Illinois General Assembly - Full Text of HB4659
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Full Text of HB4659  99th General Assembly




State of Illinois
2015 and 2016


Introduced , by Rep. Elaine Nekritz


70 ILCS 2605/5.2  from Ch. 42, par. 324L
70 ILCS 2605/9  from Ch. 42, par. 328
70 ILCS 2605/9.6a  from Ch. 42, par. 328.6a
70 ILCS 2605/9.6c
70 ILCS 2605/9.6e new
70 ILCS 2605/9.8  from Ch. 42, par. 328.8

    Amends the Metropolitan Water Reclamation District Act. Modifies the definition of "Construction Purposes" and a Section on bonds to include stormwater management and resource recovery facilities and systems (currently, flood control facilities) and residential and municipal sewers that connect with District sewers, facilities, or systems. Further provides that the District may establish the Residential Cost Share Program to encourage residents and municipalities to update the sewage system they own to prevent infiltration of water entering the sewer system. Allows the District to fund the new Program in various ways. Effective immediately.

LRB099 17303 AWJ 41661 b






HB4659LRB099 17303 AWJ 41661 b

1    AN ACT concerning local government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Metropolitan Water Reclamation District Act
5is amended by changing Sections 5.2, 9, 9.6a, 9.6c, and 9.8 and
6by adding Section 9.6e as follows:
7    (70 ILCS 2605/5.2)  (from Ch. 42, par. 324L)
8    Sec. 5.2. Definitions. Where used in this law, "budget
9year" shall mean the fiscal year for which a budget is made.
10"Current year" shall mean the fiscal year in progress, i.e.,
11the fiscal year next preceding the budget year. "Preceding
12year" shall mean the fiscal year preceding the current year.
13    The "Clerk" shall mean that officer so designated as
14provided in Section 4.
15    "Fund" shall mean a sum of money or other resources set
16aside for the purpose of carrying on specific activities or
17attaining certain objectives in accordance with special
18regulations, restrictions, or limitations. A fund shall be a
19distinct financial or fiscal entity.
20    "Accountant" shall mean a public accountant or certified
21public accountant licensed under the laws of this State.
22    "Expenditure" shall mean the amount of obligations
23incurred either paid or to be paid from the appropriations for



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1the budget year for all purposes, including current expenses,
2retirement of debt, and capital outlays.
3    "Disbursement" shall mean the actual payment in cash for
4any purpose.
5    "Receipt" shall mean cash actually received and shall
6include appropriable cash on hand at the beginning of any
7specified year.
8    "Estimated receipt" shall mean cash estimated to be
9received within the budget year and shall include the cash
10surplus estimated to be appropriable at the beginning of the
11budget year.
12    "Cash basis" shall mean that system of accounting wherein
13revenues are accounted for when received in cash and
14expenditures are accounted for when paid.
15    "Accrual basis" shall mean that system of accounting
16wherein revenues are accounted for when earned or due, even
17though not collected, and expenditures are accounted for as
18soon as liabilities are incurred, whether paid or not.
19    "Function" (activity) of expenditure shall mean the
20particular purpose or group of services aimed at accomplishing
21a certain end for which an expenditure is made.
22    "Line Item" or item shall mean a particular type of
23expenditure within a class or related group of such
24expenditures, i. e., testing service, hospital service, towel
25and laundry service, within the class titled "Impersonal



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1    "Object" of expenditure shall mean specific articles, or
2classes of things for which an expenditure is made, i. e.,
3personal services, impersonal services, materials and
4supplies, machinery and equipment, fixed charges and any such
5other classes of articles or things as may be desirable.
6    "Character" of expenditure shall refer to the relationship
7of total expenditures to current, prior, and future fiscal
8periods, i. e., whether the expenditure is a current expense,
9provision for the retirement of debt, or a capital outlay.
10    "Organization units" shall be the administrative units of
11the district, i. e., departments, major sewage treatment
12plants, and such other operating units or groups of operating
13units as may be deemed desirable by the authorities of the
14Sanitary District.
15    The "committee on finance" shall be any committee so
16appointed and so designated by the board of commissioners for
17the purpose of considering financial matters affecting the
19    "Sinking Fund Requirements" shall mean the amounts that
20will be needed to pay interest on and principal of bonds.
21    "Construction Fund" shall mean the amounts to be used for
22paying the costs incurred for construction purposes.
23    "Construction Purposes" shall mean the replacement,
24remodeling, completion, alteration, construction, and
25enlargement, including alterations, enlargements and
26replacements which will add appreciably to the value, utility,



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1or the useful life of sewage treatment works, administrative
2buildings, flood control, stormwater management and resource
3recovery facilities and systems, or water quality improvement
4projects, and additions therefor, pumping stations, tunnels,
5conduits, and intercepting sewers, residential and municipal
6sewers directly or indirectly connecting with district sewers,
7facilities or systems therewith, and outlet sewers, and those
8activities set forth in Section 9.6e, together with the
9equipment and appurtenances necessary thereto, and for the
10acquisition of the sites and rights of way necessary thereto,
11and for engineering expenses for designing and supervising the
12construction of the works above described, and for removal of
13the rock ledge in the bed of the Des Plaines River (Illinois
14Waterway) through the City of Joliet.
15    Prior to the commencing of work involved in the removal of
16the rock ledge in the bed of the Des Plaines River formal
17approval shall be obtained for the design and plans for
18accomplishing this work from the Corps of Engineers, U. S.
19Army, and the State of Illinois Department of Natural
21    The Metropolitan Sanitary District of Greater Chicago, its
22agents, successors or assigns shall save the State of Illinois
23harmless from any and all claims of whatever nature which may
24arise as a result of or in consequence of any work which may be
25performed by the District.
26    The rights, powers, and authorities granted in this Act



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1shall be subject to the provisions of Section 18 of the Rivers,
2Lakes, and Streams Act.
3    It is the intent and purpose of this Act to provide a legal
4basis which will authorize and require all Sanitary Districts
5organized under the provisions hereof to make and execute the
6budgets of their Corporate Funds and Construction Funds in such
7manner that the budgets may be planned and balanced with
8receipts on an actual cash basis and expenditures on an accrual
9basis, and all definitions, terms, provisions and procedures
10set forth in this Act shall be thus construed as applied to
11corporate funds and construction funds.
12(Source: P.A. 97-367, eff. 8-15-11.)
13    (70 ILCS 2605/9)  (from Ch. 42, par. 328)
14    Sec. 9. The corporation may borrow money for corporate
15purposes and may issue bonds, notes or other evidences of
16indebtedness therefor, but shall not become indebted in any
17manner, or for any purpose to an amount in the aggregate to
18exceed 5.75% of the valuation of taxable property therein, to
19be ascertained by the last assessment for State and county
20taxes previous to incurring of such indebtedness. No ordinance
21providing for the issuance of such obligations of any sanitary
22district organized under this Act shall be valid unless it
23specifically states the purpose for which such obligations are
24to be issued. The funds derived from the sale of any such
25obligations shall be used solely for the purpose stated in such



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1ordinance. Such obligations may be sold and delivered as and
2when the proceeds thereof shall be deemed necessary by the
3board of commissioners. Such obligations shall be of the form
4and tenor and shall be executed for and on behalf of such
5sanitary district by such of its officers as may be specified
6in the ordinance. The validity of every such obligation so
7executed shall remain unimpaired by the fact that one or more
8of the subscribing or attesting officers shall have ceased to
9be such officer or officers before the delivery of the
10obligations to the purchaser.
11    Except for the purpose of paying lawful claims against such
12sanitary district for damage to land or for damage to or
13destruction of other property, where such damage or destruction
14is caused or occasioned by such sanitary district, and except
15for the purpose of establishing a corporate working cash fund
16as is provided by Section 9b of this Act, and except for the
17purpose of establishing a construction working cash fund as is
18provided by Section 9c of this Act, and except as is otherwise
19provided in Sections 9.1, 9.2, 9.3, 9.4, 9.5, 9.6, and 9.6a,
20and 9.6e of this Act, no such sanitary district shall issue
21obligations payable from taxes unless the proposition to issue
22such obligations shall have been first submitted to the legal
23voters of such sanitary district, and shall have been approved
24by a majority of those voting upon the proposition.
25(Source: P.A. 83-1525.)



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1    (70 ILCS 2605/9.6a)  (from Ch. 42, par. 328.6a)
2    Sec. 9.6a. Bonds for sewage treatment and water quality
3improvements. The corporate authorities of a sanitary
4district, in order to provide funds required for the replacing,
5remodeling, completing, altering, constructing and enlarging
6of sewage treatment works, administrative buildings, water
7quality improvement projects, or flood control, stormwater
8management and resource recovery facilities and systems, and
9additions therefor, pumping stations, tunnels, conduits,
10intercepting sewers, residential and municipal sewers directly
11or indirectly connecting with district sewers, facilities or
12systems, and outlet sewers, and those improvements set forth in
13Section 9.6e, together with the equipment, including air
14pollution equipment, and appurtenances thereto, to acquire
15property, real, personal or mixed, necessary for said purposes,
16for costs and expenses for the acquisition of the sites and
17rights-of-way necessary thereto, and for engineering expenses
18for designing and supervising the construction of such works,
19may issue on or before December 31, 2024, in addition to all
20other obligations heretofore or herein authorized, bonds,
21notes or other evidences of indebtedness for such purposes in
22an aggregate amount at any one time outstanding not to exceed
233.35% of the equalized assessed valuation of all taxable
24property within the sanitary district, to be ascertained by the
25last assessment for State and local taxes previous to the
26issuance of any such obligations. Such obligations shall be



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1issued without submitting the question of such issuance to the
2legal voters of such sanitary district for approval.
3    The corporate authorities may sell such obligations at
4private or public sale and enter into any contract or agreement
5necessary, appropriate or incidental to the exercise of the
6powers granted by this Act, including, without limitation,
7contracts or agreements for the sale and purchase of such
8obligations and the payment of costs and expenses incident
9thereto. The corporate authorities may pay such costs and
10expenses, in whole or in part, from the corporate fund.
11    Such obligations shall be issued from time to time only in
12amounts as may be required for such purposes but the amount of
13such obligations issued during any one budget year shall not
14exceed $150,000,000 plus the amount of any obligations
15authorized by this Act to be issued during the 3 budget years
16next preceding the year of issuance but which were not issued,
17provided, however, that this limitation shall not be applicable
18(i) to the issuance of obligations to refund bonds, notes or
19other evidences of indebtedness, (ii) to obligations issued to
20provide for the repayment of money received from the Water
21Pollution Control Loan Program Revolving Fund for the
22construction or repair of wastewater treatment works or any
23other purposes as authorized by the Water Pollution Control
24Loan Program, and (iii) to obligations issued as part of the
25American Recovery and Reinvestment Act of 2009, issued prior to
26January 1, 2011, that are commonly known as "Build America



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1Bonds" as authorized by Section 54AA of the Internal Revenue
2Code of 1986, as amended. Each ordinance authorizing the
3issuance of the obligations shall state the general purpose or
4purposes for which they are to be issued, and the corporate
5authorities may at any time thereafter pass supplemental
6appropriations ordinances appropriating the proceeds from the
7sale of such obligations for such purposes.
8    The corporate authorities may issue bonds, notes or other
9evidences of indebtedness in an amount necessary to provide
10funds to refund outstanding obligations issued pursuant to this
11Section, including interest accrued or to accrue thereon.
12(Source: P.A. 96-828, eff. 12-2-09; 96-1308, eff. 1-1-11;
1397-367, eff. 8-15-11.)
14    (70 ILCS 2605/9.6c)
15    Sec. 9.6c. Local Government Assistance Program; bonds.
16    (a) The General Assembly finds that governmental units
17located within the boundaries of the district require
18assistance in financing the cost of repair, replacement,
19reconstruction, and rehabilitation, and construction of local
20sanitary, combined, and storm sewer collection systems to
21reduce certain excessive sanitary sewer groundwater inflows in
22separate sewer area sanitary sewers and mitigate flooding in
23separate and combined sewer areas; that such inflows ultimately
24result in sanitary and combined sewer overflows, basement
25backups, and an increased need for treatment and storage



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1facilities of the district; and that the district, in the
2discretion of its commissioners, advantageously may provide
3loan funds for such purposes.
4    (b) For purposes of this Section, the following terms shall
5have the meanings set forth, as follows:
6        The following terms shall have the meanings given to
7    them in the Local Government Debt Reform Act: (A)
8    "alternate bonds"; (B) "applicable law"; (C) "bonds"; (D)
9    "general obligation bonds"; (E) "governmental unit"; (F)
10    "ordinance"; and (G) "revenue source".
11        "Assistance bonds" means the bonds to be issued by the
12    district to provide funds for the program as authorized in
13    subsection (f) of this Section.
14        "Assistance program" means the program authorized in
15    this Section by which the district may make loans to local
16    governmental units for any one or more of the following
17    undertaken with respect to the repair, replacement,
18    reconstruction, and rehabilitation, and construction of
19    sanitary, combined, and storm local sewer collection
20    systems: preliminary planning, engineering, architectural,
21    legal, fiscal or economic investigations or studies,
22    surveys, designs, plans, working drawings, specifications,
23    procedures or other necessary actions, erection, building
24    acquisition, alteration, remodeling, or improvement of
25    such collection systems, or the inspection or supervision
26    of any of the foregoing.



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1        "Loan" means a loan made by the district to a local
2    governmental unit under the assistance program.
3        "Local governmental unit" means a governmental unit
4    within the boundaries of the district.
5        "Reconstruction" shall include the construction of
6    totally new lines or systems if reasonably designed to
7    replace obsolete lines or systems.
8    (c) The commissioners may establish an assistance program.
9    (d) The commissioners are authorized to do any one or more
10of the following with respect to the assistance program:
11        (1) Establish the assistance program as a use or
12    appropriation within the corporate fund of the district.
13        (2) Accept grants, borrow funds, and appropriate
14    lawfully available funds for the purpose of funding the
15    assistance program.
16        (3) Make the loans as provided in subsection (e).
17        (4) Enforce loans with all available remedies as any
18    governmental unit or private person might have with respect
19    to such loans.
20    (e) The district shall have the power to make loans and
21local governmental units shall have the power to obtain loans
22from the district, but only if authorized to borrow under such
23powers as may be granted to such local governmental units under
24other applicable law. This Section does not grant local
25governmental units separate borrowing power. If authorized to
26issue bonds under such applicable law, however, the form of the



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1borrowing may be such as the district and the local
2governmental unit may agree, including, without limitation, a
3loan agreement made between the district and local governmental
4unit to evidence the bond. Any such loan agreement shall state
5the statutory authority under applicable law for the bond it
6represents but otherwise need not be in any specific form. The
7district shall have all rights and remedies available to the
8holder of a bond otherwise issued in the form provided for same
9under applicable law and also such rights and remedies as may
10be additionally available under subsection (d)(4) of this
11Section. The loans may be made upon such terms and at such
12rates, including expressly below market rates, representing a
13subsidy of funds from the district to the local governmental
14units, as the district may specify in the loan agreements.
15    (f) The district may borrow money and issue its assistance
16bonds under this Section 9.6c for the purpose of funding the
17assistance program, which bonds shall be alternate bonds
18payable from any lawfully available revenue source, including
19without limitation receipts from the loans.
20(Source: P.A. 98-652, eff. 6-18-14.)
21    (70 ILCS 2605/9.6e new)
22    Sec. 9.6e. Residential Cost Share Program.
23    (a) As used in this Section:
24    "Infiltration" means the quantity of water entering a sewer
25system through such sources including, but not limited to,



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1defective pipes, pipe joints, connections, or manhole walls.
2    "Inflow" means the quantity of water entering the sewer
3system through connections including, but not limited to, area
4or foundation drains, connected downspouts, and catch basins.
5    "Program" means the Residential Cost Share Program.
6    "Residential" means real property primarily used as a
7residence or dwelling and for which the majority of wastewater
8generated from the property is of a domestic nature and which
9falls within the scope of the Program established by the
11    (b) The General Assembly finds that:
12        (1) basement backups present a public health and safety
13    issue;
14        (2) infiltration and inflow can occur from sources on
15    both public and private properties and ultimately must be
16    conveyed and treated by the district at a cost to the
17    District's taxpayers;
18        (3) under many circumstances, removing infiltration
19    and inflow from private property is the most direct means
20    to reduce the incidence of basement backups because it
21    removes excess flow at the source and thereby frees
22    capacity for sanitary flows requiring treatment at a water
23    reclamation plant;
24        (4) disconnecting foundation drains and downspouts is
25    an effective strategy for reducing inflow;
26        (5) large cisterns and rain gardens are successful



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1    methods for reducing infiltration and inflow;
2        (6) overhead sewers, backflow prevention valves, and
3    bypass pumps are effective systems for protecting private
4    properties from basement backups during large rain events;
5        (7) rehabilitation or replacement of lateral sewers
6    (including flood grouting) is also an effective method for
7    reducing infiltration, especially in older communities
8    where deteriorated laterals can contribute very large
9    quantities of clear water to the sanitary system thereby
10    overburdening local and District sewer lines with water not
11    requiring treatment;
12        (8) private property infiltration and inflow work
13    reduces the incidence of combined and sanitary sewer
14    overflows to surface water during wet weather by increasing
15    the percentage of total flow that can be conveyed and
16    treated at a water reclamation plant;
17        (9) although privately owned, lateral sewers are a
18    necessary part of the collection system and lateral sewer
19    replacement or rehabilitation may be a benefit to the
20    residential property owner, that benefit is incidental to
21    the public benefits and public purpose described above;
22        (10) it is efficient and beneficial for the District to
23    cooperate and assist by way of cost share programs with
24    units of local government who in turn may assist
25    residential property owners with the activities referenced
26    in this section; and



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1        (11) a Residential Cost Share Program would be
2    beneficial to lessening and preventing infiltration and
3    inflow.
4    (c) The board of commissioners of the District may
5establish a Residential Cost Share Program by ordinance. Once
6the Program is established by ordinance, the District is
7authorized to cooperate with and assist units of local
8government located in whole or in part within the boundaries of
9the District by financing and cost sharing residential repairs,
10replacements, reconstructions, rehabilitations, installations,
11constructions, and disconnections of the following:
12        (1) Downspouts;
13        (2) foundation drains;
14        (3) lateral sewers;
15        (4) overhead sewers;
16        (5) backflow prevention valves;
17        (6) bypass pumps;
18        (7) cisterns;
19        (8) residential rain gardens; and
20        (9) other infiltration and inflow control strategies
21    as approved by the District in its Program.
22    (d) The board of commissioners of the District are
23authorized to: (1) establish the Program as a use or
24appropriation within the corporate or stormwater funds of the
25District; and (2) accept grants, cost share with units of local
26government, borrow funds, and appropriate lawfully available



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1funds for the purpose of funding the Program. Funds borrowed to
2fund the Program will be general obligations of the District
3authorized under Section 9.6a of this Act.
4    (70 ILCS 2605/9.8)  (from Ch. 42, par. 328.8)
5    Sec. 9.8. Except as is otherwise provided by Sections 9,
69.1, 9.2, 9.3, 9.5, 9.6, 9.6a, 9.6c, 9.6e, 9b, and 9c of this
7Act, whenever the corporate authorities of the Sanitary
8District desire to issue bonds for any of its corporate
9purposes, they shall by ordinance direct that the ordinance or
10ordinances for the issuance of such bonds be submitted to the
11legal voters of such sanitary district at any election. The
12clerk of such sanitary district shall certify the ordinance and
13the question to the proper election officials who shall submit
14the question at an election in accordance with the general
15election law. The question shall be in substantially the
16following form:
18    Shall bonds for the purpose of             YES
19(State purpose) in the sum of.... be     --------------------
20issued by the Sanitary District of....?       NO
22    It shall not be necessary to print in full on the ballot
23any such ordinance authorizing the issuance of bonds.
24    The result of the referendum on the question shall be
25entered upon the records of the district.



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1(Source: P.A. 90-690, eff. 7-31-98.)
2    Section 99. Effective date. This Act takes effect upon
3becoming law.