(65 ILCS 5/11-130-3) (from Ch. 24, par. 11-130-3)
Sec. 11-130-3.
Whenever the corporate authorities of any municipality
determine to purchase or construct waterworks under the provisions of this
Division 130, they shall have an estimate made of the cost thereof and, by
ordinance, shall provide for the issuance of revenue bonds under the
provisions of this Division 130. The ordinance shall set forth a brief
description of the contemplated purchase or construction, the estimated
cost thereof, the amount, rate of interest, time and place of payment, and
other details in connection with the issuance of the bonds. The bonds shall
bear interest at not more than 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 be payable at such times and places not
exceeding 20 years from their date as shall be prescribed in the ordinance
providing for their issuance. This ordinance shall also declare that a
statutory mortgage lien exists upon the property
so to be purchased or constructed, fix minimum rates for water to be
collected prior to the payment of all of the revenue bonds so issued, and
shall pledge the revenue derived from the operation of the waterworks for
the purpose of paying those bonds and the interest thereon. This pledge
shall definitely fix and determine the amount of revenue which must be set
apart and applied to the payment of the principal of and interest on the
bonds and the proportion of the balance of the revenue which is to be set
aside as a proper and adequate depreciation account. The remainder of the
revenue shall be set aside for the reasonable and proper operation and
maintenance of the waterworks. The rates to be charged for the services
from the waterworks shall be sufficient to provide for the payment of
interest upon all bonds and to create a sinking fund to pay the principal
thereof as and when the bonds become due, to provide for the operation and
maintenance of the system and to provide an adequate depreciation fund.
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.)
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