65 ILCS 5/11-135-1
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 11 - Corporate Powers and Functions

 (from Ch. 24, par. 11-135-1)Sec. 11-135-1.         Any 2 or more municipalities, except cities of 500,000 or  more inhabitants, may acquire either by purchase or construction a  waterworks system or a common source of supply of water, or both, and may  operate jointly a waterworks system or a common source of supply of water,  or both, and improve and extend the same, as provided in this Division 135.  The corporate authorities of the specified municipalities desiring to avail  themselves of the provisions of this Division 135 shall adopt a resolution  or ordinance determining and electing to acquire and operate jointly a  waterworks system or a common source of supply of water or both, as the  case may be. Such resolution or ordinance may be rescinded at any time  prior to the issuance and sale of revenue bonds and after the rescinding  municipality has no outstanding obligation to pay a proportionate share  of the costs of development, construction or operation.Any municipality adopting a resolution or ordinance to acquire and  operate jointly a waterworks system or a common source of supply of water,  or both, as the case may be, under the provisions of this Division 135, is  authorized from time to time to pay, to advance or to obligate itself to  the Commission, to bear a proportionate share of the development costs of  any project proposed by the Commission including plans, feasibility reports  and engineering even though the project is never constructed or water is  never supplied by the Commission to such municipality.Whenever any municipality determines to pay, to advance or to obligate  itself for its proportionate share of development costs as above provided,  it shall adopt an ordinance declaring its intention to do so, fix the maximum  amount of its share of the cost it proposes to pay, to advance or to obligate  itself for, and the period over which it proposes to pay its obligation  (not exceeding 5 years) and the maximum amount to be paid annually, if such  obligation is to be paid in installments. The time of payment of any such  installment obligation may be extended for a period of not exceeding five years  from the final maturity date of the original obligation.From and after such ordinance becomes effective, it shall be the duty of  the municipality to include an amount sufficient to pay the annual installments  of its obligation each year in the next succeeding appropriation ordinances. No  prior appropriation shall be required for a municipality to authorize the  payments, advances or obligations herein provided for.Whenever any municipality has obligated itself for development costs as  herein provided and after the effective date of the ordinance under which  it obligated itself for a specific amount for development costs of a  project and after approval of such obligation by the Commission, the  Commission is authorized to borrow funds temporarily for payment of such  development costs in advance of permanent financing. The Commission may  from time to time and pursuant to an appropriate resolution borrow money  and issue its interim notes to evidence borrowings for such purpose,  including all necessary and incidental expenses in connection therewith.Any resolution authorizing the issuance of such notes shall describe the  project and the development costs to be undertaken, specify the principal  amount, rate of interest as authorized under Section 2 of "An Act to authorize  public corporations to issue bonds, other evidences of indebtedness and  tax anticipation warrants subject to interest rate limitations set forth  therein", approved  May 26, 1970, as now or hereafter amended, and the maturity  date which shall coincide with the due date of the obligations or the  installments thereof incurred by the respective municipalities pursuant to this  Section not, however, to exceed 5 years from date.Contemporaneously with the issuance as provided by this Division of revenue  bonds, all outstanding interim notes issued for development costs of a project  though they have not then matured shall be paid, both principal and interest  to date of payment, from funds derived from the sale of revenue bonds for  the permanent financing of any such project for which interim notes may  have been issued and such interim notes shall be surrendered and cancelled.Any municipality adopting a resolution or ordinance to acquire and operate  jointly a waterworks system or a common source of supply of water, or both,  as the case may be, under the provisions of this Division 135 is further  authorized from time to time, to pay, to advance or to obligate itself to  the Commission to bear, a proportionate share of the construction and operating  costs of any project proposed by the Commission.Whenever a municipality determines to pay, to advance or to obligate itself  for its proportionate share of construction or operating costs as above  provided, it shall adopt an ordinance declaring its intention to do so,  fix the maximum amount of its share of the cost it proposes to pay, to advance  or to obligate itself for, and the period over which it proposes to pay its  obligation and the maximum amount to be paid annually, if such obligation is to  be paid in installments.  From and after such ordinance becomes effective, it  shall be the duty of the municipality to include an amount sufficient to pay  the annual installments of its obligation each year in the next succeeding  appropriation ordinances.  No prior appropriation shall be required for a  municipality to authorize the payments, advances or obligations herein provided  for.Whenever any municipality has paid, advanced or obligated itself for  development, construction or operating costs as herein provided, the Commission  is authorized to contract with such municipality, on such terms as may be  agreed, for the repayment to such municipality by the Commission of any payment  or advance made by such municipality to the Commission to charge, in addition  to all other charges and rates authorized under the provisions of this  Division, such rates and charges for water sold by the Commission as shall be  necessary to provide for such repayment.  In addition, any payment or advance  of such costs made by a municipality pursuant to this Section may be repaid by  the Commission to the municipality from the proceeds of revenue bonds  authorized to be issued by the Commission pursuant to this Division 135.    (Source: P.A. 82-783.)