $50.00 for each act of violation and that each day's violation shall constitute a separate offense.

Both Water Districts and Water Authorities may issue and sell revenue bonds to carry out the purpose for which they were created. Water Authorities have an additional source of revenue, already mentioned, in that the trustees have the power to levee and collect a general tax.

Effingham is the only instance to date of an area using the Water Authority Act to rehabilitate its water resource situation. It is therefore worth-while to trace local developments that led to the formation of the Effingham Water Authority.

In 1952, when the central and southern part of Illinois began experiencing a great water shortage due to drought conditions, the local privately-owned water company was forced to announce that the amount of water in the small side channel reservoir was so low that its use would have to be sharply curtailed. The Little Wabash River, from which water is pumped into the side channel reservoir, was practically dry.

Eugene Wenthe, the Mayor of Effingham in 1952, conferred with the Effingham Water Company on ways to get more water into town. The Waterworks Company was in no position to do anything to alleviate the situation. Fortunately, the Mayor was able to arrange with the Ohio Oil Company for use of an old oil pipe line between Effingham and the Embarrass River located 20 miles east of town. Although this was only an 8-inch pipe, it was enough to get the City of Effingham through the crisis. This source of water was used during 1952 and 1953.

Starting in September 1952, the people of Effingham were loud in their criticism of the local water situation. The Chamber of Commerce raised a sum of $3000 through various business, civic, and fraternal organizations to finance an extensive engineering survey of potential reservoirs for storage of large quantities of water. However, when this idea was brought before the people, it was immediately opposed on the basis that such a large construction project could not be undertaken by a town with a population of less than 8,000 people.

When it was determined that the General Water Works Corporation, parent company of the Effingham Water Company, was not planning to develop an additional water source, a committee to negotiate for the purchase of the water utility was appointed by the City Council. The population voted 4 to 1 in a referendum for the city to take over control of the water company. The final transactions for purchase of the company, involving the transfer of $1,100,000 in cash and bonds, was completed July 15, 1954. The city purchased the plant for $580,000. The remaining $520,000 was later used for water plant and distribution system improvement.

The Chamber of Commerce program had several positive results., Early in 1953, Warren & Van Praag, Decatur Consulting Engineers, were employed to make a survey and they reported on nine potential lake sites ranging in cost from $520,000 to $4,700,000. Next, there was formed the Effingham County Lake Council with Joseph McNaughton, local newspaper publisher, as chairman. This Council circulated petitions throughout the county tor organization of a River Conservancy District. However, rural areas provided considerable opposition to the issuance of general obligation bonds by which lake would be financed and the petition was never filed.

After the city bought the water plant, a fact-finding committee known as the Little Wabash Water Council was organized. This committee met with various state and federal agencies and made a comprehensive study of the water shortage which was in evidence in Effingham and surrounding towns. The efforts of this Council produced petitions, circulated throughout the county, asking for the organization of a Public Water District. Financing of any construction by the District would be by sale of water revenue bonds. This petition also made an unfavorable impression and it was withdrawn. Shortly afterwards the Little Wabash Water Council was dissolved. On December 15, 1954, the City Council by a resolution created a City Planning Commission. This Commission was directed, among other things, to devise a program of acquiring an adequate and permanent source of water supply for the city.

In the arrangement by which the city took over the water company, the bonding company had ruled that the city could not take on further water facility obligations until the earning power of the water company was 1 1/3 times that of the interest and payments due the bonding company. Thus, any plan that the city adopted would need to abide by this ruling of the bonding company. The Planning Commission had several conferences with utility officials and with various bonding companies. The commission found that the water emergency was county wide and that an area larger than the city of Effingham was involved. The commission agreed that the lake idea was best, and that an Effingham Water Authority be formed to carry out the project. It was decided that the lake be located on Blue Point Creek in Summit Township. Cost of the lake should be held within $1,200,000 and it should be financed through the sale of water revenue bonds to be amortized over a 40-year period.

A special election was held on June 21, 1955 on the proposal to create the Effingham Water Authority. The referendum carried by a 4-1 margin and on July 7, 1955 County Judge Lawrence Brumleve named three trustees for the Water Authority.

The trustees were appointed to act as the governing body of the Authority and were empowered to proceed with details in the construction of a

Illinois Municipal Review 186 August, 1958


lake. The three trustees—J. William Everhart, Clarence Dust and D. A. Niccum — successfully negotiated an agreement with financial institutions for underwriting the bond issue; they hired the firm of Warren & Van Praag to handle the engineering work; and they engaged competent attorneys to assist them in all legal matters, including appraisal and land acquisition.

On February 7, 1956 an ordinance was approved by the city, whereby the city would purchase water from the Water Authority and would increase its water rates.

This agreement called for the city to pay the Authority $1,200,000 over a period of 40 years for water which would be purchased. A separate referendum for legalizing the contract between the city and the Effingham Water Authority for purchase of additional water was passed on April 24, 1956. Study had revealed that the income of the water department was too low and that the water rates should be increased to provide revenue to liquidate the bond issue. Raising the water rates 62 1/2 per cent meant that the minimum monthly rate for a 5/8-inch meter, formerly $1.60, became $2.60 under the new law.

It is interesting to note that although the regulations written into the Water Authorities Act apply principally to ground-water situations, the Effingham Authority is concerned almost entirely with surface water. The Authority encompasses 4800 acres of land in 7 1/2 sections in the Effingham and surrounding area. The new Blue Point Lake of the Effingham Water Authority has its dam located across the creek about 3 1/4 miles west of Effingham and about 1 1/2 miles northwest of the outlet of the creek into the Little Wabash River. The city plans to impound 4 1/2 billion gallons of water in the reservoir and to release water as necessary, permitting it to flow down into the Little Wabash River and be picked up at the pumping plant.

The Water Authority has title to the land submerged and to sufficient shoreline to protect the lake against pollution, erosion, and flood damages. In some instances, the trustees purchased acreage from land owners and leased a portion of the land back to them. There are approximately a dozen homes located along the lake shore, and no home owner was asked to give up his home. The trustees permitted each land owner to retain his home and such land as he believed necessary to meet his living requirements. Land owners who are not at present living on their properties are being permitted to retain some of their shore rights, if they so desire.

The area from the dam on Blue Point creek to the channel dam on the Little Wabash River is not under the control of the Water Authority. Also the Act exempts agricultural usage from control of the Authority. It would be possible for farmers to intercept the water released from Blue Point Creek and use it tor agricultural purposes.

The law is broad with respect to ground-water withdrawal, requiring reasonable regulation of the use of water during any period of actual or threatened shortage. This would be accomplished by establishing limits on all priorities as to the use of water. However, would this control apply to a well owner who had been removing water under the common law, before the Water Authority was set up? Such matters are for the courts to decide.

The local governing body has always been considered by the state legislature as valuable for solving local water supply and distribution problems. The Water Authority Act permits the establishment of a local organization with trustees empowered to reasonably regulate the use of water in an area tor the common welfare. In this respect the Water Authority Act is a significant addition to Illinois water resources legislation.

Illinois Municipal Review 186 August, 1958


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