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90_SB0373sam001
SRS90SB0373PMsaam01
1 AMENDMENT TO SENATE BILL 373
2 AMENDMENT NO. . Amend Senate Bill 373, on page 1 by
3 replacing line 6 with the following:
4 "amended by changing Sections 3.1 and 3.6 as follows:"; and
5 on page 1 by inserting immediately below line 6 the
6 following:
7 (5 ILCS 220/3.1) (from Ch. 127, par. 743.1)
8 Sec. 3.1. (a) Any municipality or municipalities of this
9 State, any county or counties of this State, any township in
10 a county with a population under 700,000 of this State, any
11 public water district or districts of this State, or any
12 combination thereof may, by intergovernmental agreement,
13 establish a Municipal Joint Action Water Agency to provide
14 adequate supplies of water on an economical and efficient
15 basis for member municipalities, public water districts and
16 other incorporated and unincorporated areas within such
17 counties. For purposes of this Act, the water supply may only
18 be derived from Lake Michigan, or the Mississippi River, or
19 the Missouri River. Any such Agency shall itself be a
20 municipal corporation, public body politic and corporate. A
21 Municipal Joint Action Water Agency so created shall not
22 itself have taxing power except as hereinafter provided.
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1 A Municipal Joint Action Water Agency shall be
2 established by an intergovernmental agreement among the
3 various member municipalities, public water districts,
4 townships, and counties, upon approval by an ordinance
5 adopted by the corporate authorities of each member
6 municipality, public water district, township, or county.
7 This agreement may be amended at any time upon the adoption
8 of concurring ordinances by the corporate authorities of all
9 member municipalities, public water districts, townships, and
10 counties. The agreement may provide for additional
11 municipalities, public water districts, townships in counties
12 with a population under 700,000, or counties to join the
13 Agency upon adoption of an ordinance by the corporate
14 authorities of the joining municipality, public water
15 district, township, or county, and upon such consents,
16 conditions and approvals of the governing body of the
17 Municipal Joint Action Water Agency and of existing member
18 municipalities, public water districts, townships, and
19 counties as shall be provided in the agreement. The
20 agreement shall provide the manner and terms on which any
21 municipality, public water district, township, or county may
22 withdraw from membership in the Municipal Joint Action Water
23 Agency and on which the Agency may terminate and dissolve in
24 whole or in part. The agreement shall set forth the
25 corporate name of the Municipal Joint Action Water Agency and
26 its duration. Promptly upon any agreement establishing a
27 Municipal Joint Action Water Agency being entered into, or
28 upon the amending of any such agreement, a copy of such
29 agreement or amendment shall be filed in the office of the
30 Secretary of State of Illinois. Promptly upon the addition
31 or withdrawal of any municipality, public water district,
32 township in a county with a population under 700,000, or
33 county, or upon the dissolution of a Municipal Joint Action
34 Water Agency, that fact shall be certified by an officer of
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1 the Agency to the Secretary of State of Illinois.
2 (b) The governing body of any Municipal Joint Action
3 Water Agency established pursuant to this Section 3.1 shall
4 be a Board of Directors. There shall be one Director from
5 each member municipality, public water district, township,
6 and county of the Municipal Joint Action Water Agency
7 appointed by ordinance of the corporate authorities of the
8 municipality, public water district, township, or county.
9 Each Director shall have one vote. Each Director shall be the
10 Mayor or President of the member municipality, or the
11 chairman of the board of trustees of the member public water
12 district, the supervisor of the member township, or the
13 chairman of the county board or chief executive officer of
14 the member county or a county board member appointed by the
15 chairman of the county board of the member county, appointing
16 the Director; an elected member of the corporate authorities
17 of that municipality, public water district, township, or
18 county; or other elected official of the appointing
19 municipality, public water district, township, or county.
20 Any agreement establishing a Municipal Joint Action Water
21 Agency shall specify the period during which a Director shall
22 hold office and may provide for the appointment of Alternate
23 Directors from member municipalities, public water districts,
24 townships, or counties. The Board of Directors shall elect
25 one Director to serve as Chairman, and shall elect persons,
26 who need not be Directors, to such other offices as shall be
27 designated in the agreement.
28 The Board of Directors shall determine the general policy
29 of the Municipal Joint Action Water Agency, shall approve the
30 annual budget, shall make all appropriations (which may
31 include appropriations made at any time in addition to those
32 made in any annual appropriation document), shall approve all
33 contracts for the purchase or sale of water, shall adopt any
34 resolutions providing for the issuance of bonds or notes by
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1 the Agency, shall adopt its by-laws, rules and regulations,
2 and shall have such other powers and duties as may be
3 prescribed in the agreement. Such agreement may further
4 specify those powers and actions of the Municipal Joint
5 Action Water Agency which shall be authorized only upon votes
6 of greater than a majority of all Directors or only upon
7 consents of the corporate authorities of a certain number of
8 member municipalities, public water districts, townships, or
9 counties.
10 The agreement may provide for the establishment of an
11 Executive Committee to consist of the municipal manager or
12 other elected or appointed official of each member
13 municipality, public water district, township, or county, as
14 designated by ordinance from time to time by the corporate
15 authorities of the member municipality, public water
16 district, township, or county, and may prescribe powers and
17 duties of the Executive Committee for the efficient
18 administration of the Agency.
19 (c) A Municipal Joint Action Water Agency established
20 pursuant to this Section 3.1 may plan, construct, improve,
21 extend, acquire, finance (including the issuance of revenue
22 bonds or notes as provided in this Section 3.1), operate,
23 maintain, and contract for a joint waterworks or water supply
24 system which may include, or may consist of, without
25 limitation, facilities for receiving, storing, and
26 transmitting water from any source for supplying water to
27 member municipalities, public water districts, townships, or
28 counties (including county special service areas created
29 under the Special Service Area Tax Act and county service
30 areas authorized under the Counties Code), or other public
31 agencies, persons, or corporations. Facilities of the
32 Municipal Joint Action Water Agency may be located within or
33 without the corporate limits of any member municipality.
34 A Municipal Joint Action Water Agency shall have such
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1 powers as shall be provided in the agreement establishing it,
2 which may include, but need not be limited to, the following
3 powers:
4 (i) to sue or be sued;
5 (ii) to apply for and accept gifts or grants or
6 loans of funds or property or financial or other aid from
7 any public agency or private entity;
8 (iii) to acquire, hold, sell, lease as lessor or
9 lessee, transfer or dispose of such real or personal
10 property, or interests therein, as it deems appropriate
11 in the exercise of its powers, and to provide for the use
12 thereof by any member municipality, public water
13 district, township, or county;
14 (iv) to make and execute all contracts and other
15 instruments necessary or convenient to the exercise of
16 its powers (including contracts with member
17 municipalities, with public water districts, with
18 townships, and with counties on behalf of county service
19 areas); and
20 (v) to employ agents and employees and to delegate
21 by resolution to one or more of its Directors or officers
22 such powers as it may deem proper.
23 Member municipalities, public water districts, townships,
24 or counties may, for the purposes of, and upon request by,
25 the Municipal Joint Action Water Agency, exercise the power
26 of eminent domain available to them, convey property so
27 acquired to the Agency for the cost of acquisition, and be
28 reimbursed for all expenses related to this exercise of
29 eminent domain power on behalf of the Agency.
30 All property, income and receipts of or transactions by a
31 Municipal Joint Action Water Agency shall be exempt from all
32 taxation, the same as if it were the property, income or
33 receipts of or transaction by the member municipalities,
34 public water districts, townships, or counties.
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1 (d) A Municipal Joint Action Water Agency established
2 pursuant to this Section 3.1 shall have the power to buy
3 water and to enter into contracts with any person,
4 corporation or public agency (including any member
5 municipality, public water district, township, or county) for
6 that purpose. Any such contract made by an Agency for a
7 supply of water may contain provisions whereby the Agency is
8 obligated to pay for the supply of water without setoff or
9 counterclaim and irrespective of whether the supply of water
10 is ever furnished, made available or delivered to the Agency
11 or whether any project for the supply of water contemplated
12 by any such contract is completed, operable or operating and
13 notwithstanding any suspension, interruption, interference,
14 reduction or curtailment of the supply of water from such
15 project. Any such contract may provide that if one or more
16 of the other purchasers defaults in the payment of its
17 obligations under such contract or a similar contract made
18 with the supplier of the water one or more of the remaining
19 purchasers party to such contract or such similar contract
20 shall be required to pay for all or a portion of the
21 obligations of the defaulting purchasers. No such contract
22 may have a term in excess of 50 years.
23 A Municipal Joint Action Water Agency shall have the
24 power to sell water and to enter into contracts with any
25 person, corporation or public agency (including any member
26 municipality, any public water district, any township, or any
27 county on behalf of a county service area as set forth in
28 this Section) for that purpose. No such contract may have a
29 term in excess of 50 years. Any such contract entered into
30 to sell water to a public agency may provide that the
31 payments to be made thereunder by such public agency shall be
32 made solely from revenues to be derived by such public agency
33 from the operation of its waterworks system or its combined
34 waterworks and sewerage system. Any public agency so
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1 contracting to purchase water shall establish from time to
2 time such fees and charges for its water service or combined
3 water and sewer service as will produce revenues sufficient
4 at all times to pay its obligations to the Agency under the
5 purchase contract. Any such contract so providing shall not
6 constitute indebtedness of such public agency so contracting
7 to buy water within the meaning of any statutory or
8 constitutional limitation. Any such contract of a public
9 agency to buy water shall be a continuing, valid and binding
10 obligation of such public agency payable from such revenues.
11 A Municipal Joint Action Water Agency shall establish
12 fees and charges for the purchase of water from it or for the
13 use of its facilities. No prior appropriation shall be
14 required by either the Municipal Joint Action Water Agency or
15 any public agency before entering into any contract
16 authorized by this paragraph (d).
17 The changes in this Section made by this amendatory Act
18 of 1984 are intended to be declarative of existing law.
19 (e) 1. A Municipal Joint Action Water Agency established
20 pursuant to this Section 3.1 may, from time to time, borrow
21 money and, in evidence of its obligation to repay the
22 borrowing, issue its negotiable water revenue bonds or notes
23 pursuant to this paragraph (e) for any of the following
24 purposes: for paying costs of constructing, acquiring,
25 improving or extending a joint waterworks or water supply
26 system; for paying other expenses incident to or incurred in
27 connection with such construction, acquisition, improvement
28 or extension; for repaying advances made to or by the Agency
29 for such purposes; for paying interest on the bonds or notes
30 until the estimated date of completion of any such
31 construction, acquisition, improvement or extension and for
32 such period after the estimated completion date as the Board
33 of Directors of the Agency shall determine; for paying
34 financial, legal, administrative and other expenses of the
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1 authorization, issuance, sale or delivery of bonds or notes;
2 for paying costs of insuring payment of the bonds or notes;
3 for providing or increasing a debt service reserve fund with
4 respect to any or all of the Agency's bonds or notes; and for
5 paying, refunding or redeeming any of the Agency's bonds or
6 notes before, after or at their maturity, including paying
7 redemption premiums or interest accruing or to accrue on such
8 bonds or notes being paid or redeemed or for paying any other
9 costs in connection with any such payment or redemption.
10 2. Any bonds or notes issued pursuant to this paragraph
11 (e) by a Municipal Joint Action Water Agency shall be
12 authorized by a resolution of the Board of Directors of the
13 Agency adopted by the affirmative vote of Directors from a
14 majority of the member municipalities, public water
15 districts, townships, and counties, and any additional
16 requirements as may be set forth in the agreement
17 establishing the Agency. The authorizing resolution may be
18 effective immediately upon its adoption. The authorizing
19 resolution shall describe in a general way any project
20 contemplated to be financed by the bonds or notes, shall set
21 forth the estimated cost of the project and shall determine
22 its period of usefulness. The authorizing resolution shall
23 determine the maturity or maturities of the bonds or notes,
24 the rate or rates at which the bonds or notes are to bear
25 interest and all the other terms and details of the bonds or
26 notes. All such bonds or notes shall mature within the
27 period of estimated usefulness of the project with respect to
28 which such bonds or notes are issued, as determined by the
29 Board of Directors, but in any event not more than 50 years
30 from their date of issue. The bonds and notes may bear
31 interest, payable at such times, at a rate or rates not
32 exceeding the maximum rate established in the Bond
33 Authorization Act, as from time to time in effect. Bonds or
34 notes of a Municipal Joint Action Water Agency shall be sold
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1 in such manner as the Board of Directors of the Agency shall
2 determine, either at par or at a premium or discount, but
3 such that the effective interest cost (excluding any
4 redemption premium) to the Agency of the bonds or notes shall
5 not exceed a rate equal to the rate of interest specified in
6 the Act referred to in the preceding sentence.
7 The resolution authorizing the issuance of any bonds or
8 notes pursuant to this paragraph (e) shall constitute a
9 contract with the holders of the bonds and notes. The
10 resolution may contain such covenants and restrictions with
11 respect to the purchase or sale of water by the Agency and
12 the contracts for such purchases or sales, the operation of
13 the joint waterworks system or water supply system, the
14 issuance of additional bonds or notes by the Agency, the
15 security for the bonds and notes, and any other matters, as
16 may be deemed necessary or advisable by the Board of
17 Directors to assure the payment of the bonds or notes of the
18 Agency.
19 3. The resolution authorizing the issuance of bonds or
20 notes by a Municipal Joint Action Water Agency shall pledge
21 and provide for the application of revenues derived from the
22 operation of the Agency's joint waterworks or water supply
23 system (including from contracts for the sale of water by the
24 Agency) and investment earnings thereon to the payment of the
25 cost of operation and maintenance of the system (including
26 costs of purchasing water), to provision of adequate
27 depreciation, reserve or replacement funds with respect to
28 the system or the bonds or notes, and to the payment of
29 principal, premium, if any, and interest on the bonds or
30 notes of the Agency (including amounts for the purchase of
31 such bonds or notes). The resolution shall provide that
32 revenues of the Municipal Joint Action Water Agency so
33 derived from the operation of the system, sufficient
34 (together with other receipts of the Agency which may be
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1 applied to such purposes) to provide for such purposes, shall
2 be set aside as collected in a separate fund or funds and
3 used for such purposes. The resolution may provide that
4 revenues not required for such purposes may be used for any
5 proper purpose of the Agency or may be returned to member
6 municipalities.
7 Any notes of a Municipal Joint Action Water Agency issued
8 in anticipation of the issuance of bonds by it may, in
9 addition, be secured by a pledge of proceeds of bonds to be
10 issued by the Agency, as specified in the resolution
11 authorizing the issuance of such notes.
12 4. (i) Except as provided in clauses (ii) and (iii) of
13 this subparagraph 4 of this paragraph (e), all bonds and
14 notes of the Municipal Joint Action Water Agency issued
15 pursuant to this paragraph (e) shall be revenue bonds or
16 notes. Such revenue bonds or notes shall have no claim for
17 payment other than from revenues of the Agency derived from
18 the operation of its joint waterworks or water supply system
19 (including from contracts for the sale of water by the
20 Agency) and investment earnings thereon, from bond or note
21 proceeds and investment earnings thereon, or from such other
22 receipts of the Agency as the agreement establishing the
23 Agency may authorize to be pledged to the payment of revenue
24 bonds or notes, all as and to the extent as provided in the
25 resolution of the Board of Directors authorizing the issuance
26 of the revenue bonds or notes. Revenue bonds or notes issued
27 by a Municipal Joint Action Water Agency pursuant to this
28 paragraph (e) shall not constitute an indebtedness of the
29 Agency or of any member municipality, public water district,
30 township, or county within the meaning of any constitutional
31 or statutory limitation. It shall be plainly stated on each
32 revenue bond and note that it does not constitute an
33 indebtedness of the Municipal Joint Action Water Agency or of
34 any member municipality, public water district, township, or
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1 county within the meaning of any constitutional or statutory
2 limitation.
3 (ii) If the Agreement so provides and subject to the
4 referendum provided for in clause (iii) of this subparagraph
5 4 of this paragraph (e), the Municipal Joint Action Water
6 Agency may borrow money for corporate purposes on the credit
7 of the Municipal Joint Action Water Agency, and issue general
8 obligation bonds therefor, in such amounts and form and on
9 such conditions as it shall prescribe, but shall not become
10 indebted in any manner or for any purpose in an amount
11 including existing indebtedness in the aggregate which
12 exceeds 5.75% of the aggregate value of the taxable property
13 within the boundaries of the participating municipalities,
14 public water districts, townships, and county service areas
15 within a member county determined by the governing body of
16 the county by resolution to be served by the Municipal Joint
17 Action Water Agency (including any territory added to the
18 Agency after the issuance of such general obligation bonds),
19 collectively defined as the "Service Area", as equalized and
20 assessed by the Department of Revenue and as most recently
21 available at the time of the issue of said bonds. Before or
22 at the time of incurring any such general obligation
23 indebtedness, the Municipal Joint Action Water Agency shall
24 provide for the collection of a direct annual tax, which
25 shall be unlimited as to rate or amount, sufficient to pay
26 the interest on such debt as it falls due and also to pay and
27 discharge the principal thereof at maturity, which shall be
28 within 40 years after the date of issue thereof. Such tax
29 shall be levied upon and collected from all of the taxable
30 property within the territorial boundaries of such Service
31 Area at the time of the referendum provided for in clause
32 (iii) and shall be levied upon and collected from all taxable
33 property within the boundaries of any territory subsequently
34 added to the Service Area. Dissolution of the Municipal
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1 Joint Action Water Agency for any reason shall not relieve
2 the taxable property within such Service Area from liability
3 for such tax. Liability for such tax for property transferred
4 to or released from such Service Area shall be determined in
5 the same manner as for general obligation bonds of such
6 county, if in an unincorporated area, and of such
7 municipality, if within the boundaries thereof. The clerk or
8 other officer of the Municipal Joint Action Water Agency
9 shall file a certified copy of the resolution or ordinance by
10 which such bonds are authorized to be issued and such tax is
11 levied with the County Clerk or Clerks of the county or
12 counties containing the Service Area, and such filing shall
13 constitute, without the doing of any other act, full and
14 complete authority for such County Clerk or Clerks to extend
15 such tax for collection upon all the taxable property within
16 the Service Area subject to such tax in each and every year,
17 as required, in amounts sufficient to pay the principal of
18 and interest on such bonds, as aforesaid, without limit as to
19 rate or amount. Such tax shall be in addition to and in
20 excess of all other taxes authorized to be levied by the
21 Municipal Joint Action Water Agency or by such county,
22 municipality, township, or public water district. The
23 issuance of such general obligation bonds shall be subject to
24 the other provisions of this paragraph (e), except for the
25 provisions of clause (i) of this subparagraph 4.
26 (iii) No issue of general obligation bonds of the
27 Municipal Joint Action Water Agency (except bonds to refund
28 an existing bonded indebtedness) shall be authorized unless
29 the Municipal Joint Action Water Agency certifies the
30 proposition of issuing such bonds to the proper election
31 authorities, who shall submit the proposition to the voters
32 in the Service Area at an election in accordance with the
33 general election law, and the proposition has been approved
34 by a majority of those voting on the proposition.
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1 The proposition shall be substantially in the following
2 form:
3 -------------------------------------------------------------
4 Shall general obligation
5 bonds for the purpose of (state
6 purpose), in the sum not to
7 exceed $....(insert amount), Yes
8 be issued by the ......... ------------------------
9 (insert corporate name of the No
10 Municipal Joint Action Water
11 Agency)?
12 -------------------------------------------------------------
13 5. As long as any bonds or notes of a Municipal Joint
14 Action Water Agency created pursuant to this Section 3.1 are
15 outstanding and unpaid, the Agency shall not terminate or
16 dissolve and, except as permitted by the resolution or
17 resolutions authorizing outstanding bonds or notes, no member
18 municipality, public water district, township, or county may
19 withdraw from the Agency. While any such bonds or notes are
20 outstanding, all contracts for the sale of water by the
21 Agency to member municipalities, public water districts,
22 townships, or counties shall be irrevocable except as
23 permitted by the resolution or resolutions authorizing such
24 bonds or notes. The Agency shall establish fees and charges
25 for its operations sufficient to provide adequate revenues to
26 meet all of the requirements under its various resolutions
27 authorizing bonds or notes.
28 6. A holder of any bond or note issued pursuant to this
29 paragraph (e) may, in any civil action, mandamus or other
30 proceeding, enforce and compel performance of all duties
31 required to be performed by the Agency or such counties, as
32 provided in the authorizing resolution, or by any of the
33 public agencies contracting with the Agency to purchase
34 water, including the imposition of fees and charges, the
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1 collection of sufficient revenues and the proper application
2 of revenues as provided in this paragraph (e) and the
3 levying, extension and collection of such taxes.
4 7. In addition, the resolution authorizing any bonds or
5 notes issued pursuant to this paragraph (e) may provide for a
6 pledge, assignment, lien or security interest, for the
7 benefit of the holders of any or all bonds or notes of the
8 Agency, (i) on any or all revenues derived from the operation
9 of the joint waterworks or water supply system (including
10 from contracts for the sale of water) and investment earnings
11 thereon or (ii) on funds or accounts securing the payment of
12 the bonds or notes as provided in the authorizing resolution.
13 In addition, such a pledge, assignment, lien or security
14 interest may be made with respect to any receipts of the
15 Agency which the agreement establishing the Agency authorizes
16 it to apply to payment of bonds or notes. Any such pledge,
17 assignment, lien or security interest for the benefit of
18 holders of bonds or notes shall be valid and binding from the
19 time the bonds or notes are issued, without any physical
20 delivery or further act, and shall be valid and binding as
21 against or prior to any claims of any other party having any
22 claims of any kind against the Agency irrespective of whether
23 such other parties have notice of such pledge, assignment,
24 lien or security interest.
25 A resolution of a Municipal Joint Water Agency
26 authorizing the issuance of bonds or notes pursuant to this
27 paragraph (e) may provide for the appointment of a corporate
28 trustee with respect to any or all of such bonds or notes
29 (which trustee may be any trust company or state or national
30 bank having the power of a trust company within Illinois).
31 In that event, the resolution shall prescribe the rights,
32 duties and powers of the trustee to be exercised for the
33 benefit of the Agency and the protection of the holders of
34 such bonds or notes. The resolution may provide for the
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1 trustee to hold in trust, invest and use amounts in funds and
2 accounts created as provided in the resolution. The
3 resolution authorizing the bonds or notes may provide for the
4 assignment and direct payment to the trustee of amounts owed
5 by public agencies to the Municipal Joint Action Water Agency
6 under water sales contracts for application by the trustee to
7 the purposes for which such revenues are to be used as
8 provided in this paragraph (e) and as provided in the
9 authorizing resolution. Upon receipt of notice of such
10 assignment, the public agency shall thereafter make the
11 assigned payments directly to such trustee.
12 Nothing in this Section authorizes a Joint Action Water
13 Agency to provide water service directly to residents within
14 a municipality or in territory within one mile or less of the
15 corporate limits of a municipality that operates a public
16 water supply unless the municipality has consented in writing
17 to such service being provided.
18 (Source: P.A. 87-1126.)