65 ILCS 5/ Illinois Municipal Code.

Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

65 ILCS 5/11-136-4

(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.)

65 ILCS 5/11-136-5

(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.)