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MUNICIPALITIES65 ILCS 5/11-119.1-7
(65 ILCS 5/) Illinois Municipal Code.
(65 ILCS 5/11-119.1-7)
(from Ch. 24, par. 11-119.1-7)
Except as otherwise provided by this Division, a municipal
power agency may acquire all real or personal property that it deems necessary
for carrying out the purposes of this Division, whether in fee simple absolute
or a lesser interest, by condemnation and the exercise of the power of eminent
domain in the manner provided in the Eminent Domain Act.
A municipal power agency shall have no power of eminent domain with respect
to any real or personal property owned or leased by any eligible utility
as part of a system, whether existing, under construction or being planned,
of facilities for the generation,
transmission, production or distribution of electrical power.
The authority of a municipal power agency to acquire real or personal property
by condemnation or the exercise of the power of eminent domain shall be
a continuing power, and no exercise thereof shall exhaust it.
(Source: P.A. 94-1055, eff. 1-1-07.)
65 ILCS 5/11-119.1-8
(65 ILCS 5/11-119.1-8)
(from Ch. 24, par. 11-119.1-8)
A municipal power agency may establish,
levy, and collect or may authorize, by contract, franchise, lease, or otherwise,
the establishment, levying and collection of rents, rates and other charges
for the products and services afforded by the municipal power agency or
by or in connection with any project or properties which it may construct,
acquire, own, operate, or control or with respect to which it may have any
interest or any right to the products and services thereof as it may deem
necessary, proper, desirable or reasonable. Rents, rates, and other charges
shall be at least sufficient to meet the operation, maintenance and other
expenses thereof, including reasonable reserves, interest, and principal
payments, including payments into one or more sinking funds for the retirement
of principal. A municipal power agency may pledge its rates, rents, and
other revenue, or any part thereof, as security for the repayment, with
interest and premium, if any, of any moneys borrowed by it or advanced
to it for any of its authorized purposes and as security for the payment
of amounts due and owing by it under any contract.
(Source: P.A. 83-997.)
65 ILCS 5/11-119.1-9
(65 ILCS 5/11-119.1-9)
(from Ch. 24, par. 11-119.1-9)
In order to accomplish the purposes of this Division,
a municipality may enter into and carry out contracts and agreements for
the purchase from a municipal power agency of power and energy, transmission
services, power supply development services and other services.
(1) Each such contract and agreement shall be for a period not to exceed
50 years and shall contain such other terms, conditions and provisions,
not inconsistent with the provisions of this Division, as the governing
body of such municipality shall approve, including, without limitation,
provisions whereby the municipality is obligated to pay for the products
and services of a municipal power agency without set-off or counterclaim
and irrespective of whether such products or services are furnished, made
available or delivered to the municipality or whether any project contemplated
by any such contract and agreement is completed, operable or operating,
and notwithstanding suspension, interruption, interference, reduction or
curtailment of the products and services of such project.
(2) Each such contract and agreement may be pledged by such municipal
power agency to secure its obligations and may provide that if one or more
municipalities defaults in the payment of its obligations under such contract
and agreement, the remaining municipalities having such contracts and agreements
shall be required to pay for and shall be entitled proportionately to use
or otherwise dispose of the products and services which were to be purchased
by the defaulting municipality.
(3) Each such contract and agreement shall be a limited obligation of
a municipality payable from and secured by a pledge of, and lien and charge
upon, all or any part of the revenues derived or to be derived from the
ownership and operation of its electric utility system as an expense of
operation and maintenance thereof, and shall not constitute an indebtedness
of such municipality for the purpose of any statutory limitation.
(4) Nothing in this Division shall be construed to preclude a municipality
from appropriating and using taxes and other revenues received in any year
to make payments due or to comply with covenants to be performed during
that year under any contract or agreement for a term of years entered into
as contemplated in this Division, subject to the provisions of laws regarding
B. Any such contract or agreement may include provisions for requirements
purchases, restraints on resale or other dealings, exclusive dealing, pricing,
territorial division, and other conduct or arrangements which may have an
(Source: P.A. 83-997.)
65 ILCS 5/11-119.1-10
(65 ILCS 5/11-119.1-10)
(from Ch. 24, par. 11-119.1-10)
Exercise of powers.
A municipal power agency may
exercise any and all of
the powers enumerated in this Division, except the power of eminent domain,
without the consent and approval of the Illinois Commerce Commission. The
exercise of the power of eminent domain by a municipal power agency shall be
subject to the consent and approval of the Illinois Commerce Commission in the
same manner and to
the same extent as public utilities under the Public Utilities
Act, including the issuance
of a certificate of public convenience and necessity as provided for in Section
8-406 of that Act. During
the consideration of any petition for authority to exercise the power of
eminent domain the Illinois Commerce Commission shall evaluate and give due
consideration to the impact of the acquisition on farmlands in the State with
goal of preserving the land to the fullest extent reasonably possible.
(Source: P.A. 90-416, eff. 1-1-98.)
65 ILCS 5/11-119.1-11
(65 ILCS 5/11-119.1-11)
(from Ch. 24, par. 11-119.1-11)
Notwithstanding any other law to the contrary, the
State of Illinois and all its public officers, governmental units, agencies and
instrumentalities, all banks, trust companies, savings banks and institutions,
building and loan associations, savings and loan associations, investment
companies, and others carrying on a banking business, all insurance
companies, insurance associations and others carrying on any insurance
business, and all executors, administrators, guardians, trustees and other
fiduciaries may legally invest any sinking funds, money, or other funds
belonging to them or within their control in any bonds issued pursuant to
this Division and the bonds shall be authorized security for any and all
(Source: P.A. 83-997.)
65 ILCS 5/11-119.1-12
(65 ILCS 5/11-119.1-12)
(from Ch. 24, par. 11-119.1-12)
This Division shall be construed liberally to
effectuate its legislative intent and purpose, as complete and independent
authority for the performance of each and every act and thing authorized by
this Division, and all authority granted shall be broadly interpreted to
effectuate this intent and purpose and not as a limitation of powers. This
Division is expressly not a limit on any of the powers granted any unit of
local government of this State by constitution, statute, charter or otherwise,
other than when the unit of local government is acting expressly pursuant to
B. In the event of any conflict or inconsistency between this Division
and any other law or charter provision, the provisions of this Division shall
C. Any provision of this Division which may be determined by competent
authority to be prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and
any such prohibition or unenforceability in any jurisdiction shall not
or render unenforceable such provision in any other jurisdiction.
(Source: P.A. 90-655, eff. 7-30-98.)
65 ILCS 5/Art. 11 Div. 119.2
(65 ILCS 5/Art. 11 Div. 119.2 heading)
JOINT MUNICIPAL NATURAL GAS AGENCIES
65 ILCS 5/11-119.2-1
(65 ILCS 5/11-119.2-1)
(from Ch. 24, par. 11-119.2-1)
This Division shall be known and may be cited as the
Illinois Joint Municipal Natural Gas Act.
(Source: P.A. 84-1221.)
65 ILCS 5/11-119.2-2
(65 ILCS 5/11-119.2-2)
(from Ch. 24, par. 11-119.2-2)
The General Assembly finds:
(a) that adequate, economical and reliable sources of natural gas
are essential to the orderly growth and prosperity of municipalities in
the State of Illinois and that a shortage of such sources would endanger
the safety, health and welfare of the residents of the State of Illinois
and the growth and development of its municipalities;
(b) that municipal utility systems operating in the State of Illinois
for the purpose of supplying natural gas have sustained greatly increased
capital and operating costs,
thereby adversely affecting the availability of adequate,
economical and reliable sources of natural gas;
(c) that it is desirable for the State of Illinois to authorize municipal
utility systems to jointly plan, finance, own and operate facilities relating
to natural gas, plants and systems
through the creation of joint agencies in order to achieve economies
and efficiencies not possible for municipalities acting alone;
(d) that the joint planning, financing, ownership and operation of facilities
relating to natural gas, plants and systems
and the issuance of revenue bonds as provided herein
is for a public use and serves a valid public purpose and is a means of
achieving economy, adequacy and reliability in the supply of natural gas
and meeting the future needs of the State of Illinois and its residents; and
(e) that the intent and policy of the General Assembly when enacting this
Division is to enable municipal utility systems to jointly plan, finance,
own and operate facilities for the exploration, production, acquisition,
storage, transmission or distribution of natural gas
and related facilities or other facilities necessary or
convenient for the planning and operation of a system for production,
acquisition, storage, transmission or distribution of natural gas.
(Source: P.A. 84-1221.)
65 ILCS 5/11-119.2-3
(65 ILCS 5/11-119.2-3)
(from Ch. 24, par. 11-119.2-3)
The following terms whenever used or referred to in
this Division, shall have the following meanings unless the context requires otherwise:
(1) "Agency agreement" means the written agreement between 2 or more municipalities
establishing a municipal natural gas agency.
(2) "Bonds" means revenue bonds, notes and other evidences of obligations
of a municipal natural gas agency issued under the provisions of this Division.
(3) "Eligible utility" means a public agency or other entity of any type,
which owns, operates or controls any plant or equipment for the exploration,
production, acquisition, storage, transmission or distribution
of natural gas in connection
with the furnishing thereof for sale or resale.
(4) "Governing body" means, with respect to a municipality, the council,
city council, board of trustees, or other corporate authority of the municipality
which exercises the general governmental powers of such municipality.
(5) "Municipal natural gas agency" means a body politic and corporate, municipal
corporation and unit of local government of the State of Illinois organized
in accordance with the provisions of this Division.
(6) "Municipality" means a city, village or incorporated town in the State
of Illinois, or any other state in the United States, owning or operating a natural gas plant or system which
furnishes natural gas service to the public.
(7) "Project" means any plant, works, system, facility, and real and personal
property of any nature whatsoever, together with all parts thereof and appurtenances
thereto, used or useful in the storage, acquisition, exploration,
production, distribution, transmission,
purchase, sale, exchange or interchange of natural gas and in the
acquisition, extraction, conversion, transportation, storage
or reprocessing of fuel of any kind for any such purposes, or any interest
in, or right to the use, services, output or capacity, of any such plant,
works, system or facilities.
(8) "Public agency" means any municipality, political subdivision, municipal
corporation, unit of local government, governmental unit, or public corporation
operated by or pursuant to the laws of the State of Illinois, of another
state or of the United States, and any state, the United States, and any
commission, board, bureau or other body declared by the laws of any state
or the United States to be a department, agency, or instrumentality thereof.
(9) "Natural gas" means any gaseous heating fuel which is naturally or
(Source: P.A. 94-731, eff. 4-19-06.)
65 ILCS 5/11-119.2-4
(65 ILCS 5/11-119.2-4)
(from Ch. 24, par. 11-119.2-4)
A. Any 2 or more municipalities, contiguous or
noncontiguous, and which operate a natural gas plant or system, may form a
municipal natural gas agency by the execution of an agency agreement authorized
by an ordinance adopted by the governing body of each municipality. The agency
agreement may state:
(1) that the municipal natural gas agency is created
and incorporated under the provisions of this Division as a body politic and corporate, municipal corporation and unit of local government of the State of Illinois;
(2) the name of the agency and the date of its
(3) the names of the municipalities which have
adopted the agency agreement and constitute the initial members of the municipal natural gas agency;
(4) the names and addresses of the persons initially
appointed in the ordinances adopting the agency agreement to serve on the Board of Directors and act as the representatives of the municipalities, respectively, in the exercise of their powers as members;
(5) the limitations, if any, upon the terms of office
of the directors, provided that such directors shall always be selected and vacancies in their offices declared and filled by ordinances adopted by the governing body of the respective municipalities;
(6) the location by city, village or incorporated
town in the State of Illinois of the principal office of the municipal natural gas agency;
(7) provisions for the disposition, division or
distribution of obligations, property and assets of the municipal natural gas agency upon dissolution; and
(8) any other provisions for regulating the business
of the municipal natural gas agency or the conduct of its affairs which may be agreed to by the member municipalities, consistent with this Division, including, without limitation, any provisions for weighted voting among the member municipalities or by the directors.
B. The presiding officer of the Board of Directors of any municipal natural gas agency
established pursuant to this Division or such other officer selected by the Board of Directors, within 3 months after establishment,
shall file a certified copy of the agency agreement and a list of the
municipalities which have adopted the agreement with the recorder of the county
in which the principal office is located. The recorder shall record this
certified copy and list and shall immediately transmit the certified copy and
list to the Secretary of State, together with his certificate of recordation.
The Secretary of State shall file these documents and issue his certificate of
approval over his signature and the Great Seal of the State. The Secretary of
State shall make and keep a register of municipal natural gas agencies
established under this Division.
C. Each municipality which becomes a member of the municipal natural gas
agency shall appoint a representative to serve on the Board of Directors, which
representative may be a member of the governing body of the municipality. Each
appointment shall be made by the mayor, or president, subject to the
confirmation of the governing body. The directors so appointed shall hold
office for a term of 3 years, or until a successor has been duly appointed and
qualified, except that the directors first appointed shall determine by lot at
their initial meeting the respective directors which shall serve for a term of
one, 2 or 3 years from the date of that meeting. A vacancy shall be filled for
the balance of the unexpired term in the same manner as the original
The Board of Directors is the corporate authority of the municipal natural
gas agency and shall exercise all the powers and manage and control all of the
affairs and property of the agency. The Board of Directors shall have full
power to pass all necessary ordinances, resolutions, rules and regulations
for the proper management and conduct of the business of the board, and
for carrying into effect the objects for which the agency was established.
At the initial meeting of the Board of Directors to be held within 30 days
after the date of establishment of the municipal natural gas agency, the directors shall elect
from their members a presiding officer to preside over the meetings of the Board of Directors and an alternate presiding officer and may elect an executive
board. The Board of Directors shall determine and designate in the agency's bylaws the titles for the presiding officers. The directors shall also elect a secretary and treasurer, who need
not be directors. The board may select such other officers, employees and
agents as deemed to be necessary, who need not be directors or residents
of any of the municipalities which are members of the municipal natural gas
agency. The board may designate appropriate titles for all other officers, employees, and agents. All persons selected by the board shall hold their respective offices
during the pleasure of the board, and give such bond as may be required by the
D. The bylaws of the municipal natural gas agency, and any amendments
thereto, shall be adopted by the Board of Directors by a majority vote
(adjusted for weighted voting, if provided in the Agency Agreement) to provide
(1) the conditions and obligations of membership, if
(2) the manner and time of calling regular and
special meetings of the Board of Directors;
(3) the procedural rules of the Board of Directors;
(4) the composition, powers and responsibilities of
any committee or executive board;
(5) the rights and obligations of new members, and
the disposition of rights and obligations upon termination of membership; and
(6) such other rules or provisions for regulating the
affairs of the municipal natural gas agency as the board shall determine to be necessary.
E. Every municipal natural gas agency shall maintain an office in the State
of Illinois to be known as its principal office. When a municipal natural gas
agency desires to change the location of such office, it shall file with
the Secretary of State a certificate of change of location, stating the
new address and the effective date of change. Meetings of the Board of
Directors may be held at any place within the State of Illinois, designated
by the Board of Directors, after notice. Unless otherwise provided by the
bylaws, an act of the majority of the directors present at a meeting at
which a quorum is present is the act of the Board of Directors.
F. The Board of Directors shall hold at least one meeting each year for
the election of officers and for the transaction of any other business.
Special meetings of the Board of Directors may be called for any purpose
upon written request to the presiding officer of the Board of Directors or secretary to call the meeting.
Such officer shall give notice of the meeting to be held not less than 10
days and not more than 60 days after receipt of such request. Unless the
bylaws provide for a different percentage, a quorum for a meeting of the
Board of Directors is a majority of all members then in office. All meetings
of the board shall be held in compliance with the provisions of the Open
G. The agency agreement may be amended as proposed at any meeting of the
Board of Directors for which notice, stating the purpose, shall be given
to each director and, unless the bylaws prescribe otherwise, such amendment
shall become effective when ratified by ordinances adopted by a majority
of the governing bodies of the member municipalities. Each amendment, duly
certified, shall be recorded and filed in the same manner as for the original
H. Each member municipality shall have full power and authority, subject
to the provisions of its charter and laws regarding local finance, to
appropriate money for the payment of the expenses of the municipal natural gas
agency and of its representative in exercising its functions as a member of the
municipal natural gas agency.
I. Any additional municipality which operates a natural gas plant or system
may join the municipal natural gas agency, or any member municipality may
withdraw therefrom upon the approval by ordinance adopted by the governing body
of the majority of the municipalities which are then members of the municipal
natural gas agency. Any new member shall agree to assume its proportionate
share of the outstanding obligations of the municipal natural gas agency and
any member permitted to withdraw shall remain obligated to make payments under
any outstanding contract or agreement with the municipal natural gas agency.
Any such change in membership shall be recorded and filed in the same manner as
for the original agreement.
J. Any 2 or more municipal natural gas agencies organized pursuant to this
Division may consolidate to form a new municipal natural gas agency when
approved by ordinance adopted by the governing body of each municipality which
is a member of the respective municipal natural gas agency and by the execution
of an agency agreement as provided in this Section.
(Source: P.A. 96-204, eff. 1-1-10.)
65 ILCS 5/11-119.2-5
(65 ILCS 5/11-119.2-5)
(from Ch. 24, par. 11-119.2-5)
A municipal natural gas agency shall have all
the powers enumerated in this Section in furtherance of the purposes of
this Division. In the exercise thereof it shall be deemed to be performing
an essential governmental function and exercising a part of the sovereign
powers of the State of Illinois, separate and distinct from member municipalities,
and shall have the privileges, immunities and rights of a public body politic
and corporate, municipal corporation and unit of local government, but shall
not have taxing power. All powers of the municipal natural gas agency shall be
exercised by its Board of Directors unless otherwise provided by the bylaws.
B. A municipal natural gas agency may plan, finance, acquire, construct, reconstruct,
own, lease, operate, maintain, repair, improve, extend or otherwise participate
in, individually or jointly with other persons, public agencies, eligible
utilities or other entities of any type, one or more projects, proposed,
existing or under construction, within or without the State of Illinois,
acquire any interest in or any right to products and services of a project,
purchase, own, sell, dispose of or otherwise participate in securities issued
in connection with the financing of a project or any portion thereof, and
may act as agent, or designate one or more persons, public agencies, eligible
utilities or other entities of any type, whether or not participating in
a project, to act as its agent, in connection with the planning, financing,
acquisition, construction, reconstruction, ownership, lease, operation,
maintenance, repair, extension or improvement of the project. Any acquisition
by eminent domain under this subsection is subject to the provisions of
C. A municipal natural gas agency may investigate the desirability of and
for additional sources and supplies of natural gas and fuel of any
kind for such purpose, and make studies, surveys, and estimates as may be
necessary to determine the feasibility and cost thereof.
D. A municipal natural gas agency may cooperate with other persons, public agencies,
eligible utilities or other entities of any type in the development of sources
and supplies of natural gas and fuel of any kind for such purposes,
and give assistance with personnel and equipment in any project.
E. A municipal natural gas agency may apply for consents, authorizations or
approvals required for any project within its powers and take all actions
necessary to comply with the conditions thereof.
F. A municipal natural gas agency may perform any act authorized by this Division
through, or by means of, its officers, agents, or employees or by contract
with others, including, without limitation, the employment of engineers,
architects, attorneys, appraisers, financial advisors, and such other consultants
and employees as may be required in the judgment of the municipal natural gas
agency, and fix and pay their compensation from funds available to the municipal
natural gas agency therefor.
G. A municipal natural gas agency may, individually or jointly with other persons,
public agencies, eligible utilities or other entities of any type, acquire,
hold, use, and dispose of income, revenues, funds and money.
H. A municipal natural gas agency may, individually or jointly with other persons,
public agencies, eligible utilities or other entities of any type,
acquire, own, hire, use, operate and dispose of personal property and any
I. A municipal natural gas agency may, individually or jointly with other persons,
public agencies, eligible utilities or other entities of any type, acquire,
own, use, lease as lessor or lessee, operate and dispose of real
property and interests in real property, including projects existing, proposed
or under construction, and make improvements thereon.
J. A municipal natural gas agency may grant the use by franchise, lease or otherwise
and make charges for the use of any property or facility owned or controlled by it.
K. A municipal natural gas agency may borrow money and issue negotiable bonds,
secured or unsecured, in accordance with this Division.
L. A municipal natural gas agency may invest money of the municipal natural gas agency
not required for immediate use, including proceeds from the sale of any
bonds, in such obligations, securities, and other investments as authorized
by the provisions of "An Act relating to certain investments of public funds
by public agencies", approved July 23, 1943, as amended.
M. A municipal natural gas agency may exercise the power of eminent domain in
accordance with the provisions of Section 11-119.2-7.
N. A municipal natural gas agency may determine the location and character of,
and all other matters in connection with, any and all projects it is authorized
to acquire, hold, establish, effectuate, operate or control.
O. A municipal natural gas agency may contract with any persons, public agencies,
eligible utilities or other entities of any type for the planning, development,
construction or operation of any project or for the sale, transmission or
distribution of the products and services of any project, or for any interest
therein or any right to the products and services thereof, on such terms
and for such period of time as its Board of Directors shall determine.
P. A municipal natural gas agency may enter into any contract or agreement necessary,
appropriate or incidental to the effectuation of its lawful purposes and
the exercise of the powers granted by this Division, including without limitation,
contracts or agreements for the purchase, sale, exchange, interchange, wheeling,
pooling, transmission, distribution or storage of natural gas and
fuel of any kind for any such purposes, within and without the State of
Illinois, in such amounts as it shall determine to be necessary and appropriate
to make the most effective use of its powers and to meet its responsibilities,
on such terms and for such period of time as its Board of Directors determines.
Any such contract or agreement may include
provisions for requirements purchases, restraints on resale or other dealings,
exclusive dealing, pricing, territorial division, and other conduct or arrangements
which may have an anti-competitive effect.
Q. A municipal natural gas agency may procure insurance against any losses in
connection with its property, operations, or assets in such amounts and
from such insurers as it deems desirable, or may self-insure against such losses.
R. A municipal natural gas agency may contract for and accept any gifts or grants
or loans of funds or property or financial or other aid in any form from
any source, and may comply, subject to the provisions of this Division,
with the terms and conditions thereof.
S. A municipal natural gas agency may mortgage, pledge and grant a security interest
in any or all of its real and personal property to secure the payment of
its bonds or contracts.
T. That part of a project owned by a municipal natural gas agency shall be exempt
from property taxes. However, each municipal natural gas agency owning all or
any part of a project shall, in lieu of property taxes, pay to any governmental
unit authorized to levy property taxes the amount which would be assessed
as taxes on real property of a project if such project were otherwise subject
to valuation and assessment. Such payments in lieu of taxes shall be due
and shall bear interest if unpaid, as in the cases of taxes on other property.
Payments in lieu of taxes made under this Division shall be treated in the
same manner as taxes for purposes of all procedural and substantive provisions
of law, except that no lien may be placed upon such property to enforce
the payment of such taxes. The remedy for such payment shall be limited
to mandamus or other civil action requesting an order directing the agency
to pay such taxes and interest, if any.
U. No municipal natural gas agency shall be authorized by this Division to sell
natural gas directly to other than a member municipality or an eligible utility.
V. A municipal natural gas agency may adopt a corporate seal, and may sue and be sued.
W. A municipal natural gas agency may exercise all other powers not inconsistent
with the Constitution of the State of Illinois or the United States Constitution,
which powers may be reasonably necessary or appropriate for or incidental
to effectuate its authorized purposes or to the exercise of any of the powers
enumerated in this Division.
(Source: P.A. 84-1221.)