Public Act 90-0716 of the 90th General Assembly
Public Act 90-0716
SB1282 Enrolled LRB9008556MWpc
AN ACT to amend the Sanitary District Act of 1917 by
changing Section 9.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Sanitary District Act of 1917 is amended
by changing Section 9 as follows:
(70 ILCS 2405/9) (from Ch. 42, par. 308)
Sec. 9. Borrowing powers; debt limitation; referendum.
(a) The corporation may borrow money for corporate
purposes and may issue bonds for those purposes but shall not
become indebted in any manner, or for any purpose, to an
amount in the aggregate exceeding 5.75% on the valuation of
taxable property in the district to be ascertained by the
last assessment for State and county taxes before the
indebtedness was incurred or, until January 1, 1983, if
greater, the sum that is produced by multiplying the
district's 1978 equalized assessed valuation by the debt
limitation percentage in effect on January 1, 1979.
The trustees shall also have the express power to borrow
money from banks or other financial institutions, execute a
note or notes and a security agreement to secure the payment
of the note or notes, and provide security for repayment of
the note or notes by pledging district revenues or
encumbering district assets. The maximum amount that may be
borrowed under this paragraph shall not exceed $25,000,000
$10,000,000 for the aggregate of all those notes. The period
for repayment of any note shall not exceed 20 years.
The trustees shall also have the express power, without
referendum, to execute an agreement for a loan from the Water
Pollution Control Revolving Fund of the State of Illinois,
under the Environmental Protection Act, and to pledge
revenues of the district for the repayment of the loan.
(b) Whenever the board of trustees of a district desires
to issue bonds under this Section they shall order a
referendum to be held in the district on the question. The
board shall certify the question to the proper election
officials, who shall submit the question at an election in
accordance with the general election law. In addition to the
requirements of the general election law, the notice of
referendum shall state the amount of bonds to be issued. The
question shall be in substantially the following form:
Shall (name of district) issue bonds in the amount
of $(amount)?
The votes shall be recorded as "Yes" or "No".
The result of the referendum shall be entered in the records
of the district. If it appears that a majority of the voters
voting at the election on the question have voted in favor of
the issue of the bonds, the board of trustees shall order and
direct the execution of the bonds for and on behalf of the
district. All bonds issued under this Section shall mature in
not more than 20 annual installments.
(c) The corporation may borrow money for corporate
purposes, and may issue bonds for those purposes, without a
referendum on the question if the corporation or the board of
trustees of the district has been directed, by an order
issued by a court of competent jurisdiction or by an
administrative agency of the State of Illinois having
jurisdiction to issue the order, to abate its discharge of
untreated or inadequately treated sewage and if the borrowing
is deemed necessary by the board of trustees of the sanitary
district to make possible compliance with the order. The
amount of money that the corporation may borrow to abate the
sewage discharge shall be limited to that required for that
purpose plus any reasonable future expansion approved by the
court or an administrative agency of the State of Illinois
having jurisdiction. The ordinance providing for the bonds
shall set out the fact that the bonds are deemed necessary to
make possible compliance with the order and shall be
published or posted in the manner provided in this Act for
publication or posting of ordinances making appropriations.
The ordinance shall be in full force and effect after its
adoption and publication or posting as provided in this
subsection, notwithstanding any provision in this Act or any
other law to the contrary.
(Source: P.A. 89-558, eff. 7-26-96.)
Section 99. Effective date. This Act takes effect upon
becoming law.