Municipal Code of Chicago tit. 2, ch. 2-32, art. XII — FINANCING SEWER SYSTEM COSTS (2-32-1090 et seq.) | Municipal Code of Chicago (2026 S-74, current through Council Journal of June 17, 2026) — City of Chicago

Municipal Code of Chicago § 2-32-1090 Financing of sewer system costs - City authority.

2-32-1090 Financing of sewer system costs - City authority. The City of Chicago, acting by its city council, may from time to time, borrow funds to finance the estimated costs and expenses of operating and maintaining the City of Chicago sewer system (the "system") and of constructing extensions, improvements, or both, to the system, and in evidence of such borrowing, to issue its notes, which notes, both principal thereof and interest thereon, will be paid from the net revenues of the system, the proceeds to be received from the sale of bonds or other obligations of the city whether payable from the net revenues of the system or otherwise, taxes levied for such purpose, or from any other moneys legally available for such purpose. The procedures for the issuance of such notes shall be as substantially herein provided in Sections 2-32-1090 through 2-32-1120 of this chapter. (Prior code § 7-99)

Municipal Code of Chicago § 2-32-1100 Note financing - Basic agreement provisions.

2-32-1100 Note financing - Basic agreement provisions. The city council shall adopt an ordinance approving one or more note financing agreements (hereinafter referred to as a "basic agreement") providing for the borrowing of funds for one or more of the purposes stated above, which basic agreement shall be negotiated by the City of Chicago acting by and through its mayor and city comptroller prior to its presentation to the city council. After the form of such basic agreement has been submitted to and approved by the city council, the mayor and the city comptroller shall be authorized to execute and sign such basic agreement on behalf of the city and the same shall be attested by the city clerk. Such basic agreement shall provide that no note or notes shall be issued thereunder unless the city council shall have approved the purpose therefor and the estimated cost thereof for which said note, or notes, are to be issued, by ordinance (the "ordinance") after a public hearing thereon by the finance committee of the city council and unless there has been a sufficient appropriation of funds by the city to permit the expenditure of the note proceeds for such purpose. Prior to the adoption of any such ordinance, which ordinance shall contain a description of the purpose for which such notes are to be issued and the estimated costs thereof, a public hearing shall be held thereon by the finance committee of the city council, pursuant to a notice given of such public hearing, such notice to refer generally to the issuance of such notes and to be published at least once in a newspaper published in and having a general circulation within the City of Chicago, the date of such publication to be not less than ten days prior to the date of the public hearing. It shall not be necessary that the ordinance refer to or incorporate therein by reference detailed plans and specifications of any extensions, improvements, or both, or specifically describe the projects to be financed by the issuance of such note or notes. Each such note or notes shall be accompanied by a certificate identifying by a general description the purpose for which such notes are to be issued and representing that the proceeds of such note or notes will be used solely for such purpose, that such purpose and the estimated cost thereof have been approved by the city council, by ordinance, after a public hearing held thereon by the finance committee of said city council; and that there has been a sufficient appropriation of funds by the city to permit the expenditure of the note proceeds for such purpose. Said basic agreement shall also authorize execution from time to time of the note or notes therein authorized on behalf of the city by being signed by the mayor and by the city comptroller and to be attested by the city clerk, and/or the respective proxies of said mayor and city comptroller, such interim note to be in such form as may be provided for in the basic agreement. The mayor and the city comptroller may each designate another to act as their respective proxies and to affix their respective signatures to any such note, and in such case, each shall send to the city council written notice of the person so designated by each, such notice stating the name of the person so selected to sign as proxy for the mayor and the city comptroller, respectively. A written signature of the mayor or of the city comptroller, respectively, executed by the person so designated underneath, shall be attached to each notice. Each notice, with the signature attached, shall be recorded in the Journal of the Proceedings of the City Council and then filed with the city clerk. When the signature of the mayor is placed on a note at the direction of the mayor in the specified manner, the note, in all respects, shall be as binding on the city as if signed by the mayor in person. When the comptroller's signature is so affixed to a note at the comptroller's direction, the note, in all respects, shall be as binding on the city as if signed by the comptroller in person. In case any official whose signature appears on the specified note ceases to hold his office before the delivery of the note to the purchaser, his signature nevertheless shall be valid and sufficient for all purposes, to the same effect as if he had remained in office until the delivery of the note. The execution of any such notes as herein provided shall not cause any official signing the same on behalf of the city to be personally liable by reason of such signing and issuance thereof. (Prior code § 7-100)

Municipal Code of Chicago § 2-32-1110 Form and payment of notes.

2-32-1110 Form and payment of notes. The note, or notes, shall be of the form and content as provided in the basic agreement, be dated as of the date of their execution and delivery, shall be expressed to mature on a definite payment date, which date shall not exceed five years from the date of the note, and interest thereon at the rates of interest therein agreed upon shall be payable at the times and places as set forth in the ordinance. The notes shall be payable by the city and without notice to the holder at any time before maturity and at any financial institution which shall be designated by the city comptroller. The note, or notes, to be issued shall be made payable in the manner as provided in the basic agreement and shall contain such terms and conditions as shall be provided in such basic agreement. Such basic agreement may provide that such notes are a direct and general obligation of the city payable from the proceeds of taxes to be duly levied on all taxable property within the city, from the net revenues of the system, the proceeds to be received from the sale of bonds or other obligations of the city whether payable from the net revenues of the system or otherwise, or from any other moneys legally available for such purpose. The city and the holder, or holders, of the note, or notes, may mutually agree that the time of payment of any note, or notes, may be extended for a period of not to exceed two years beyond its stated maturity date, and evidence of such extension shall be noted on the face of such note so extended, together with the signatures of the mayor and city comptroller, and to be attested by the city clerk, and also to be signed by an authorized representative of the other parties to the basic agreement. (Prior code § 7-101)

Municipal Code of Chicago § 2-32-1120 Compliance with statutory provisions.

2-32-1120 Compliance with statutory provisions. Pursuant to the authority granted by Section 6 of Article VII of the Constitution of Illinois 1970, the procedures hereby established for the issuance of notes shall be controlling and shall be complied with by the city council in borrowing of money through the issuance of such notes notwithstanding anything to the contrary contained in the provisions of the Illinois Municipal Code of 1961 and all acts amendatory thereof and supplementary thereto and any other laws of the State of Illinois. (Prior code § 7-102)