(70 ILCS 2805/37)
(from Ch. 42, par. 447.1)
Whenever any territory contained within a sanitary district created
under this Act is annexed to any municipality, the sanitary district
shall remain responsible for providing sewers and collecting and
disposing of sewage in such territory annexed to the municipality and,
if the sanitary district is operating a water supply system in such
territory at the time of such annexation, the sanitary district shall
remain responsible for supplying water in such territory. The
municipality to which any territory contained within a sanitary district
is annexed shall not, because of such annexation, become responsible for
any obligations, or part thereof, of any sanitary district in which such
territory is also contained. The fact that territory in a sanitary
district is annexed to a municipality shall not affect any obligations,
contracts or duties existing between the sanitary district and the
municipality at the time of such annexation.
Where, however, the territory within any sanitary district created
under this Act becomes wholly included in one or more municipalities and
no part of that territory is in an unincorporated area, any 50 electors
residing within the sanitary district may file, within 6 months after being
wholly included in one or more municipalities, with the circuit clerk
of the county where the district is located, a petition
to submit a public question to referendum on whether the sanitary district
shall be dissolved. Upon filing the petition with the clerk, the circuit court
shall certify the question to the proper election officials who shall submit
the question at an election in accordance with the general election law.
Notice of the referendum shall be given, and the referendum shall be
in the manner provided by the general election law.
The question shall be in substantially the following form:
"Shall (name of sanitary district) be dissolved?"
The votes shall be recorded as "Yes" or "No".
If a majority of the votes cast on this question are not in favor of
dissolution of the sanitary district, the sanitary district shall continue in
If a majority of the votes cast on this question are in favor of dissolution,
then the district is dissolved.
If no petition for referendum is filed with the circuit clerk within
that 6-month period, then that sanitary district is dissolved by operation
of law at the end of that 6-month period. In that event, each of the
municipalities within which the territory of that district is located
(a) shall be responsible for providing sewers for collecting and
disposing of sewage and, if a water supply system was operated by the
sanitary district, for supplying water in the part of the district's
territory situated within the municipal corporate limits; and (b) shall
be liable for that part of any revenue bonded indebtedness of the
district outstanding at the time of its dissolution that is in the same
proportion of the total outstanding revenue bonded indebtedness as the
territory of the district included in that municipality is of the total
territory in the district. The general obligation indebtedness of the
dissolved district shall be paid from the proceeds of continuing taxes
and special assessments as provided in Section 35. The corporate
authorities of the municipalities affected shall agree as to the
distribution of any personal property of the sanitary district.
The corporate authorities of any municipality required to provide
sewer or water service under this Section may levy and collect for that
purpose a tax upon the taxable property within that municipality, the
aggregate amount of which for each year may not exceed .25% of the value
of such property as equalized or assessed by the Department of Revenue
and that tax shall be in addition to taxes authorized
to be levied for the general corporate purposes of the municipality.
If any tax has been levied for sewer and water purposes after October
14, 1969 and before the effective date of this amendatory Act by a
municipality which would have power to levy such a tax under this
amendatory Act, that tax is expressly validated.
(Source: P.A. 89-558, eff. 7-26-96.)