2023 Illinois Compiled Statutes › Chapter 60 - TOWNSHIPS › 60 ILCS 1/ - Township Code. › Article 205 - Township Waterworks And Sewerage Systems

(60 ILCS 1/Art. 205 heading)
ARTICLE 205.  
		TOWNSHIP WATERWORKS
AND SEWERAGE SYSTEMS
(60 ILCS 1/205-5)
Sec. 205-5. 
		Definitions. 
		When used in this Article, unless the context
clearly requires otherwise:
"Waterworks system" means and includes a waterworks system in its entirety,
or
any integral part of a waterworks system, including mains, hydrants, meters,
valves, standpipes, storage tanks, pumps, tanks, intakes, wells, impounding
reservoirs, machinery, purification plants, softening apparatus, and all other
elements useful in connection with a water supply or water distribution system.
"Sewerage system" means and includes any one or more of the
following: sewerage treatment plant or plants, collecting, intercepting,
and outlet sewers, lateral sewers and drains, including combined and
separate 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.
"Combined waterworks and sewerage system" means and includes
a waterworks and sewerage system, as defined in this Section, that a
township determines to operate in combination.
"System" means a waterworks system, a sewerage system, or any separate
integral part of a waterworks system or a sewerage system, or a waterworks
system and sewerage system in combination as authorized and provided in
Section 205-10.
(Source: P.A. 77-1034; 88-62.)
(60 ILCS 1/205-10)
Sec. 205-10. 
		
		Any township having a population of less
than 500,000 may construct or purchase and operate a waterworks
system or a sewerage system, or a combined waterworks and sewerage
system, may improve or extend the system from time to time as provided in this
Article, and may fund the system through the use of appropriated general
township and federal revenue sharing funds and other income or revenue derived
from the operation of the system or from the sale of revenue bonds under  this
Article. A township that owns and operates a sewerage system or a combined
waterworks and sewerage system may, when determined by its township board to be
in the public interest and necessary for the protection of the public health,
enter into and perform contracts, whether long-term or short-term, with an
industrial establishment for the provision and operation by the township of
sewerage facilities to abate or reduce the pollution of waters caused by
discharges of industrial wastes by the industrial establishment and the
payment periodically by the industrial establishment to the township of
amounts at least sufficient, in the determination of the township board, to
compensate the township for the cost of providing (including payment of
principal and interest charges, if any), operating, and maintaining the
sewerage facilities serving the industrial establishment.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-12)
Sec. 205-12. Boil order; notification of certified local public health department required. If a township, or any department or agency of the township, issues a boil order, then the township 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 township 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.)
(60 ILCS 1/205-15)
Sec. 205-15. 
		Revenue and refunding bonds; issuance and terms.
(a) To pay the cost of the construction, purchase, and improvement or
extension from time to time of any system under this Article, including
engineering, legal, and other expenses, together with interest, to a date 6
months after the estimated date of completion, the township board may
appropriate township funds, including Federal Revenue Sharing funds, and issue
and sell revenue bonds of the township payable solely from the income and
revenue derived from the operation of the system.  The board 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 the consent of the
holders of the bonds. All bonds shall be authorized by an ordinance adopted by
the township board, shall bear a date or dates, may mature at a time or
times not exceeding 40 years from their respective dates, may bear
interest (i) at a rate not exceeding the maximum rate authorized by the Bond
Authorization Act as amended at the time of the making of the contract (if
issued within one year after July 18, 1972) and (ii) at the maximum rate
authorized by the Bond Authorization Act as amended at the time of the making
of the contract (if issued after that date), payable semi-annually, may be in a
form, may carry registration privileges, may be payable at a place or
places, may be subject to redemption in a manner and upon terms with or without
premium as is stated on the face of the bonds, may be executed in a manner by
officers of the township, and may contain terms and covenants, all as provided
by the ordinance authorizing their issue.
(b) Bonds shall be sold in the manner determined by the township board and,
if issued to bear interest (i) at the rate of the maximum rate authorized by
the Bond Authorization Act, as amended at the time of the making of the
contract, or (ii) the maximum rate authorized by the Bond Authorization Act as
amended at the time of the making of the contract (if issued after a one year
period following July 18, 1972), shall be sold for not less than par and
accrued interest. The selling price of any bonds bearing less than
(i) the maximum interest rate authorized by the Bond Authorization
Act as amended at the time of the making of the contract, or (ii) the maximum
rate authorized by the Bond Authorization Act as amended at the
time of the making of the contract (if issued after a one year period following
July 18, 1972), however, shall be such that the interest cost of the money
received from the sale of the bonds does not exceed (i) the maximum rate
authorized by the Bond Authorization Act as amended at the time of the making
of the contract, or (ii) the maximum rate authorized by the Bond Authorization
Act as amended at the time of the making of the contract (if issued after a one
year period following July 18, 1972), computed to absolute maturity, according
to standard tables of bond value. The bonds shall be payable solely from the
income and revenues to be derived from the operation of the system.
(c) Notwithstanding the form or tenor of the bonds, and in the absence of
expressed recitals on the face of the bonds that the bonds are
non-negotiable, all bonds issued under this Article shall be negotiable
instruments.
(d) To secure payment of any or all of the bonds, the ordinance shall
set forth the covenants and undertakings of the township in connection
with (i) the issuance of the bonds and the issuance of additional bonds payable
from the revenue or income to be derived from the operation of the
system and (ii) the use and operation of the system. The ordinance may also
provide that the bonds, or those that are specified, shall, to the extent and
in the manner prescribed, be subordinated and be junior in standing with
respect to the payment of principal and interest and the security of payment to
other bonds designated in the ordinance.
(e) If any officer whose signature appears on the bonds or coupons
attached to the bonds ceases to be an officer before the delivery of
the bonds to the purchaser, his or her signature shall nevertheless be valid
and sufficient for all purposes to the same effect as if he or she had remained
in office until the delivery of the bonds.
(f) Under no circumstances shall any bonds issued or any other obligation
incurred under this Article by a township be or become an indebtedness or an
obligation of the township payable from taxes, nor shall they in any event
constitute an indebtedness of the township within the meaning of any
constitutional or statutory provision or limitation.  This fact shall be
plainly stated on the face of each bond.
(g) With respect to instruments for the payment of money issued under this
Section either before, on, or after June 6, 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 Article 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 Article that may appear to be or to have been more restrictive than
those Acts.
(Source: P.A. 86-4; 88-62.)
(60 ILCS 1/205-20)
Sec. 205-20. 
		Ordinance describing project.
(a) A township board may initiate proceedings under this Article by adopting
an ordinance describing in a general way the contemplated project and referring
to plans and specifications prepared for any construction work.  The ordinance
shall be placed on file in the office of the township clerk and shall be
available for inspection by the public.
(b) The ordinance shall 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 concerning the bonds, and set
out the covenants and undertakings of the township in connection with the
application of the income and revenue and the issuance of additional revenue
bonds deemed necessary or advisable for assurance of the payment of the
bonds authorized by the ordinance and thereafter issued.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-25)
Sec. 205-25. 
		Security for bonds. 
		An ordinance authorizing the issuance of
bonds under this Article may in the discretion of the township board provide
that the bonds be secured by a trust agreement or depositary agreement by and
between the board and a corporate trustee, which may be a trust company or a
bank having powers of a trust company within this State.  The agreement may
contain provisions for directing and enforcing 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 trust agreement or depositary agreement shall convey, mortgage, or create
any lien upon the properties constituting the system.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-30)
Sec. 205-30. 
		Referendum on issuance of bonds.
(a) After an ordinance authorizing a project under this Article has been
adopted, it shall be published once in an English language newspaper published
and having general circulation in the township. If there is no such newspaper,
then the ordinance shall be posted in at least 3 of the most public places in
the township. The publication or posting of the ordinance shall include a
notice of (i) the specific number of voters required to sign a petition
requesting that the question of the adoption of the ordinance be submitted to
the electors of the township; (ii) the time in which the petition must be
filed; and (iii) the date of the prospective referendum. The township clerk
shall provide a petition form to any individual requesting one. The ordinance
shall become effective 30 days after the date of publication or posting,
but if within 30 days after publication or posting of the ordinance
a petition is filed with the township clerk signed by at least 10% of the
registered voters of the township (as shown by the registered voters list on
file in the office of the county clerk) asking that the question of issuing the
bonds be submitted to the voters of the township, the ordinance shall not
become effective until the question has been certified to the proper election
officials, who shall submit the question to the voters, and until the question
has been approved by the voters of the township at an election.  The election
shall be conducted and notice given in accordance with the general election
law.
(b) The notice shall refer to the filing of the petition and set forth
the question to be voted upon, which shall be substantially as follows:
Shall revenue bonds in the amount of $(amount) be         issued by (name of township) for (purpose)?
The notice shall also state  the time and place of the election.
(c) The vote at the election shall be by separate ballot, and
the question shall be in substantially the following form:
Shall revenue bonds in the amount of $(amount) be     issued by (name of township) for (purpose) as authorized in an ordinance of the township board dated (date of ordinance)?
		The votes shall be recorded as "Yes" or "No".
(d) If a majority of the voters voting on the question at the election vote
in favor of it, the ordinance shall be in full force and effect and the
township board may proceed with the issuance and sale of the bonds.
(Source: P.A. 87-767; 88-62.)
(60 ILCS 1/205-35)
Sec. 205-35. 
		Supervisor; bond proceeds and system revenues.
(a) The township supervisor shall be ex officio treasurer and the custodian
of all funds derived from the issuance and sale of bonds under this Article and
of all income and revenue derived from the operation of the system. Before the
supervisor receives any funds, he or she shall post with the township board,
subject to their approval, a separate corporate surety bond in an amount
determined by resolution of the township board. The supervisor shall keep the
proceeds of bonds issued and revenues derived from the operation of the system
separate and apart from all other funds that come into his or her hands as
supervisor and ex officio treasurer of the township.  The supervisor shall
deposit the proceeds derived from the sale of bonds and the income and revenues
derived from the operation of the system in separate bank or savings and loan
association accounts in a depositary designated by the township board for that
purpose.
(b) No bank or savings and loan association shall receive public funds under
this Section unless it has complied with Section 6 of the Public Funds
Investment Act.
(Source: P.A. 83-541; 88-62.)
(60 ILCS 1/205-40)
Sec. 205-40. 
		Acquisition of property. 
		A township availing itself of the
provisions of this Article has the right of eminent domain to acquire any
private property for the purposes provided by this Article and may contract
for the acquisition of rights in property, easements, licenses, and permits
necessary or incidental in either the acquisition or construction of a system
or the improvement or extension of a system as provided in this Article. Any
contract, or award in the event of condemnation, shall be payable from the
income and revenue derived from the operation of the system, from the proceeds
of the sale of revenue bonds authorized to be issued under this Article, or
from township funds, including Federal Revenue Sharing funds, appropriated for
that purpose.
(Source: P.A. 80-407; 88-62.)
(60 ILCS 1/205-45)
Sec. 205-45. 
		Proximity to highways and other public grounds. 
		A township
availing itself of the provisions of this Article may, as a proper use of
highways, construct, maintain, alter, repair, and extend its pipes, mains,
ditches, conduits, sewers, and drains along, upon, under, and across any
highways, streets, alleys, or public grounds in the township, but so as not to
permanently inconvenience the public use of those highways, streets, alleys, or
public grounds.
(Source: Laws 1945, p. 1745; P.A. 88-62.)
(60 ILCS 1/205-50)
Sec. 205-50. 
		Service to municipality. 
		If a city, village, or incorporated
town is located within the boundaries of a township availing itself of the
provisions of this Article that does not own or operate a waterworks system or
a sewerage system within the city, village, or incorporated town or within any
particular locality of the city, village, or incorporated town, and if the
city, village, or incorporated town adopts an ordinance requesting the township
to supply water or sewerage service, or both, for public and domestic use
within the city, village, or incorporated town or within the particular
locality of the city, village, or incorporated town, then the township
may construct, acquire, extend, improve, operate, and maintain its waterworks
system or sewerage system, or both, within the corporate limits of the city,
village, or incorporated town for the purpose of serving the inhabitants of the
city, village, or incorporated town or of the particular locality.
(Source: P.A. 77-1034; 88-62.)
(60 ILCS 1/205-55)
Sec. 205-55. 
		Water supply from municipality. 
		A township availing itself of
the provisions of this Article may contract for a supply of water for its
system from any city, village, or incorporated town owning and operating a
waterworks system.
(Source: Laws 1945, p. 1745; P.A. 88-62.)
(60 ILCS 1/205-60)
Sec. 205-60. 
		Service to area surrounding township. 
		A township availing
itself of the provisions of this Article and owning and operating a waterworks
system or a combined waterworks and sewerage system under this Article may
supply water for public and domestic use in any area surrounding the limits of
the township, provided the supplying of the water is merely incidental to the
maintenance and operation of its system for the use and benefit of the
inhabitants of the township.
(Source: Laws 1945, p. 1745; P.A. 88-62.)
(60 ILCS 1/205-65)
Sec. 205-65. 
		Separate fund for system income and revenue. 
		If revenue bonds
are issued under this Article, the income and revenue derived from the
operation of the system shall be deposited in a separate fund, in a separate
bank or savings and loan association account, designated as the (Water, Sewer,
or other name) Fund of (name of township). The fund shall be used only to pay
the cost of operation and maintenance of the system, to pay the principal of
and interest upon the revenue bonds of the township issued under this Article,
and to provide a reasonable depreciation fund whose amount and application
shall be fixed and determined in the ordinance providing for the issuance of
the bonds.
(Source: P.A. 83-541; P.A. 88-62.)
(60 ILCS 1/205-70)
Sec. 205-70. 
		Rates for use or service of system. 
		Rates charged for use or
service of a system acquired under this Article by a township shall be
sufficient at all times to pay the cost of operation and maintenance, to pay
the principal of and interest upon all revenue bonds issued under this Article,
and to provide a reasonable depreciation fund as established under the
ordinance authorizing the issuance of any revenue bonds. The holder of any bond
or bonds or of any interest coupon or coupons of any revenue bonds of a
township may, in any civil action, mandamus, injunction, or other proceedings,
enforce and compel performance of all duties required by this Article and the
covenants and undertakings set forth in any bond ordinance, including the
making and collection of sufficient rates and charges for the use or service of
a system and the proper application of the income and revenue from the system.
(Source: P.A. 83-345; 88-62.)
(60 ILCS 1/205-75)
Sec. 205-75. Liens; recovery of money due.
(a) Charges or rates established under this Article are liens upon the real
estate upon or for which a system is supplied.  Liens do not attach to the real
estate until the charges or rates have become delinquent as provided by an
ordinance fixing a delinquency date.
(b) Nothing in this Section shall be construed to give the township board or
the township utility board a preference over the rights of any purchaser,
mortgagee, judgment creditor, or other lien holder arising before the filing of
notice of the lien in the office of the recorder of the county in which the
real estate is located or in the office of the registrar of titles of the
county if the property is registered under the Registered Titles (Torrens) Act.
The notice shall consist of a sworn statement setting forth (i) a description
of the real estate, sufficient for its identification, upon or for which the
system was supplied, (ii) the amount or amounts of money due for services of
the system, and (iii) the date or dates when the amount or amounts became
delinquent.
(c) The township board or the township utility board may foreclose the lien
in the same manner and with the same effect as the foreclosure of mortgages on
real estate.
(d) The township board or the township utility board may file an action in
the circuit court to recover money due for services of a system, plus a
reasonable attorney's fee to be fixed by the court.  Whenever a judgment is
entered in a civil action, the provisions of this Section with respect to
filing sworn statements of delinquencies in the office of the recorder and
creating a lien against the real estate are not effective as to the charges
sued upon, and no lien exists thereafter against the real estate for the
delinquency.  A judgment in a civil action operates as a release
and waiver of the lien upon the real estate for the amount of judgement.
(e) The payment of delinquent charges for sewerage service to any premises may be enforced by discontinuing the water service, the sewerage service, or both to the premises.  A rate or charge is delinquent if it is more than 30 days overdue.  Any public or municipal corporation or political subdivision of the State furnishing water service to the premises (i) shall discontinue that service upon receiving written notice from the township board or the township utility board in which the premises lies that payment of the rate or charge for sewerage service to the premises has become delinquent and (ii) shall not resume water service until it receives a similar notice that the delinquency has been removed.  The provider of sewerage service shall not request discontinuation of water service pursuant to this subsection before sending a notice of the  delinquency to the sewer user and affording the owner an opportunity to be heard.  During any such hearing, the provider of sewerage service shall consider the financial ability of the user to make immediate full payment and consider the establishment of a deferred payment plan to recoup any delinquent charges. The township board or the township utility board shall reimburse the public or municipal corporation or political subdivision of the State for the reasonable cost of discontinuing and reestablishing  water service to the premises.  The township board or the township utility board may contract with any privately owned public utility for the discontinuance of water service to a premises with respect to which the payment for a rate or charge for sewerage service has become delinquent.  The township board or township utility board shall reimburse the water service provider for any lost water service revenues due to discontinuing water service under this subsection, and shall indemnify the water service provider for any judgment and related attorney's fees resulting from an action based on any provision of this subsection.
(Source: P.A. 96-842, eff. 12-23-09.)
(60 ILCS 1/205-80)
Sec. 205-80. 
		Rules and regulations; publication.
(a) The township board has the supervision and control of the system and may
make, enact, and enforce all necessary rules and regulations in connection with
the acquisition of the system and its improvement, management, maintenance,
operation, care, protection, and use. Rules and regulations shall be
established from time to time by ordinance.
(b) Rates and charges for use and service for all purposes shall be
established, revised, maintained, be due and payable, and be in force as the
township board determines by ordinance. Rates or charges established by the
board are not subject to any statutory regulations covering rates or charges
for similar service by privately owned waterworks systems.
(c) The township board may enact and enforce reasonable rules and
regulations requiring, within a specified period of time, the owner of improved
real estate to connect into a township system when that improved real estate
abuts any street, alley, or other public way or sewer right-of-way in which any
line of the system exists. For purposes of this Section, improved real estate
includes real estate with buildings and real estate that has been platted for
subdivision purposes or for commercial uses.
(d) An ordinance establishing rules and regulations or rates or charges for
use and service shall be published within 30 days after its adoption in a
newspaper published and having general circulation in the township. If there is
no such newspaper, then the ordinance shall be posted in at least 5 of the most
public places in the township.  The ordinance shall not become effective until
10 days after publication or posting, as the case may be.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-85)
Sec. 205-85. 
		Compensation for township officers. 
		Compensation for any
services performed by members of the township board, the township supervisor as
ex officio treasurer, and the township clerk as recording officer in connection
with the maintenance and operation of a system shall be fixed by ordinance by
the township board before the issuance of any bonds under this Article.  The
compensation shall not be increased while any revenue bonds issued under this
Article after the adoption of an ordinance fixing compensation are outstanding.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-90)
Sec. 205-90. 
		System of accounts; audits. 
		The township board of each
township availing itself of the provisions of this Article shall maintain a
proper system of accounts showing the receipts from the operation of the
system and the application of those receipts and shall at least
once each year cause the accounts to be properly audited by independent public
accountants. Copies of the audits shall be filed in the office of the
township clerk and shall be made available for inspection at all proper times
by any water user, township board member, or other interested person.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-95)
Sec. 205-95. 
		Fiscal year; budget.
(a) Upon the acquisition of a system under this Article, the township board
shall establish by resolution the beginning and ending of the fiscal year for
the operation of the system.  That period shall constitute the budget year for
the maintenance and operation of the system.
(b) At least 30 days before the beginning of the first fiscal year after the
acquisition of the system, the township board shall prepare a tentative budget
and shall include all proposed operation and maintenance expenses for the
ensuing fiscal year. The budget shall be considered by the township board, and
after  consideration and any revision by the board, it shall be adopted not
later than 30 days after the beginning of the fiscal year. No expenditures in
excess of the budget shall be made during the fiscal year unless authorized by
a two-thirds vote of the board.
(c) It shall not be necessary to include in the budget any statement of
expenditures for debt service, but the board shall make provision for those
payments as they become due. No money shall be paid out from the water fund of
the township except upon an order signed by the supervisor and township clerk
and approved by the board. Each order shall specify the purpose for which it is
to be paid, and there shall be endorsed on the order the name of the particular
account out of which it is payable.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-100)
Sec. 205-100. 
		Township utility board.
(a) The township board of a township availing itself of the provisions of
this Article may, in its discretion and before the issue of any bonds under
this Article, by ordinance create a township utility board for the purpose of
exercising all of the powers conferred by this Article. The township
supervisor, subject to the approval of the township board, shall appoint 5
persons, all of whom are legal voters of the township and have resided in the
township for at least 2 years before the date of their appointment. Any person
holding an elective or appointive public office is not eligible for appointment
to the utility board, and any person who has held an elective office or an
appointive public office is not eligible for appointment for one year after the
expiration of his or her term of office.
(b) One of the appointees shall be appointed for a term of one year,
one for a term of 2 years, one for a term of 3 years, and 2 for terms of 4
years. One additional member shall be appointed to any utility board in
existence on August 3, 1967, for a term of 3 years. Annually thereafter,
appointments to fill the expired terms shall be made in the same manner, except
that the term of each appointee shall be 4 years. Vacancies shall be filled for
an unexpired term in the same manner as the original appointments.
(c) Within 30 days after their appointment, the members shall meet and elect
a chairman and a vice-chairman from their membership and a secretary who need
not be a member of the utility board. The board shall constitute and be the
(Name of township) Utility Board. The utility board shall fix the compensation
of the secretary, subject to the approval of the township board.
(d) The utility board may establish bylaws, rules, and regulations for its
own government. Upon its organization, the utility board shall  have general
supervision over the construction, operation, maintenance, and management of
the system of the township. The utility board shall exercise all of the powers
authorized and provided for by this Article instead of the township board,
including the establishment of rules and regulations covering the maintenance,
operation, and use of the system, the power to require connection of abutting
improved real estate with the system, the fixing of rates and charges for the
use and service of the system, and the power to improve and extend the system
from time to time as provided in this Article.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-105)
Sec. 205-105. Construction contracts; bids.
(a) All contracts for construction work whose estimated cost will exceed
$30,000 shall be let to the lowest responsible bidder after publication of
notice for bids. Notice for bids shall be published once in a newspaper
published and having general circulation in the township, if there is one. If
there is no such newspaper, notice for bids shall be published in a newspaper
published and having general circulation in the county.  Notice for bids shall
be published at least 10 days before the date set for receiving bids. Bids
shall be opened and publicly read, and an award shall be made to the lowest
responsible bidder within 15 days after the receipt of bids.
(b) This Section shall not apply to engineering, legal, or other
professional services, but it shall apply to the purchase of equipment unless
the township board, by a resolution adopted by a three-fourths vote, determines
that it is for the best interests of the township that advertising for bids for
the equipment be dispensed with.
(Source: P.A. 102-728, eff. 5-6-22.)
(60 ILCS 1/205-110)
Sec. 205-110. 
		Exercise of authority in name of township. 
		The authority
conferred upon a township under this Article, except as otherwise provided in
this Article, shall be exercised by the township board in the name of and for
and on behalf of the township.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-115)
Sec. 205-115. 
		Collector. 
		The supervisor, by and with the consent of the
township board, shall appoint a collector to collect the charges for the use
and service of the system.  The collector's duties, term of office,
compensation, and bond for faithful performance of his or her duties shall be
fixed by ordinance. The collector's compensation shall not be increased during
the term of office for which he or she is appointed.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-120)
Sec. 205-120. 
		Sale or lease of system. 
		The township board of a township that
owns a waterworks system or sewerage system or combined waterworks and sewerage
system may sell or lease the system or a separable portion of the system for
any term not to exceed 99 years when, in the opinion of the board, the property
is no longer necessary, appropriate, required for the use of, profitable to, or
for the best interests of the township. This power shall be exercised by an
ordinance passed by at least a two-thirds vote of the members of the board. The
property shall not be sold or leased, however, for a less amount than is
necessary to amortize any outstanding bonds issued under this Article nor, in
any event, at a less amount than the reasonable value of the property (or a
reasonable return on the investment in the property in  the case of a lease) as
determined by an appraisal made at the direction of the board by a person or
persons acquainted with valuations of those kinds of properties.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-125)
Sec. 205-125. 
		Sale or lease for more than 20 years; bids. 
		Property may be
sold, or leased for a term of more than 20 years, only after advertising for
sealed bids for its purchase or lease. The advertisement shall be published at
least once in a newspaper having a general circulation in the township at least
30 days before the date fixed for opening bids. The advertisement shall contain
a description of the property, the minimum amount that will be considered for
the sale or lease, as the case may be, the terms of payment, the last date that
bids will be accepted, the place for filing bids, and the time and place that
bids will be opened. The township board shall reserve the right to reject any
or all bids. Only the bid of the highest responsible bidder shall be accepted.
(Source: P.A. 82-783; 88-62.)
(60 ILCS 1/205-130)
Sec. 205-130. 
		Service to particular locality outside current system; bonds.
(a)  A township (i) may construct or acquire a waterworks system or
sewerage system, or a combined waterworks and sewerage system, serving a
particular locality in the township or (ii) may extend or improve an existing
waterworks system or sewerage system, or combined waterworks and sewerage
system, for the purpose of serving a particular locality within the township
not previously served by its existing waterworks system or sewerage system
or combined waterworks and sewerage system.
(b) The township may pay the cost of the construction, acquisition,
extension, or improvement by the issuance and sale of revenue bonds of the
township, payable solely from the revenue derived from the operation of the
entire waterworks system or systems or sewerage system or systems or combined
waterworks and sewerage system or systems of the township. Except as they are
inconsistent with this Section, Sections 205-5 through 205-125 govern all
matters connected with a project under this Section.
(Source: P.A. 76-1360; 88-62.)
(60 ILCS 1/205-135)
Sec. 205-135. 
		Additional use of system serving a particular locality; bonds.
(a) A township (i) may construct or acquire a waterworks system or a
sewerage system, or a combined waterworks and sewerage system, serving a
particular locality or (ii) may extend or improve an existing waterworks
system or sewerage system, or combined waterworks and sewerage system, serving
a particular locality within the township.
(b) The township may pay the cost of the construction, acquisition,
extension, or improvement by the issuance and sale of revenue bonds of the
township, payable (i) solely from the revenue derived from the operation of
the waterworks system or sewerage system, or the combined waterworks and
sewerage system, constructed or acquired for that particular locality or (ii)
solely from the revenue to be derived from the operation of the existing
waterworks system or sewerage system or combined waterworks and sewerage
system, extended or improved to serve a particular locality. Except as they are
inconsistent with this Section, Sections 205-5 through 205-125 and 205-150
govern all matters connected with the bonds issued under this Section.
(c) Bonds issued under this Section are payable solely from the revenue
derived from the operation of that sewerage system or improvement or
extension. These bonds shall not, in any event, constitute an indebtedness
of the township within the meaning of any constitutional or statutory
limitation, and it shall be so stated on the face of each bond. The face of
each bond shall also contain a description of the locality for which that
system or improvement or extension is constructed, acquired, or improved.
(Source: P.A. 76-1360; 88-62.)
(60 ILCS 1/205-140)
Sec. 205-140. Initiating proceedings for particular locality; rates
and charges; lien.
(a) This Section applies to townships to which Section 205-141 does not apply.
(a-1) A township board may initiate proceedings under Sections 205-130 through
205-150 in the  manner provided by Section 205-20.
(b) The township board may establish the rate or charge to each
user of the waterworks system or sewerage system, or combined waterworks
and sewerage system, or improvement or extension at a rate that will be
sufficient to pay the principal and interest of any bonds issued to pay
the cost of the system, improvement, or extension and the maintenance and
operation of the system, improvement, or extension and may provide an adequate
depreciation fund for the bonds. Charges or rates shall be established,
revised, and maintained by ordinance and become payable as the township board
determines by ordinance.
(c) The charges or rates are liens upon the real estate upon or for which
sewerage service is supplied whenever the charges or rates become delinquent as
provided by the ordinance of the board fixing a delinquency date.
(d) Notwithstanding any provision of law to the contrary, the township shall conduct a cost study regarding the connection charge of the township:
(1) before the township increases or creates a     connection charge;
(2) upon the request of the supervisor or a majority     of the township board of the township;
(3) upon the request of a majority of the mayors or     village presidents of the municipalities located within or substantially within the township or township's facility planning area; or
(4) upon the filing with the township board of a     petition signed by 10% or more of the customers who have paid connection charges to the township in the previous 5 calendar years.
The cost study shall be conducted by an independent entity within 6 months of action taken under paragraphs (1), (2), (3), or (4) of this subsection (d). For purposes of subsections (d) and (e), the term "independent entity" shall mean an engineering firm that has not entered into a contract with any State agency, unit of local government, or non-governmental entity for goods or services within the township or township service area in the 24 months prior to being contracted to perform the cost study. After performing a cost study under this subsection (d), an independent entity may not contract with any State agency, unit of local government, or non-governmental entity for goods or services within the township or township service area in the 24 months after completion of the cost study other than to perform further cost studies under this subsection (d). A township shall not be required to conduct more than one cost study in a 60 month period under paragraphs (3) or (4) of this subsection (d). The cost study must include, at a minimum, an examination of similar water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population.  Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study.  If the connection charge the township charged prior to completion of the cost study is higher than is justified by the cost study, the township shall reduce its connection charge to the amount justified by the cost study.  For purposes of this subsection (d), "connection charge" means any charge or fee, by whatever name, assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the township's facilities, and includes only the direct and indirect costs of physically tying the service line into the township's main.
(e) If a cost study has been conducted pursuant to subsection (d) of this Section and a new cost study is requested under paragraph (3) or (4) of subsection (d), the township shall obtain a written quote from an independent entity detailing the cost of the requested cost study and one of the following shall occur prior to a new cost study beginning:
(1) each township, village, and municipality whose     mayor or president requested the cost study under paragraph (3) of subsection (d) shall pay a proportionate share of the entire cost of the cost study as detailed in the written quote required under this subsection (e); or
(2) the customers who signed the petition under     paragraph (4) of subsection (d) shall pay a pro rata share of the entire cost of the cost study as detailed in written quote required under this  subsection (e).
Payments required under either paragraph (1) or (2) of this subsection (e) shall be made to the township clerk, who shall forward the same to the independent entity upon receipt of entire amount of the written quote for the cost study. If the entire amount of the written quote for the cost study has not been received within 90 days from the township clerk providing public note of the amount of the written quote, then those amounts received by the township clerk shall be refunded to the persons or entities which paid them.
(Source: P.A. 99-481, eff. 9-22-15; 99-498, eff. 1-29-16; 100-528, eff. 9-22-17.)
(60 ILCS 1/205-141)
Sec. 205-141. Initiating proceedings for particular locality; rates
and charges; lien; certain townships.
(a) This Section applies to any township that (i) has a population between 31,500 and 32,000 according to the 2010 federal decennial census; and (ii) is located  within a county that has a population between 260,000 and 265,000 according to the 2010 federal decennial census.
(a-1) A township board may initiate proceedings under Sections 205-130 through
205-150 in the  manner provided by Section 205-20.
(b) The township board may establish a fair and reasonable rate for each
user of the waterworks system or sewerage system, or combined waterworks
and sewerage system, or improvement or extension at a rate that will be
sufficient to pay the principal and interest of any bonds issued to pay
the cost of the system, improvement, or extension and the maintenance and
operation of the system, improvement, or extension and may provide an adequate
depreciation fund for the bonds. Rates shall be established,
revised, and maintained by ordinance and become payable as the township board
determines by ordinance.
(b-5)   The township board may establish a fair and reasonable connection charge for each new user added to the township's waterworks system or sewerage system.
(c) The charges or rates are liens upon the real estate upon or for which
sewerage service is supplied whenever the charges or rates become delinquent as
provided by the ordinance of the board fixing a delinquency date.
(d) Notwithstanding any provision of law to the contrary, a cost study shall be conducted regarding the connection charge of the township:
(1) before the township increases or creates a     connection charge;
(2) upon the request of the supervisor or a majority     of the township board of the township;
(3) upon the request of a majority of the mayors or     village presidents of the municipalities located within or substantially within the township or township's facility planning area; or
(4) upon the filing with the township board of a     petition signed by 10% or more of the customers who have paid connection charges to the township in the previous 5 calendar years.The cost study shall be conducted by an independent entity within 6 months of action taken under paragraphs (1), (2), (3), or (4) of this subsection (d). If a cost study is requested under paragraphs (1) or (2) of this subsection, then the township shall order and pay for the cost study. If a cost study is requested under paragraphs (3) or (4) of this subsection, then the municipalities whose mayors or presidents requested the cost study under paragraph (3), or the customers who filed a petition under paragraph (4), shall choose the independent entity to conduct the cost study, order the cost study, and pay for the cost study. After performing a cost study under this subsection (d), an independent entity may not contract with any State agency, unit of local government, or non-governmental entity for goods or services within the township or township service area in the 24 months after completion of the cost study other than to perform further cost studies under this subsection (d). A township shall not be required to conduct more than one cost study in a 60 month period under paragraphs (3) or (4) of this subsection (d). The cost study must include, at a minimum, an examination of residential and commercial connection charges for the waterworks system or sewerage system, whichever applies, in at least 30 units of local government in Illinois with a similar number of customers as are connected to the township's waterworks system and sewerage system.  Following the completion of the cost study, no increase or new connection charge may be imposed unless the increase or new charge is justified by the cost study.  If the connection charge the township charged prior to completion of the cost study is higher than is justified by the cost study, the township shall reduce its connection charge to the amount justified by the cost study.
(e) For purposes of this Section:
"Connection charge" means any nominal charge or fee, by whatever name, assessed to recover the cost of connecting the customer's water main, sewer, or water main and sewer service line to the township's facilities, and includes only the direct and indirect costs of physically tying the service line into the township's main line in the adjoining utility easement.
"Independent entity" means an engineering firm that has not entered into a contract with any State agency, unit of local government, or non-governmental entity for goods or services within the township or township service area in the 24 months prior to being contracted to perform the cost study.
(Source: P.A. 100-528, eff. 9-22-17.)
(60 ILCS 1/205-145)
Sec. 205-145. Special fund. All revenue derived from the operation of a
waterworks system or sewerage system, or combined waterworks and sewerage
system, constructed, acquired, extended, or improved to serve a particular
locality shall be set aside as collected and shall be deposited in a special
fund of the township. That fund shall be used only (i) to pay the cost of
operating and maintaining the waterworks system or sewerage system, or combined
waterworks and sewerage system, constructed, acquired, extended, or improved to
serve a particular locality, (ii) to provide an adequate depreciation fund, and
(iii) to pay the principal and interest on the bonds issued by the township
under Sections 205-130 through 205-141 for the purpose of constructing,
acquiring, extending, or improving the system.
(Source: P.A. 100-528, eff. 9-22-17.)
(60 ILCS 1/205-150)
Sec. 205-150. 
		
		If, before July 18, 1972, a township (i) has constructed or
acquired a waterworks system or a sewerage system, or combined waterworks and
sewerage system, to serve a particular locality within the boundaries of the
township, (ii) has kept separate books, records, and accounts for the system or
systems, (iii) has collected rates and charges for use and service from the
users of the system or systems that are different from those collected for any
other system or systems, and (iv) has paid solely from the income and revenue
derived from the operation of the system or systems the principal of and
interest upon revenue bonds, the proceeds of which were used to pay the cost
of the construction, purchase, improvement, or extension of that system serving
a particular locality, all those acts of the township are hereby
declared to be valid, and the township may continue so to act, provided the
income and revenue of that system serving a particular locality are
sufficient to make the payments of principal and interest as they become
due. Nothing in this amendatory Act of 1972 (Public Act 77-2083) shall be
construed to impair the obligation of the ordinance authorizing the issuance of
the revenue bonds.
(Source: P.A. 77-2083; 88-62.)
(60 ILCS 1/205-155)
Sec. 205-155. 
		Construction of Article. 
		This Article shall be deemed a
general law complete in itself and shall be liberally construed. Each township
upon the acquisition of a system as defined in Section 205-5 under the
provisions of this Article shall maintain and operate the system in the public
interest and for the benefit and use of the public and territory served by the
system.  This Article is cumulative and in addition to any powers conferred by
any other law.
(Source: Laws 1945, p. 1745; P.A. 88-62.)