Bill Text: IL SB0060 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Amends the Township Code. Provides that a township board may establish a fair and reasonable rate (currently, rate or charge) for users of waterworks systems and sewerage systems and a fair and reasonable connection charge for each new user. Provides that mayors or presidents of municipalities and customers must choose the independent entity to conduct the cost study, order the cost study, and pay for the cost study they requested. Further provides that the cost study must include 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 (currently, examination of water main and sewer connection charges in neighboring units of local government or units of local government similar in size or population). Removes provisions concerning written quotes and payments for cost studies. Makes other changes. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Enrolled) 2017-07-04 - Passed Both Houses [SB0060 Detail]

Download: Illinois-2017-SB0060-Enrolled.html



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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 Township Code is amended by changing
5Sections 205-140 and 205-145 and by adding Section 205-141 as
6follows:
7 (60 ILCS 1/205-140)
8 Sec. 205-140. Initiating proceedings for particular
9locality; rates and charges; lien.
10 (a) This Section applies to townships to which Section
11205-141 does not apply.
12 (a-1) (a) A township board may initiate proceedings under
13Sections 205-130 through 205-150 in the manner provided by
14Section 205-20.
15 (b) The township board may establish the rate or charge to
16each user of the waterworks system or sewerage system, or
17combined waterworks and sewerage system, or improvement or
18extension at a rate that will be sufficient to pay the
19principal and interest of any bonds issued to pay the cost of
20the system, improvement, or extension and the maintenance and
21operation of the system, improvement, or extension and may
22provide an adequate depreciation fund for the bonds. Charges or
23rates shall be established, revised, and maintained by

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1ordinance and become payable as the township board determines
2by ordinance.
3 (c) The charges or rates are liens upon the real estate
4upon or for which sewerage service is supplied whenever the
5charges or rates become delinquent as provided by the ordinance
6of the board fixing a delinquency date.
7 (d) Notwithstanding any provision of law to the contrary,
8the township shall conduct a cost study regarding the
9connection charge of the township:
10 (1) before the township increases or creates a
11 connection charge;
12 (2) upon the request of the supervisor or a majority of
13 the township board of the township;
14 (3) upon the request of a majority of the mayors or
15 village presidents of the municipalities located within or
16 substantially within the township or township's facility
17 planning area; or
18 (4) upon the filing with the township board of a
19 petition signed by 10% or more of the customers who have
20 paid connection charges to the township in the previous 5
21 calendar years.
22 The cost study shall be conducted by an independent entity
23within 6 months of action taken under paragraphs (1), (2), (3),
24or (4) of this subsection (d). For purposes of subsections (d)
25and (e), the term "independent entity" shall mean an
26engineering firm that has not entered into a contract with any

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1State agency, unit of local government, or non-governmental
2entity for goods or services within the township or township
3service area in the 24 months prior to being contracted to
4perform the cost study. After performing a cost study under
5this subsection (d), an independent entity may not contract
6with any State agency, unit of local government, or
7non-governmental entity for goods or services within the
8township or township service area in the 24 months after
9completion of the cost study other than to perform further cost
10studies under this subsection (d). A township shall not be
11required to conduct more than one cost study in a 60 month
12period under paragraphs (3) or (4) of this subsection (d). The
13cost study must include, at a minimum, an examination of
14similar water main and sewer connection charges in neighboring
15units of local government or units of local government similar
16in size or population. Following the completion of the cost
17study, no increase or new connection charge may be imposed
18unless the increase or new charge is justified by the cost
19study. If the connection charge the township charged prior to
20completion of the cost study is higher than is justified by the
21cost study, the township shall reduce its connection charge to
22the amount justified by the cost study. For purposes of this
23subsection (d), "connection charge" means any charge or fee, by
24whatever name, assessed to recover the cost of connecting the
25customer's water main, sewer, or water main and sewer service
26line to the township's facilities, and includes only the direct

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1and indirect costs of physically tying the service line into
2the township's main.
3 (e) If a cost study has been conducted pursuant to
4subsection (d) of this Section and a new cost study is
5requested under paragraph (3) or (4) of subsection (d), the
6township shall obtain a written quote from an independent
7entity detailing the cost of the requested cost study and one
8of the following shall occur prior to a new cost study
9beginning:
10 (1) each township, village, and municipality whose
11 mayor or president requested the cost study under paragraph
12 (3) of subsection (d) shall pay a proportionate share of
13 the entire cost of the cost study as detailed in the
14 written quote required under this subsection (e); or
15 (2) the customers who signed the petition under
16 paragraph (4) of subsection (d) shall pay a pro rata share
17 of the entire cost of the cost study as detailed in written
18 quote required under this subsection (e).
19 Payments required under either paragraph (1) or (2) of this
20subsection (e) shall be made to the township clerk, who shall
21forward the same to the independent entity upon receipt of
22entire amount of the written quote for the cost study. If the
23entire amount of the written quote for the cost study has not
24been received within 90 days from the township clerk providing
25public note of the amount of the written quote, then those
26amounts received by the township clerk shall be refunded to the

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1persons or entities which paid them.
2(Source: P.A. 99-481, eff. 9-22-15; 99-498, eff. 1-29-16.)
3 (60 ILCS 1/205-141 new)
4 Sec. 205-141. Initiating proceedings for particular
5locality; rates and charges; lien; certain townships.
6 (a) This Section applies to any township that (i) has a
7population between 31,500 and 32,000 according to the 2010
8federal decennial census; and (ii) is located within a county
9that has a population between 260,000 and 265,000 according to
10the 2010 federal decennial census.
11 (a-1) A township board may initiate proceedings under
12Sections 205-130 through 205-150 in the manner provided by
13Section 205-20.
14 (b) The township board may establish a fair and reasonable
15rate for each user of the waterworks system or sewerage system,
16or combined waterworks and sewerage system, or improvement or
17extension at a rate that will be sufficient to pay the
18principal and interest of any bonds issued to pay the cost of
19the system, improvement, or extension and the maintenance and
20operation of the system, improvement, or extension and may
21provide an adequate depreciation fund for the bonds. Rates
22shall be established, revised, and maintained by ordinance and
23become payable as the township board determines by ordinance.
24 (b-5) The township board may establish a fair and
25reasonable connection charge for each new user added to the

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1township's waterworks system or sewerage system.
2 (c) The charges or rates are liens upon the real estate
3upon or for which sewerage service is supplied whenever the
4charges or rates become delinquent as provided by the ordinance
5of the board fixing a delinquency date.
6 (d) Notwithstanding any provision of law to the contrary, a
7cost study shall be conducted regarding the connection charge
8of the township:
9 (1) before the township increases or creates a
10 connection charge;
11 (2) upon the request of the supervisor or a majority of
12 the township board of the township;
13 (3) upon the request of a majority of the mayors or
14 village presidents of the municipalities located within or
15 substantially within the township or township's facility
16 planning area; or
17 (4) upon the filing with the township board of a
18 petition signed by 10% or more of the customers who have
19 paid connection charges to the township in the previous 5
20 calendar years.
21The cost study shall be conducted by an independent entity
22within 6 months of action taken under paragraphs (1), (2), (3),
23or (4) of this subsection (d). If a cost study is requested
24under paragraphs (1) or (2) of this subsection, then the
25township shall order and pay for the cost study. If a cost
26study is requested under paragraphs (3) or (4) of this

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1subsection, then the municipalities whose mayors or presidents
2requested the cost study under paragraph (3), or the customers
3who filed a petition under paragraph (4), shall choose the
4independent entity to conduct the cost study, order the cost
5study, and pay for the cost study. After performing a cost
6study under this subsection (d), an independent entity may not
7contract with any State agency, unit of local government, or
8non-governmental entity for goods or services within the
9township or township service area in the 24 months after
10completion of the cost study other than to perform further cost
11studies under this subsection (d). A township shall not be
12required to conduct more than one cost study in a 60 month
13period under paragraphs (3) or (4) of this subsection (d). The
14cost study must include, at a minimum, an examination of
15residential and commercial connection charges for the
16waterworks system or sewerage system, whichever applies, in at
17least 30 units of local government in Illinois with a similar
18number of customers as are connected to the township's
19waterworks system and sewerage system. Following the
20completion of the cost study, no increase or new connection
21charge may be imposed unless the increase or new charge is
22justified by the cost study. If the connection charge the
23township charged prior to completion of the cost study is
24higher than is justified by the cost study, the township shall
25reduce its connection charge to the amount justified by the
26cost study.

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1 (e) For purposes of this Section:
2 "Connection charge" means any nominal charge or fee, by
3whatever name, assessed to recover the cost of connecting the
4customer's water main, sewer, or water main and sewer service
5line to the township's facilities, and includes only the direct
6and indirect costs of physically tying the service line into
7the township's main line in the adjoining utility easement.
8 "Independent entity" means an engineering firm that has not
9entered into a contract with any State agency, unit of local
10government, or non-governmental entity for goods or services
11within the township or township service area in the 24 months
12prior to being contracted to perform the cost study.
13 (60 ILCS 1/205-145)
14 Sec. 205-145. Special fund. All revenue derived from the
15operation of a waterworks system or sewerage system, or
16combined waterworks and sewerage system, constructed,
17acquired, extended, or improved to serve a particular locality
18shall be set aside as collected and shall be deposited in a
19special fund of the township. That fund shall be used only (i)
20to pay the cost of operating and maintaining the waterworks
21system or sewerage system, or combined waterworks and sewerage
22system, constructed, acquired, extended, or improved to serve a
23particular locality, (ii) to provide an adequate depreciation
24fund, and (iii) to pay the principal and interest on the bonds
25issued by the township under Sections 205-130 through 205-141

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1205-140 for the purpose of constructing, acquiring, extending,
2or improving the system.
3(Source: P.A. 76-1360; 88-62.)
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