HB0372sam001 99TH GENERAL ASSEMBLY

Sen. James F. Clayborne, Jr.

Filed: 5/31/2015

09900HB0372sam001 LRB099 06061 AWJ 36472 a

AMENDMENT TO HOUSE BILL 372

AMENDMENT NO. ______. Amend House Bill 372, on page 1, immediately below line 3, by inserting the following:

"Section 5. The Township Code is amended by changing Section 205-140 as follows:

(60 ILCS 1/205-140)

Sec. 205-140. Initiating proceedings for particular locality; rates and charges; lien.

(a) A township board may initiate proceedings under Sections 205-130 through 205-150 in the manner provided by Section 205-20.

(b) The township board may establish the rate or charge to each user of the waterworks system or sewerage system, or combined waterworks and sewerage system, or improvement or extension at a rate that will be sufficient to pay the principal and interest of any bonds issued to pay the cost of the system, improvement, or extension and the maintenance and operation of the system, improvement, or extension and may provide an adequate depreciation fund for the bonds. Charges or rates shall be established, revised, and maintained by ordinance and become payable as the township board determines by ordinance.

(c) The charges or rates are liens upon the real estate upon or for which sewerage service is supplied whenever the charges or rates become delinquent as provided by the ordinance of the board fixing a delinquency date.

(d) Notwithstanding any provision of law to the contrary, the township shall conduct a cost study regarding the connection charge of the township:

(1) before the township increases or creates a connection charge;

(2) upon the request of the supervisor or a majority of the township board of the township; or

(3) upon the request of a majority of the mayors or village presidents of all the municipalities located within or substantially within the township.

The cost study shall be conducted by an independent entity within 6 months of action taken under paragraphs (1), (2), or (3) of this subsection (d). The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the township charged prior to completion of the cost study is higher than is justified by the cost study, the township shall reduce its connection charge to the amount justified by the cost study. For purposes of this subsection (d), "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the township's facilities, and includes only the direct and indirect costs of physically tying the service line into the township's main.

(Source: P.A. 82-783; 88-62.)

Section 10. The Illinois Municipal Code is amended by adding Section 11-150-2 as follows:

(65 ILCS 5/11-150-2 new)

Sec. 11-150-2. Connection fee cost study. Notwithstanding any provision of law to the contrary, the municipality shall conduct a cost study regarding the connection charge of the municipality:

(1) before the municipality increases or creates a connection charge; or

(2) upon the request of the mayor or village president, or a majority of the corporate authorities of the municipality.

The cost study shall be conducted by an independent entity within 6 months after action is taken under paragraphs (1) or (2) of this Section. The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the municipality charged prior to completion of the cost study is higher than is justified by the cost study, the municipality shall reduce its connection charge to the amount justified by the cost study. For purposes of this Section, "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the municipality's facilities, and includes only the direct and indirect costs of physically tying the service line into the municipality's main.

Section 15. The Sanitary District Act of 1907 is amended by adding Section 14.5 as follows:

(70 ILCS 2205/14.5 new)

Sec. 14.5. Connection fee cost study. Notwithstanding any provision of law to the contrary, the sanitary district shall conduct a cost study regarding the connection charge of the sanitary district:

(1) before the sanitary district increases or creates a connection charge; or

(2) upon the request of the president of the board of trustees or a majority of the board of trustees of the sanitary district.

The cost study shall be conducted by an independent entity within 6 months after action is taken under paragraphs (1) or (2) of this Section. The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the sanitary district charged prior to completion of the cost study is higher than is justified by the cost study, the sanitary district shall reduce its connection charge to the amount justified by the cost study. For purposes of this Section, "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the sanitary district's facilities, and includes only the direct and indirect costs of physically tying the service line into the sanitary district's main.

Section 20. The North Shore Sanitary District Act is amended by changing Section 7.1 as follows:

(70 ILCS 2305/7.1) (from Ch. 42, par. 283.1)

Sec. 7.1. In providing works for the treatment of industrial sewage, commonly called industrial wastes, whether the industrial sewage is disposed of in combination with municipal sewage or independently, the sanitary district has power to apportion and collect therefore, from the producer thereof, fair additional construction, maintenance and operating costs over and above those covered by normal taxes, and in case of dispute as to the fairness of such additional construction, maintenance and operating costs, then the same shall be determined by an arbitration board of 3 engineers, one appointed by the sanitary district, one appointed by such producer or producers or their legal representatives, and the third to be appointed by the 2 engineers selected as above described. In the event the 2 engineers so selected fail to agree upon a third engineer then upon the petition of either of the parties the circuit judge shall appoint such third engineer. A decision of a majority of the arbitration board shall be binding on both parties and the cost of the services of the arbitration board shall be shared by both parties equally. Such decision is an administrative decision and is subject to judicial review as provided in the Administrative Review Law.

In providing works, including the main pipes referred to in Section 7, for the treatment of raw sewage, in the manner provided in this Act, whether such sewage is treated in combination with municipal sewage or independently, the sanitary district has power to collect a fair and reasonable charge for connection to its system in addition to those charges covered by normal taxes, for the construction, expansion and extension of the works of the system, the charge to be assessed against new or additional users of the system and to be known as a connection charge. Such construction, expansion and extension of the works of the system shall include proposed or existing collector systems and may, at the discretion of such district, include connections by individual properties. The charge for connection shall be determined by the district and may equal or exceed the actual cost to the district of the construction, expansion or extension of the works of the system required by the connection. The funds thus collected shall be used by the sanitary district for its general corporate purposes with primary application thereof being made by the necessary expansion of the works of the system to meet the requirements of the new users thereof.

Notwithstanding any provision of law to the contrary, the sanitary district shall conduct a cost study regarding the connection charge of the sanitary district:

(1) before the sanitary district increases or creates a connection charge; or

(2) upon the request of the president of the board of trustees or a majority of the board of trustees of the sanitary district.

The cost study shall be conducted by an independent entity within 6 months after action is taken under paragraphs (1) or (2) of this Section. The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the sanitary district charged prior to completion of the cost study is higher than is justified by the cost study, the sanitary district shall reduce its connection charge to the amount justified by the cost study. For purposes of this Section, "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the sanitary district's facilities, and includes only the direct and indirect costs of physically tying the service line into the sanitary district's main.

(Source: P.A. 98-162, eff. 8-2-13.)

Section 25. The Sanitary District Act of 1917 is amended by changing Section 7 as follows:

(70 ILCS 2405/7) (from Ch. 42, par. 306)

Sec. 7. The board of trustees of any sanitary district organized under this Act shall have power to provide for the disposal of the sewage thereof including the sewage and drainage of any incorporated city, town or village within the boundaries of such district and to save and preserve the water supplied to the inhabitants of such district from contamination and for that purpose may construct and maintain an enclosed conduit or conduits, main pipe or pipes, wholly or partially submerged, buried or otherwise, and by means of pumps or otherwise cause such sewage to flow or to be forced through such conduit or conduits, pipe or pipes to and into any ditch or canal constructed and operated by any other sanitary district, after having first acquired the right so to do, or such board may provide for the drainage of such district by laying out, establishing, constructing and maintaining one or more channels, drains, ditches and outlets, for carrying off and disposing of the drainage (including the sewage) of such district together with such adjuncts and additions thereto as may be necessary or proper to cause such channels or outlets to accomplish the end for which they are designed, in a satisfactory manner, including pumps and pumping stations and the operation of the same. Such board may also treat and purify such sewage so that when the same shall flow into any lake or other water-course, it will not injuriously contaminate the waters thereof, and may adopt any other feasible method to accomplish the object for which such sanitary district may be created, and may also provide means whereby the sanitary district may reach and procure supplies of water for diluting and flushing purposes; provided, however, that nothing herein contained shall be construed to empower or authorize such board of trustees to operate a system of waterworks for the purposes of furnishing or delivering water to any such municipality or to the inhabitants thereof. Nothing in this Act shall require a sanitary district to extend service to any individual residence or other building within the district, and it is the intent of the Illinois General Assembly that any construction contemplated by this Section shall be restricted to construction of works and main or interceptor sewers, conduits, channels and similar facilities, but not individual service lines. Nothing in this Act contained shall authorize the trustees to flow the sewage of such district into Lake Michigan.

Every such sanitary district shall proceed as rapidly as is reasonably possible to provide sewers and a plant or plants for the treatment and purification of its sewage, which plant or plants shall be of suitable kind and sufficient capacity to properly treat and purify such sewage so as to conduce to the preservation of the public health, comfort and convenience and to render the sewage harmless, insofar as is reasonably possible, to animal, fish and plant life. Any violation of this proviso and any failure to observe and follow same, by any sanitary district organized under this Act, shall be held, and is hereby declared, to be a business offense and fined on the part of the sanitary district not less than $1,000 nor more than $10,000, and the trustees thereof may be ousted from office as trustees of the district by an order of the court before whom the cause is heard. Upon the complaint of the Environmental Protection Agency it shall be the duty of the Pollution Control Board to cause the foregoing provisions to be enforced in accordance with Section 31 of the "Environmental Protection Act". Nothing in this Act contained shall be construed as superseding or in any manner limiting the provisions of the "Environmental Protection Act".

The board of trustees of any sanitary district formed under this Act may also enter into an agreement to sell, convey, or disburse treated wastewater to any public or private entity located within or outside of the boundaries of the sanitary district. Any use of treated wastewater by any public or private entity shall be subject to the orders of the Pollution Control Board. The agreement may not exceed 20 years.

In providing works for the disposal of industrial sewage, commonly called industrial wastes, in the manner above provided whether the industrial sewage is disposed of in combination with municipal sewage or independently, the Sanitary District shall have power to apportion and collect therefor, from the producer thereof, fair additional construction, maintenance and operating costs over and above those covered by normal taxes, and in case of dispute as to the fairness of such additional construction, maintenance and operating costs, then the same shall be determined by a board of three engineers, one appointed by the sanitary district, one appointed by such producer or producers or their legal representatives, and the third to be appointed by the two engineers selected as above described. In the event the two engineers so selected shall fail to agree upon a third engineer then upon the petition of either of the parties the circuit judge shall appoint such third engineer. A decision of a majority of the board shall be binding on both parties and the cost of the services of the board shall be shared by both parties equally.

In providing works, including the main pipes referred to above, for the disposal of raw sewage, in the manner above provided, whether such sewage is disposed of in combination with municipal sewage or independently, the Sanitary District shall have power to collect a fair and reasonable charge for connection to its system in addition to those charges covered by normal taxes, for the construction, expansion and extension of the works of the system, the charge to be assessed against new or additional users of the system and to be known as a connection charge. Such construction, expansion and extension of the works of the system shall include proposed or existing collector systems and may, at the discretion of such District, include connections by individual properties. The charge for connection shall be determined by the District and may equal or exceed the actual cost to the District of the construction, expansion or extension of the works of the system required by the connection. The funds thus collected shall be used by the Sanitary District for its general corporate purposes with primary application thereof being made by the necessary expansion of the works of the system to meet the requirements of the new users thereof. Notwithstanding any provision of law to the contrary, the Sanitary District shall conduct a cost study regarding the connection charge of the Sanitary District:

(1) before the Sanitary District increases or creates a connection charge; or

(2) upon the request of the president of the board of trustees or a majority of the board of trustees of the Sanitary District.

The cost study shall be conducted by an independent entity within 6 months after action is taken under paragraphs (1) or (2) of this Section. The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the Sanitary District charged prior to completion of the cost study is higher than is justified by the cost study, the Sanitary District shall reduce its connection charge to the amount justified by the cost study. For purposes of this Section, "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the Sanitary District's facilities, and includes only the direct and indirect costs of physically tying the service line into the Sanitary District's main.

(Source: P.A. 97-1000, eff. 8-17-12.)"; and

on page 1, line 4, by replacing "Section 5" with "Section 30"; and

on page 1, line 5, by replacing "and 4.14" with "4.14, and 7f"; and

on page 10, immediately below line 20, by inserting the following:

"(70 ILCS 2605/7f) (from Ch. 42, par. 326f)

Sec. 7f. Regulation of connecting sewerage systems.

(a) It shall be unlawful for any person to construct or install any sewerage system that discharges sewage, industrial wastes, or other wastes, directly or indirectly, into the sewerage system of the sanitary district, unless a written permit for the sewerage system has been granted by the sanitary district acting through the executive director. The sanitary district shall specify by ordinance the changes, additions, or extensions to an existing sewerage system that will require a permit. No changes, additions, or extensions to any existing sewerage systems discharging sewage, industrial wastes, or other wastes into the sewerage system of the sanitary district, that requires a permit, may be made until plans for the changes, additions, or extensions have been submitted to and a written permit obtained from the sanitary district acting through the executive director; provided, however, that this Section is not applicable in any municipality having a population of more than 500,000.

(b) Sewerage systems shall be operated in accordance with the ordinances of the sanitary district. The Board of Commissioners of any sanitary district is authorized to regulate, limit, extend, deny, or otherwise control any new or existing connection, addition, or extension to any sewer or sewerage system which directly or indirectly discharges into the sanitary district sewerage system. The Board shall adopt standards and specifications for construction, operation, and maintenance. This Section shall not apply to sewerage systems under the jurisdiction of any city, village, or incorporated town having a population of 500,000 or more.

(c) The Board of Commissioners of any sanitary district is hereby authorized to pass all necessary ordinances to carry out the aforementioned powers. The ordinances may provide for a civil penalty for each offense of not less than $100 nor more than $1,000. Each day's continuance of the violation shall be a separate offense. Hearings for violations of the ordinances adopted by the Board of Commissioners may be conducted by the Board of Commissioners or its designee.

(d) Plans and specifications for any sewerage system covered by this Act must be submitted to the sanitary district before a written permit may be issued and the construction of any sewerage system must be in accordance with the plans and specifications. In case it is necessary or desirable to make material changes in the plans or specifications, the revised plans or specifications, together with the reasons for the proposed changes, must be submitted to the sanitary district for a supplemental written permit.

(e) The sanitary district, acting through the executive director, may require any owner of a sewerage system discharging into the sewerage system of the sanitary district, to file with it complete plans of the whole or of any part of the system and any other information and records concerning the installation and operation of the system.

(f) The sanitary district, acting through the executive director, may establish procedures for the review of any plans, specifications, or other data relative to any sewerage system, written permits for which are required by this Act.

(g) The sanitary district, acting through the executive director, may adopt and enforce rules and regulations governing the issuance of permits and the method and manner under which plans, specifications, or other data relative thereto must be submitted for the sewerage systems or for additions or changes to or extensions of the systems.

(h) After a hearing on an alleged violation of any such ordinance, the Board may, in addition to any civil penalty imposed, order any person found to have committed a violation to reimburse the sanitary district for the costs of the hearing, including any expenses incurred for inspection, sampling, analysis, administrative costs, and court reporter's and attorney's fees. The Board of Commissioners may also require a person to achieve compliance with the ordinance within a specified period of time. The Administrative Review Law, and the rules adopted under that Law, shall govern proceedings for the judicial review of final orders of the Board of Commissioners issued under this subsection.

(i) Civil penalties and costs imposed pursuant to this Section are recoverable by the sanitary district in a civil action. The sanitary district is authorized to apply to the circuit court for injunctive relief or mandamus when, in the opinion of the executive director, the person has failed to comply with an order of the Board of Commissioners or the relief is necessary to protect the sewerage system of the sanitary district.

(j) The operation and maintenance of any existing sanitary sewerage system serving territory that is annexed by a municipality located in a county with a population of 3,000,000 or more after the effective date of this amendatory Act of the 92nd General Assembly is the responsibility of the municipality to which the territory is annexed, unless the sanitary sewerage system is under the jurisdiction of another unit of local government other than the District.

(k) Notwithstanding any provision of law to the contrary, the sanitary district shall conduct a cost study regarding the connection charge of the sanitary district:

(1) before the sanitary district increases or creates a connection charge; or

(2) upon the request of the president of the board of commissioners or a majority of the board of commissioners of the sanitary district.

The cost study shall be conducted by an independent entity within 6 months after action is taken under paragraphs (1) or (2) of this subsection (k). The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the sanitary district charged prior to completion of the cost study is higher than is justified by the cost study, the sanitary district shall reduce its connection charge to the amount justified by the cost study. For purposes of this subsection (k), "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the sanitary district's facilities, and includes only the direct and indirect costs of physically tying the service line into the sanitary district's main.

(Source: P.A. 95-923, eff. 1-1-09.)

Section 35. The Sanitary District Act of 1936 is amended by adding Section 25b as follows:

(70 ILCS 2805/25b new)

Sec. 25b. Connection fee cost study. Notwithstanding any provision of law to the contrary, the sanitary district shall conduct a cost study regarding the connection charge of the sanitary district:

(1) before the sanitary district increases or creates a connection charge; or

(2) upon the request of the president of the board of trustees or a majority of the board of trustees of the sanitary district.

The cost study shall be conducted by an independent entity within 6 months after action is taken under paragraphs (1) or (2) of this Section. The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the sanitary district charged prior to completion of the cost study is higher than is justified by the cost study, the sanitary district shall reduce its connection charge to the amount justified by the cost study. For purposes of this Section, "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the sanitary district's facilities, and includes only the direct and indirect costs of physically tying the service line into the sanitary district's main.

Section 40. The Metro-East Sanitary District Act of 1974 is amended by adding Section 2-3.5 as follows:

(70 ILCS 2905/2-3.5 new)

Sec. 2-3.5. Connection fee cost study. Notwithstanding any provision of law to the contrary, the sanitary district shall conduct a cost study regarding the connection charge of the sanitary district:

(1) before the sanitary district increases or creates a connection charge; or

(2) upon the request of the president of the board of commissioners or a majority of the board of commissioners of the sanitary district.

The cost study shall be conducted by an independent entity within 6 months after action is taken under paragraphs (1) or (2) of this Section. The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the sanitary district charged prior to completion of the cost study is higher than is justified by the cost study, the sanitary district shall reduce its connection charge to the amount justified by the cost study. For purposes of this Section, "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the sanitary district's facilities, and includes only the direct and indirect costs of physically tying the service line into the sanitary district's main.

Section 45. The Public Water District Act is amended by changing Section 23f as follows:

(70 ILCS 3705/23f) (from Ch. 111 2/3, par. 210f)

Sec. 23f. Whenever revenue bonds are issued under Section 23e of this Act, the income and revenue derived from the operation of the combined waterworks and sewerage system of the district shall be used only (1) to pay the cost of operation and maintenance of the system; (2) to pay principal of and interest on any revenue bonds issued hereunder; (3) to provide an adequate depreciation fund; and (4) to create and maintain such reasonable reserves as may be provided in the ordinance authorizing the issuance of the bonds, including, without limitation, a bond reserve fund and a reserve for proposed future improvements and extensions to the system in accordance with a master plan, as the same may be amended or revised from time to time, duly approved by ordinance or resolution of the board of trustees. The depreciation fund is to be used for such replacements as may be necessary from time to time for the continued, effective and efficient operation of the system, which fund shall not be allowed to accumulate beyond a reasonable amount necessary for that purpose, the terms and provisions of which shall be incorporated in the ordinance authorizing the issuance of the bonds.

The board of trustees is authorized to charge rates and charges for the use and service of the combined waterworks and sewerage system, and to defray the costs of connections thereto, which shall be sufficient at all times (1) to pay the cost of maintenance and operation of the system, (2) to pay the principal of and interest upon all revenue bonds issued under the provisions of Section 23e of this Act, (3) to provide an adequate depreciation fund, and (4) to create and maintain such reasonable reserves as may be provided in the ordinance authorizing the issuance of any such revenue bonds, including, without limitation, a bond reserve fund and a reserve for proposed future improvements and extensions to the system in accordance with a master plan, as the same may be amended or revised from time to time, duly approved by ordinance or resolution of the board of trustees. The board of trustees may also impose upon the owner of any residential lot in a platted subdivision within the district a fair and reasonable minimum charge for availability, or readiness to serve fee, to pay a portion of the cost of having facilities available to supply service when needed. Charges or rates shall be established, revised, and maintained by ordinance and become payable as the board of trustees may determine by ordinance. Any ordinance establishing rates and charges shall be published within 30 days after its adoption in a newspaper published in the district, and if there is no such newspaper, in a newspaper published in the county and having a general circulation in the district, and shall become effective 10 days after such publication. Notwithstanding any provision of law to the contrary, the public water district shall conduct a cost study regarding the connection charge of the public water district:

(1) before the public water district increases or creates a connection charge; or

(2) upon the request of the Chairman of the board of trustees or a majority of the board of trustees of the board of trustees.

The cost study shall be conducted by an independent entity within 6 months after action is taken under paragraphs (1) or (2) of this Section. The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the public water district charged prior to completion of the cost study is higher than is justified by the cost study, the public water district shall reduce its connection charge to the amount justified by the cost study. For purposes of this Section, "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the public water district's facilities, and includes only the direct and indirect costs of physically tying the service line into the public water district's main.

Such charges or rates, including any penalties for late payment, are liens upon the real estate upon or for which service is supplied or made available whenever the charges or rates become delinquent as provided by any ordinance of the district fixing a delinquency date. A lien is created under the preceding sentence only if the district sends to the owner or owners of record of the real estate, as referenced by the taxpayer's identification number, (i) a copy of each delinquency notice sent to the person who is delinquent in paying the charges or rates or other notice sufficient to inform the owner or owners of record, as referenced by the taxpayer's identification number, that the charges or rates have become delinquent and (ii) a notice that unpaid charges or rates may create a lien on the real estate under this Section. Such liens shall arise ipso facto upon the delinquency of such charges or rates; however, the district has no preference over the rights of any purchaser, mortgagee, judgment creditor, or other lien holder arising prior to the filing of a notice of such a lien in the office of the recorder of the county in which such real estate is located, or in the office of the registrar of titles of such county if the property affected is registered under the Torrens system. This notice shall consist of a sworn statement setting out (1) a description of such real estate sufficient for the identification thereof, (2) the amount of money due for such service or availability, and (3) the date when such amount became delinquent. The district shall send a copy of the notice of the lien to the owner or owners of record of the real estate, as referenced by the taxpayer's identification number. The district has the power to foreclose this lien in the same manner and with the same effect as in the foreclosure of mortgages on real estate and shall be entitled to recover its reasonable expenses and costs, including attorney's fees, incurred in connection with such foreclosure proceeding. The district may, upon the payment of such reasonable administrative fees as it may establish for the service, furnish to any requesting party current statements evidencing the status of any account and releases evidencing the payment of delinquent charges and the release, discharge and satisfaction of any lien arising therefrom.

The holder of any bond or any interest coupon of any such revenue bonds of any such district may in any civil action, mandamus or other proceeding enforce and compel the performance of all duties required by this Act and the covenants and undertakings set forth in any bond ordinance, including the making and collecting of sufficient rates and charges for the use, service or availability of the combined waterworks and sewerage system of the district, and the proper application of the income and revenue therefrom.

(Source: P.A. 87-1197.)

Section 50. The Water Service District Act is amended by adding Section 5.3 as follows:

(70 ILCS 3710/5.3 new)

Sec. 5.3. Connection fee cost study. Notwithstanding any provision of law to the contrary, the water service district shall conduct a cost study regarding the connection charge of the water service district:

(1) before the water service district increases or creates a connection charge; or

(2) upon the request of the president of the board of trustees or a majority of the board of trustees of the water service district.

The cost study shall be conducted by an independent entity within 6 months after action is taken under paragraphs (1) or (2) of this Section. The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the water service district charged prior to completion of the cost study is higher than is justified by the cost study, the water service district shall reduce its connection charge to the amount justified by the cost study. For purposes of this Section, "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the water service district's facilities, and includes only the direct and indirect costs of physically tying the service line into the water service district's main.

Section 55. The Water Authorities Act is amended by adding Section 4.5 as follows:

(70 ILCS 3715/4.5 new)

Sec. 4.5. Connection fee cost study. Notwithstanding any provision of law to the contrary, the water authority shall conduct a cost study regarding the connection charge of the water authority:

(1) before the water authority increases or creates a connection charge; or

(2) upon the request of the chairman of the board of trustees or a majority of the board of trustees of the water authority.

The cost study shall be conducted by an independent entity within 6 months after action is taken under paragraphs (1) or (2) of this Section. The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the water authority charged prior to completion of the cost study is higher than is justified by the cost study, the water authority shall reduce its connection charge to the amount justified by the cost study. For purposes of this Section, "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the water authority's facilities, and includes only the direct and indirect costs of physically tying the service line into the water authority's main.

Section 60. The Water Commission Act of 1985 is amended by changing Section 0.001b as follows:

(70 ILCS 3720/0.001b)

Sec. 0.001b. Powers and duties. A water commission has the power and duty to:

(1) establish and define the responsibilities of the commission and its committees;

(2) establish and define the responsibilities of the commission's management and staff;

(3) establish a finance committee to conduct monthly meetings to supervise staff's handling of financial matters and budgeting;

(4) require the finance director and treasurer to report to the finance committee the status of all commission funds and obligations;

(5) require the treasurer to report to the commission any improper or unnecessary expenditures, budgetary errors, or accounting irregularities;

(6) require commission staff to document and comply with standard accounting policies, procedures, and controls to ensure accurate reporting to the finance committee and commission and to identify improper or unnecessary expenditures, budgetary errors, or accounting irregularities;

(7) require the commission's finance director to provide monthly reports regarding the commission's cash and investment position including whether the commission has sufficient cash and investments to pay its debt service, operating expenses, and capital expenditures and maintain required reserve levels. The information shall include the required funding levels for restricted funds and unrestricted cash and investment balances with comparisons to unrestricted reserves. The information shall also include the type and performance of the commission's investments and description as to whether those investments are in compliance with the commission's investment policies;

(8) require the commission's finance director to provide the commission with detailed information concerning the commission's operating performance including the budgeted and actual monthly amounts for water sales, water costs, and other operating expenses;

(9) require commission staff to provide the commission with detailed information regarding the progress of capital projects including whether the percentage of completion and costs incurred are timely;

(10) require the commission's staff accountant to perform bank reconciliations and general ledger account reconciliations on a monthly basis; the finance director shall review these reconciliations and provide them to the treasurer and the finance committee on a monthly basis;

(l1) establish policies to ensure the proper segregation of the financial duties performed by employees;

(12) restrict access to the established accounting systems and general ledger systems and provide for adequate segregation of duties so that no single person has sole access and control over the accounting system or the general ledger system;

(13) require that the finance director review and approve all manual journal entries and supporting documentation; the treasurer shall review and approve the finance director's review and approval of manual journal entries and supporting documentation;

(14) require that the finance director closely monitor the progress of construction projects;

(15) require that the finance director carefully document any GAAP analysis or communications with GASB and provide full and timely reports for the same to the finance committee; and

(16) retain an outside independent auditor to perform a comprehensive audit of the water commission's financial activities for each fiscal year in conformance with the standard practices of the Association of Governmental Auditors; within 30 days after the independent audit is completed, the results of the audit must be sent to the county auditor; and .

(17) notwithstanding any provision of law to the contrary, shall conduct a cost study regarding the connection charge of the water commission:

(A) before the water commission increases or creates a connection charge; or

(B) upon the request of the chairperson of the water commissioners or a majority of the water commissioners of the water commission.

The cost study shall be conducted by an independent entity within 6 months after action is taken under items (A) or (B) of this paragraph (17). The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population. Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study. If the connection charge the water commission charged prior to completion of the cost study is higher than is justified by the cost study, the water commission shall reduce its connection charge to the amount justified by the cost study. For purposes of this paragraph (17), "connection charge" means a charge assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the water commission's facilities, and includes only the direct and indirect costs of physically tying the service line into the water commission's main.

(Source: P.A. 96-1389, eff. 7-29-10.)".