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Illinois Compiled Statutes
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() 65 ILCS 5/Art. 11 Div. 130
(65 ILCS 5/Art. 11 Div. 130 heading)
DIVISION 130.
CONSTRUCTION AND PURCHASE
OF WATERWORKS
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65 ILCS 5/11-130-1
(65 ILCS 5/11-130-1) (from Ch. 24, par. 11-130-1)
Sec. 11-130-1.
Any municipality may purchase or construct waterworks or
construct improvements to its waterworks as provided in this Division 130.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/11-130-2
(65 ILCS 5/11-130-2) (from Ch. 24, par. 11-130-2)
Sec. 11-130-2.
The term "waterworks", as used in this Division 130, means
and includes a waterworks system in its entirety or any integral part
thereof, including mains, hydrants, meters, valves, standpipes, storage
tanks, pumping tanks, intakes, wells, impounding reservoirs, or
purification plants.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/11-130-3
(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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65 ILCS 5/11-130-4
(65 ILCS 5/11-130-4) (from Ch. 24, par. 11-130-4)
Sec. 11-130-4.
Within 10 days after such an ordinance has been passed it
shall be published at least once, with a notice to all persons concerned
stating that the ordinance has been adopted 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. Such notice shall state that
the municipality contemplates the issuance of the bonds described in the
ordinance, and that any person interested may appear before the corporate
authorities upon a certain date, which shall not be less than 10 days
subsequent to the publication or posting of the ordinance and notice, and
present protests. At this hearing all objections and suggestions shall be
heard, and the corporate authorities shall take such action as they shall
deem proper in the premises.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/11-130-5
(65 ILCS 5/11-130-5) (from Ch. 24, par. 11-130-5)
Sec. 11-130-5.
Bonds provided for in this Division 130 shall be issued in
such amounts as may be necessary to provide sufficient funds to pay all
costs of the purchase or construction, including engineering, legal, and
other expenses, together with interest to a date 6 months subsequent to the
estimated date of completion. Bonds issued under this Division 130 are
negotiable instruments. They shall be executed by the mayor, or president
and by the municipal clerk and shall be sealed with the corporate seal of
the municipality. In case any of the officers whose signatures appear on
the bonds, or coupons attached thereto, ceases to hold his office before
delivery of the bonds, his signature nevertheless shall be valid and
sufficient for all purposes the same as if it had remained in office until
the delivery of the bonds. The bonds may be sold at not less than 90 cents
on the dollar, and the proceeds derived therefrom shall be used exclusively
for the purposes for which the bonds were issued. The bonds may be sold at
one time or in parcels as funds are needed, but no bond shall be delivered
until bids for the construction, or the offer to sell, in the case of a
purchase, has been received, or judgment has been entered in the event of a
condemnation, and it is apparent that the authorized bonds will pay for the
contemplated waterworks.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/11-130-6
(65 ILCS 5/11-130-6) (from Ch. 24, par. 11-130-6)
Sec. 11-130-6.
Revenue bonds issued under this Division 130 shall be
payable solely from the revenue derived from the operation of the
waterworks on account of which the bonds were issued. These bonds shall not
in any event constitute an indebtedness of the municipality within the
meaning of any constitutional or statutory limitation. It shall be plainly
stated on the face of each bond that the bond has been issued under this
Division 130 and that it does not constitute an indebtedness of the
municipality within the meaning of any constitutional or statutory
limitation.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/11-130-7
(65 ILCS 5/11-130-7) (from Ch. 24, par. 11-130-7)
Sec. 11-130-7.
There is hereby created a statutory mortgage lien upon the
waterworks so purchased or constructed from the proceeds of the bonds
authorized to be issued under this Division 130. This lien exists in favor
of the holder of each of the bonds, and in favor of the holder of each of
the coupons attached to the bonds. The waterworks shall remain subject to
this statutory mortgage lien until the principal and interest of the bonds
are paid in full. Any holder of bonds issued under this Division 130, or of
any coupons representing interest accrued thereon, may, in a civil action,
enforce the statutory mortgage lien hereby created, and may compel the performance
of the duties of the officials of
the issuing municipality set forth in this Division 130.
If there is a default in the payment of the principal of and/or interest
upon any of these bonds, the circuit court
in any proper action
may appoint a receiver to administer the waterworks on behalf of the
municipality with power to charge and collect rates sufficient to provide
for the payment of the bonds and interest thereon, and for the payment of
the operating expenses and with power to apply the revenue in conformity
with this Division 130 and the ordinance providing for the issuance of the
bonds.
(Source: P.A. 79-1361.)
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65 ILCS 5/11-130-8
(65 ILCS 5/11-130-8) (from Ch. 24, par. 11-130-8)
Sec. 11-130-8.
Rates for water fixed precedent to the issuance of bonds
shall not be reduced until all of the bonds have been fully paid, and,
whenever necessary, may be increased in amounts sufficient to provide for
the payment of the bonds, both principal and interest, and to provide
proper funds for the depreciation account and operation and maintenance
charges.
If any surplus accumulates in the operating and maintenance fund in
excess of the cost of maintaining and operating the waterworks during the
remainder of the then current fiscal year, and during the next ensuing
fiscal year, that excess may be transferred by the corporate authorities
either to the depreciation account or to the bond and interest redemption
account as the corporate authorities may designate. If any surplus
accumulates in the depreciation account over and above that which the
corporate authorities find may be necessary for the probable replacements
which may be needed during the remainder of the then present fiscal year
and the next ensuing fiscal year, that excess may be transferred to the
bond and interest redemption account. If any surplus exists in the bond and
interest redemption account that surplus shall be applied insofar as
possible in the purchase or retirement of outstanding revenue bonds payable
from that account, and for that purpose the corporate authorities are
hereby authorized to purchase bonds not due in the open market at not more
than the fair market value thereof.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/11-130-9
(65 ILCS 5/11-130-9) (from Ch. 24, par. 11-130-9)
Sec. 11-130-9. For the purpose of purchasing any waterworks under this
Division 130, or for the purpose of purchasing any property necessary
therefor, the municipality has the right of eminent domain as provided by
the Eminent Domain Act.
(Source: P.A. 94-1055, eff. 1-1-07.)
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65 ILCS 5/11-130-10
(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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65 ILCS 5/11-130-11
(65 ILCS 5/11-130-11) (from Ch. 24, par. 11-130-11)
Sec. 11-130-11.
Any municipality issuing revenue bonds under this Division
130 shall install and maintain a proper system of accounts, showing the
amount of revenue received and its application. At least once a year the
municipality shall have the accounts properly audited by a competent
auditor. The report of that audit shall be open for inspection at all
proper times to any taxpayer, water-user, or any holder of bonds issued
under this Division 130, or to anyone acting for and on behalf of the
taxpayer, water-user, or bondholder.
The treasurer of the municipality shall be custodian of the funds
derived from income received from waterworks purchased or constructed
either in whole or in part under the provisions of this Division 130. He
shall give proper bond for the faithful discharge of his duties as such
custodian, and this bond shall be fixed and approved by the corporate
authorities of the municipality.
All of the funds received as income from waterworks purchased or
constructed in whole or in part under the provisions of this Division 130,
and all of the funds received from the sale of revenue bonds issued to
construct such a waterworks system, shall be kept separate and apart from
the other funds of the municipality. The treasurer shall maintain separate
accounts in which shall be placed (1) the interest and sinking fund, (2)
the depreciation fund and (3) the operating and maintenance fund. He shall
also provide for refunding outstanding certificates payable out of water
revenue.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/11-130-12
(65 ILCS 5/11-130-12) (from Ch. 24, par. 11-130-12)
Sec. 11-130-12.
Whenever all of the holders of unpaid water revenue
certificates of a particular issue, which were issued prior to July 8,
1927, to pay the cost of constructing waterworks and are payable from the
revenue thereof, offer in writing to exchange the certificates for
refunding revenue bonds to be issued under this Division 130, the corporate
authorities shall receive the certificates, and if found to be properly
executed, may adopt an ordinance incorporating therein the offer of the
certificate holders. This ordinance shall set forth the determined value of
the waterworks as it then exists, the value of as much of the waterworks as
was paid for by the issue of certificates, the unpaid portion of which are
proposed to be refunded, and the details in connection with the issuance of
the refunding revenue bonds in the same manner as is provided for in this
Division 130. The ordinance also shall fix the minimum rates to be charged
for water and pledge that revenue, if and when the refunding revenue bonds
are issued, to pay these refunding revenue bonds. The revenue shall be
applied as provided in this Division 130 and particularly in Sections
11-130-8 and 11-130-9.
The amount of the refunding revenue bonds shall not exceed and may be
less than the par amount of the certificates to be surrendered and shall
not exceed and may be less than the determined value of so much of the
waterworks as was paid for by that issue of certificates, less the amount
of certificates paid. The ordinance shall be published, or posted, together
with a notice of a hearing thereon, and a hearing shall be had thereon, in
the same manner as is provided in this Division 130. After such a hearing
the refunding revenue bonds specified in the offer may be issued, or a less
amount thereof may be issued with the consent of the certificate holders,
or the ordinance may be repealed, as the corporate authorities shall
determine. If the refunding revenue bonds are issued, the certificates
shall be surrendered and cancelled simultaneously therewith. Refunding
revenue bonds issued under this Division 130 shall be payable only out of
revenue derived from the waterworks as provided in the ordinance and
according to the terms of this Division 130. Holders of refunding revenue
bonds issued under this Division 130 have rights similar to those of
holders of revenue bonds issued under this Division 130, including the
power to apply for a receiver to operate the waterworks. The municipality
is under the same obligations to the refunding bondholders as it is to
holders of revenue bonds issued under this Division 130.
(Source: Laws 1961, p. 576.)
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