City of Carlinville joined with a nearby village and Jersey County Rural Water Co. to form a not-for-profit corporation, Alluvial, which was approved for tens of millions of dollars in grants and loans from federal agencies to build infrastructure necessary to provide members with potable water. Plaintiffs filed declaratory judgment action asserting that Carlinville and Village had no constitutional or statutory authority to join with Jersey Water to form another private company. Section 10(a) of Illinois Constitution allows units of local government to contract, associate, or contract and associate with private entitles. Nothing prevented Defendants from forming Alluvial, and Alluvial may continue operating as a valid corporation. (TURNER and CAVANAGH, concurring.)
Illinois Appellate Court
Civil Court
Municipalities