The City of Columbia has filed a response to an April 11 complaint for declaratory judgment entered by the City of Waterloo in regards to water service rights between the two municipalities, with Columbia also adding a “counterclaim for declaratory judgment.”

As previously reported, Waterloo claimed in its April filing that Columbia has no authority to provide water service to a series of parcels located at the northwest corner of the intersection of Route 3 and Hanover Road known as the Hanover Tracts.

The Fountain Water District is also named as a defendant in the original suit, as Columbia’s actions are based on a 1999 water services agreement with the district.

The legal action by Waterloo in Monroe County Circuit Court followed a Jan. 21 action by the Columbia City Council to approve a municipal services agreement with the owners of Hillcrest Property LLC adjacent to the Hanover Tracts which would allow Columbia to provide water service to a building on the parcel.

The Hillcrest Property parcel is the home of the recently-completed event center for Old Monroe Distillery Co. – formerly known as Stumpy’s Spirits Distillery – at 8787 Rickhouse Road.

The services agreement also includes plans for future construction of a water tower on the Hillcrest parcel to bolster Columbia’s ability to provide water service to other properties in that area.

In its response to the original claim, Columbia argues Waterloo “has not and cannot establish (that) it does not have an adequate remedy at law under these circumstances” and that Waterloo “has failed to state a claim upon which relief may be granted.” 

Columbia also gives further “affirmative defense” in its filing by pointing out Waterloo did not object to a June 6, 2022, notice to Fountain Water District in which Columbia stated intent to exercise its agreement option “to purchase facilities contracted and installed by Fountain in the Columbia service area.”

Columbia’s legal response also states Waterloo did not “raise any objections or claims of service authority” during the 2.5 years following the option notice. 

The response also claims Waterloo does not have water service facilities in the area, nor does it have “current access to a water supply” to meet the needs of the developer of the property in question.

Columbia claims to have the “immediate capability to provide water service” through its “established relationship with Illinois American Water Company.”

Illinois American had been Waterloo’s supplier until the city completed its new water treatment facility near Valmeyer at the end of 2024.

In its counterclaim, Columbia alleges its own agreement with Fountain supersedes a July 25, 2011, agreement between Waterloo and Fountain in which Waterloo stated intent “to provide water service within one mile of its corporate limits to any and all customers within the Hanover Tracts and the adjacent Hillcrest Tract.”

In the April filing, Waterloo cites Illinois state statute which prohibits municipalities from providing  water service to properties more than one mile from the municipality’s corporate boundaries.

While Columbia admits the Hanover Tracts are more than one mile away from its city limits, it also points out such water service is allowed with Fountain’s permission.

Quoting its June 2022 notice to Fountain, Columbia asserts it is “entitled to purchase the minimum (required facilities) outside the one-mile zone that is necessary for system operations” if it purchases a “plant and facilities from Fountain located within the one-mile zone from the corporate boundaries of the City of Columbia and the two cannot be effectively separated from an operations standpoint.”

In its filing, Waterloo acknowledged the June 2022 notification, but claimed Fountain never “granted consent to Columbia to furnish water” to the Hanover Tracts area.

Waterloo also claims the Hanover Tracts area is not included in the 1999 Fountain-Columbia service area agreement.

Columbia’s counterclaim asks for judgement denying Waterloo’s “right or claim” to purchase the Fountain facilities or to provide water service to the Hanover Tracts area.

Columbia’s filing also demands a jury trial. 

The matter is currently set for clerk review on April 11, 2026, at the Monroe County Courthouse.