2023 Illinois Compiled Statutes › Chapter 70 - SPECIAL DISTRICTS › 70 ILCS 605/ - Illinois Drainage Code. › Article VI - Letting Contracts, Indebtedness, Borrowing And Handling Funds

(70 ILCS 605/Art. VI heading)
ARTICLE VI.  
		LETTING CONTRACTS, INDEBTEDNESS, BORROWING AND HANDLING FUNDS
(70 ILCS 605/6-1) (from Ch. 42, par. 6-1)
Sec. 6-1. 
Advertising for Bids on Construction Work and Purchases.
Whenever the cost of any work to be performed by the district or the
cost of any machinery, equipment, materials or supplies to be purchased
by the district will exceed $20,000, the commissioners shall advertise
for sealed bids for the performance of such work or the furnishing of
such machinery, equipment, materials or supplies by publishing a notice
in a newspaper published or having general circulation in the county in
which the district was organized not less than once each week for 3
successive weeks. The first such publication shall be made not less than
17 days prior to the date set for opening the bids. The notice shall
particularly set out the time when and the place where the bids will be
opened, the nature of the work to be performed or the machinery,
equipment, materials or supplies to be purchased and the terms of
payment. The commissioners may reject any and all bids, may waive any
informality in bids received and may continue the letting from time to
time. The commissioners may accept any bid they deem most favorable, but
if the bid accepted is not the lowest bid, they shall enter in their
minutes their reason for not accepting the lower bid or bids. If any
person to whom a contract has been let after notice as herein required
fails to perform his contract, the same may be relet in such a manner as
the commissioners deem best, with or without advertisement for bids.
The provisions of this Section, however, shall not apply to the
contracting, letting or doing of any repair or maintenance work the cost
of which will be payable from the annual maintenance fund of the
district.
(Source: P.A. 96-536, eff. 8-14-09.)
(70 ILCS 605/6-2) (from Ch. 42, par. 6-2)
Sec. 6-2. 
		Emergency
work-Waiver of requirement for bids. 
		The provisions of Section 6-1 shall not apply to the performance of
work by the district in the protection, operation or repair of its levees,
pumping plants or drainage system during times of flood or other emergency.
(Source: Laws 1955, p. 512.)
(70 ILCS 605/6-3) (from Ch. 42, par. 6-3)
Sec. 6-3. 
		
		Interest
of commissioner in contracts forbidden.
No commissioner shall be interested, directly or indirectly, in any
contract for the performance of any work by the district, whether original,
additional, repair or maintenance, for the purchase or rental of any
machinery or equipment by the district, or for the purchase of any
materials or supplies by the district.
(Source: Laws 1955, p. 512.)
(70 ILCS 605/6-4) (from Ch. 42, par. 6-4)
Sec. 6-4. 
		
		Contracts
with highway authorities or railroads for construction, maintenance and use
of levees.
The commissioners may contract with highway authorities or with any
person, firm or corporation operating a railroad, to construct or maintain
a levee or levees, or any portion thereof, upon such terms as may be for
the best interests of the district, and may grant to such highway
authorities or such person, firm or corporation operating a railroad the
right to construct, operate and maintain a highway or railroad upon, along
or across such levee or levees. The commissioners may also contract with
highway authorities or with any person, firm or corporation operating a
railroad to use any embankment, or any part thereof, constructed by such
highway authority or by such person, firm or corporation as a district
levee or as a part of the levee system of the district. Any such contract
shall be subject to approval by the court, after hearing, either without
notice or upon such notice as the court may direct.
(Source: Laws 1955, p. 512.)
(70 ILCS 605/6-4.1) (from Ch. 42, par. 6-4.1)
Sec. 6-4.1. 
		Bikeways and trails. 
		A district may use its established
funds, personnel, and other resources to acquire, construct, operate, and
maintain bikeways and trails.  Districts may cooperate with other
governmental and private agencies in bikeway and trail programs.
(Source: P.A. 87-985.)
(70 ILCS 605/6-5) (from Ch. 42, par. 6-5)
Sec. 6-5. 
		
		Power to
incur indebtedness.
The commissioners may incur indebtedness in excess of uncollected
assessments and funds on hand or otherwise available only for: (a) the
current expenses of the district, including the fees of its officers,
engineers and attorneys, court costs and incidental administrative
expenses; (b) the completion of work previously approved by the court in
accordance with approved plans when the funds originally provided for such
work, whether by assessment or otherwise, are found by the commissioners to
be insufficient; and (c) the performance of work by the district in the
protection, operation or repair of its levees, pumping plants or drainage
system during times of flood or other emergency.
(Source: Laws 1955, p. 512.)
(70 ILCS 605/6-6) (from Ch. 42, par. 6-6)
Sec. 6-6. 
		
		Bonds and
notes-Interest-Lien.
The commissioners may, without court approval, borrow money to an amount
not exceeding 90% of the amount of assessments, or one or more installments
of assessments, unpaid at the time of the borrowing, for the performance of
any work, whether original, additional, repair or maintenance, which they
may be authorized to perform, or for the payment of any indebtedness they
may have lawfully incurred, or for any other lawful purpose. They may
evidence the same by notes or bonds in registered form bearing interest at
a rate not to exceed the rate of interest payable on the assessment, and
not running beyond one year after the date that the assessment or last
installment of the assessment against which the money is borrowed will fall
due. Such notes or bonds shall not be held to make the commissioners
personally liable for the money borrowed, but shall constitute a lien upon
such assessments or installments of assessments (and all interest becoming
due thereon) for the repayment of the principal and interest thereof.
(Source: Laws 1955, p. 512.)
(70 ILCS 605/6-7) (from Ch. 42, par. 6-7)
Sec. 6-7. 
		Borrowing
in excess of 90% of unpaid assessments. 
		The commissioners for good cause shown may borrow money in an amount
exceeding 90% of any unpaid assessments or installments of assessments for
the purposes set forth in Section 6-6. Before so borrowing, the
commissioners shall petition the court for such authority. Upon its filing,
the petition shall be presented to the court, which shall fix the date and
hour for hearing. Notice of the hearing shall be given substantially in the
form, for the length of time and in the manner provided in Sections 4-21
and 4-22, except that when notice is given by publication, no notice by
mailing shall be required. If, upon such hearing, the court finds that such
borrowing will be for the best interests of the district, it shall grant
the prayer of the petition.
(Source: Laws 1955, p. 512.)
(70 ILCS 605/6-8) (from Ch. 42, par. 6-8)
Sec. 6-8. 
		
		Notes and
bonds-Resolution-Register-Calling prior to maturity.
The commissioners shall, by proper resolution, determine the form of the
notes or bonds to be issued, together with the date, amount, rate of
interest and maturity of the same, and shall designate the assessments or
installments of assessments against which the same are to be a lien. A copy
of the resolution shall be filed with the clerk and recorded in the
drainage record. The treasurer shall keep a register of the bonds and notes
of the district, which register shall show the names and addresses of the
registered holders, the serial numbers, amounts, rate of interest, date of
issue, maturity dates, where the bonds or notes are payable, the amount
received by the district for each bond or note and the assessment or
installment against which the bond is a lien. The note and bond register
shall at all reasonable times be available for inspection by any person
interested.
Any note or bond issued by a district after the effective date of this
Act shall be subject to call prior to maturity whenever there are
sufficient funds on hand in the bond fund to call one or more of such notes
or bonds and to meet all payments of principal and interest due or to
become due within the next 12 month period. Whenever the commissioners
determine that sufficient funds are on hand in the bond fund, they shall by
appropriate resolution also determine the number of the notes or bonds to
be called and direct the treasurer to call such notes or bonds. If the
number to be called is less than all of the notes or bonds outstanding
against such fund, then the treasurer shall determine by lot the serial
number of the notes or bonds to be called. The treasurer shall give the
registered holder of each such note or bond being called notice by
registered mail sent to the address shown on the note and bond register and
by publishing a notice thereof in a newspaper of general circulation
published in the county in which the district was organized. If no
newspaper of general circulation is published in that county, then the
notice shall be published in a newspaper having general publication in that
county. The notice to be so mailed and published shall specify the issue
and maturity dates of the notes or bonds called, the serial numbers of the
notes or bonds called, the assessment or installments of assessment against
which the notes or bonds are a lien, the date upon which the interest
thereon will cease, which date shall be not less than 30 days after the
publication and mailing of the notice and shall request that such notes or
bonds be presented for payment and cancellation. If notice is given as
hereinabove set forth, then such notes or bonds shall cease to bear
interest after the date fixed in said notice. Each note or bond issued by a
district shall contain a statement that it is subject to call prior to
maturity as provided by this section, but the failure of any note or bond
to contain such a statement shall not deprive the district of its right to
call such note or bond prior to maturity as hereinabove provided.
(Source: Laws 1955, p. 512.)
(70 ILCS 605/6-9) (from Ch. 42, par. 6-9)
Sec. 6-9. 
		Borrowing against annual maintenance assessment. 
		Whenever an annual maintenance assessment has been confirmed in a
district and there are not sufficient funds on hand to perform maintenance
work, to operate a pumping plant, or for any other purpose for which annual
maintenance funds may be expended, the commissioners may, at any time after
they have made and filed their annual certificate of levy, borrow money
against the annual maintenance assessment for which such certificate of
levy has been filed, to an amount not exceeding 75% of such levy, and may
evidence the same by notes of the district bearing interest at a rate not
exceeding that permitted in "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 amended and not running beyond one year from the date of
issue. Such notes shall not be held to make the commissioners personally
liable, but shall constitute a lien against such annual maintenance
assessment.
(Source: P.A. 84-886.)
(70 ILCS 605/6-10) (from Ch. 42, par. 6-10)
Sec. 6-10. 
		Extending payment of assessments-Refunding bonds.
The time of payment of any assessment or any installment thereof may be
extended, in whole or in part, whether due or not due, and any notes or
bonds of the district, or any part thereof, issued in anticipation of the
collection of any original or additional assessment or installment thereof,
may be refunded. Notes or bonds not due may be refunded only by agreement
with the holders, provided that no holder shall receive an amount in excess
of the par value thereof, together with accrued interest.
In the event that less than all of the notes or bonds are refunded, the
due date of a like proportion of the assessment or installment against
which the notes or bonds are a lien shall be extended. Assessments or
installments, or any part thereof, may be divided into a greater or less
number of installments than was originally provided, but the time of
payment of any assessment or installment, or any part thereof, shall not be
extended beyond 40 years from the date of the order providing for such
extension.
The commissioners may on their own motion, and shall upon receiving a
petition signed by the owners of land whose unpaid assessments against
which such notes or bonds are a lien equal to at least 25% of all such
unpaid assessments, petition the court to extend the time of payment of any
assessment or installment, or any part thereof, and to issue refunding
bonds. The petition shall set forth (a) a description of all assessments,
any part of which remains unpaid, including the date or dates of
confirmation, the amount remaining unpaid, the amount due in each year and
the rate of interest, (b) the amount of cash on hand, (c) a description of
the notes or bonds of the district outstanding, including the date of issue
of such notes or bonds, the dates of maturity, the rate of interest and the
assessments or installments against which such notes or bonds are a lien,
(d) other indebtedness of the district, if any, (e) the assessments or
installments they desire to extend, either in whole or in part, together
with the desired maturities of the extended assessments, installments or
parts thereof and the proposed rate of interest that said extended
assessments or installments shall bear, (f) the assessments, installments
or parts thereof, if any, they desire to remain as theretofore confirmed,
(g) the amount, maturities and rate of interest of the proposed refunding
notes or bonds, and (h) if it is proposed to extend the time of payment of
assessments or installments, or any part thereof, not yet due, a statement
whether the holders of the notes or bonds will surrender their notes or
bonds in exchange for refunding notes or bonds or, in the alternative,
accept, in payment thereof, an amount not in excess of the par value
thereof, together with accrued interest.
Accompanying such petition shall be an assessment roll, setting forth
(a) the name of the owner of each tract of land or other property against
which any such assessment, installment or part thereof remain unpaid, if
known, or, if unknown, then the name of the person who last paid the
general taxes thereon, as shown by the Collector's books, (b) a description
of each tract of land or other property, (c) the amount of unpaid
assessments or installments against each tract, (d) the amount and maturity
of each installment of the proposed extended assessments against each
tract, and (e) the amount and maturity of each assessment, installment or
part thereof, if any, which is to remain as theretofore confirmed against
each tract.
(Source: Laws 1955, p. 512.)
(70 ILCS 605/6-11) (from Ch. 42, par. 6-11)
Sec. 6-11. 
		Extending payment of assessments-Notice. 
		
		When a petition is filed as provided in Section 6-10, the court shall
fix the date and hour for hearing. The clerk of the court shall give notice
of the hearing, which shall be entitled "Drainage Notice" and must state
(a) in what court and on what date the petition was filed, (b) the name of
the district, (c) the amount of assessment or parts thereof proposed to be
extended, (d) the number of installments in which they are presently
payable, (e) the number of installments in which it is proposed to make the
same payable, (f) the proposed interest rate of such extended assessments,
(g) the amount of bonds proposed to be refunded and the amount of refunding
bonds proposed to be issued, and (h) the place, date and hour the petition
will be heard. Such notice shall be given in the time and manner provided
by Section 4-22.
(Source: Laws 1955, p. 512.)
(70 ILCS 605/6-12) (from Ch. 42, par. 6-12)
Sec. 6-12. 
		Extending payment of assessments - Hearing - Order. 
		The court shall hear such petition and make such order as it deems
proper. The court may order the time of payment of any such assessments or
one or more installments of assessments, or any part or parts thereof,
extended, may change the number of installments into which such assessments
are divided, may fix the rate of interest which said extended assessments
shall bear, which shall not exceed that permitted in "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 amended, and shall give the owners
an opportunity to pay the assessments or installments proposed to be
refunded in cash within a reasonable time to be fixed by the court without
further notice, and after the expiration of the time fixed and the
commissioners have reported such cash payments to the court, the court
shall also fix the amount of the refunding bonds and authorize their
issuance by the commissioners at a rate of interest not to exceed the rate
of interest on the extended assessments, and such refunding notes or bonds
shall be a lien upon such extended assessments or installments. Extended
assessments or installments shall continue to be a lien upon the lands
assessed until paid.
(Source: P.A. 84-886.)
(70 ILCS 605/6-13) (from Ch. 42, par. 6-13)
Sec. 6-13. 
		
		Extending payment of assessments-Withdrawal of delinquent assessments-
Release of forfeited lands.
Whenever the time of payment of any assessment, installment or portion
thereof has been extended as provided in this Article and the extended
assessment or installment includes an assessment, installment or portion
thereof which is past due and has been certified to the County Collector as
delinquent, or the delinquent property has been forfeited to the State for
the non-payment of such assessment, installment or portion, the court
shall, in its order extending the time of payment, direct that such tract
be removed from the delinquent list or direct that such tract be released
from such judgment and forfeiture by proper entry upon the tax sale,
judgment and forfeiture record of the county in which the land is situated,
without charge to the district or the bondholders.
Where the amount of the assessment to be withdrawn from the delinquent
list or to be released from the tax sale, judgment and forfeiture record is
less than the whole amount of the assessment or installment for which the
property has been certified delinquent or forfeited, only that portion of
the assessment or installment the time of payment of which has been
extended shall be so released or withdrawn, and in withdrawing or releasing
such land, the records shall clearly indicate that only that portion of the
assessment or installment the time of payment of which has been extended
has been withdrawn or released. The balance of the assessment or
installment shall remain delinquent or forfeited, as the case may be, and
be collected in the manner provided by law for the collection of such
delinquencies or forfeitures.
(Source: Laws 1955, p. 512.)
(70 ILCS 605/6-14) (from Ch. 42, par. 6-14)
Sec. 6-14. 
		Depository for district funds. 
		Upon request by the treasurer, the commissioners shall designate one or
more banks or savings and loan associations as the depository for funds
received by the treasurer by virtue of
his office. Within 10 days after such designation, the treasurer shall
transfer all funds of the district to such depository or depositories and
he shall thereafter be discharged of all responsibility for such funds
while they are on deposit therein.
No bank or savings and loan association shall receive public funds as
permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments of public
funds by public agencies", approved July 23, 1943, as now or hereafter amended.
(Source: P.A. 83-541.)
(70 ILCS 605/6-15) (from Ch. 42, par. 6-15)
Sec. 6-15. 
		Paying out district funds. 
		The treasurer shall pay out district funds only upon a written order
signed by a majority of the commissioners, or upon the order of court,
and shall carefully preserve all such orders. Notes, bonds or interest
coupons which are lawful obligations of the district and obligations for
Social Security taxes as required by the "Social Security Enabling Act"
may be paid when
due by the treasurer out of district funds without the further order of
the commissioners.
(Source: P.A. 81-793.)
(70 ILCS 605/6-16) (from Ch. 42, par. 6-16)
Sec. 6-16. 
		Treasurer's Account. 
		The treasurer shall keep an accurate account of all moneys received and
disbursed, and on or before the 1st day of November in each year, and at
such other times as required by the commissioners, he shall submit to them
an accurate account of such receipts and disbursements, together with the
commissioners' orders, vouchers and other papers and records necessary to
verify such account.
(Source: P.A. 84-886.)