(65 ILCS 5/11-130-10) (from Ch. 24, par. 11-130-10)
Sec. 11-130-10.
Whenever a municipality owns and operates a waterworks
system, whether purchased or constructed under this Division 130 or not,
and desires to construct improvements thereto, it may issue revenue bonds
under this Division 130 to pay for that construction. The procedure for
that issuance, including the fixing of rates and the computation of the
amount thereof, shall be the same as is provided in this Division 130 for
the issuance of bonds for the purchase or construction of waterworks by a
municipality, except that in the ordinance declaring the intention to issue
the bonds and providing details in connection therewith, the corporate
authorities shall find and declare, in addition to the other requirements
set out in this Division 130, the value of the then existing waterworks and
the value of the property proposed to be constructed. The revenue derived
from the waterworks when the contemplated improvements are completed shall
be divided according to those 2 values. So much of the revenue as is in
proportion to the value of the improvements as distinguished from the value
of the previously existing waterworks, as so determined, shall be set aside
and used solely for the purpose of paying the revenue bonds issued for the
improvements, together with the cost of the operation and the depreciation
thereof, and that revenue shall be deemed to be income derived exclusively
from the improvements.
(Source: Laws 1961, p. 576.)
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