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90_HB2748
5 ILCS 220/3.1 from Ch. 127, par. 743.1
Amends the Intergovernmental Cooperation Act. Permits
establishment of municipal joint action water agencies for
water derived from the Sangamon River Valley Alluvium.
Provides that the Act does not prohibit a municipal joint
action water agency from providing water to all residents of
member municipalities and all persons who executed
pre-annexation agreements with member municipalities.
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1 AN ACT to amend the Intergovernmental Cooperation Act by
2 changing Section 3.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Intergovernmental Cooperation Act is
6 amended by changing Section 3.1 as follows:
7 (5 ILCS 220/3.1) (from Ch. 127, par. 743.1)
8 Sec. 3.1. Municipal Joint Action Water Agency.
9 (a) Any municipality or municipalities of this State, any
10 county or counties of this State, any township in a county
11 with a population under 700,000 of this State, any public
12 water district or districts of this State, or any combination
13 thereof may, by intergovernmental agreement, establish a
14 Municipal Joint Action Water Agency to provide adequate
15 supplies of water on an economical and efficient basis for
16 member municipalities, public water districts and other
17 incorporated and unincorporated areas within such counties.
18 For purposes of this Act, the water supply may only be
19 derived from Lake Michigan, the Mississippi River, or the
20 Missouri River, or the Sangamon River Valley Alluvium. Any
21 such Agency shall itself be a municipal corporation, public
22 body politic and corporate. A Municipal Joint Action Water
23 Agency so created shall not itself have taxing power except
24 as hereinafter provided.
25 A Municipal Joint Action Water Agency shall be
26 established by an intergovernmental agreement among the
27 various member municipalities, public water districts,
28 townships, and counties, upon approval by an ordinance
29 adopted by the corporate authorities of each member
30 municipality, public water district, township, or county.
31 This agreement may be amended at any time upon the adoption
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1 of concurring ordinances by the corporate authorities of all
2 member municipalities, public water districts, townships, and
3 counties. The agreement may provide for additional
4 municipalities, public water districts, townships in counties
5 with a population under 700,000, or counties to join the
6 Agency upon adoption of an ordinance by the corporate
7 authorities of the joining municipality, public water
8 district, township, or county, and upon such consents,
9 conditions and approvals of the governing body of the
10 Municipal Joint Action Water Agency and of existing member
11 municipalities, public water districts, townships, and
12 counties as shall be provided in the agreement. The
13 agreement shall provide the manner and terms on which any
14 municipality, public water district, township, or county may
15 withdraw from membership in the Municipal Joint Action Water
16 Agency and on which the Agency may terminate and dissolve in
17 whole or in part. The agreement shall set forth the
18 corporate name of the Municipal Joint Action Water Agency and
19 its duration. Promptly upon any agreement establishing a
20 Municipal Joint Action Water Agency being entered into, or
21 upon the amending of any such agreement, a copy of such
22 agreement or amendment shall be filed in the office of the
23 Secretary of State of Illinois. Promptly upon the addition
24 or withdrawal of any municipality, public water district,
25 township in a county with a population under 700,000, or
26 county, or upon the dissolution of a Municipal Joint Action
27 Water Agency, that fact shall be certified by an officer of
28 the Agency to the Secretary of State of Illinois.
29 (b) The governing body of any Municipal Joint Action
30 Water Agency established pursuant to this Section 3.1 shall
31 be a Board of Directors. There shall be one Director from
32 each member municipality, public water district, township,
33 and county of the Municipal Joint Action Water Agency
34 appointed by ordinance of the corporate authorities of the
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1 municipality, public water district, township, or county.
2 Each Director shall have one vote. Each Director shall be the
3 Mayor or President of the member municipality, or the
4 chairman of the board of trustees of the member public water
5 district, the supervisor of the member township, or the
6 chairman of the county board or chief executive officer of
7 the member county or a county board member appointed by the
8 chairman of the county board of the member county, appointing
9 the Director; an elected member of the corporate authorities
10 of that municipality, public water district, township, or
11 county; or other elected official of the appointing
12 municipality, public water district, township, or county.
13 Any agreement establishing a Municipal Joint Action Water
14 Agency shall specify the period during which a Director shall
15 hold office and may provide for the appointment of Alternate
16 Directors from member municipalities, public water districts,
17 townships, or counties. The Board of Directors shall elect
18 one Director to serve as Chairman, and shall elect persons,
19 who need not be Directors, to such other offices as shall be
20 designated in the agreement.
21 The Board of Directors shall determine the general policy
22 of the Municipal Joint Action Water Agency, shall approve the
23 annual budget, shall make all appropriations (which may
24 include appropriations made at any time in addition to those
25 made in any annual appropriation document), shall approve all
26 contracts for the purchase or sale of water, shall adopt any
27 resolutions providing for the issuance of bonds or notes by
28 the Agency, shall adopt its by-laws, rules and regulations,
29 and shall have such other powers and duties as may be
30 prescribed in the agreement. Such agreement may further
31 specify those powers and actions of the Municipal Joint
32 Action Water Agency which shall be authorized only upon votes
33 of greater than a majority of all Directors or only upon
34 consents of the corporate authorities of a certain number of
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1 member municipalities, public water districts, townships, or
2 counties.
3 The agreement may provide for the establishment of an
4 Executive Committee to consist of the municipal manager or
5 other elected or appointed official of each member
6 municipality, public water district, township, or county, as
7 designated by ordinance from time to time by the corporate
8 authorities of the member municipality, public water
9 district, township, or county, and may prescribe powers and
10 duties of the Executive Committee for the efficient
11 administration of the Agency.
12 (c) A Municipal Joint Action Water Agency established
13 pursuant to this Section 3.1 may plan, construct, improve,
14 extend, acquire, finance (including the issuance of revenue
15 bonds or notes as provided in this Section 3.1), operate,
16 maintain, and contract for a joint waterworks or water supply
17 system which may include, or may consist of, without
18 limitation, facilities for receiving, storing, and
19 transmitting water from any source for supplying water to
20 member municipalities, public water districts, townships, or
21 counties (including county special service areas created
22 under the Special Service Area Tax Act and county service
23 areas authorized under the Counties Code), or other public
24 agencies, persons, or corporations. Facilities of the
25 Municipal Joint Action Water Agency may be located within or
26 without the corporate limits of any member municipality.
27 A Municipal Joint Action Water Agency shall have such
28 powers as shall be provided in the agreement establishing it,
29 which may include, but need not be limited to, the following
30 powers:
31 (i) to sue or be sued;
32 (ii) to apply for and accept gifts or grants or
33 loans of funds or property or financial or other aid from
34 any public agency or private entity;
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1 (iii) to acquire, hold, sell, lease as lessor or
2 lessee, transfer or dispose of such real or personal
3 property, or interests therein, as it deems appropriate
4 in the exercise of its powers, and to provide for the use
5 thereof by any member municipality, public water
6 district, township, or county;
7 (iv) to make and execute all contracts and other
8 instruments necessary or convenient to the exercise of
9 its powers (including contracts with member
10 municipalities, with public water districts, with
11 townships, and with counties on behalf of county service
12 areas); and
13 (v) to employ agents and employees and to delegate
14 by resolution to one or more of its Directors or officers
15 such powers as it may deem proper.
16 Member municipalities, public water districts, townships,
17 or counties may, for the purposes of, and upon request by,
18 the Municipal Joint Action Water Agency, exercise the power
19 of eminent domain available to them, convey property so
20 acquired to the Agency for the cost of acquisition, and be
21 reimbursed for all expenses related to this exercise of
22 eminent domain power on behalf of the Agency.
23 All property, income and receipts of or transactions by a
24 Municipal Joint Action Water Agency shall be exempt from all
25 taxation, the same as if it were the property, income or
26 receipts of or transaction by the member municipalities,
27 public water districts, townships, or counties.
28 (d) A Municipal Joint Action Water Agency established
29 pursuant to this Section 3.1 shall have the power to buy
30 water and to enter into contracts with any person,
31 corporation or public agency (including any member
32 municipality, public water district, township, or county) for
33 that purpose. Any such contract made by an Agency for a
34 supply of water may contain provisions whereby the Agency is
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1 obligated to pay for the supply of water without setoff or
2 counterclaim and irrespective of whether the supply of water
3 is ever furnished, made available or delivered to the Agency
4 or whether any project for the supply of water contemplated
5 by any such contract is completed, operable or operating and
6 notwithstanding any suspension, interruption, interference,
7 reduction or curtailment of the supply of water from such
8 project. Any such contract may provide that if one or more
9 of the other purchasers defaults in the payment of its
10 obligations under such contract or a similar contract made
11 with the supplier of the water one or more of the remaining
12 purchasers party to such contract or such similar contract
13 shall be required to pay for all or a portion of the
14 obligations of the defaulting purchasers. No such contract
15 may have a term in excess of 50 years.
16 A Municipal Joint Action Water Agency shall have the
17 power to sell water and to enter into contracts with any
18 person, corporation or public agency (including any member
19 municipality, any public water district, any township, or any
20 county on behalf of a county service area as set forth in
21 this Section) for that purpose. No such contract may have a
22 term in excess of 50 years. Any such contract entered into
23 to sell water to a public agency may provide that the
24 payments to be made thereunder by such public agency shall be
25 made solely from revenues to be derived by such public agency
26 from the operation of its waterworks system or its combined
27 waterworks and sewerage system. Any public agency so
28 contracting to purchase water shall establish from time to
29 time such fees and charges for its water service or combined
30 water and sewer service as will produce revenues sufficient
31 at all times to pay its obligations to the Agency under the
32 purchase contract. Any such contract so providing shall not
33 constitute indebtedness of such public agency so contracting
34 to buy water within the meaning of any statutory or
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1 constitutional limitation. Any such contract of a public
2 agency to buy water shall be a continuing, valid and binding
3 obligation of such public agency payable from such revenues.
4 A Municipal Joint Action Water Agency shall establish
5 fees and charges for the purchase of water from it or for the
6 use of its facilities. No prior appropriation shall be
7 required by either the Municipal Joint Action Water Agency or
8 any public agency before entering into any contract
9 authorized by this paragraph (d).
10 The changes in this Section made by this amendatory Act
11 of 1984 are intended to be declarative of existing law.
12 (e) 1. A Municipal Joint Action Water Agency established
13 pursuant to this Section 3.1 may, from time to time, borrow
14 money and, in evidence of its obligation to repay the
15 borrowing, issue its negotiable water revenue bonds or notes
16 pursuant to this paragraph (e) for any of the following
17 purposes: for paying costs of constructing, acquiring,
18 improving or extending a joint waterworks or water supply
19 system; for paying other expenses incident to or incurred in
20 connection with such construction, acquisition, improvement
21 or extension; for repaying advances made to or by the Agency
22 for such purposes; for paying interest on the bonds or notes
23 until the estimated date of completion of any such
24 construction, acquisition, improvement or extension and for
25 such period after the estimated completion date as the Board
26 of Directors of the Agency shall determine; for paying
27 financial, legal, administrative and other expenses of the
28 authorization, issuance, sale or delivery of bonds or notes;
29 for paying costs of insuring payment of the bonds or notes;
30 for providing or increasing a debt service reserve fund with
31 respect to any or all of the Agency's bonds or notes; and for
32 paying, refunding or redeeming any of the Agency's bonds or
33 notes before, after or at their maturity, including paying
34 redemption premiums or interest accruing or to accrue on such
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1 bonds or notes being paid or redeemed or for paying any other
2 costs in connection with any such payment or redemption.
3 2. Any bonds or notes issued pursuant to this paragraph
4 (e) by a Municipal Joint Action Water Agency shall be
5 authorized by a resolution of the Board of Directors of the
6 Agency adopted by the affirmative vote of Directors from a
7 majority of the member municipalities, public water
8 districts, townships, and counties, and any additional
9 requirements as may be set forth in the agreement
10 establishing the Agency. The authorizing resolution may be
11 effective immediately upon its adoption. The authorizing
12 resolution shall describe in a general way any project
13 contemplated to be financed by the bonds or notes, shall set
14 forth the estimated cost of the project and shall determine
15 its period of usefulness. The authorizing resolution shall
16 determine the maturity or maturities of the bonds or notes,
17 the rate or rates at which the bonds or notes are to bear
18 interest and all the other terms and details of the bonds or
19 notes. All such bonds or notes shall mature within the
20 period of estimated usefulness of the project with respect to
21 which such bonds or notes are issued, as determined by the
22 Board of Directors, but in any event not more than 50 years
23 from their date of issue. The bonds and notes may bear
24 interest, payable at such times, at a rate or rates not
25 exceeding the maximum rate established in the Bond
26 Authorization Act, as from time to time in effect. Bonds or
27 notes of a Municipal Joint Action Water Agency shall be sold
28 in such manner as the Board of Directors of the Agency shall
29 determine, either at par or at a premium or discount, but
30 such that the effective interest cost (excluding any
31 redemption premium) to the Agency of the bonds or notes shall
32 not exceed a rate equal to the rate of interest specified in
33 the Act referred to in the preceding sentence.
34 The resolution authorizing the issuance of any bonds or
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1 notes pursuant to this paragraph (e) shall constitute a
2 contract with the holders of the bonds and notes. The
3 resolution may contain such covenants and restrictions with
4 respect to the purchase or sale of water by the Agency and
5 the contracts for such purchases or sales, the operation of
6 the joint waterworks system or water supply system, the
7 issuance of additional bonds or notes by the Agency, the
8 security for the bonds and notes, and any other matters, as
9 may be deemed necessary or advisable by the Board of
10 Directors to assure the payment of the bonds or notes of the
11 Agency.
12 3. The resolution authorizing the issuance of bonds or
13 notes by a Municipal Joint Action Water Agency shall pledge
14 and provide for the application of revenues derived from the
15 operation of the Agency's joint waterworks or water supply
16 system (including from contracts for the sale of water by the
17 Agency) and investment earnings thereon to the payment of the
18 cost of operation and maintenance of the system (including
19 costs of purchasing water), to provision of adequate
20 depreciation, reserve or replacement funds with respect to
21 the system or the bonds or notes, and to the payment of
22 principal, premium, if any, and interest on the bonds or
23 notes of the Agency (including amounts for the purchase of
24 such bonds or notes). The resolution shall provide that
25 revenues of the Municipal Joint Action Water Agency so
26 derived from the operation of the system, sufficient
27 (together with other receipts of the Agency which may be
28 applied to such purposes) to provide for such purposes, shall
29 be set aside as collected in a separate fund or funds and
30 used for such purposes. The resolution may provide that
31 revenues not required for such purposes may be used for any
32 proper purpose of the Agency or may be returned to member
33 municipalities.
34 Any notes of a Municipal Joint Action Water Agency issued
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1 in anticipation of the issuance of bonds by it may, in
2 addition, be secured by a pledge of proceeds of bonds to be
3 issued by the Agency, as specified in the resolution
4 authorizing the issuance of such notes.
5 4. (i) Except as provided in clauses (ii) and (iii) of
6 this subparagraph 4 of this paragraph (e), all bonds and
7 notes of the Municipal Joint Action Water Agency issued
8 pursuant to this paragraph (e) shall be revenue bonds or
9 notes. Such revenue bonds or notes shall have no claim for
10 payment other than from revenues of the Agency derived from
11 the operation of its joint waterworks or water supply system
12 (including from contracts for the sale of water by the
13 Agency) and investment earnings thereon, from bond or note
14 proceeds and investment earnings thereon, or from such other
15 receipts of the Agency as the agreement establishing the
16 Agency may authorize to be pledged to the payment of revenue
17 bonds or notes, all as and to the extent as provided in the
18 resolution of the Board of Directors authorizing the issuance
19 of the revenue bonds or notes. Revenue bonds or notes issued
20 by a Municipal Joint Action Water Agency pursuant to this
21 paragraph (e) shall not constitute an indebtedness of the
22 Agency or of any member municipality, public water district,
23 township, or county within the meaning of any constitutional
24 or statutory limitation. It shall be plainly stated on each
25 revenue bond and note that it does not constitute an
26 indebtedness of the Municipal Joint Action Water Agency or of
27 any member municipality, public water district, township, or
28 county within the meaning of any constitutional or statutory
29 limitation.
30 (ii) If the Agreement so provides and subject to the
31 referendum provided for in clause (iii) of this subparagraph
32 4 of this paragraph (e), the Municipal Joint Action Water
33 Agency may borrow money for corporate purposes on the credit
34 of the Municipal Joint Action Water Agency, and issue general
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1 obligation bonds therefor, in such amounts and form and on
2 such conditions as it shall prescribe, but shall not become
3 indebted in any manner or for any purpose in an amount
4 including existing indebtedness in the aggregate which
5 exceeds 5.75% of the aggregate value of the taxable property
6 within the boundaries of the participating municipalities,
7 public water districts, townships, and county service areas
8 within a member county determined by the governing body of
9 the county by resolution to be served by the Municipal Joint
10 Action Water Agency (including any territory added to the
11 Agency after the issuance of such general obligation bonds),
12 collectively defined as the "Service Area", as equalized and
13 assessed by the Department of Revenue and as most recently
14 available at the time of the issue of said bonds. Before or
15 at the time of incurring any such general obligation
16 indebtedness, the Municipal Joint Action Water Agency shall
17 provide for the collection of a direct annual tax, which
18 shall be unlimited as to rate or amount, sufficient to pay
19 the interest on such debt as it falls due and also to pay and
20 discharge the principal thereof at maturity, which shall be
21 within 40 years after the date of issue thereof. Such tax
22 shall be levied upon and collected from all of the taxable
23 property within the territorial boundaries of such Service
24 Area at the time of the referendum provided for in clause
25 (iii) and shall be levied upon and collected from all taxable
26 property within the boundaries of any territory subsequently
27 added to the Service Area. Dissolution of the Municipal
28 Joint Action Water Agency for any reason shall not relieve
29 the taxable property within such Service Area from liability
30 for such tax. Liability for such tax for property transferred
31 to or released from such Service Area shall be determined in
32 the same manner as for general obligation bonds of such
33 county, if in an unincorporated area, and of such
34 municipality, if within the boundaries thereof. The clerk or
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1 other officer of the Municipal Joint Action Water Agency
2 shall file a certified copy of the resolution or ordinance by
3 which such bonds are authorized to be issued and such tax is
4 levied with the County Clerk or Clerks of the county or
5 counties containing the Service Area, and such filing shall
6 constitute, without the doing of any other act, full and
7 complete authority for such County Clerk or Clerks to extend
8 such tax for collection upon all the taxable property within
9 the Service Area subject to such tax in each and every year,
10 as required, in amounts sufficient to pay the principal of
11 and interest on such bonds, as aforesaid, without limit as to
12 rate or amount. Such tax shall be in addition to and in
13 excess of all other taxes authorized to be levied by the
14 Municipal Joint Action Water Agency or by such county,
15 municipality, township, or public water district. The
16 issuance of such general obligation bonds shall be subject to
17 the other provisions of this paragraph (e), except for the
18 provisions of clause (i) of this subparagraph 4.
19 (iii) No issue of general obligation bonds of the
20 Municipal Joint Action Water Agency (except bonds to refund
21 an existing bonded indebtedness) shall be authorized unless
22 the Municipal Joint Action Water Agency certifies the
23 proposition of issuing such bonds to the proper election
24 authorities, who shall submit the proposition to the voters
25 in the Service Area at an election in accordance with the
26 general election law, and the proposition has been approved
27 by a majority of those voting on the proposition.
28 The proposition shall be substantially in the following
29 form:
30 -------------------------------------------------------------
31 Shall general obligation
32 bonds for the purpose of (state
33 purpose), in the sum not to
34 exceed $....(insert amount), Yes
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1 be issued by the ......... ------------------------
2 (insert corporate name of the No
3 Municipal Joint Action Water
4 Agency)?
5 -------------------------------------------------------------
6 5. As long as any bonds or notes of a Municipal Joint
7 Action Water Agency created pursuant to this Section 3.1 are
8 outstanding and unpaid, the Agency shall not terminate or
9 dissolve and, except as permitted by the resolution or
10 resolutions authorizing outstanding bonds or notes, no member
11 municipality, public water district, township, or county may
12 withdraw from the Agency. While any such bonds or notes are
13 outstanding, all contracts for the sale of water by the
14 Agency to member municipalities, public water districts,
15 townships, or counties shall be irrevocable except as
16 permitted by the resolution or resolutions authorizing such
17 bonds or notes. The Agency shall establish fees and charges
18 for its operations sufficient to provide adequate revenues to
19 meet all of the requirements under its various resolutions
20 authorizing bonds or notes.
21 6. A holder of any bond or note issued pursuant to this
22 paragraph (e) may, in any civil action, mandamus or other
23 proceeding, enforce and compel performance of all duties
24 required to be performed by the Agency or such counties, as
25 provided in the authorizing resolution, or by any of the
26 public agencies contracting with the Agency to purchase
27 water, including the imposition of fees and charges, the
28 collection of sufficient revenues and the proper application
29 of revenues as provided in this paragraph (e) and the
30 levying, extension and collection of such taxes.
31 7. In addition, the resolution authorizing any bonds or
32 notes issued pursuant to this paragraph (e) may provide for a
33 pledge, assignment, lien or security interest, for the
34 benefit of the holders of any or all bonds or notes of the
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1 Agency, (i) on any or all revenues derived from the operation
2 of the joint waterworks or water supply system (including
3 from contracts for the sale of water) and investment earnings
4 thereon or (ii) on funds or accounts securing the payment of
5 the bonds or notes as provided in the authorizing resolution.
6 In addition, such a pledge, assignment, lien or security
7 interest may be made with respect to any receipts of the
8 Agency which the agreement establishing the Agency authorizes
9 it to apply to payment of bonds or notes. Any such pledge,
10 assignment, lien or security interest for the benefit of
11 holders of bonds or notes shall be valid and binding from the
12 time the bonds or notes are issued, without any physical
13 delivery or further act, and shall be valid and binding as
14 against or prior to any claims of any other party having any
15 claims of any kind against the Agency irrespective of whether
16 such other parties have notice of such pledge, assignment,
17 lien or security interest.
18 A resolution of a Municipal Joint Water Agency
19 authorizing the issuance of bonds or notes pursuant to this
20 paragraph (e) may provide for the appointment of a corporate
21 trustee with respect to any or all of such bonds or notes
22 (which trustee may be any trust company or state or national
23 bank having the power of a trust company within Illinois).
24 In that event, the resolution shall prescribe the rights,
25 duties and powers of the trustee to be exercised for the
26 benefit of the Agency and the protection of the holders of
27 such bonds or notes. The resolution may provide for the
28 trustee to hold in trust, invest and use amounts in funds and
29 accounts created as provided in the resolution. The
30 resolution authorizing the bonds or notes may provide for the
31 assignment and direct payment to the trustee of amounts owed
32 by public agencies to the Municipal Joint Action Water Agency
33 under water sales contracts for application by the trustee to
34 the purposes for which such revenues are to be used as
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1 provided in this paragraph (e) and as provided in the
2 authorizing resolution. Upon receipt of notice of such
3 assignment, the public agency shall thereafter make the
4 assigned payments directly to such trustee.
5 Nothing in this Section authorizes a Joint Action Water
6 Agency to provide water service directly to residents within
7 a municipality or in territory within one mile or less of the
8 corporate limits of a municipality that operates a public
9 water supply unless the municipality has consented in writing
10 to such service being provided.
11 Nothing in this Act prohibits a Joint Action Water Agency
12 from providing water service to all residents of member
13 municipalities and to all persons who have executed
14 pre-annexation agreements with any member municipality.
15 (Source: P.A. 90-210, eff. 7-25-97.)