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Darien to use TIF money to float sewer shortage

DARIEN — They agreed it was a short-term fix for a big problem.

But village board members Monday avoided raising sewer rates and agreed on a different cash source to address a projected shortage in sewer revenues in 2009.

The board agreed to shift about $200,000 from a tax incremental financing fund into the sewer fund.

"It's a short-term fix, but a good short-term fix," said financial consultant David Wagner, director of Ehlers & Associates.

It's good because the TIF fund already owes money to the sewer fund, he said. Some TIF money was promised when the village first went online with the Walworth County Metropolitan Sewerage District, Wager said. But it took time for the TIF district to generate the cash flow to be able to pay out, he said.

The TIF fund has more than $400,000 in ongoing available cash, he said.

The fix is only short term, because there's a limit to what the TIF fund owes the sewer fund, Wagner said.

He urged village board members to search for other solutions before approving the 2010 budget.

In December, village auditor Pat Romenesko told the village board it would have to increase sewer revenues by $100,000 in 2009 or risk "going broke."

The problem, officials have said, is that an aging sewer system is letting groundwater seep into pipes. That means the village sewer utility is paying to treat rainwater and groundwater along with wastewater.

Officials are using global positioning system equipment and video cameras to find the problem spots in the sewer system.

Last month, a motion to increase sewer fees to cover the projected shortage failed on a tie vote.