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91st General Assembly
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Public Act 91-0659

HB1366 Re-Enrolled                             LRB9103402MWdv

    AN ACT to amend the Illinois Municipal Code  by  changing
Sections 11-135-2, 11-135-3, and 11-135-4.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Illinois Municipal  Code  is  amended  by
changing Sections 11-135-2, 11-135-3 and 11-135-4 as follows:

    (65 ILCS 5/11-135-2) (from Ch. 24, par. 11-135-2)
    Sec. 11-135-2.  Upon the adoption of such an ordinance or
resolution   by   the   corporate  authorities  of  any  such
municipality, the mayor or president, with  the  approval  of
the  corporate  authorities, shall appoint a commissioner. If
under  Section  11-135-3  a  water   commission   meets   the
participatory   requirements,  that  water  commission  shall
appoint a commissioner. The  commissioners  so  appointed  by
each   of   such   municipalities   and  participatory  water
commissions together with a like  commissioner  appointed  by
the presiding officer of the county board with the advice and
consent  of the county board of the county in which the major
part of the works of the water commission are, or are to  be,
located, shall constitute a commission and public corporation
with  the  powers  and duties specified in this Division 135.
The corporate name of the commission shall be  "(here  insert
an appropriate name indicative of the area) Water Commission"
and  as  such  the  Commission may contract and be contracted
with, and sue and be sued.
    The commissioners so appointed shall serve for a term  of
6  years,  or  until their successors have been appointed and
have  qualified  in  the  same   manner   as   the   original
appointments,  except  that the commissioners first appointed
shall determine by lot at their first meeting the  respective
commissioners  whose terms shall be for 2, 4 and 6 years from
the date of that meeting. Each commissioner  appointed  by  a
mayor   or  president  shall  be  an  elector  or  the  chief
administrator of  the  municipality  for  which  he  acts  as
commissioner, and the commissioner appointed by the presiding
officer of the county board shall be an elector of the county
in  which the major works of the water commission are, or are
to be, located.  Any  commissioner  so  appointed  may  be  a
member  of  the governing board or officer or employee of the
municipality or county from which the appointment is made.  A
commissioner  is  eligible   for   reappointment   upon   the
expiration  of  his  term.  A vacancy shall be filled for the
balance of the unexpired term of the person who has ceased to
hold office by the mayor, president or county board presiding
officer who initially  made  such  appointment  in  the  same
manner  as  the original appointment. Each commissioner shall
receive  the  same  compensation,  as   determined   by   the
appointing authority, which shall not be more than $2,000 per
year,  except  that  no  commissioner  who is a member of the
governing board or officer or employee of the municipality or
county from which the appointment is  made  may  receive  any
compensation  for serving as commissioner.  Each commissioner
shall furnish a bond for  the  faithful  performance  of  his
official  duties. This bond shall not be less than $5,000 and
its costs shall be paid by the commission.
    Each commissioner may be removed for any cause for  which
any  other municipal officer may be removed. No commissioner,
or employee of the commission, and no mayor, or president, or
other member of the corporate authorities, or any employee of
any of the municipalities, shall be  interested  directly  or
indirectly  in  any  contract or job of work or materials, or
the profits thereof, or services to be performed  for  or  by
the commission.
    A  violation  of  any of the foregoing provisions of this
section is a Class C misdemeanor. A conviction is  cause  for
the removal of a person from his office or employment.
(Source: P.A. 90-517, eff. 8-22-97.)

    (65 ILCS 5/11-135-3) (from Ch. 24, par. 11-135-3)
    Sec.  11-135-3.   Such  a  commission  shall  organize by
appointing a chairman from its own members and  a  clerk  and
treasurer, who need not be commissioners.  It shall adopt its
own  rules  of  procedure  and provide for its meetings.  The
commission has full and complete supervision, management, and
control of the waterworks system, or  the  common  source  of
supply  of  water,  or both, as provided in the ordinances or
resolutions for acquiring and  operating  the  same,  and  in
their  maintenance, operation, and extension.  The commission
is authorized  to  contract  with  the  municipalities  which
established  the  commission  for  a supply of water to those
municipalities, for a period not exceeding 50 years, and  the
corporate  authorities of those municipalities are authorized
to enter into contracts with the commission.
    The commission is  authorized  to  develop,  promote  and
provide  for  recreational facilities on property acquired in
and for the operation of its common source of supply of water
and to  include  reasonable  charges  for  such  recreational
facilities  as  part of the cost of operation and maintenance
of the waterworks system.
    Any 2 or more  water  commissions  organized  under  this
Division  135  may,  by resolution adopted by each commission
and ratified by the corporate  authorities  of  each  of  the
municipalities comprising each of the water commissions agree
to  the  joint purchase, construction, operation, improvement
or extension, or any combination thereof, of either or both a
waterworks system and a common source of supply of water  for
those commissions.  When such an agreement has been executed,
the  water  commissions  entering  into  that  agreement  may
jointly  issue  revenue bonds for the projects subject to the
agreement  in  the  same  manner  and  subject  to  the  same
conditions as are provided in this Division 135 in  the  case
of an individual water commission.
    Any  additional municipality or water commission may join
and become a part of the system provided for in this Division
135 in the same manner as if participating  at  the  time  of
formation   if   approved  by  majority  vote  of  the  water
commissioners and such approval is ratified by resolution  of
the corporate authorities of a majority of the municipalities
or water commissions constituting the commission; except that
if  a  system  is  composed  of  two municipalities, only the
approval of a majority of the water commissioners is required
to accept an additional municipality or water  commission  to
the system.  If a municipality or water commission has been a
continuous  customer  of  the  same  water  commission  for a
minimum of 20 years, receives at least 90% of its water  from
the  water commission, and the population of the municipality
or water commission exceeds 20% 25% of the population of  the
then  current  member municipalities in the water commission,
that municipality or water commission shall become a part  of
the  system.  In  such event the name of the water commission
may  shall  be  changed  either  to   include   the   joining
municipality's  or  water  commission's  name  or  to provide
another name that is indicative of the area.  The  membership
of the water commission shall be enlarged to include a member
from such joining municipality or water commission.
(Source: P.A. 81-1212.)

    (65 ILCS 5/11-135-4) (from Ch. 24, par. 11-135-4)
    Sec.  11-135-4.  A commission may from time to time issue
its revenue bonds in such principal amounts as the commission
shall deem necessary to provide sufficient funds to carry out
any of its corporate purposes and powers, including,  without
limitation, developing, acquiring, constructing, extending or
improving  a  waterworks system or common source of supply of
water, or any combination thereof, the funding  or  refunding
of the principal of, redemption premium, if any, and interest
on,  any  bonds  issued  by  it  whether or not such bonds or
interest to be funded or refunded have  or  have  not  become
due,  the  payment  of engineering, legal and other expenses,
together with interest to a date one year subsequent  to  the
estimated   date   of   completion   of   the   project,  the
establishment or increase of reserves to  secure  or  to  pay
such  bonds  and  interest  thereon, the providing of working
capital and the payment of all other costs or expenses of the
commission incident to and necessary or convenient  to  carry
out  its  corporate  purposes  and powers.  These bonds shall
have all the qualities of negotiable  instruments  under  the
laws  of  this State and shall not constitute indebtedness of
any of the municipalities constituting the commission.
    Every issue of bonds of such commission shall be  payable
out  of the revenues to be derived pursuant to contracts with
the  specified   municipalities   and   participating   water
commissions  or  by virtue of the operation of any properties
acquired or to be acquired or constructed.  A commission  may
issue  such  types  of  bonds  as it may determine, including
bonds as to which the  principal  and  interest  are  payable
exclusively  from  the revenues from one or more projects, or
from an interest therein or  a  right  to  the  products  and
services  thereof,  or  from  one  or  more revenue producing
contracts made by the commission, or its revenues generally.
Any such bonds may be additionally secured by a pledge of any
grant, subsidy, or contribution from the United  States,  the
State  of  Illinois,  or any unit of local government, or any
combination thereof.
    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 may be  issued  in  one  or  more
series,  and  shall  bear  such date or dates, mature at such
time or times within the estimated period  of  usefulness  of
the  project involved and in any event not more than 50 years
from the date thereof, bear interest at such rate or rates as
authorized under Section 2 of "An  Act  to  authorize  public
corporations  to issue bonds, other evidences of indebtedness
and  tax  anticipation  warrants  subject  to  interest  rate
limitations set forth therein", approved May 26, 1970, as now
or hereafter amended, which rates may be fixed  or  variable,
be  in  such denominations, be in such form, either coupon or
registered, carry such conversion, registration, and exchange
privileges, have such rank or priority, be executed  in  such
manner, be payable in such medium of payment at such place or
places within or without the State of Illinois, be subject to
such terms of redemption with or without premium, and contain
or  be  subject  to  such  other  terms  as  the ordinance or
resolution may provide, and shall not be  restricted  by  the
provisions of any other law limiting the amounts, maturities,
interest  rates,  or  other  terms  of  obligations of public
agencies or private persons.  The bonds shall be sold in such
manner as the  commission  shall  determine,  at  private  or
public sale.  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 135 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 135.
    The  amendatory  Acts  of 1971, 1972, 1973, 1975 and 1981
are not a limit upon any municipality which is  a  home  rule
(Source: P.A. 82-641.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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