(65 ILCS 5/11-136-4) (from Ch. 24, par. 11-136-4)
Sec. 11-136-4.
For the purpose of acquiring such a waterworks system or
sources of supply of water or sewer systems, or any combination thereof or
for making improvements and extensions to such a waterworks system or
sources of supply of water or sewer systems, or any combination thereof,
such a commission is authorized to issue revenue bonds payable solely from
the revenue to be derived pursuant to any contracts with the specified
municipalities or with any person, firm or corporation or by virtue of the
operation of any properties acquired or to be acquired. These bonds shall
not constitute an indebtedness of any of the municipalities represented by
the commission. The bonds shall bear interest at a rate not exceeding
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, payable semiannually, and
shall mature within the period of usefulness of the property to be
acquired or constructed from the proceeds thereof. This period shall be
conclusively determined by the commission at or before the time of the
issuance of the bonds, and in no event shall any of the bonds be issued
with a maturity more than 50 years from the date thereof. The bonds
shall be sold in such manner as the commission shall determine, except
that if issued to bear interest at
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, the bonds
shall be sold for not less than par and accrued interest, and except
that the selling price of any bond bearing interest at less than
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, shall be such that the interest cost
of the money received from that bond shall not exceed
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, computed to maturity, according
to standard tables of bond values.
Before the treasurer of the commission is entitled to receive the
proceeds of the sale of such a bond issue, he shall supply a corporate
surety bond in an amount equivalent to the amount of funds to be derived
from the sale of the bonds, and, in addition thereto, he shall supply a
separate corporate surety bond for the faithful accounting of any funds
that may come into his possession in an amount equal to the amount of
funds likely to come into his hands in any one year from the revenue to
be derived from the operation of any of the properties of the
commission. The cost of these surety bonds shall be paid by the
commission.
The revenue bonds shall be issued pursuant to an ordinance or
resolution and shall be in such form and be executed in such manner as
may be prescribed by the ordinance or resolution. It shall not be
necessary that the ordinance or resolution refer to plans and
specifications nor that there be on file for public inspection prior to
the adoption of such ordinance detailed plans and specifications of the
project. This ordinance or resolution may contain such covenants and
restrictions in relation to the operation of the properties under the
control of the commission and the issuance of additional revenue bonds
thereafter as may be deemed necessary or advisable for the assurance of
payment of the bonds thereby authorized and as may be thereafter issued.
It shall be plainly stated on the face of each bond that it does not
constitute an indebtedness of any municipality represented by the
commission within the meaning of any statutory or constitutional
limitation. Upon the issuance of revenue bonds, the revenue of the
commission derived pursuant to contracts entered into for the sale of
water to the specified municipalities and from the operation of its
properties, shall be accounted for as provided in the ordinance or
resolution authorizing the issuance of the bonds. Any commission created
under the provisions of this Division 136 may also issue new bonds for
the purpose of providing funds for the payment of unpaid bonds in
accordance with the procedure prescribed by this Division 136.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Act that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the supplementary
authority granted by the Omnibus Bond Acts, and (iii) that instruments
issued under this Section within the supplementary authority granted
by the Omnibus Bond Acts are not invalid because of any provision of
this Act that may appear to be or to have been more restrictive than
those Acts.
The amendatory Acts of 1971, 1972 and 1973 are not a limit upon any
municipality which is a home rule unit.
(Source: P.A. 86-4.)
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(65 ILCS 5/11-136-5) (from Ch. 24, par. 11-136-5)
Sec. 11-136-5.
Whenever bonds are issued under this Division 136 the
revenue received from the operation of the properties under the control
of the commission shall be set aside as collected and deposited in a
separate fund to be used only (1) in paying the cost of the operation
and maintenance of those properties, (2) in providing an adequate
depreciation fund, and (3) in paying the principal of and interest upon
the revenue bonds issued by the commission, as provided by this Division
136.
In case the commission has charge of the operation of a complete
waterworks system or sewer system including the distribution mains, the
commission shall establish rates and charges for water or sewer service
or both which shall be sufficient at all times to pay the cost of
operation and maintenance, to provide an adequate depreciation fund, and
to pay the principal of and interest upon all revenue bonds issued as
provided by this Division 136. The rates for water and sewer service
need not be the same nor do rates for the same type of service have to
be identical in the several municipalities constituting the commission
but shall be equitably based upon the net plant account and the expenses
of operation in each municipality. Charges and rates shall be
established, revised, and maintained by ordinance and become payable as
the commission may determine by ordinance.
In case the commission has charge of the operation of sources of
supply of water, the municipalities specified in Section 11-136-1
represented by the commission shall contract with the commission for
water. These municipalities shall establish such charges and rates for
water supplied by them to consumers as will be sufficient at all times
(1) to pay the cost of operation and maintenance of the respective
waterworks systems of the municipalities, (2) to provide an adequate
depreciation fund therefor, and (3) to pay the charges and rates
established by the commission for the sale of water by the commission to
those municipalities, and the commission shall establish such charges
and rates for water supplied to those municipalities as will be
sufficient at all times (1) to pay the cost of operation and maintenance
of the common source of supply of water, (2) to provide an adequate
depreciation fund therefor, and (3) to pay the principal of and interest
on the revenue bonds issued by the commission, under the provisions of
this Division 136. Contracts entered into between the commission and
the specified municipalities shall include covenants for the
establishment of rates and charges as provided in this section.
Municipality contributions to the Illinois Municipal Retirement Fund,
by commissions created under this Division 136 which have been included
under that Fund, shall be considered a cost of operation and maintenance
for the purposes of this Section.
Any holder of a bond or of any of its coupons, issued under this
Division 136, in any civil action, mandamus, or other proceedings, may
enforce and compel performance of all duties required by this Division
136 to be performed by such a commission or by any of the
municipalities, including the making of rates and charges, the
collecting of sufficient revenue, and the application thereof, as
provided in this Division 136.
All contracts for the construction of a waterworks system or sources
of supply of water, or sewer systems, or any combination thereof, to be
let by such a commission, shall be entered into only after advertising
for bids, pursuant to a resolution to be adopted for that purpose by the
commission. A notice inviting bids shall be published in a newspaper
published and having a general circulation in the county or counties in
which the municipalities represented by the commission are located, not
more than 30 nor less than 15 days in advance of the receipt of the
bids. The notice shall be published at least twice. In the resolution
directing the advertising for bids the commission also shall establish
all requirements necessary for the bidding, for the awarding of
contracts, and for the approval of contractors' faithful performance
bonds.
(Source: P.A. 80-425.)
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(65 ILCS 5/11-136-6) (from Ch. 24, par. 11-136-6)
Sec. 11-136-6. Whenever such commission shall pass an ordinance for the
construction or acquisition of any waterworks properties or sewer
properties or improvements or extensions or mains, pumping stations,
reservoirs or other appurtenances thereto, which such commission is
authorized to make, the making of which will require that private property
be taken or damaged, such commission may cause compensation therefor to be
ascertained and may condemn and acquire possession thereof in the same
manner as nearly as may be, as provided for the
exercise of the right of eminent domain under the Eminent Domain Act. However, proceedings to ascertain the
compensation to be paid for taking or damaging private property shall in
all cases be instituted in the county where the property sought to be taken
or damaged is situated.
(Source: P.A. 94-1055, eff. 1-1-07.)
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(65 ILCS 5/11-136-7) (from Ch. 24, par. 11-136-7)
Sec. 11-136-7.
Such commission may construct, maintain, alter and extend
its water mains or sewer facilities as a proper use of highways along,
upon, under and across any highway, street, alley or public ground in the
State, including highways within a municipality, but so as not to
inconvenience the public use thereof. Such commission may construct,
maintain and operate any conduit or conduits, water pipe or pipes, wholly
or partially buried or otherwise in, upon and along any of the lands owned
by the State of Illinois and under any of the public waters therein.
However, the right, permission and authority hereby created shall be
subject to all public rights of commerce and navigation and the authority
of the United States in behalf of such public rights and also the laws of
the State of Illinois to regulate and control the same. Notice shall be
given to the highway authorities of any municipality, county, township,
road district or township district in which such highway, street or public
way may be situated at least 60 days before any construction or
installation work in such highway or street shall commence. All laws and
ordinances pertaining to such work for the protection of the public and of
public property shall be complied with except that no fee may be charged
such commission for the construction or installation of such facilities in
such public places.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/11-136-8) (from Ch. 24, par. 11-136-8)
Sec. 11-136-8.
Such commission shall have the right to supply water or
sewer facilities to any municipality, political subdivision, private person
or corporation, in addition to the municipalities which have formed the
commission, upon such payment, terms and conditions as may be mutually
agreed upon, provided the water is delivered to such party or parties at
the corporate limits of the municipalities which have created such
commission or from such water works properties of the commission located
outside such municipalities that have been constructed or acquired as
necessary and incidental to the furnishing of water to the municipalities
which formed the commission.
Such commission shall have the power to contract with any person,
corporation or political subdivision or any municipal corporation or other
agency for a sewer system or for a supply of water, or to supply water to
such person, corporation, municipal corporation or political subdivision.
Any such contract entered into to supply water or sewer service to a
municipal corporation or political subdivision shall provide that the
payments to be made thereunder shall be solely from the revenues to be
derived by such municipality or political subdivision from the operation of
the waterworks system or sewer system of such municipality or political
subdivision, and said contract shall be a continuing, valid and binding
obligation of the municipality or political subdivision, payable from such
revenues for such period of years, not to exceed 40, as may be provided in
such contract. Any such contract shall not be a debt within the meaning of
any statutory or constitutional limitations.
No prior appropriation shall be required before entering into such
contract, and no appropriation shall be required to authorize payments to
be made under the terms of any such contract, notwithstanding any provision
of this Code to the contrary.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/11-136-9) (from Ch. 24, par. 11-136-9)
Sec. 11-136-9.
All powers and duties of the commission heretofore set forth
in this Division 136 may be exercised within the municipalities
constituting the commission and in contiguous territory not more than 3
miles beyond the corporate limits of such municipalities and in the
territory necessary to interconnect any of the municipalities constituting
the commission. The commission shall keep proper accounting records which
records shall be kept so as to show the book value, reserve for
depreciation, revenue and expenses broken down as to type of utility and by
all municipalities making up the commission.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/Art. 11 Div. 137 heading) DIVISION 137.
CONTRACT FOR, PURCHASE OR LEASE
OF WATER AND SEWERAGE SYSTEMS
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(65 ILCS 5/11-137-1) (from Ch. 24, par. 11-137-1)
Sec. 11-137-1.
To enable municipalities to promote and procure the
construction and installation of waterworks and sewerage systems when it
becomes necessary for public health and welfare or for better sanitary
conditions of a municipality, each municipality may contract with any
person for a supply of water for public use, and for sewerage for drainage
and sanitary purposes of the municipality, for a period not exceeding 30
years. Any contract that is entered into by a municipality and pledged to
secure the bonds issued to construct any waterworks or sewerage system
shall enure at all times and under all conditions to the benefit of the
holders of any of the bonds so issued and for the payment of those bonds.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/11-137-2) (from Ch. 24, par. 11-137-2)
Sec. 11-137-2.
In all municipalities where any person has constructed
a waterworks or sewerage system, or both, the municipality may purchase
or lease that waterworks or sewerage system, or both, from the owners
thereof, subject to the provisions of this Division 137.
Before such a lease or purchase is binding upon the municipality, the
corporate authorities shall pass an ordinance authorizing the
municipality to lease or purchase that waterworks or sewerage system, or
both, and shall include in the ordinance the terms, as near as
practicable, upon which the lease or purchase shall be made. The
ordinance shall be published at least once, within 10 days after
passage, in one or more newspapers published in the municipality, or, if
no newspaper is published therein, then in one or more newspapers with a
general circulation within the municipality. In municipalities with less
than 500 population in which no newspaper is published, publication may
instead be made by posting a notice in 3 prominent places within the
municipality.
The publication or posting of the ordinance shall be accompanied by a
notice of (1) the specific number of voters required to sign a petition
requesting the question of authorizing the lease or purchase of a waterworks
or sewerage system to be submitted to the electors; (2) the time in which
such petition must be filed; and (3) the date of the prospective referendum.
The municipal clerk shall provide a petition form to any individual requesting one.
If no petition is presented to the corporate authorities as
hereinafter provided, within 30 days after the ordinance is so published
and posted, the corporate authorities may consummate the lease or
purchase of that waterworks or sewerage system, or both, as provided in
the ordinance. If within 30 days after the first publication of the
ordinance a petition is filed with the municipal clerk signed by electors
of the municipality numbering 10% or more of the number of registered
voters in the municipality, asking that the question of leasing or
purchasing that waterworks or sewerage system, or both, as provided in the
ordinance, be submitted to a vote, the clerk shall certify the proposition
and the corporate authorities shall designate an election at which the
question shall be submitted. If a majority of the votes cast on the
question are in favor thereof, the corporate authorities may complete the
lease or purchase, but if a majority of the votes cast on the question are
unfavorable, no further action shall be taken by the municipality for a
period of not less than 6 months. Thereafter, the same or another question
may be submitted as before.
(Source: P.A. 87-767.)
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(65 ILCS 5/11-137-3) (from Ch. 24, par. 11-137-3)
Sec. 11-137-3.
If any municipality is authorized to purchase a waterworks
or sewerage system, or both, as provided in Section 11-137-2, and if the
system is pledged to secure the payment of bonds, or other written
evidences of indebtedness, by a mortgage or trust deed, the corporate
authorities of the municipality may direct the municipal clerk or
treasurer, by a motion or resolution, to enter the bonds, or the other
written evidences of indebtedness on the records of the municipality as an
indebtedness against the waterworks or sewerage system only. The corporate
authorities shall have all the revenue derived from the operation of the
system, and all rents due and payable to the former owners for use of the
water and sewerage facilities, and pledged for the payment of the
indebtedness, set apart in a separate fund for the payment of the
indebtedness as it becomes due and payable, provided the system can be
operated and maintained from the current funds of the municipality
appropriated therefor.
Nothing contained in this Division 137 affects any lien or renders void
any bond, mortgage, or trust deed securing any indebtedness upon the
system, or any franchise under which the system is operated, or any
contract executed by any person as owner for the construction and
installation of the waterworks or sewerage system, or both, prior to the
transfer of the system to the municipality as provided in this Division
137. If the municipality neglects or fails to pay the indebtedness as it
falls due and if any mortgage or trust deed is foreclosed at the instance
of bona fide holders of unpaid bonds or other written evidences of
indebtedness, the mortgagee or trustee for those bona fide holders shall be
re-invested with all former rights which existed in their behalf by virtue
of the franchise and contract which were granted by the municipality, and
which were pledged.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/11-137-4) (from Ch. 24, par. 11-137-4)
Sec. 11-137-4.
Such municipalities may borrow money and levy and collect a
general tax, in the same manner as other municipal taxes may be levied and
collected, to procure funds to lease or purchase and maintain such a
waterworks or sewerage system, or both, and to pay any existing
indebtedness thereon. They may issue their bonds to procure funds to
purchase such a system or systems and to pay off the existing bonds or
indebtedness thereon, at the time of the purchase or at any time thereafter
that the financial condition of the municipality will permit.
Any bonds issued under this Section as limited bonds as defined in Section 3
of
the Local Government Debt Reform Act shall comply with the requirements of the
Bond Issue Notification Act.
If an appropriation has been made therefor, such a municipality may
constitute and make any bond which falls due during the current year, and
which is secured by a mortgage or trust deed on such a system or systems,
and which was issued by any person to procure funds to construct the system
or systems, a bond of the municipality for that year and levy and collect a
tax to pay the appropriation. However, this action shall not increase the
bonded indebtedness of the municipality in excess of the constitutional
limitation for the year for which this tax is to be levied and collected.
(Source: P.A. 89-655, eff. 1-1-97.)
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(65 ILCS 5/11-137-5) (from Ch. 24, par. 11-137-5)
Sec. 11-137-5.
A municipality may contract with any person for a supply of
water for public use for a period not exceeding 30 years.
A municipality so contracting may pay for the water so supplied by
general taxation, or out of the rents paid by consumers for the water
supplied to them, or out of any fund otherwise available for that purpose,
or by any combination of any of these means.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/Art. 11 Div. 138 heading) DIVISION 138.
LOCATING SOURCE OF WATER SUPPLY
OUTSIDE OF MUNICIPALITIES
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(65 ILCS 5/11-138-1) (from Ch. 24, par. 11-138-1)
Sec. 11-138-1.
Any water company organized under the laws of this state for
the purpose of supplying any municipality or the inhabitants thereof with
water, may locate its source of supply at, or change its source of supply
to, a point not more than 20 miles beyond the corporate limits of the
municipality. Such company may enter upon any land and take and damage
private property beyond those corporate limits, (1) for the construction,
maintenance, and operation of a line or lines of water-pipe to the source
of supply, (2) for the necessary pumping stations, reservoirs, and other
appurtenances, and (3) for the protection of all reservoirs, submerged
land, and source of supply from contamination, pollution, or damage from
any cause whatsoever.
Such a company may construct, maintain, and operate beyond those
corporate limits such a line or lines of water-pipe across or under any
railroad right-of-way, and in and under any public or private road,
highway, street, alley, or public ground, or across or under any of the
waters within this state, subject, however, to these conditions: (1) such a
line or lines of water-pipe shall not interfere with any railroad, or with
any sewer, gas pipes, water-pipes, or other conduit, already laid in or
under any public or private road, highway, street, alley, or public ground
by public authority; (2) such a company, in the construction and repair of
such a line or lines of water-pipe, shall restore any public or private
road, highway, street, alley, or public ground that is damaged to the same
condition as before, and shall not unnecessarily interfere with the public
use of the navigation of any of the specified waters; and (3) the laying of
the water-pipes and construction of the other works shall be done under
such reasonable regulations as the corporate authorities of any township or
municipality wherein that work is done may prescribe.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/11-138-2) (from Ch. 24, par. 11-138-2)
Sec. 11-138-2.
Whenever it is necessary for the construction, maintenance,
and operation of such a line or lines of water-pipe, pumping stations,
reservoirs, other appurtenances, or for the protection of reservoirs,
submerged land, and the source of supply from contamination, pollution, or
damage from any cause, to take or damage private property adjacent to these
improvements, that property may be taken or damaged, and the compensation
therefor may be ascertained and paid in the manner which may be then
provided by law for the exercise of the right of eminent domain.
(Source: Laws 1961, p. 576.)
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(65 ILCS 5/11-138-3) (from Ch. 24, par. 11-138-3)
Sec. 11-138-3.
Any person who unlawfully and intentionally molests or
destroys any part of such a line of water-pipe, pumping station, reservoir,
or other appurtenance, or the material or property belonging to a specified
water company, or who in any manner interferes with the construction,
maintenance, or operation of the property specified in this section is
guilty of a petty offense. But a prosecution under the provisions of this
section shall not in any manner prevent a recovery by the company entitled
thereto, of the amount of damages done to its property.
(Source: P.A. 77-2830.)
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(65 ILCS 5/Art. 11 Div. 139 heading) DIVISION 139.
COMBINED WATERWORKS AND
SEWERAGE SYSTEMS
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(65 ILCS 5/11-139-1) (from Ch. 24, par. 11-139-1)
Sec. 11-139-1.
When used in this Division 139, "waterworks" means and
includes a waterworks system in its entirety or any integral part thereof,
including mains, hydrants, meters, values, standpipes, storage tanks, pump
tanks, intakes, wells, impounding reservoirs, pumps, machinery,
purification plants, softening apparatus, and all other elements, useful in
connection with a water supply or water distribution system.
"Sewerage system" means and includes any or all of the following: a
sewerage treatment plant or plants, collecting, intercepting and outlet
sewers, lateral sewers, and drains, including combined and separate storm
water and sanitary drains, force mains, conduits, pumping stations, ejector
stations and all other appurtenances, extensions and improvements
necessary, useful, or convenient for the collection, treatment, and
disposal in a sanitary manner of sewage and industrial wastes.
"Combined waterworks and sewerage system" means and includes a
waterworks and sewerage system, which the municipality determines by
ordinance to operate in combination.
(Source: Laws 1963, p. 2433.)
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(65 ILCS 5/11-139-2) (from Ch. 24, par. 11-139-2)
Sec. 11-139-2.
Any municipality may acquire, or construct, and maintain and
operate a combined waterworks and sewerage system either within or without
the corporate limits thereof. A municipality owning and operating a
waterworks or sewerage system may provide for the inclusion of that
waterworks or sewerage system or the combination of the 2 in a combined
waterworks and sewerage system under this Division 139, and in connection
therewith may provide for paying or refunding any unpaid obligations which
are payable solely from the revenue of or which are secured by a mortgage
of that waterworks or sewerage system, or any part thereof included in the
combined waterworks and sewerage system. Any municipality owning and
operating a combined waterworks and sewerage system may also provide for
paying or refunding any unpaid obligations which are payable solely from
the revenue of the combined waterworks and sewerage system. A municipality
owning, acquiring, or constructing and providing for the operation of a
combined waterworks and sewerage system may improve and extend that system,
and may impose and collect charges or rates for the use of that system as
provided in this Division 139. A municipality may also, when determined by
its corporate authorities to be in the public interest and necessary for
the protection of the public health or in the best interests of the
municipality and its environs, enter into and perform contracts, whether
long-term or short-term, with any other municipality within a radius of 25
miles of its corporate limits and construct water mains to such
municipality and supply water to such municipalities on the request of any
such municipality; provided, that such water mains be constructed and that
such municipality purchase water on a long term basis at rates sufficient
to amortize the cost of the construction of such water mains and pay the
cost of maintenance and operation thereof, as hereinafter provided in this
Division 139, and also with any industrial establishment for the provision
and operation by the municipality of sewerage facilities, either within or
without the corporate limits of such municipality, to abate or reduce the
pollution of waters caused by discharges of industrial wastes by the
industrial establishment and the payment periodically by such municipality
or municipalities or the industrial establishment to the municipality of
amounts at least sufficient, in the determination of such corporate
authorities, to compensate the municipality for the cost of providing
(including payment of principal and interest charges, if any) and of
operating and maintaining any such facilities. This amendatory Act is not a
prohibition upon the contractual and associational powers granted by
Article VII, Section 10 of the Constitution.
(Source: P.A. 77-2837.)
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(65 ILCS 5/11-139-3) (from Ch. 24, par. 11-139-3)
Sec. 11-139-3.
For the purpose of defraying the cost of acquiring, constructing,
extending, or improving a combined waterworks and sewerage system or any
part thereof, any municipality (1) may apply money received therefor from
the federal government or available therefor from any source, and (2) may
issue and sell revenue bonds of the municipality payable solely from
revenue derived from the operation of the combined waterworks and sewerage
system. These bonds may be issued in such amounts as may be necessary to
provide sufficient funds to pay all the costs of the acquisition,
construction, extension, or improvement of the combined waterworks and
sewerage system as authorized by Section 11-139-2, including engineering,
legal, and other expenses, together with interest to the estimated date of
completion of the combined waterworks and sewerage system or of the project
to be constructed. The bonds shall bear interest at a rate not to exceed
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, payable semi-annually and shall mature
within the period of usefulness of the project involved, to be determined
by the corporate authorities and in any event not more than 40 years. The
bonds shall be sold in such manner as the corporate authorities shall
determine and if issued to bear interest at the maximum rate authorized by
the Bond Authorization Act, as amended at the time of the making of the
contract, shall be sold for not less than par and accrued interest. If any
of these bonds are issued to bear interest at a rate of less than the
maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, the minimum price at which they may be
sold shall be such that the interest cost to the municipality of the
proceeds of the bonds shall not exceed the maximum rate authorized by the
Bond Authorization Act, as amended at the time of the making of the contract,
computed to maturity. In case any officer whose signature appears on the
bonds or coupons attached thereto ceases to hold that office before the
delivery of the bonds to the purchaser, the signature nevertheless shall be
valid and sufficient for all purposes, with the same effect as if he had
remained in office until the delivery of the bonds. The bonds shall have
all the qualities of negotiable instruments under the law of this state.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Act that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the supplementary
authority granted by the Omnibus Bond Acts, and (iii) that instruments
issued under this Section within the supplementary authority granted
by the Omnibus Bond Acts are not invalid because of any provision of
this Act that may appear to be or to have been more restrictive than
those Acts.
This amendatory Act of 1971 is not a limit upon any municipality which
is a home rule unit.
This amendatory Act of 1972 is not a limit upon any municipality which
is a home rule unit.
(Source: P.A. 86-4.)
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(65 ILCS 5/11-139-4) (from Ch. 24, par. 11-139-4)
Sec. 11-139-4.
Whenever an existing waterworks or sewerage system is
included in a combined waterworks and sewerage system under this Division
139 and there are unpaid obligations previously issued, which are payable
solely from the revenue or secured by a mortgage of the waterworks or
sewerage system, or any part thereof, or whenever there are unpaid
obligations previously issued which are payable solely from the revenue of
the combined waterworks and sewerage system, the unpaid obligations may be
refunded by the issue and exchange therefor of revenue bonds, to be issued
under this Division 139, with the consent of the respective holders of the
unpaid obligations. The holders of revenue bonds issued under this Division
139, whether (1) for refunding or (2) for acquisition, construction,
extension, or improvement, or both, have the same rights and privileges
with respect to payment and there is no distinction between revenue bonds
issued for the 2 purposes unless it is specifically provided in the
ordinance authorizing the issuance of bonds that the bonds, or such ones
thereof as may be specified, issued for such acquisition, construction,
extension or improvement, shall, to the extent and in the manner
prescribed, be subordinated and be junior in standing, with respect to the
payment of principal and interest and the security thereof, to such other
bonds payable from the revenue of the combined waterworks and sewerage
system as are specified in such ordinance. Whenever any unpaid obligations
previously issued which are payable solely from the revenue or secured by a
mortgage of any waterworks or sewerage system included in a combined
waterworks and sewerage system or any combined waterworks and sewerage
system under this Division 139 are refunded, the unpaid obligations shall
be surrendered and exchanged for revenue bonds of the combined waterworks
and sewerage system of a total principal amount which shall not be more but
may be less than the principal amount of the obligations exchanged and the
interest thereon to the date of exchange.
(Source: Laws 1961, p. 576.)
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