70 ILCS 3705/ - Public Water District Act.

(70 ILCS 3705/0.01) (from Ch. 111 2/3, par. 187.9)

Sec. 0.01.
Short title.
This Act may be cited as the
Public Water District Act.

(Source: P.A. 86-1324.)

(70 ILCS 3705/1) (from Ch. 111 2/3, par. 188)

Sec. 1.

Any contiguous area in this State having a population of not more
than 500,000 inhabitants, which is so situated that the construction or
acquisition by purchase or otherwise and the maintenance, operation,
management and extension of waterworks properties within such area will be
conducive to the preservation of public health, comfort and convenience of
such area may be created into a public water district under and in the
manner provided by this Act. The words “waterworks properties” as used in
this Act shall mean and include any or all of the following: Wells,
springs, streams or other source of water supply, pumping equipment,
treatment or purification plants, distribution mains, cisterns, reservoirs,
necessary equipment for fire protection and other equipment, and lands,
rights of way and easements necessary for the proper development and
distribution of a supply of water for the use of said area and the
inhabitants thereof for compensation; provided, however, any public water
district created under this Act shall not have authority to construct,
acquire, maintain or operate a water distribution system in any city,
village or incorporated town located within such district, except as
hereinafter provided.

The term “sewerage properties” means and includes any or all of the
following: A sewerage treatment plant or plants, collecting, intercepting
and outlet sewers, lateral sewers, and drains, including combined storm
water and sanitary drains, force mains, conduits, pumping stations, ejector
stations and all other appurtenances, extensions and improvements
necessary, useful, or convenient for the collection, treatment, and
disposal in a sanitary manner of sewage and industrial wastes.

(Source: Laws 1951, p. 1615.)

(70 ILCS 3705/2) (from Ch. 111 2/3, par. 189)

Sec. 2.

Any 100 legal voters resident within the limits of any
proposed public water district may petition the circuit court for the
county in which the proposed district, or the major portion thereof is
located, to cause the question of the creation of such proposed district
under this Act to be submitted to the voters of the proposed district.
Such petition shall be addressed to such court and shall contain a
definite description of the boundaries of the territory to be embraced
in such district, and the name of such proposed district. Upon filing of
such petition in the office of the circuit clerk of the county in which
such territory, or the major portion thereof is situated, it shall be
the duty of the court to set a date for hearing on the petition, and it
shall be the duty of such court to give notice of the time and place of
the hearing on the petition by a publication inserted in one or more
daily or weekly papers published in such proposed district at least 20
days prior to the date set for such hearing, and if no newspaper is
published in such proposed district then by posting a notice of the time
and place of the hearing on the said petition in not less than 10 of the
most public places in the district at least 20 days prior to the date
for such hearing.

At such hearing all persons desiring to be heard shall have an
opportunity to be heard touching upon the location and boundary of such
proposed district, and to make suggestions regarding the same, and the
court after hearing statements, evidence and suggestions shall fix and
determine the limits and boundaries of such proposed district and to
that extent may alter and amend such petition. After such determination
by such court the same shall be incorporated in an order that shall be
filed of record in the court,
and forthwith the court
shall order the submission to the voters of the proposed public water
district the question of organization and establishment thereof at a regular
election in accordance with the general election law. The court shall certify
the question to the proper election officials, who shall submit
the question. The
notice of such referendum shall specify briefly
the purpose of such election, with a description of the boundaries of
such proposed district. The question shall be in substantially the following form:

————————————————————–

FOR public water district.

————————————————————–

AGAINST public water district.

————————————————————–

The court shall canvass the result of
the election and cause a written statement of the result of the election to be
filed of record in the court. If a majority
of the votes cast
upon the question of the creation of the proposed public water district
shall be in favor thereof such district shall forthwith be deemed an
organized public water district, a public corporation, and a political
subdivision of the State, with power to own and hold property both real
and personal in its corporate name, to sue and be sued and to enter into
contracts necessary or incidental to its purposes, including contracts
with any city, village or incorporated town within or without its
boundaries for furnishing a supply of water for the distribution system
of any such city, village or incorporated town.

It shall be the duty of the circuit clerk to file a certified copy of
the order, entered by the court showing the
result of the referendum and the organization of the district, in the
office of the county clerk of each county in which any of the area of
such proposed district is located.

(Source: P.A. 83-343.)

(70 ILCS 3705/3) (from Ch. 111 2/3, par. 190)

Sec. 3.

All courts in this State shall take judicial notice of the
existence of all public water districts organized under this Act.

(Source: Laws 1945, p. 1187.)

(70 ILCS 3705/4) (from Ch. 111 2/3, par. 191)

Sec. 4.
A board of trustees consisting of 7 members for the
government, control and management of the affairs of the business of
each such water district organized under this Act shall be created in
the following manner:

(1) If the district lies wholly within a single township but does not also lie wholly within a municipality, the board of trustees of that township shall appoint the trustees for the district but no voting member of the township board is eligible for such appointment;
(2) If the district is wholly contained within a municipality, the governing body of the municipality shall appoint the trustees for the district;
(3) If the district is wholly contained within a single county, the trustees for the district shall be appointed by the presiding officer of the county board with the advice and consent of the county board;
(4) If the district is located in more than one county, the number of trustees who are residents of a county shall be in proportion, as nearly as practicable, to the number of residents of the district who reside in that county in relation to the total population of the district. Trustees shall be appointed by the county board of their respective counties, or in the case of a home rule county as defined by Article VII, Section 6 of the Constitution of 1970, by the chief executive officer of that county with the advice and consent of the county board.

Upon the expiration of the term of a trustee who is in office on the
effective date of this Amendatory Act of 1975, the successor shall be a
resident of whichever county is entitled to such representation in order
to bring about the proportional representation required herein, and he
shall be appointed by the appointing authority of that county.

Thereafter, each trustee shall be succeeded by a resident of the same
county who shall be appointed by the same appointing authority; however,
the provisions of the preceding paragraph shall apply to the appointment
of the successor to each trustee who is in office at the time of the
publication of each decennial Federal census of population.

Within 60 days after the adoption of this Act as provided in Section
2 hereof, the appropriate appointing authority shall appoint 7 trustees
who shall hold that office respectively one for one, one for 2, one for
3, 2 for 4 and 2 for 5 years from the first Monday of May next after
their appointment as designated by the appointing authority at the time
of appointment and until their successors are appointed and have
qualified. Thereafter on or after the first Monday in May of each year
the appointing authority shall appoint successors whose term shall be
for 5 years commencing the first Monday in May of the year they are
respectively appointed. If the circuit court finds that the size,
number of members, and scale of operations of the water district
justifies a Board of Trustees of less than 7 members he shall rule that
such board shall have 3 or 5 members. Initial appointments to a 3
member board shall be as follows: one for one, one for 2, and one for 3
years. Initial appointments to a 5 member board shall be as follows:
one for one, one for 2, one for 3, one for 4 and one for 5 years. In
each such case the term of office and method of appointing successors
shall be as provided in this Section for 7 member boards. The
appointing authority shall require each of such trustees to enter a bond
with security to be approved by the appointing authority in such sum as
such appointing authority may determine. A majority of the Board of
Trustees shall constitute a quorum, but a smaller number may adjourn
from day to day. No trustee or employee of such district shall be
directly or indirectly interested in any contract, work or business of
the district or the sale of any article, the expense, price or
consideration of which is paid by such district, nor in the purchase of
any real estate or property for or belonging to the district.

An appointing authority may remove a public water district trustee it appointed for misconduct, official misconduct, or neglect of office.

Whenever a vacancy in such board of trustees shall occur either from
death, resignation, removal, refusal to qualify, or for any other reason, the
appointing authority shall have power to fill such vacancy by
appointment. Such persons so appointed or qualified for office in the
manner hereinbefore stated shall thereupon assume the duties of the
office for the unexpired term for which such person was appointed.

For terms commencing before the effective date of this amendatory Act of the 96th General Assembly, the trustees appointed under this Act shall be paid
a sum of not to exceed $600 per annum for their respective duties as
trustees, except that trustees of a district with an annual operating budget
of $1,000,000 or more may be paid a sum not to exceed $1,000 per annum.
For terms commencing on or after the effective date of this amendatory Act of the 96th General Assembly, the trustees shall be paid a sum of not to exceed $1,200 per annum. However, trustees appointed under this Act for any public
water district which acquires by purchase or condemnation, or
constructs, and maintains and operates sewerage properties in
combination with its waterworks
properties, under the provisions of Section 23a of this Act,
shall be paid a sum of not to exceed $2,000 per annum for their
respective duties as trustees. Compensation in either case
shall be determined by resolution of the
respective boards of trustees, to be adopted annually at their
first meeting in May.

Any public water district organized under this Act with a board of
trustees consisting of 7 members may have the size of its board reduced
as provided in Section 4.1.

(Source: P.A. 100-737, eff. 8-7-18.)

(70 ILCS 3705/4.1) (from Ch. 111 2/3, par. 191a)

Sec. 4.1.

A public water district organized under this
Act with a board of trustees consisting of 7 members may have
the size of its board reduced to 5 or 3 members in accordance with
this Section.

The board of trustees of any such district may adopt a
resolution stating that the size and scope of operations of the district
justifies a board of fewer than 7 members and that, in the judgment
of the board, the size of the board should be reduced to 5 or 3
members, as the case may be.

Upon the adoption of such a resolution, the board shall
petition the circuit court for the county in which the district, or
the major portion thereof, is located for a reduction in the number of
members of the board of trustees of the district to 5 or 3, as the case
may be. In conjunction with the petition, the board may submit to the
court a suggested transitional schedule designed to effectuate the
transition from a 7 member to a 5 member or 3 member board, as the
case may be, with a minimum disruption of existing terms of office.

Upon the filing of such petition in the office of the clerk
of the circuit court, the court shall set a date for hearing on the
petition and shall give notice of the time and place of the hearing
in the same manner as is provided in Section 2 for notice of a hearing
on a petition relating to the creation of a district.

If upon the hearing, the court finds that the size, number of
members, and scale of operations of the water district justifies a
board of trustees of less than 7 members, it shall enter an order
reducing the size of the board to 5 or 3 members, as the case may be.
The order shall include a transitional
schedule governing the transition to a smaller board, which shall be
so arranged that at the conclusion of the transition the term of
office of no more than one trustee shall expire in any one calendar year.

(Source: P.A. 79-528.)

(70 ILCS 3705/4.2) (from Ch. 111 2/3, par. 191.2)

Sec. 4.2.
Referendum to elect trustees; vacancies.

(a) A public water district organized under this Act may determine, as
provided in this Section, to have an elected rather than appointed board
of trustees.

(b) Upon presentation to the board of trustees of a petition signed by
not fewer than 100 of the electors of the district requesting that a
proposition for the election of trustees be submitted to the electors of
the district, the secretary of the board of trustees shall certify the
proposition to the appropriate election authorities, who shall submit the
proposition at a regular election in accordance with the general election
law. The proposition shall be in substantially the following form:

Shall the trustees of (name of public water district) be elected, rather than appointed?

If a majority of the votes cast on the proposition are in the
affirmative, the trustees of the district shall thereafter be elected as
provided by this Section.

(c) There shall be 7 elected trustees, except that if the size of the
board has been reduced under Section 4.1, there shall be that reduced number
of elected trustees. Each trustee must be a resident of the district. No
party designation shall appear on the ballot for election of
trustees. The first election of trustees shall be at the next nonpartisan
election held after approval of the proposition as provided in subsection
(b), and trustees shall be elected at each nonpartisan election thereafter
as provided in this Section.

(d)(1) In the case of a 7 member board, the length of the terms of the initial elected trustees shall be determined by lot at their first meeting so that 3 of the initial elected trustees shall serve for terms of 2 years and 4 shall serve for terms of 4 years. Thereafter, each elected trustee shall serve for a term of 4 years.

(2) In the case of a 5 member board, the length of the terms of the initial elected trustees shall be determined by lot at their first meeting so that 2 of the initial elected trustees shall serve for terms of 2 years and 3 shall serve for terms of 4 years. Thereafter, each elected trustee shall serve for a term of 4 years.
(3) In the case of a 3 member board, the length of the terms of the initial elected trustees shall be determined by lot at their first meeting so that one of the initial elected trustees shall serve for a term of 2 years and 2 shall serve for terms of 4 years. Thereafter, each elected trustee shall serve for a term of 4 years.
(4) The term of each elected trustee shall commence on the first Monday of the month following the month of his or her election.

(e) Whenever a district determines to elect trustees as provided in this
Section the trustees appointed under Section 4 shall continue to
constitute the board of trustees until the first Monday of the month
following the month of the initial election of trustees or until successors
have been elected and have qualified, whichever occurs later. If the term
of office of any appointed trustee expires before the initial election of
trustees, the authority that appointed that trustee under Section 4 shall
appoint a trustee to serve until a successor is elected and has qualified.

(f) Whenever a vacancy in an elected board of trustees occurs, whether by
death, resignation, refusal to qualify, or for any other reason, the
remaining trustees shall fill the vacancy by appointment, and the person so
appointed shall assume the duties of the office for the unexpired term of
the office to which he or she was appointed.

(Source: P.A. 87-407.)

(70 ILCS 3705/5) (from Ch. 111 2/3, par. 192)

Sec. 5.

The trustees appointed in pursuance of the foregoing provisions of
this Act shall constitute a board of trustees for the district for which
they are appointed. Such board of trustees is hereby declared to be the
corporate authority of such district and shall exercise all the powers,
manage and control all the affairs and properties of such district, and
shall have power to adopt a corporate seal for such district.

Such board of trustees shall within twenty days after their appointment
and at the first meeting in May of each year thereafter elect one of their
number as Chairman, one of their number as Vice Chairman, and shall elect a
Secretary and a Treasurer, neither of which shall be members of the board
of trustees. They shall each perform such duties and shall receive such
salaries as shall be prescribed by the board, and shall be required to
furnish bonds in such sum as may be fixed by the board of trustees for the
use and benefit of the district.

(Source: Laws 1945, p. 1187.)

(70 ILCS 3705/5a) (from Ch. 111 2/3, par. 192a)

Sec. 5a.

The board of trustees of any public water district organized
under this Act may, not less than 60 days preceding any regular
election, request the proper election official of the county wherein the major
portion of the district is located, to cause to be submitted to the
voters of such district at such election the proposition to authorize
such board of trustees to levy annually, for a period of not more than
10 years, a tax of not to exceed .02% of the value, as equalized or
assessed by the Department of Revenue, of the taxable
property in the district, to be used for the corporate purposes of the
district. The board shall certify the proposition to the election official
who shall immediately notify the election official of any
other county whose territory is part of such public water district and
each such official shall cause such proposition to be submitted at such
election in accordance with the general election law.

If a majority of the votes cast on such proposition is in favor
thereof, the board of trustees may thereafter levy such tax as
authorized.

(Source: P.A. 81-1489; 81-1509.)

(70 ILCS 3705/6) (from Ch. 111 2/3, par. 193)

Sec. 6.

The board of trustees may in its discretion from time to time by
resolution passed by a majority vote provide for the appointment of an
attorney, one or more engineers, and such other officers as said Board may
determine necessary and expedient. The board shall in and by such
resolution fix the term of office, compensation and prescribe the duties to
be performed by such officers.

(Source: Laws 1945, p. 1187.)

(70 ILCS 3705/7) (from Ch. 111 2/3, par. 194)

Sec. 7.
The board of trustees may appoint a general manager to serve
a term of five years and until his successor is appointed, and his
compensation shall be fixed by resolution of the board. Such general
manager shall devote his time exclusively to the affairs of the
district, and shall have power to employ, discharge and fix the
compensation of all employees of the district, except as in this Act
otherwise provided, and he shall perform and exercise such other powers
and duties as may be conferred upon him by the Board of Trustees.

Such general manager shall be chosen without regard to his political
affiliation and upon the sole basis of his administrative and technical
qualifications to manage the waterworks properties and affairs of the
district, and he may be discharged at a meeting of the board of trustees upon a majority vote of the members. Such general manager need not be a resident of the district
at the time he is chosen.

(Source: P.A. 100-172, eff. 8-18-17.)

(70 ILCS 3705/7.1) (from Ch. 111 2/3, par. 194.1)

Sec. 7.1.

The board of trustees of any public water district created
under this Act may provide for the participation of that district in the
Illinois Municipal Retirement Fund as a participating instrumentality subject
to the approval of the Board of Trustees of the Illinois Municipal Retirement
Fund as provided in Section 7-132 of the Illinois Pension Code.

Any such district which does participate in the Illinois Municipal Retirement
Fund may use moneys of the district to pay municipality contributions required
of it in relation to such participation and the cost of such contributions
shall be included in the cost of maintenance and operation of the properties
of the district for the purpose of setting rates and charges for the use
and service of such properties.

(Source: P.A. 81-631.)

(70 ILCS 3705/7.2) (from Ch. 111 2/3, par. 194.2)

Sec. 7.2.

Purchases made pursuant to this Act shall be made in
compliance with the “Local Government Prompt Payment Act”, approved by the
Eighty-fourth General Assembly.

(Source: P.A. 84-731.)

(70 ILCS 3705/7.3)

Sec. 7.3. Boil order; notification of certified local public health department required. If a public water district issues a boil order, then the district must notify any certified local public health department that serves an area subject to the boil order as soon as is practical, but no later than 2 hours after issuing the order. In addition to the initial notice, the district must provide, to any affected certified local public health department, a written notification within 24 hours after issuing the boil order. The written notification must include the estimated duration of the order or warning and the geographic area covered by the order or warning.

(Source: P.A. 93-1020, eff. 8-24-04.)

(70 ILCS 3705/7.4)

Sec. 7.4. Billing for services.

(a) On or after the effective date of this amendatory Act of the 100th General Assembly, a public water district:

(1) shall bill for any utility service, including previously unbilled service: (A) within 12 months after the provision of that service to the customer if the service is supplied to a residential customer; or (B) within 24 months after the provision of that service to that customer if the service is supplied to a non-residential customer; however, the public water district may bill for unpaid amounts that were billed to a customer or if the customer was notified that there is an unpaid amount before the effective date of this amendatory Act of the 100th General Assembly for service that was supplied to the customer before January 1, 2016;
(2) shall not intentionally delay billing beyond the normal billing cycle;
(3) shall label any amount attributed to previously unbilled service as such on the customer’s bill and include the beginning and ending dates for the period during which the previously unbilled amount accrued;
(4) shall issue the makeup billing amount calculated on a prorated basis to reflect the varying rates for previously unbilled service accrued over a period of time when the rates for service have varied; and
(5) shall provide the customer with the option of a payment arrangement to retire the makeup bill for previously unbilled service by periodic payments, without interest or late fees, over a time equal to the amount of time the billing was delayed.

(b) The time limit of paragraph (1) of subsection (a) shall not apply to previously unbilled service attributed to tampering, theft of service, fraud, or the customer preventing the utility’s recorded efforts to obtain an accurate reading of the meter.

(Source: P.A. 100-178, eff. 8-18-17.)

(70 ILCS 3705/8) (from Ch. 111 2/3, par. 195)

Sec. 8. Whenever the board of trustees of any public water district shall
pass an ordinance for the construction or acquisition of any waterworks
properties or improvements or extensions which such district is authorized
to make, the making of which will require that private property be taken or
damaged, such district may cause compensation therefor to be ascertained
and may condemn and acquire possession thereof in the same manner as nearly
as may be as provided for the exercise of the right
of eminent domain under the Eminent Domain Act; provided,
however, that proceedings to ascertain the compensation to be paid for
taking or damaging private property shall in all cases be instituted in the
county where the property sought to be taken or damaged is situated.

(Source: P.A. 94-1055, eff. 1-1-07.)

(70 ILCS 3705/9) (from Ch. 111 2/3, par. 196)

Sec. 9. Every public water district organized under this Act and every non-profit private water company is
authorized to construct, maintain, alter and extend its water mains and wastewater lines as a
proper use of highways along, upon, under and across any highway, street,
alley or public ground in the State, but so as not to inconvenience the
public use thereof, and the right and authority are hereby granted to any
such district or non-profit private water company to construct, maintain and operate any conduit or conduits,
water pipe or pipes, wholly or partially buried or otherwise in, upon and
along any of the lands owned by said State under any of the public waters
therein; provided that the right, permission and authority hereby granted
shall be subject to all public rights of commerce and navigation and the
authority of the United States in behalf of such public rights, and also to
the laws of the State of Illinois to regulate and control the same.

(Source: P.A. 100-254, eff. 8-22-17.)

(70 ILCS 3705/10) (from Ch. 111 2/3, par. 197)

Sec. 10.

Any public water district formed hereunder shall have the right to
supply water to any municipality, political subdivision, private person or
corporation located outside the limits of said district upon such payment,
terms and conditions as may be mutually agreed upon, provided the water is
delivered by such district to such party or parties at the corporate limits
of such district or from such waterworks properties of such district
located outside the district that have been constructed or acquired as
necessary and incidental to the furnishing of water to the inhabitants of
said district.

(Source: Laws 1945, p. 1187.)

(70 ILCS 3705/11) (from Ch. 111 2/3, par. 198)

Sec. 11. The board of trustees of any such public water district has
the supervision and control of all waterworks properties acquired or
constructed by the district and has the power and the duty to maintain,
operate, extend and improve the same. The board of trustees also has the
power to sell and dispose of property, real and personal, that is no
longer needed for its purposes. Except as otherwise provided in this
Section all contracts involving the expenditure
by the district of more than $20,000 for construction work or for the
purchase of equipment as improvements, extensions or replacements shall
be entered into only after notice inviting bids shall have been
published in a newspaper published in the district, and if there is no
such newspaper, in a newspaper published in the county and having general
circulation in the district at least once not less than 10 days prior to
the date of making any such contract. Any obligations incurred by the
district of any kind or character whatsoever shall not in any event
constitute and be deemed an indebtedness within the meaning of any of the
provisions or limitations of the constitution or of any statute, but all
such obligations are payable solely and only out of revenues derived from
the operation of the waterworks properties of the district or from the
proceeds of bonds issued, as hereinafter provided. No continuing contract
for the purchase of materials or supplies (including a contract for a
supply of water) or furnishing the district with energy or power for
pumping or for the supply of water to any city, village or incorporated
town, shall be entered into for a longer period than 40 years.

Contracts for a supply of water shall not be subject to such provisions
for public bidding. No prior appropriation shall be required before
entering into such a contract for a supply of water and no appropriation
shall be required to authorize payments to be made under the terms of any
such contract. Payment to be made under any such supply contract shall be
an operation and maintenance expense of the waterworks system of the
district. Any such contract made by a district for a supply of water may
contain provisions whereby the district is obligated to pay for such supply
of water without setoff or counterclaim and irrespective of whether such supply
of water is ever furnished, made available or delivered to the district or
whether any project for the supply of water contemplated by any such
contract is completed, operable or operating and notwithstanding any
suspension, interruption, interference, reduction or curtailment of the
supply of water from such project. Any such contract may provide that if
one or more of the other purchasers of water defaults in the payment of its
obligations under such contract or a similar contract made with the
supplier of the water, one or more of the remaining purchasers party to
such contract or such similar contract shall be required to pay for all or
a portion of the obligations of the defaulting purchasers.

In the event of an emergency affecting or threatening the public health or safety, in order to maintain the safety and adequacy of service to the district’s customers, the general manager, with the consent of the board chairman or vice chairman, may enter into contracts for necessary construction work or for the purchase of supplies, materials, or equipment without public advertisement. The general manager shall make a full written report to the board of trustees detailing the nature of the emergency, the responsive action taken by the general manager, and the contracts made to resolve the emergency.

(Source: P.A. 95-50, eff. 8-10-07.)

(70 ILCS 3705/12) (from Ch. 111 2/3, par. 199)

Sec. 12.

The board of trustees of any public water district organized
hereunder is authorized to acquire either by purchase or condemnation, and
to maintain, operate and to improve and extend such waterworks properties
within such district as the board of trustees may determine to be conducive
to the preservation of public health, comfort and convenience of such area,
and shall have power to make, enact and enforce all needful rules and
regulations in connection with the acquisition of any waterworks properties
or to the construction thereof, the improvement, extension, management,
maintenance, operation, care, protection and the use thereof, and it shall
be the duty of such board to establish rates and charges for water and
water service, which shall be sufficient at all times to pay the cost of
maintenance and operation, depreciation, and principal of and interest on
all bonds issued and other obligations incurred under the provisions of
Sections 1 through 23 of this Act.

(Source: Laws 1951, p. 1615.)

(70 ILCS 3705/12.5)

Sec. 12.5. Eminent domain. Notwithstanding any other provision of this Act, any power granted under this Act to acquire property by condemnation or eminent domain is subject to, and shall be exercised in accordance with, the Eminent Domain Act.

(Source: P.A. 94-1055, eff. 1-1-07.)

(70 ILCS 3705/13) (from Ch. 111 2/3, par. 200)

Sec. 13.

The board of trustees shall establish the beginning and ending of
the fiscal year for the district, which shall constitute its budget year,
and at least thirty days prior to the beginning of the first full fiscal
year after the creation of the district, and annually thereafter, the
general manager shall prepare and submit to the board a tentative budget
which shall include all operation and maintenance expenses for the ensuing
fiscal year. Such tentative budget shall be considered by the board and be
subject to any revisions or amendments as may be determined by such Board,
shall be adopted as the budget for the ensuing fiscal year, and no
expenditures for operation and maintenance expenses in excess of the budget
shall be made during such fiscal year, unless unanimously authorized and
directed by the board. It shall not be necessary to include in such budget
any statement of necessary expenditures for interest or principal payments
on bonds or for capital outlays, but it shall be the duty of the Board to
make provision for their payment as they become due.

(Source: Laws 1945, p. 1187.)

(70 ILCS 3705/14) (from Ch. 111 2/3, par. 201)

Sec. 14. It shall be the duty of the board of trustees to install and
maintain a proper system of accounts showing receipts from operation and
the application of the same, and the board shall at least once a year cause
such accounts to be properly audited by a licensed Certified Public Accountant permitted to perform audits under the Illinois Public Accounting Act.

(Source: P.A. 94-465, eff. 8-4-05.)

(70 ILCS 3705/15) (from Ch. 111 2/3, par. 202)

Sec. 15.

No money shall be paid out of the treasury of the district, except
upon an order signed by the Chairman and Secretary of the board. Such order
shall specify the purpose for which the amount thereof is to be paid, with
sufficient clearness to indicate the purpose for which the order is issued,
and the name of the particular fund out of which it is payable, and it
shall be payable from the fund constituted for such purpose and no other.

(Source: Laws 1945, p. 1187.)

(70 ILCS 3705/16) (from Ch. 111 2/3, par. 203)

Sec. 16.

In order to pay the cost of the acquisition by condemnation,
purchase or otherwise of any waterworks properties, and the improvement or
extension from time to time thereof, including engineering and all other
expenses, and also for reimbursing or paying the costs and expenses of
creating the district, the board of trustees of any such district is
authorized to issue and sell revenue bonds of the district payable solely
from the income and revenue derived from the operation of the waterworks
properties of such district, and may also from time to time issue revenue
bonds to refund any bonds at maturity or pursuant to redemption provisions,
or at any time before maturity with consent of the holders thereof. All
such bonds shall be authorized by ordinance to be adopted by the board of
trustees, shall bear such date or dates, mature at such time or times not
exceeding 40 years from their respective dates, may bear interest at such
rate or rates not exceeding the greater of (i) the maximum rate
authorized by the Bond Authorization Act, as amended at the time of the
making of the contract,
or (ii) 8% per annum, payable semi-annually,
may be in
such form, may carry such registration privileges, may be executed in such
manner, may be payable at such place or places, may be subject to
redemption in such manner, and upon such terms with or without premium as
is stated on the face thereof, and may be executed in such manner by such
officers of such district, and may contain such terms and covenants, all as
provided by the ordinance authorizing their issue.

Such bonds shall be sold in such manner as the board of trustees shall
determine, and if issued to bear interest at the greater of (i) the maximum rate
authorized by the Bond Authorization Act, as amended at the time of the
making of the contract, or
(ii) the rate of 8% per annum,
shall be sold for not less than par and accrued interest. However, the
selling price of any bonds bearing less than the greater of (i) the
maximum rate authorized
by the Bond Authorization Act, as amended at the time of the making of the
contract, or (ii) 8%
interest shall be such that
the interest cost of the money received from the sale of the bonds shall
not exceed the greater of (i) the maximum rate authorized by the Bond
Authorization Act, as amended
at the time of the making of the contract, or (ii) 8% per annum, computed to absolute
maturity, according to
standard tables of bond values.

Notwithstanding the form or tenure thereof, and in the absence of
expressed recitals on the face thereof that the bonds are non-negotiable,
all such bonds shall be negotiable instruments.

To secure payment of any and all of such bonds such ordinance shall set
forth the covenants and undertakings of the district in connection with the
issuance thereof, and the issuance of additional bonds payable from the
revenues or income to be derived from the operation of the waterworks
properties of such district, as well as the use and operation thereof.

In case any officer whose signature appears on the bonds or coupons
attached thereto shall cease to be such officer before the delivery of the
bonds to the purchaser, such signature shall nevertheless be valid and
sufficient for all purposes to the same effect as if he had remained in
office until the delivery of the bonds.

Under no circumstances shall any bonds issued or any other obligation
incurred under this Act by a district be or become an indebtedness or an
obligation of the district payable from taxes and shall not in any event
constitute an indebtedness of such district within the meaning of the
constitutional provisions or limitations, and such fact shall be plainly
stated on the face of each bond.

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.

(Source: P.A. 86-4.)

(70 ILCS 3705/17) (from Ch. 111 2/3, par. 204)

Sec. 17.

Any ordinance authorizing the issuance of revenue bonds as
provided for in this Act shall describe in a general way the contemplated
project. It shall not be necessary that the ordinance refer to plans and
specifications nor that there be on file for public inspection prior to the
adoption of such ordinance detailed plans and specifications of the
project.

Such ordinance shall also set out the total estimated cost of the
project, fix the amount of bonds proposed to be issued, the maturity or
maturities, the interest rate and all details in respect thereof, and the
covenants and undertakings of the district in connection with the
application of the income and revenue and the issuance of additional
revenue bonds thereafter as may be deemed necessary or advisable for
assurance of the payment of the bonds thereby authorized, and as may
thereafter be issued.

(Source: Laws 1957, p. 2013.)

(70 ILCS 3705/18) (from Ch. 111 2/3, par. 205)

Sec. 18.

Any ordinance authorizing the issuance of revenue bonds under this
Act may in the discretion of the district provide that the bonds be
secured by a trust agreement or depositary agreement by and between the
district and a corporate trustee, which may be a trust company or a bank,
having the powers of a trust company, within the State of Illinois,
containing such provisions for directing and supervising the rights and
remedies of the bondholders deemed reasonable and proper, including the
terms upon which the trustee and the bondholders, or either of them, may
enforce their rights, but no such trust agreement or depositary agreement
shall convey, mortgage or create any lien upon the waterworks properties of
such district.

(Source: Laws 1945, p. 1187.)

(70 ILCS 3705/19) (from Ch. 111 2/3, par. 206)

Sec. 19.

If there be any city, village or incorporated town located within
the boundaries of the district which does not own or operate a waterworks
system, and such city, village or incorporated town shall adopt an
ordinance requesting the district to supply water for public and domestic
use within such city, village or incorporated town, then any such district
may construct, operate and maintain its waterworks properties within the
corporate limits of such city, village or incorporated town for the purpose
of supplying water for public and domestic use to the inhabitants thereof.

(Source: Laws 1945, p. 1187.)

(70 ILCS 3705/20) (from Ch. 111 2/3, par. 207)

Sec. 20.

Any district organized under this Act may contract to supply
water to any city, village or incorporated town owning and operating a
waterworks system whether said city, village or incorporated town is
located within the corporate limits of the district or not, and any such
district may also supply water for public and domestic use in the area
surrounding the limits of said district; provided, the supplying of such
water is merely incidental to the maintenance and operation of its
waterworks properties for the use and benefit of the inhabitants of such
district.

(Source: Laws 1945, p. 1187.)

(70 ILCS 3705/21) (from Ch. 111 2/3, par. 208)

Sec. 21.

Whenever revenue bonds are issued under Section 16 of this Act
the income and revenue derived from the operation of the waterworks
properties of the district shall be used only to pay the cost of operation
and maintenance of the waterworks properties, to pay principal of and
interest on any revenue bonds issued hereunder, and to provide an adequate
depreciation fund, which fund is hereby defined to be for such replacements
as may be necessary from time to time for the continued, effective and
efficient operation of the waterworks properties of such district, which
such fund shall not be allowed to accumulate beyond a reasonable amount
necessary for that purpose, the terms and provisions of which shall be
incorporated in the ordinance authorizing the issuance of the bonds.

(Source: Laws 1951, p. 1615.)

(70 ILCS 3705/22) (from Ch. 111 2/3, par. 209)

Sec. 22.

Rates and charges for the use and service of the waterworks
properties acquired by any district organized under the provisions of this
Act shall be sufficient at all times to pay the cost of maintenance and
operation, to pay the principal of and interest upon all revenue bonds
issued under the provisions of Section 16 of this Act, and to provide a
reasonable depreciation fund as established pursuant to the provisions of
the ordinance authorizing the issuance of any such revenue bonds, and the
holder of any bond or bonds or any of the interest coupon or coupons of any
revenue bonds of any such district may in any civil action, mandamus, injunction or
other proceeding enforce and compel the performance of all duties required
by this Act and the covenants and undertakings set forth in any bond
ordinance, including the making and collecting of sufficient rates and
charges for the use or service of the waterworks properties of the
district, and the proper application of the income and revenue therefrom.

(Source: P.A. 83-345.)

(70 ILCS 3705/23) (from Ch. 111 2/3, par. 210)

Sec. 23.

Rules and regulations governing the maintenance and operation of
the waterworks properties, and sewerage properties of the district shall
be established from time to
time by ordinance, and rates and charges for use and service for all
purposes, except for charges or rates established by contract for a
wholesale supply of water as herein authorized shall be established,
revised, maintained, be due and payable, and be in force as the board of
trustees may determine by ordinance, and rates or charges established by
the board of trustees shall not be subject to any statutory regulations
covering rates and charges or similar service by privately owned
waterworks. The board of trustees of the water district may establish a
rate classification schedule for the use and service of the waterworks
properties and sewerage properties which differentiates in rates and
charges between users currently served by the district after its creation
and new users who are served after the effective date of this amendatory
Act of 1982 by the acquisition, improvement, construction,
or extension of waterworks properties and sewerage properties under Sections
12, 23a or 23e of this Act. Such rate differentiation shall be made only
(1) if the cost for servicing the new users is greater than the cost for
servicing the current users or (2) if necessary to defray a proportionate
share of the payment of the
principal of and interest on any revenue bonds issued under Sections 16,
23b or 23e of this Act. Such rates shall be in proportion to the cost of
providing service and shall be imposed fairly on all new users.

Any ordinance establishing rules and regulations or rates or charges for
the use and service shall be published within 30 days after its
adoption in a newspaper published in the
district, and if there is no such newspaper, in a newspaper
published in the county and having general circulation in the district, and
shall become effective 10 days after such publication.

(Source: P.A. 83-532.)

(70 ILCS 3705/23a) (from Ch. 111 2/3, par. 210a)

Sec. 23a.

Every public water district organized under this Act is
authorized to acquire by purchase or condemnation, or to construct, and to
maintain and operate sewerage properties in combination with its waterworks
properties. The power granted to public water districts by this section
shall be applicable regardless of whether such district lies in whole or in
part within the territory encompassed by any Sanitary District.

(Source: Laws 1951, p. 1615.)

(70 ILCS 3705/23b) (from Ch. 111 2/3, par. 210b)

Sec. 23b.

In order to pay the cost of the acquisition or construction,
maintenance and operation of such sewerage properties, the board of
trustees of such water district is authorized to issue and sell additional
revenue bonds which shall be payable solely from the income and revenue
derived from the operation of such sewerage properties. The procedure for
the issuance of such bonds shall be the same as the procedure provided for
by this Act for the issuance of revenue bonds for waterworks properties.

(Source: Laws 1951, p. 1615.)

(70 ILCS 3705/23c) (from Ch. 111 2/3, par. 210c)

Sec. 23c.

Rates and charges for the use and service of sewerage properties
acquired by any district organized under this Act shall be sufficient at
all times to pay the cost of maintenance and operation of such properties,
to pay the principal and interest of bonds issued under the provisions of
Section 23b of this Act, and to provide a reasonable depreciation fund.

(Source: Laws 1951, p. 1615.)

(70 ILCS 3705/23d) (from Ch. 111 2/3, par. 210d)

Sec. 23d.

All provisions of this Act regarding the acquisition,
construction, maintenance and operation of waterworks properties shall be
followed as nearly as possible by each water district in regard to its
sewerage properties.

(Source: Laws 1951, p. 1615.)

(70 ILCS 3705/23e) (from Ch. 111 2/3, par. 210e)

Sec. 23e.

The board of trustees of any district organized under this Act
is authorized to acquire by purchase or condemnation, or to construct, maintain
and operate, or improve and extend, or any combination of such purposes,
a combined waterworks and sewerage system either within or without the corporate
limits of the district, and to issue and sell revenue bonds to pay the cost
thereof. Such revenue bonds may be issued in such amounts as may be necessary
to provide sufficient funds to pay all project costs, including engineering,
legal and other necessary expenses, together with
interest to a date of 6 months subsequent to
the estimated date of completion of construction, and to establish a bond
reserve fund and also for reimbursing or paying the costs and expenses of
creating the district, and such bonds shall be payable solely from the income
and revenues derived from the operation of the combined waterworks and sewerage
system of the district. The board of trustees may also from time to time
issue revenue bonds to refund any bonds at or prior to maturity. All such
bonds shall be authorized by ordinance to be adopted by the board of trustees,
shall bear such date or dates, mature at such time or times not exceeding
40 years from their respective dates, may bear interest at such rate or
rates not exceeding the greater of (i) the maximum rate authorized by the
Bond Authorization Act,
as amended at the time of the making of the contract, or (ii) 8% per annum,
payable semi-annually,
may be in such
form, may carry such registration privileges, may be executed in such manner,
may be payable at such place or places, may be subject to redemption in
such manner, and upon such terms with or without premium as is stated on
the face thereof, and may be executed in such manner by such officers of
such district, and may contain such terms and covenants, all as provided
by the ordinance authorizing their issue.

The ordinance authorizing the issuance of the bonds shall describe in a
general way the contemplated project. It shall not be necessary that the
ordinance refer to plans and specifications nor that there be on file for
public inspection prior to the adoption of such ordinance detailed plans
and specifications of the project. Such ordinance shall also set out the
total estimated cost of the project, fix the amount of the bonds proposed
to be issued, the maturity or maturities, the interest rate and all details
in respect thereof.

Such bonds shall be sold in such manner as the board of trustees shall
determine, and if issued to bear interest at the rate of the greater of
(i) the maximum rate
authorized by the Bond Authorization Act, as amended at the time of the
making of the contract,
or (ii) 8% per
annum, shall
be sold for not less than par and accrued interest. However, the selling
price of any bonds bearing less than the greater of (i) the maximum rate
authorized by the
Bond Authorization Act, as amended at the time of the making of the contract,
or (ii) 8% interest
shall be such that the
interest cost of the money received from the sale of the bonds shall not
exceed the greater of (i) the maximum rate authorized by the Bond Authorization
Act, as amended
at the time of the making of the contract, or (ii) 8% per annum, computed
to absolute maturity, according
to standard
tables of bond values.

Notwithstanding the form or tenor thereof, and in the absence of expressed
recitals on the face thereof that the bonds are non-negotiable, all such
bonds shall be negotiable instruments.

To secure payment of any and all of such bonds such ordinance shall set
forth the covenants and undertakings of the district in connection with
the issuance thereof and the application of the revenues and the issuance
of additional bonds payable from the revenues to be derived from the operation
of the combined waterworks and sewerage properties of such district, as
well as the use and operation thereof.

In case any officer whose signature appears on the bonds or coupons attached
thereto shall cease to be such officer before the delivery of the bonds
to the purchaser, such signature shall nevertheless be valid and sufficient
for all purposes to the same effect as if he had remained in office until
the delivery of the bonds.

Under no circumstances shall any bonds issued or any other obligation incurred
under this Section by a district be or become an indebtedness or an obligation
of the district payable from taxes nor in any event shall any bonds issued
or any other obligation incurred under this Section by a district constitute
an indebtedness of such district within the meaning of any constitutional
provisions or limitations, and such fact shall be plainly stated on the
face of each bond.

(Source: P.A. 86-4.)

(70 ILCS 3705/23f) (from Ch. 111 2/3, par. 210f)

Sec. 23f.

Whenever revenue bonds are issued under Section 23e of this Act,
the income and revenue derived from the operation of the combined waterworks
and sewerage system of the district shall be used only (1) to pay the cost
of operation and maintenance of the system; (2) to pay principal of and
interest on any revenue bonds issued hereunder; (3) to provide an adequate
depreciation fund; and (4) to create and maintain such reasonable reserves
as may be provided in the ordinance authorizing the issuance of the bonds,
including, without limitation, a bond reserve fund and a reserve for proposed
future improvements and extensions to the system in accordance with a master
plan, as the same may be amended or revised from time to time, duly approved
by ordinance or resolution of the board of trustees. The depreciation fund
is to be used for such replacements as may be necessary from time to time
for the continued, effective and efficient operation of the system, which
fund shall not be allowed to accumulate beyond a reasonable amount necessary
for that purpose, the terms and provisions of which shall be incorporated
in the ordinance authorizing the issuance of the bonds.

The board of trustees is authorized to charge rates and charges for the
use and service of the combined waterworks and sewerage system, and to defray
the costs of connections thereto, which shall be sufficient at all times
(1) to pay the cost of maintenance and operation of the system, (2) to pay
the principal of and interest upon all revenue bonds issued under the
provisions of Section 23e of this Act, (3) to provide an adequate depreciation
fund, and (4) to create and maintain such reasonable reserves as may be
provided in the ordinance authorizing the issuance of any such revenue bonds,
including, without limitation, a bond reserve fund and a reserve for proposed
future improvements and extensions to the system in accordance with a master
plan, as the same may be amended or revised from time to time, duly approved by
ordinance or resolution of the board of trustees. The board of trustees may
also impose upon the owner of any residential lot in a platted subdivision
within the district a fair and reasonable minimum charge for availability,
or readiness to serve fee, to pay a portion of the cost of having facilities
available to supply service when needed. Charges or rates shall be established,
revised, and maintained by ordinance and become payable as the board of
trustees may determine by ordinance. Any ordinance establishing rates and
charges shall be published within 30 days after its adoption in a newspaper
published in the district, and if there is no such newspaper, in a newspaper
published in the county and having a general circulation in the district, and
shall become effective 10 days after such publication.

Such charges or rates, including any penalties for late payment, are liens
upon the real estate upon or for which service is supplied or made available
whenever the charges or rates become delinquent as provided by any ordinance
of the district fixing a delinquency date. A lien is created under the
preceding sentence only if the district sends to the owner or owners of record
of the real estate, as referenced by the taxpayer’s identification number, (i)
a copy of each delinquency notice sent to the person who is delinquent in
paying the charges or rates or other notice sufficient to inform the owner or
owners of record, as referenced by the taxpayer’s identification number, that
the charges or rates have become delinquent and (ii) a notice that unpaid
charges or rates may create a lien on the real estate under this Section. Such
liens shall arise ipso facto upon the delinquency of such charges or rates;
however, the district has no preference over the rights of any purchaser,
mortgagee, judgment creditor, or other lien holder arising prior to the filing
of a notice of such a lien in the office of the recorder of the county in which
such real estate is located, or in the office of the registrar of titles of
such county if the property affected is registered under the Torrens system.
This notice shall consist of a sworn statement setting out (1) a description of
such real estate sufficient for the identification thereof, (2) the amount of
money due for such service or availability, and (3) the date when such amount
became delinquent. The district shall send a copy of the notice of the lien to
the owner or owners of record of the real estate, as referenced by the
taxpayer’s identification number. The district has the power to foreclose this
lien in the same manner and with the same effect as in the foreclosure of
mortgages on real estate and shall be entitled to recover its reasonable
expenses and costs, including attorney’s fees, incurred in connection with such
foreclosure proceeding. The district may, upon the payment of such reasonable
administrative fees as it may establish for the service, furnish to any
requesting party current statements evidencing the status of any account and
releases evidencing the payment of delinquent charges and the release,
discharge and satisfaction of any lien arising therefrom.

The holder of any bond or any interest coupon of any such revenue bonds
of any such district may in any civil action, mandamus or other proceeding
enforce and compel the performance of all duties required by this Act and
the covenants and undertakings set forth in any bond ordinance, including
the making and collecting of sufficient rates and charges for the use, service
or availability of the combined waterworks and sewerage system of the district,
and the proper application of the income and revenue therefrom.

(Source: P.A. 87-1197.)

(70 ILCS 3705/24) (from Ch. 111 2/3, par. 211)

Sec. 24.

If any section, paragraph, clause or provision of this Act shall
be held invalid, the invalidity of such section, paragraph, clause or
provision shall not affect any of the other provisions of this Act.

(Source: Laws 1945, p. 1187.)

(70 ILCS 3705/25) (from Ch. 111 2/3, par. 212)

Sec. 25.

This Act shall be deemed a general law, complete in itself and
shall be liberally construed and each district upon the acquisition of any
waterworks properties as defined in Section 1 hereof under the provisions
of this Act shall maintain and operate the same in the public interest and
the benefit and use of the public and the territory served by any such
properties.

(Source: Laws 1945, p. 1187.)

(70 ILCS 3705/26) (from Ch. 111 2/3, par. 212.1)

Sec. 26.
Annexation.
Any territory which is contiguous to a public water
district
organized under this Act and which is not included in any public water
district may be annexed to such contiguous public water district in the
manner provided by this Section.

A petition, signed by two-thirds of the legal voters residing in the
territory sought to be annexed, or if there are no legal voters in the
territory, a majority of the owners of record of the land in the
territory, and addressed
to the circuit court of the
county in which the public water district to which annexation is sought was
organized, requesting that the territory described in the petition be
annexed to such public water district, may be filed with the clerk of such
court. The clerk of such court shall thereupon present such petition to the
court which shall set a time, place and date for a hearing thereon, which
date shall be not less than 20 nor more than 45 days after the date the
petition was filed. The court shall give notice of the time, place and date
of the hearing by publication in one or more newspapers published in the
district, and if there is no such newspaper, in one or more newspapers
published
in the county and having a general
circulation within the public water district and within the territory
sought to be annexed thereto, which publication shall be made at least 15
days prior to the date set for the hearing.

(Source: P.A. 91-88, eff. 7-9-99.)

(70 ILCS 3705/27) (from Ch. 111 2/3, par. 212.2)

Sec. 27.

At the hearing provided for in Section 26 the court shall
preside and any interested person shall be given an opportunity to be heard
touching upon the sufficiency of the petition and upon the boundaries of
the territory sought to be annexed to the public water district. The court
may continue such hearing from time to time as he may deem necessary.

Upon the conclusion of the hearing the court shall enter an order, which
shall be filed in the records of the court, finding
whether the petition
conforms to the requirements of this Act and, if he so finds, describing
the territory to be considered for annexation to the public water district
and directing that the question of the annexation of such territory be
submitted to the board of trustees of the public water district for final
action. The clerk of the court shall transmit a certified copy of such
order to the chairman of the board of trustees of the public water
district.

(Source: P.A. 83-343.)

(70 ILCS 3705/28) (from Ch. 111 2/3, par. 212.3)

Sec. 28.

Within 20 days after receiving a copy of such order, the chairman
of the board of trustees of the public water district shall call a meeting
of the board to consider the question of annexing the territory described
therein to the district. A two-thirds vote of the board is required to
annex such territory to the district and action of the board shall be by
ordinance of annexation and the vote on such ordinance shall be entered
upon the records of the district. If the vote of two-thirds of the members
of the board is favorable to annexation of such territory the secretary of
the board shall file a certified copy of the ordinance of annexation with
the court that ordered the consideration of such question, which ordinance
shall be filed in the records of such court.

(Source: P.A. 83-343.)

(70 ILCS 3705/28.1) (from Ch. 111 2/3, par. 212.3-1)

Sec. 28.1.

The owner or owners of record of any area of land consisting of
one or more tracts, lying within the corporate limits of any public water
district which (1) is not contiguous in whole or in part to any other
public water district; (2) contains twenty or more acres; (3) is not
subdivided into municipal lots and blocks; (4) is located on the border of
the public water district; (5) if disconnected, will not result in the
isolation of any part of the public water district from the remainder of
the public water district, may have the area disconnected as follows:

The owner or owners of record of any such area shall file a petition in
the Circuit Court of the county in which the land is situated, alleging
facts in support of the disconnection. If such area of land is located in
two or more counties, such petition shall be filed in the Circuit Court of
the county in which the largest portion of such area of land is located.
The public water district from which disconnection is sought shall be made
a Defendant and it or any taxpayer residing in the public water district
may appear and defend against the petition. If the court finds that the
allegations of the petition are true, and that the area of land is entitled
to disconnection, it shall order the designated land disconnected. However,
the disconnection of any such land shall not exempt it from taxation for
the purpose of paying any bonded indebtedness contracted by the district
prior to the filing of the disconnection petition. The disconnection order
shall be filed in the records of the court and a certified
copy of the
order shall be sent to the county clerk who shall adjust the tax records
accordingly.

(Source: P.A. 83-343.)

(70 ILCS 3705/28.2)

Sec. 28.2. Sangamon Valley Public Water District annexation.

(a) The General Assembly finds:

(1) Due to a natural gas leak in December 2016, multiple water wells connected to the Mahomet Aquifer, one of the largest sources of water in the State of Illinois, were contaminated with methane, so much so, that numerous homeowners are without potable water.
(2) The issue of methane contamination of the State of Illinois’ water supply has become a statewide issue and resulted in the Illinois Attorney General having litigation pending over the contamination. On December 21, 2018, the Mahomet Aquifer Task Force issued their report specifically addressing this incident and future incidents and stressed the need to provide State government, legislative, and monetary relief so immediate remediation may begin.
(3) The area residents have been without safe water service for 4 years.
(4) The cost of expanding infrastructure to the area is estimated around $10,000,000. The Sangamon Valley Public Water District is not a taxing body, but rather operates on fees for provided water service and to initiate construction would require an initial sum of $3,800,000.
(5) In June 2020, in recognition of this Illinois water-source crisis, the General Assembly passed, and the Governor signed a Capital Bill appropriating $3,800,000 required for initiation of the plan to bring water to this area of the State.
(6) In addition to funding, the affected area needs to be annexed into a water district territory for such district to be able to lawfully expend funds to benefit the territory and the current statutory annexation procedure is insufficient to address the crisis and does not provide for nor contemplate an expedited procedure in the event of water contamination.

(b) Notwithstanding any other provision of law, on the effective date of this amendatory Act of the 102nd General Assembly, the following property is annexed into the territory of the Sangamon Valley Public Water District:

SECTION 1, TOWNSHIP 20 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 2, TOWNSHIP 20 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 3, TOWNSHIP 20 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING EAST OF THE WEST RIGHT-OF-WAY LINE OF ILLINOIS ROUTE 47;

SECTION 10, TOWNSHIP 20 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING EAST OF THE WEST RIGHT-OF-WAY LINE OF ILLINOIS ROUTE 47 AND LYING NORTH OF INTERSTATE 74;

SECTION 11, TOWNSHIP 20 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 12, TOWNSHIP 20 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 13, TOWNSHIP 20 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING NORTH OF INTERSTATE 74;

SECTION 14, TOWNSHIP 20 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING NORTH OF INTERSTATE 74;

SECTION 15, TOWNSHIP 20 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING NORTH OF INTERSTATE 74;

SECTION 24, TOWNSHIP 20 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING NORTH OF INTERSTATE 74;

WEST HALF OF SECTION 5, TOWNSHIP 20 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 6, TOWNSHIP 20 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 7, TOWNSHIP 20 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

WEST HALF OF SECTION 8, TOWNSHIP 20 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

WEST HALF OF SECTION 17, TOWNSHIP 20 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 18, TOWNSHIP 20 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 19, TOWNSHIP 20 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING NORTH OF INTERSTATE 74;

WEST HALF OF SECTION 20, TOWNSHIP 20 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING NORTH OF INTERSTATE 74;

SECTION 8, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 9, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 10, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 13, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 14, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 15, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 16, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 17, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 20, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 21, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 22, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 23, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 24, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 25, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 26, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 27, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 28, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 29, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

NORTH HALF OF SECTION 32, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

NORTH HALF OF SECTION 33, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 34, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, EXCEPT THAT PART OF THE SOUTH HALF LYING WEST OF THE WEST RIGHT-OF-WAY LINE OF ILLINOIS ROUTE 47;

SECTION 35, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 36, TOWNSHIP 21 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 17, TOWNSHIP 21 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 18, TOWNSHIP 21 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 19, TOWNSHIP 21 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 20, TOWNSHIP 21 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 29, TOWNSHIP 21 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 30, TOWNSHIP 21 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 31, TOWNSHIP 21 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

SECTION 32, TOWNSHIP 21 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN;

ALL IN CHAMPAIGN COUNTY, ILLINOIS.

(Source: P.A. 102-41, eff. 6-25-21.)

(70 ILCS 3705/29) (from Ch. 111 2/3, par. 212.4)

Sec. 29.

Any public water district organized under this Act may be
dissolved in the manner set forth in Sections 30, 31, 32, 33 and 34.

(Source: Laws 1967, p. 3301.)

(70 ILCS 3705/30) (from Ch. 111 2/3, par. 212.5)

Sec. 30.

Whenever the board of trustees of a public water district
determines by a vote of two-thirds of its members that the district should
be dissolved, the board shall prepare a petition for dissolution and file
the petition in the Circuit Court of the county in which the district or a
major portion thereof is located. The petition for dissolution shall set
forth the reasons why the district should be dissolved and why the
dissolution will not adversely affect the interest of the public and any
bondholders of the district.

(Source: Laws 1967, p. 3301.)

(70 ILCS 3705/31) (from Ch. 111 2/3, par. 212.6)

Sec. 31.

The Circuit Court shall set a date for the hearing on the petition
for dissolution and shall give notice of the time and place of the hearing,
by publication in one or more daily or weekly newspapers having a general
circulation within the district, at least 20 days prior to the date set for
the hearing.

At the hearing all persons desiring to be heard shall have an
opportunity to testify for or against the petition for dissolution. During
the hearing, the board of trustees of the district or its authorized
representative shall also testify and introduce evidence how dissolution of
the district can be accomplished without adversely affecting the interest
of the public and any bondholders of the district.

(Source: Laws 1967, p. 3301.)

(70 ILCS 3705/32) (from Ch. 111 2/3, par. 212.7)

Sec. 32.

If at the close of the hearing the Circuit Court determines
that the district can be dissolved without adversely affecting the
public interest or the interest of any district bondholder, the court
shall certify the question of the dissolution of the district
to the proper election officials, who shall submit the question to a
referendum of the electors of the district in the manner
provided by the general election law. The circuit clerk
shall give notice of the election and the election shall be conducted
in the manner provided by the general election law.

The proposition shall be as follows:

————————————————————–

Shall….

YES

public water district —————————–

be dissolved?

————————————————————–

If a majority of votes cast on the proposition are against
dissolution, the same proposition shall not be presented to the
registered voters of the district for a period of 2 years from the date
of the referendum.

(Source: P.A. 81-1489.)

(70 ILCS 3705/33) (from Ch. 111 2/3, par. 212.8)

Sec. 33.

If a majority of votes cast on the proposition are in favor of
dissolution, the board of trustees shall immediately take the necessary
steps to close up the district affairs. If the term of office of any member
of the board of trustees expires during this period, no new trustee shall
be appointed. In closing up the affairs of the district, the trustees shall
sell all assets and equipment of the district and pay all debts and
obligations of the district. If bondholders are involved, the trustees
shall pay off the principal and all accrued interest on all outstanding
bonds. Any surplus money left over after all debts and obligations of the
district have been paid in full shall be paid in equal portions to all of
the title holders of such tracts of land receiving water service at the
time of the dissolution of such district.

(Source: Laws 1967, p. 3301.)

(70 ILCS 3705/34) (from Ch. 111 2/3, par. 212.9)

Sec. 34.

After the board of trustees of a dissolving public water district
have: (1) paid all debts and obligations of the district; (2) closed up all
of the business of the district; and (3) refunded all surplus money, the
trustees shall file a statement under oath with the Circuit Court showing
all closing transactions. If the Circuit Court approves the statement, it
shall issue an order dissolving the district. Upon issuance of such order,
the duty of the board of trustees to close up the district business is
terminated, and all trustees and officers of the district, whether the
terms for which they were elected or appointed have expired or not, shall
cease to have any power or authority.

(Source: Laws 1967, p. 3301.)

(70 ILCS 3705/35) (from Ch. 111 2/3, par. 212.10)

Sec. 35.

Any public water district created under this Act which does
not have outstanding and unpaid any revenue bonds issued under this Act
may be dissolved any time after a date which is 4 years after the date
of its creation as follows:

Any 100 electors residing within the area of the district may
petition the circuit court to order submitted to referendum
the question whether the district
should be dissolved. Upon the filing of the petition, and the determination
that it is in accordance with the general election law, the circuit court
shall: (1) designate the election at which this question is to be submitted;
(2) order notice of the referendum in the manner
provided by the general election law; and certify the proposition to the
proper election officials for submission in accordance with the general election law.

The proposition shall be in substantially
the following form:

————————————————————–

“Shall the

YES

public water district —————————–

be dissolved?”

————————————————————–

If a majority of the
votes cast on this question are in favor of dissolution of the district
under this Section, then such organization shall cease, the public water
district is dissolved, and the circuit court shall direct the
discharge of
all outstanding obligations.

If the vote is in favor of dissolution of the public water district
under this Section, there shall be no further appointments for trustees.
The officers acting at the time of this vote shall close up the business
affairs of the district, and make the necessary conveyances of the title
to the district property.

If the vote is against dissolution of the public water district, no
petition for a referendum under this Section may be filed within 2 years
of the previous referendum.

The dissolution of any public water district under this Section does
not affect the obligation of any bonds issued or contracts entered into
by such district, nor invalidate the levy, extension or collection of
any taxes upon the property in the debtor district, but all such bonds
and contracts shall be discharged.

All money remaining after the business affairs of the district have
been closed up and all the debts and obligations of the district have
been paid under this Section, shall be paid to the school treasurer of
the school district in which the district was situated, not including
high school districts. When the district was situated in 2 or more such
school districts the money shall be divided between the districts, each
district to receive an amount based on the ratio of assessed valuation
of real estate of the district which was situated in the public water
district to the assessed valuation of the real estate of all school
districts which were situated in the public water district.

All courts shall take judicial notice of the dissolution of such
public water districts.

(Source: P.A. 81-1489.)

(70 ILCS 3705/40) (from Ch. 111 2/3, par. 212.15)

Sec. 40.
When part of the territory of a district organized under this Act is
annexed by a municipality, the board of trustees may enter such agreements
as are permitted under Section 11-151-5 of the “Illinois Municipal Code”.
If all of such territory is annexed by a municipality, the district shall
be abolished as provided in Section 11-151-4 of that Act and this Act then
becomes inapplicable to that territory. This Section does not apply to any
district whose territory is situated in 2 or more municipalities, except where one of the municipalities is incorporated after June 1, 2004 pursuant to the amendatory changes to Section 2-3-5 of the Illinois Municipal Code made by this amendatory Act of the 93rd General Assembly.

Nothing in this Section authorizes a public water district to provide
water service to residents in territory within one mile or less of the
corporate limits of a municipality that operates a public water supply and
furnishes water service.

(Source: P.A. 93-1058, eff. 12-2-04.)

(70 ILCS 3705/41) (from Ch. 111 2/3, par. 212.16)

Sec. 41.

Notwithstanding anything contained in this Act to the contrary relating
to the annexation of contiguous territory by a public water district, a
public water district created under this Act may acquire by purchase, lease
of, or otherwise, any part of the water works property of any city,
village, incorporated town, or private corporation which owns and operates
a water works system which is located wholly within, or partially within
and partially without, the corporate limits of a public water district,
upon such terms and conditions as may be agreed upon by such city, village,
incorporated town, or private corporation and the public water district.
Such water works property, upon acquisition by the public water district,
shall become and be operated as part of the water works system of the
public water district and the public water district shall have all powers
in connection with such water works properties as are conferred upon a
public water district by this Act.

The public water district shall perform all functions and services of
such city, village, incorporated town, or private corporation relating to
such water works properties so purchased, leased, or otherwise acquired.

This Section constitutes full and complete authority in and of itself
for any city, village, or incorporated town to sell or lease or otherwise
dispose of its water works properties to a public water district. Any sale
or lease in accordance with this Section shall be exempted from the general
sale and lease provisions of Division 76 of Chapter 11 of the “Illinois
Municipal Code”.

(Source: P.A. 77-2184.)

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70 ILCS 3705/ – Public Water District Act.

70 ILCS 3705/ – Public Water District Act.

70 ILCS 3705/ – Public Water District Act.

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