65 ILCS 5/ Illinois Municipal Code.

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65 ILCS 5/11-139-1

(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.)

65 ILCS 5/11-139-2

(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.)

65 ILCS 5/11-139-3

(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.)

65 ILCS 5/11-139-4

(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.)

65 ILCS 5/11-139-5

(65 ILCS 5/11-139-5) (from Ch. 24, par. 11-139-5)

Sec. 11-139-5.

The corporate authorities of any municipality availing
itself of the provisions of this Division 139 shall adopt an ordinance
describing in a general way the contemplated project. If it is intended to
include in the combined waterworks and sewerage system any existing
waterworks or any existing sewerage system, the ordinance shall provide for
its inclusion in the combined system and shall describe in a general way
the existing waterworks or sewerage system to be included in the combined
waterworks and sewerage system. If it is intended to acquire or construct a
combined waterworks and sewerage system, or to extend and improve such a
system, the ordinance shall describe in a general way the system to be
acquired or constructed or the extension or improvement to be made or any
project authorized by Section 11-139-2. It shall not be necessary that the
ordinance 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. The ordinance shall set out the
estimated cost of the contemplated project, and if any existing waterworks
or sewerage system is included in the project, the ordinance shall state
the means provided for defraying or refunding any unpaid obligation,
payable solely from the revenue or secured by a mortgage of the waterworks
or sewerage system, and if any unpaid obligations payable from the revenue
of the combined waterworks and sewerage system are outstanding and unpaid
the ordinance shall state the means providing for defraying or refunding
any unpaid obligation so payable from the revenue of the combined
waterworks and sewerage system. The ordinance shall determine the period of
usefulness of the contemplated project. The ordinance shall also prescribe
the method of defraying the cost of the contemplated project and fix the
amount of revenue bonds proposed to be issued, the interest rate, and all
other details in connection with the bonds deemed advisable. The ordinance
may contain such covenants and restrictions upon the issuance thereafter of
additional revenue bonds as may be deemed necessary or advisable for the
assurance of the payment of bonds thereby authorized and as may be
thereafter issued.

(Source: P.A. 77-2837.)

65 ILCS 5/11-139-6

(65 ILCS 5/11-139-6) (from Ch. 24, par. 11-139-6)

Sec. 11-139-6.

Within 10 days after the ordinance for any project
under this Division 139 has been passed, it shall be published at least
once 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 the adoption of the ordinance be submitted to
the electors of the municipality; (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 filed with the municipal clerk, as
provided in this section, within 30 days after the publication or
posting of the ordinance, it shall be in effect. But if within this 30
day period 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 acquiring,
constructing, extending, or improving the combined waterworks and
sewerage system, as provided in the ordinance, and the issuance of
revenue bonds therefor be submitted to the electors of the municipality,
the municipal clerk shall certify such question for submission at an election
in accordance with the general election law. If a majority of the votes
cast on the question are in favor thereof, the ordinance shall be in effect.
But if a majority of the votes cast on the question are unfavorable, the
municipality shall proceed no further and the ordinance shall not take effect.

(Source: P.A. 87-767.)