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90_HB3490 70 ILCS 3720/2 from Ch. 111 2/3, par. 252 Amends the Water Commission Act of 1985. Increases to $1,500 per year (now $600 per year) the salary of the commissioners. Effective immediately. LRB9010990MWpc LRB9010990MWpc 1 AN ACT to amend the Water Commission Act of 1985 by 2 changing Section 2. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Water Commission Act of 1985 is amended 6 by changing Section 2 as follows: 7 (70 ILCS 3720/2) (from Ch. 111 2/3, par. 252) 8 Sec. 2. The General Assembly hereby finds and declares 9 that it is necessary and in the public interest to help 10 assure a sufficient and economic supply of a source of water 11 within those county wide areas of this State where, because 12 of a growth in population and proximity to large urban 13 centers, the health, safety and welfare of the residents is 14 threatened by an ever increasing shortage of a continuing, 15 available and adequate source and supply of water on an 16 economically reasonable basis; however, it is not the intent 17 of the General Assembly to interfere with the power of 18 municipalities to provide for the retail distribution of 19 water to their residents or the customers of their water 20 systems. Therefore, in order to provide for a sufficient and 21 economic supply of water to such areas, it is hereby declared 22 to be the law of this State that: 23 (a) With respect to any water commission constituted 24 pursuant to Division 135 of the Illinois Municipal Code or 25 established by operation of law under Public Act 83-1123, as 26 amended, which water commission includes municipalities which 27 in the aggregate have within their corporate limits more than 28 50% of the population of a county (hereinafter referred to as 29 a "home county"), and such county is contiguous to a county 30 which has a population in excess of 1,000,000 inhabitants, 31 the provisions of this Act shall apply. With respect to any -2- LRB9010990MWpc 1 such water commission (hereinafter referred to as a "county 2 water commission"): 3 (i) the terms of all commissioners of such 4 commission holding office at the time a water commission 5 becomes a county water commission shall terminate 30 days 6 after such time and new commissioners shall be appointed 7 as the governing board of the county water commission as 8 hereinafter provided in subsection (c); and 9 (ii) the county water commission shall continue to 10 be a body corporate and politic, and shall bear the name 11 of the home county but shall be independent from and not 12 a part of the county government and shall itself be a 13 political subdivision and a unit of local government, and 14 upon appointment of the new commissioners as the 15 governing board of such water commission as provided in 16 subsection (c), such water commission shall remain 17 responsible for the full payment of, and shall by 18 operation of law be deemed to have assumed and shall pay 19 when due all debts and obligations of the commission as 20 the same is constituted and as such debts and obligations 21 existed on the date such water commission becomes a 22 county water commission and such additional debts and 23 obligations as are incurred by such commission after such 24 date and prior to the appointment of the new 25 commissioners as the governing board of such commission, 26 and further shall continue to have and exercise all 27 powers and functions and duties of a water commission 28 created pursuant to Division 135 of the Illinois 29 Municipal Code, as now or hereafter amended, and the 30 county water commission may rely on that Division, as 31 modified and supplemented by the provisions of this Act, 32 as lawful authority under which it may act. 33 (b) Any county water commission shall have as its 34 territory within its corporate limits, subject to taxation -3- LRB9010990MWpc 1 for its purposes, and subject to the powers and limitations 2 as conferred by this Act, (i) all of the territory of the 3 home county except that territory located within the 4 corporate limits of excluded units as hereinafter defined and 5 (ii) also all of the territory located outside the home 6 county and included within the corporate limits of an 7 included unit as hereinafter defined. As used in this Act, 8 "excluded unit" means a unit of local government having a 9 waterworks system and having within its corporate limits 10 territory within the home county and which, at the time any 11 commission becomes a county water commission, receives, or 12 has contracted at such time for the receipt of, more than 25% 13 of the water distributed by such unit's water system from a 14 source outside of the home county. As used in this Section, 15 "included unit" means any unit of local government having a 16 waterworks system and having within its corporate limits 17 territory within the home county, which unit of local 18 government is not an excluded unit. No other water 19 commission shall be constituted under Division 135 of the 20 Illinois Municipal Code in any home county after the 21 effective date of this Act to provide water from any source 22 located outside the home county. Except as authorized by a 23 county water commission, no home county or included unit 24 shall enter into any new or renew or extend any existing 25 contract, agreement or other arrangement for the acquisition 26 or sale of water from any source located outside a home 27 county; provided, however, that any included unit may 28 contract for a supply of water in case of a temporary 29 emergency from any other unit of local government or any 30 entity. In the event that any included unit elects to serve 31 retail customers outside its corporate boundaries and to 32 establish rates and charges for such water in excess of those 33 charged within its corporate boundaries, such rates and 34 charges shall have a reasonable relationship to the actual -4- LRB9010990MWpc 1 cost of providing and delivering the water; this provision is 2 declarative of existing law. It is declared to be the law of 3 this State pursuant to paragraphs (g) and (h) of Section 6 of 4 Article VII of the Illinois Constitution that in any home 5 county, the provisions of this Act and Division 135 of the 6 Illinois Municipal Code, as modified and supplemented by this 7 Act, constitute a limitation upon the power of any such 8 county and upon all units of local government (except 9 excluded units) within such county, including home rule 10 units, limiting to such county, units of local government and 11 home rule units the power to acquire, supply or distribute 12 water or to establish any water commission for such purposes 13 involving water from any source located outside the home 14 county in a manner other than as provided or permitted by 15 this Act and Division 135, as modified and supplemented by 16 this Act, and further constitute an exercise of exclusive 17 State power with respect to the acquisition, supply and 18 distribution of water from any source located outside the 19 home county by any such county and by units of local 20 government (except excluded units), including home rule 21 units, within such county and with respect to the 22 establishment for such purposes of any water commission 23 therein, which power may not be exercised concurrently by any 24 unit of local government or home rule unit. Upon the request 25 of any included unit, a county water commission shall provide 26 such included unit Lake Michigan water in an amount up to the 27 then current Department of Transportation allocation of Lake 28 Michigan water for such included unit. 29 With respect to a water commission to which the 30 provisions of subsection (a) apply, all uninhabited territory 31 that is owned and solely occupied by such a commission and is 32 located not within its home county but within a non-home rule 33 municipality adjacent to its home county shall, 34 notwithstanding any other provision of law, be disconnected -5- LRB9010990MWpc 1 from that municipality by operation of this Act on the 2 effective date of this amendatory Act of 1991, and shall 3 thereafter no longer be within the territory of the 4 municipality for any purpose; except that for the purposes of 5 any statute that requires contiguity of territory, the 6 territory of the water commission shall be disregarded and 7 the municipality shall not be deemed to be noncontiguous by 8 virtue of the disconnection of the water commission 9 territory. 10 (c) The governing body of any water commission to which 11 the provisions of subsection (a) apply shall be a board of 12 commissioners, each to be appointed within 30 days after the 13 water commission becomes a county water commission to a term 14 commencing on such date, as follows: 15 (i) one commissioner, who shall serve as chairman, 16 who shall be a resident of the home county, to be 17 appointed by the chairman of the county board of such 18 county with the advice and consent of the county board; 19 (ii) one commissioner from each county board 20 district within the home county, to be appointed by the 21 chairman of the county board of the home county with the 22 advice and consent of the county board; and 23 (iii) one commissioner from each county board 24 district within the home county, to be appointed by the 25 majority vote of the mayors of those included units which 26 are municipalities and which have the greatest percentage 27 of their respective populations residing within such 28 county board district of the home county. 29 The mayors of the respective county board districts shall 30 meet for the purpose of making said respective appointments 31 at a time and place designated by that mayor in each county 32 board district of the included unit with the largest 33 population voting for a commissioner upon not less than 10 34 days' written notice to each other mayor entitled to vote. -6- LRB9010990MWpc 1 The commissioners so appointed shall serve for a term of 2 6 years, or until their successors have been appointed and 3 have qualified in the same manner as the original 4 appointments, except that at the first meeting of such 5 commissioners, (A) the commissioners first appointed pursuant 6 to paragraph (ii) of this subsection shall determine publicly 7 by lot 1/3 of their number to serve for terms of 2 years, 1/3 8 of their number to serve for terms of 4 years and 1/3 of 9 their number to serve for terms of 6 years, any odd number of 10 commissioners so determined by dividing into thirds to serve 11 6 year terms, and (B) the commissioners first appointed 12 pursuant to paragraph (iii) of this subsection shall 13 determine publicly by lot 1/3 of their number to serve for 14 terms of 2 years, 1/3 of their number to serve for terms of 4 15 years and 1/3 of their number to serve for terms of 6 years, 16 any odd number of commissioners so determined by dividing 17 into thirds to serve 6 year terms. The commissioner first 18 appointed pursuant to paragraph (i) of this subsection, who 19 shall serve as chairman, shall serve for a term of 6 years. 20 Any commissioner may be a member of the governing board or an 21 officer or employee of such county or any unit of local 22 government within such county. A commissioner is eligible 23 for reappointment upon the expiration of his term. A vacancy 24 in the office of a commissioner shall be filled for the 25 balance of the unexpired term by appointment and 26 qualification as to residency in the same manner as the 27 original appointment was made. Each commissioner shall 28 receive the same compensation which shall not be more than 29 $1,500
$600per year, except that no such commissioner who is 30 a member of the governing board or an officer or employee of 31 such county or any unit of local government within such 32 county may receive any compensation for serving as a 33 commissioner. Each commissioner may be removed by the 34 appointing authority for any cause for which any other county -7- LRB9010990MWpc 1 or municipal officer may be removed. The county water 2 commission shall determine its own rules of proceeding. A 3 quorum shall be a majority of the commissioners then in 4 office. All ordinances or resolutions shall be passed by not 5 less than a majority of a quorum. No commissioner or 6 employee of the commission, no member of the county board or 7 other official elected within such county, no mayor or 8 president or other member of the corporate authorities of any 9 unit of local government within such county, and no employee 10 of such county or any such unit of local government, shall be 11 interested directly or indirectly in any contract or job of 12 work or materials, or the profits thereof, or services to be 13 performed for or by the commission. A violation of any of 14 the foregoing provisions of this subsection is a Class C 15 misdemeanor. A conviction is cause for the removal of a 16 person from his office or employment. 17 (d) Except as provided in subsection (g), subject to the 18 referendum provided for in subsection (e), a county water 19 commission may borrow money for corporate purposes on the 20 credit of the commission, and issue general obligation bonds 21 therefor, in such amounts and form and on such conditions as 22 it shall prescribe, but shall not become indebted in any 23 manner or for any purpose in an amount including existing 24 indebtedness in the aggregate to exceed 5.75% of the 25 aggregate value of the taxable property within the 26 territorial boundaries of the county water commission, as 27 equalized and assessed by the Department of Revenue and as 28 most recently available at the time of the issue of said 29 bonds. Before or at the time of incurring any indebtedness, 30 except as provided in subsection (g), the commission shall 31 provide for the collection of a direct annual tax, which 32 shall be unlimited as to rate or amount, sufficient to pay 33 the interest on such debt as it falls due and also to pay and 34 discharge the principal thereof at maturity, which shall be -8- LRB9010990MWpc 1 within 40 years after the date of issue thereof. Such tax 2 shall be levied upon and collected from all of the taxable 3 property within the territory of the county water commission. 4 Dissolution of the county water commission for any reason 5 shall not relieve the taxable property within such territory 6 of the county water commission from liability for such tax. 7 The clerk of the commission shall file a certified copy of 8 the resolution or ordinance by which such bonds are 9 authorized to be issued and such tax is levied with the 10 County Clerk of each county in which any of the territory of 11 the county water commission is located and such filing shall 12 constitute, without the doing of any other act, full and 13 complete authority for each such County Clerk to extend such 14 tax for collection upon all the taxable property within the 15 territory of the county water commission subject to such tax 16 in each and every year required sufficient to pay the 17 principal of and interest on such bonds, as aforesaid, 18 without limit as to rate or amount, and shall be in addition 19 to and in excess of all other taxes authorized to be levied 20 by the commission or any included unit. The general 21 obligation bonds shall be issued pursuant to an ordinance or 22 resolution and may be issued in one or more series, and shall 23 bear such date or dates, mature at such time or times and in 24 any event not more than 40 years from the date thereof, be 25 sold at such price at private or public sale as determined by 26 a county water commission, bear interest at such rate or 27 rates such that the net effective interest rate received upon 28 the sale of such bonds does not exceed the maximum rate 29 determined under Section 2 of the Bond Authorization Act, 30 which rates may be fixed or variable, be in such 31 denominations, be in such form, either coupon or registered, 32 carry such conversion, registration, and exchange privileges, 33 be executed in such manner, be payable in such medium of 34 payment at such place or places within or without the State -9- LRB9010990MWpc 1 of Illinois, be subject to such terms of redemption, and 2 contain or be subject to such other terms as the ordinance or 3 resolution may provide, and shall not be restricted by the 4 provisions of any other terms of obligations of public 5 agencies or private persons. 6 (e) No issue of general obligation bonds by a county 7 water commission (except bonds to refund an existing bonded 8 indebtedness) shall be authorized unless the commission 9 certifies the proposition of issuing such bonds to the proper 10 election officials, who shall submit the proposition to the 11 voters at an election in accordance with the general election 12 law, and the proposition has been approved by a majority of 13 those voting on the proposition. 14 The proposition shall be in the form provided in Section 15 5 or shall be substantially in the following form: 16 ------------------------------------------------------------- 17 Shall general obligation 18 bonds for the purpose of 19 (state purpose), in the YES 20 sum of $....(insert amount), ----------------------------- 21 be issued by the ......... NO 22 (insert corporate name of 23 the county water commission)? 24 ------------------------------------------------------------- 25 (f) In order to carry out and perform its powers and 26 functions and duties under the provisions of this Act and 27 Division 135 of the Illinois Municipal Code, as modified and 28 supplemented by this Act, the governing body of any county 29 water commission may by ordinance levy annually upon all 30 taxable property within its territory a tax at a rate not to 31 exceed .005% of the value of such property, as equalized or 32 assessed by the Department of Revenue for the year in which 33 the levy is made. In addition, any county water commission 34 may by ordinance levy upon all taxable property within its -10- LRB9010990MWpc 1 territory, for one year only, an additional tax for such 2 purposes at a rate not to exceed .20% of the value of such 3 property, as equalized or assessed by the Department of 4 Revenue for that year; provided, however, that such tax may 5 not be levied more than once in any county water commission. 6 (g) Any county water commission shall have the power to 7 borrow money, subject to the indebtedness limitation provided 8 in subsection (d), from the home county or included units, in 9 such amounts and in such terms as agreed by the governing 10 bodies of the commission and the home county or included 11 units. 12 (h) No county water commission constituted pursuant to 13 the Act shall engage in the retail sale or distribution of 14 water to residents or customers of any municipality. 15 (i) Nothing in the Section requires any municipality to 16 contract with a county water commission for a supply of 17 water. 18 (j) The State of Illinois recognizes that any such 19 contract for the supply of water executed by a unit of local 20 government and a county water commission may contain terms 21 and conditions intended by the parties thereto to be absolute 22 conditions thereof. The State of Illinois also recognizes 23 that persons may loan funds to a county water commission 24 (including, without limitation, the purchase of revenue or 25 general obligation bonds of such commission) in reliance upon 26 the terms and conditions of any such contract for the supply 27 of water. Therefore, the State of Illinois pledges and 28 agrees to those parties and persons which make loans of funds 29 to a county water commission that it will not impair or limit 30 the power or ability of a county water commission or a unit 31 of local government fully to carry out the terms of any 32 contract for the supply of water entered into by such county 33 water commission or unit of local government for the term of 34 such contracts or loans. -11- LRB9010990MWpc 1 (Source: P.A. 87-145.) 2 Section 99. Effective date. This Act takes effect upon 3 becoming law.
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