(70 ILCS 3710/12)
Dissolution of district.
(a) A water service district organized under this Act may be dissolved as
provided in this Section.
(b) A petition for dissolution of the district signed by two-thirds of the
members of the district's board of trustees may be filed in the circuit court
of the county in which the district, or the majority of the territory of the
district, is located. In the alternative, if the district does not have
outstanding and unpaid any bonds issued under this Act, the petition may be
signed and filed by 50 electors of the district. The petition for dissolution
shall set forth the reasons why the district should be dissolved and why the
dissolution will not adversely affect the interest of the public and any
bondholders of the district.
(c) The circuit court shall set a date for the hearing on the petition
for dissolution. The clerk of the circuit court shall give notice of the time
and place of the hearing by publication, in one or more daily or weekly
newspapers having a general circulation within the district, at least 20 days
before the date set for the hearing.
At the hearing, all persons desiring to be heard must be given an
opportunity to testify for or against the petition for dissolution. During
the hearing, the petitioners or the petitioners' authorized representative
shall also testify and introduce evidence concerning ways in which dissolution
of the district can be accomplished without adversely affecting the interest of
the public and any bondholders of the district.
(d) If at the close of the hearing the circuit court determines
that the district can be dissolved without adversely affecting the
public interest or the interest of any district bondholder, the court
shall certify the question of the dissolution of the district
to the proper election officials, who shall submit the question to a
referendum of the electors of the district in the manner
provided by the Election Code. The clerk of the circuit court
shall give notice of the election, and the election shall be conducted
in the manner provided by the Election Code.
The question shall be in substantially the following form:
Shall (name of water service district) be dissolved?
The votes shall be recorded as "Yes" or "No".
(e) If a majority of the votes cast on the question are in favor of
dissolution, the board of trustees shall immediately take the necessary
steps to close up the district's affairs. If the term of office of any member
of the board of trustees expires after the referendum, no new trustee shall
be appointed. In closing up the affairs of the district, the trustees shall
sell all assets and equipment of the district and pay all debts and
obligations of the district. If bondholders are involved, the trustees
shall pay off the principal of and all accrued interest on all outstanding
bonds. Any surplus money left over after all debts and obligations of the
district have been paid in full shall be applied toward the cost of connecting
the tracts of land receiving water service at the time of the dissolution of
the district to the waterworks, sewerage, or combined waterworks and sewerage
system or properties of a public water district or municipality. Any surplus
money left over after payment of all costs of those connections shall be paid
in equal portions to all of the title holders of the tracts of land receiving
water service at the time of the dissolution of the district.
(f) After the board of trustees of a dissolving water service district
have (i) paid all debts and obligations of the district, (ii) closed up all
of the business of the district, and (iii) paid out or refunded all surplus
money as provided in subsection (e), the trustees shall file a statement under
oath with the circuit court showing all closing transactions. If the circuit
court approves the statement, it shall issue an order dissolving the district.
Upon issuance of the order, the duty of the board of trustees to close up the
district business is terminated, and all trustees and officers of the district,
whether or not the terms for which they were elected or appointed have expired,
shall cease to have any power or authority.
(g) If a majority of the votes cast on the question under subsection (d) are
against dissolution, the same question may not be presented to the electors of
the district for a period of 2 years from the date of the referendum.
(Source: P.A. 88-572, eff. 8-11-94.)