HB4298 99TH GENERAL ASSEMBLY

LRB099 14423 AWJ 38521 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4298

Introduced , by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

60 ILCS 1/205-140

Amends the Township Code. Provides that no township may increase or create water main, sewer, or water main and sewer connection charges without first conducting a cost study, the results of which justify the charge. Provides that a township shall not be required to conduct more than one cost study in a 60 month period and specified units or persons requesting a cost study after the first cost study will be required to pay for the cost study. Further provides that if the connection charge that the township charges is greater than is justified by the cost study, the township must reduce its connection charge.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Township Code is amended by changing Section 205-140 and by adding Section 200-14c as follows:

(60 ILCS 1/205-140)

Sec. 205-140. Initiating proceedings for particular locality; rates and charges; lien.

(a) 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 an action taken under paragraphs (1), (2), (3), or (4) of this subsection (d). 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 conduct more than one cost study under this subsection (d) in a 60 month period. 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.

(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 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 cost of the written quote required under this subsection (e); or

(2) the customers who signed the petition under paragraph (4) of subsection (d) shall pay to the township the entire cost of the written quote required under this subsection (e).

(f) For purposes of this Section only:

"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.

"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. 82-783; 88-62.)