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| [ Senate Amendment 001 ] |
90_SB0103enr
65 ILCS 5/9-2-9 from Ch. 24, par. 9-2-9
Amends the Illinois Municipal Code to provide that
multiple local improvements may be combined under one special
assessment project provided that the assessing commissioner
considers whether each piece of property is benefitted by all
or only some of the improvements. Provides that combining
improvements under one special assessment project shall not
be a ground for objection to the special assessment
proceeding.
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1 AN ACT to provide for supplemental procedures and
2 issuance of obligations in connection with the making of
3 local improvements through special assessments.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 1. Short Title. This Act may be cited as the
7 Special Assessment Supplemental Bond and Procedures Act.
8 Section 5. Finding. The General Assembly finds that: (a)
9 there have been many important changes in the financial
10 markets and practices with respect to the issuance of
11 obligations to provide funds for the payment of local
12 improvements to be paid from the imposition of special
13 assessments; (b) various provisions of Illinois law relating
14 to the making of local improvements and the provision for
15 payment of same through the imposition of special assessments
16 according to benefits are now outdated; (c) these outdated
17 provisions result in additional costs for the citizens of
18 the State of Illinois who are property owners and subject to
19 the payment of such special assessments; (d) the General
20 Assembly deems it advisable and in the best interest of such
21 property owners to provide supplemental authority regarding
22 the procedures for the making of local improvements and the
23 payment for same by special assessment and the issuance and
24 sale of obligations payable from such special assessments in
25 order to accommodate current and anticipated financial
26 markets and practices and the provisions of current federal
27 income tax law.
28 Section 10. Definitions. As used in this Act, unless the
29 context or usage clearly indicates otherwise:
30 "Governing body" means the legislative body, council,
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1 board, commission, trustees, or any other body by whatever
2 name it is known having charge of the corporate affairs of a
3 governmental unit.
4 "Governmental unit" means a county, township,
5 municipality, municipal corporation, unit of local
6 government, or a special district, by whatever name known,
7 authorized by any special assessment law to make local
8 improvements by special assessment.
9 "Special assessment bond" means any instrument evidencing
10 the obligation to pay money authorized or issued by or on
11 behalf of a governmental unit under a special assessment law
12 or under this Act, being payable from assessments made under
13 a special assessment law, and when applicable, as
14 supplemented by this Act.
15 "Special assessment law" means any law of the State of
16 Illinois authorizing governmental units to make local
17 improvements payable wholly or in part by special assessment,
18 and includes, without limitation, Division 2 of Article 9 of
19 the Illinois Municipal Code, Division 5-32 of Article 5 of
20 the Counties Code, Section 21 of the North Shore Sanitary
21 District Act, Section 19 of the Sanitary District Act of
22 1917, Sections 22a.1 through 22a.55 of the Sanitary District
23 Act of 1917, and Section 28 of the Sanitary District Act of
24 1936.
25 "Special assessment proceeding" means the proceeding by
26 any governmental unit under a special assessment law to
27 provide for the making of a specific local improvement by
28 special assessment.
29 "Special assessment ordinance" means an ordinance, or
30 when applicable a resolution, as provided for by any special
31 assessment law by which the governing body institutes, calls
32 for, or provides for the making of a local improvement to be
33 paid by the imposition of a special assessment pursuant to
34 such special assessment law.
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1 "Supplemental Act Assessment Bonds" are those special
2 assessment bonds issued under Section 100 of this Act.
3 "Voucher" means any voucher issued under a special
4 assessment law for work done in connection with the making
5 of a local improvement.
6 Section 15. Supplemental powers; election. The provisions
7 of this Act are intended to be supplemental to and in
8 addition to all other powers or authorities granted to any
9 governmental unit, shall be construed liberally, and shall
10 not be construed as a limitation of any power or authority
11 otherwise granted. Any governmental unit may use the
12 provisions of this Act by making an election referring to
13 this Act in the special assessment ordinance. In addition,
14 a governmental unit may use the provisions of this Act that
15 relate exclusively to Supplemental Act Assessment Bonds by
16 making an election referring to this Act in any ordinance or
17 resolution passed subsequent to the special assessment
18 ordinance.
19 Section 20. Additional costs allowed. In addition to
20 and in excess of all costs otherwise permitted to be
21 assessed under any special assessment law in any special
22 assessment proceeding, the governing body may in the special
23 assessment ordinance provide for the following additional
24 amounts in the assessment:
25 (a) an additional reserve, not to exceed 10% of the
26 amount of the bonds issued pursuant to this Act, as a
27 reserve for the payment of interest on or principal of
28 bonds when due in the event of nonpayment of any
29 assessments; provided however, the interest earnings, if
30 any, on the additional reserve shall be applied to the
31 next installment as a partial reduction of payment due;
32 (b) an amount for the payment of interest upon
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1 bonds for a period not to exceed the greater of 2 years
2 or a period ending 6 months after the estimated date of
3 completion of the acquisition and construction of the
4 local improvement that is the subject of the special
5 assessment proceeding; and
6 (c) an amount for bond discount (the difference
7 between the face amount of a bond and the price at which
8 the bond is to be sold) not to exceed 4% of the total
9 cost of the improvement. The reserve provided for by
10 clause (a) of this Section shall be in addition to and
11 in excess of any other reserve otherwise permitted by
12 special assessment law including reserves for interest
13 deficiencies. Any additional cost or reserve to be
14 included by authority of this Section shall be expressly
15 provided for in the special assessment ordinance and
16 shall further be expressly stated in any engineer's
17 estimate of cost prepared in connection with a special
18 assessment ordinance as provided by a special assessment
19 law.
20 Section 25. Interest on assessments. The unpaid portion
21 of any assessment imposed under a special assessment
22 proceeding may bear interest at an interest rate or rates
23 not exceeding the rate or rates on bonds permitted by the
24 Bond Authorization Act; provided, however, that the time of
25 the adoption of the special assessment ordinance shall be
26 the date that the maximum rate or rates shall be calculated
27 rather than at the time the contract is made for the sale of
28 the bonds, as provided in the Bond Authorization Act.
29 Notwithstanding the foregoing provision, from and after the
30 due date of any installment of an assessment, the following
31 additional rates and charges may be imposed with respect to
32 the delinquent amount of such installment:
33 (a) an additional rate of interest of 1 1/2% per
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1 month; and
2 (b) a collection charge of not to exceed 1% of the
3 amount of the delinquent installment.
4 Section 30. Amount and term of installments. An
5 assessment under a special assessment proceeding may be
6 payable in one or more installments coming due not more than
7 31 years after the date of the judgment order of final
8 confirmation of the assessment roll and report for such
9 special assessment proceeding. The first installment for
10 interest on such special assessment may be deferred for such
11 period of time during which interest upon bonds payable from
12 such special assessment has been provided for pursuant to the
13 provisions of Section 50 of this Act. Installments of
14 principal of a special assessment need not become due in
15 equal amounts, but rather, if provided for in the special
16 assessment ordinance, shall become due in the years and in
17 the amounts as shall be provided in the special assessment
18 ordinance. In the event that a governing body deems it
19 advisable to refund Supplemental Act Assessment Bonds in a
20 manner that would either increase installments or extend the
21 number of years in which installments may be payable, the
22 governing body may do so through a supplemental special
23 assessment ordinance and proceeding under applicable special
24 assessment law, provided the number of installments shall not
25 be increased so as to become due beyond the original maximum
26 term of 31 years provided in this Section. In the event such
27 a refunding does not increase installments or extend the
28 years in which payable, the governing body may refund
29 Supplemental Act Assessment Bonds through a supplemental
30 special assessment ordinance only.
31 Section 35. Notice of first installment and accrual of
32 interest. In lieu of the establishment of the date of the
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1 first installment of a special assessment and the accrual of
2 interest on assessments by the issuance of a first voucher
3 and the filing of a certificate with the clerk of court or
4 other act as may be provided by a special assessment law,
5 either the governing body or the board of local improvements
6 may, at any time, after the judicial order of final
7 confirmation of the assessment roll and report, file with the
8 clerk of court in which the assessment was confirmed a notice
9 of the due date of the first installment and the date from
10 which interest shall accrue on the assessments. The notice
11 shall state the due date of the first installment, which
12 shall be not earlier than January 2 of the following year or
13 such later year as shall have been determined under Section
14 70 of this Act, and also the date upon which interest shall
15 begin to accrue on the assessments, which date shall be not
16 earlier than 60 days after the date the notice provided for
17 in this Section shall have been filed with the clerk of
18 court. In connection with the application of any special
19 assessment law, the notice shall be treated upon its filing
20 as if the notice were a certificate of first voucher or other
21 act as may be provided by a special assessment law, and all
22 procedures related to the filing of a certificate of first
23 voucher or such other act shall be deemed to have been
24 appropriately followed, subject only to the modifications to
25 such procedures provided for in this Act.
26 Section 40. Award of contract. In any special assessment
27 proceeding, upon the vote of two-thirds of the members of the
28 governing body then in office, the governing body or the
29 board of local improvements, as may be applicable, may award
30 a contract or contracts for the improvement pursuant to
31 negotiation with one or more persons, without the requirement
32 of competitive bidding.
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1 Section 45. Bonds. In lieu of the issuance of vouchers
2 or bonds provided by a special assessment law, Supplemental
3 Act Assessment Bonds payable from the assessments made under
4 a special assessment proceeding may be issued under this
5 Section. Supplemental Act Assessment Bonds shall be issued
6 under the following terms and provisions:
7 (a) They shall be payable from the assessments made
8 under a special assessment proceeding and such other income
9 or revenues as may lawfully be pledged to the payment of such
10 bonds by a governmental unit.
11 (b) They may be issued in lieu of vouchers at any time on
12 or after the time when interest begins to run on the
13 assessments made under a special assessment proceeding.
14 (c) They may be issued in an amount not to exceed the
15 amount of the assessments confirmed in a special assessment
16 proceeding less the principal amount of any assessments
17 previously paid and less the principal amount of any vouchers
18 that may have previously been issued.
19 (d) They may bear interest at any rate or rates not to
20 exceed the rate or rates permitted by the Bond Authorization
21 Act; provided, however, that such rate or rates shall not
22 exceed the rate or rates provided for the unpaid installments
23 of the assessments made under the special assessment
24 proceeding.
25 (e) They may pay interest upon such date or dates either
26 annually, semi-annually, monthly, weekly, or otherwise.
27 (f) They may be subject to redemption with or without
28 premium upon such terms and provisions as may be provided by
29 the governing body, including, without limitation, terms as
30 to the order of redemption (numerical, pro-rata, by series,
31 or otherwise) and as to the timing thereof.
32 (g) They shall be negotiable instruments under Illinois
33 law.
34 (h) They may be made payable either serially or at term,
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1 or any combination thereof, in such order of preference,
2 priority, lien position, or rank (including, without
3 limitation, numerical, pro-rata, by series, or otherwise) and
4 otherwise have any attributes permitted to bonds under the
5 Local Government Debt Reform Act, as the governing body may
6 provide.
7 Section 50. Alternative local procedure. Upon the request
8 of all of the owners of record to be subject to assessment in
9 a special assessment proceeding, the alternative procedure
10 for the proceeding set forth in this Section may be used. In
11 this alternative procedure, the board of local improvements
12 shall conduct all of the proceedings and perform all of the
13 acts otherwise performed by the court. There shall be no
14 right to jury trial or any reference to the rules of civil
15 procedure applicable to the court, but the board of local
16 improvements shall conduct its proceedings with due notice,
17 fairly and impartially. Determinations of the board of local
18 improvements shall be treated as the determination of an
19 administrative agency and shall be subject to appeal under
20 the same procedures as an appeal of an administrative
21 decision of an administrative agency under the Administrative
22 Review Law.
23 Section 55. County clerk may collect. Pursuant to the
24 Illinois constitutional and statutory provisions relating to
25 intergovernmental cooperation, the county clerk of any county
26 in which property subject to a special assessment is located
27 may, but shall not be required to, agree to mail bills for a
28 special assessment with the regular tax bills of the county,
29 or otherwise as may be provided by a special assessment law.
30 If the clerk agrees to mail such bills with the regular tax
31 bills, then the annual amount due as of January 2 shall
32 become due instead in even installments with each tax bill
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1 made during the year in which such January 2 date occurs,
2 thus deferring to later date in the year the obligation to
3 pay the assessments.
4 Section 60. Recital. Supplemental Act Assessment Bonds
5 that are issued in part under this Act may contain a recital
6 to that effect and any such recital shall be conclusive as
7 against the governmental body thereof and any other person as
8 to the validity of the Supplemental Act Assessment Bonds and
9 as to their compliance with the provisions of this Act.
10 Section 70. The Statute on Statutes is amended by
11 changing Section 8 as follows:
12 (5 ILCS 70/8) (from Ch. 1, par. 1107)
13 Sec. 8. Omnibus Bond Acts.
14 (a) A citation to the Omnibus Bond Acts is a citation to
15 all of the following Acts, collectively, as amended from time
16 to time: the Bond Authorization Act, the Registered Bond
17 Act, the Municipal Bond Reform Act, the Local Government Debt
18 Reform Act, subsection (a) of Section 1-7 of the Property Tax
19 Extension Limitation Act, subsection (a) of Section 18-190 of
20 the Property Tax Code, the Uniform Facsimile Signature of
21 Public Officials Act, the Local Government Bond Validity Act,
22 the Illinois Development Finance Authority Act, the Public
23 Funds Investment Act, the Local Government Credit Enhancement
24 Act, the Local Government Defeasance of Debt Law, the
25 Intergovernmental Cooperation Act, the Local Government
26 Financial Planning and Supervision Act, the Special
27 Assessment Supplemental Bond and Procedure Act, and any
28 similar Act granting additional omnibus bond powers to
29 governmental entities generally, whether enacted before, on,
30 or after the effective date of this amendatory Act of 1989.
31 (b) The General Assembly recognizes that the
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1 proliferation of governmental entities has resulted in the
2 enactment of hundreds of statutory provisions relating to the
3 borrowing and other powers of governmental entities. The
4 General Assembly addresses and has addressed problems common
5 to all such governmental entities so that they have equal
6 access to the municipal bond market. It has been, and will
7 continue to be, the intention of the General Assembly to
8 enact legislation applicable to governmental entities in an
9 omnibus fashion, as has been done in the provisions of the
10 Omnibus Bond Acts.
11 (c) It is and always has been the intention of the
12 General Assembly that the Omnibus Bond Acts are and always
13 have been supplementary grants of power, cumulative in nature
14 and in addition to any power or authority granted in any
15 other laws of the State. The Omnibus Bond Acts are
16 supplementary grants of power when applied in connection with
17 any similar grant of power or limitation contained in any
18 other law of the State, whether or not the other law is
19 enacted or amended after an Omnibus Bond Act or appears to be
20 more restrictive than an Omnibus Bond Act, unless the General
21 Assembly expressly declares in such other law that a
22 specifically named Omnibus Bond Act does not apply.
23 (d) All instruments providing for the payment of money
24 executed by or on behalf of any governmental entity organized
25 by or under the laws of this State, including without
26 limitation the State, to carry out a public governmental or
27 proprietary function, acting through its corporate
28 authorities, or which any governmental entity has assumed or
29 agreed to pay, which were:
30 (1) issued or authorized to be issued by
31 proceedings adopted by such corporate authorities before
32 the effective date of this amendatory Act of 1989;
33 (2) issued or authorized to be issued in accordance
34 with the procedures set forth in or pursuant to any
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1 authorization contained in any of the Omnibus Bond Acts;
2 and
3 (3) issued or authorized to be issued for any
4 purpose authorized by the laws of this State,
5 are valid and legally binding obligations of the governmental
6 entity issuing such instruments, payable in accordance with
7 their terms.
8 (Source: P.A. 87-17; 88-670, eff. 12-2-94.)
9 Section 75. The Illinois Municipal Code is amended by
10 changing Section 9-2-9 as follows:
11 (65 ILCS 5/9-2-9) (from Ch. 24, par. 9-2-9)
12 Sec. 9-2-9. Preliminary procedure for local improvements
13 by special assessment. All ordinances for local improvements
14 to be paid for wholly or in part by special assessment or
15 special taxation shall originate with the board of local
16 improvements. Petitions for any local improvement shall be
17 addressed to that board. The board may originate a scheme for
18 any local improvement to be paid for by special assessment or
19 special tax, either with or without a petition, and in either
20 case shall adopt a resolution describing the proposed
21 improvement. This resolution may provide that specifications
22 for the proposed improvement be made part of the resolution
23 by reference to specifications previously adopted by
24 resolution by the municipality, or to specifications adopted
25 or published by the State of Illinois or a political
26 subdivision thereof, provided that a copy of the
27 specifications so adopted by reference is on file in the
28 office of the clerk of the municipality. This resolution
29 shall be at once transcribed into the records of the board.
30 The proposed local improvement may consist of the
31 construction of street, storm drain sewer, water main, or
32 sanitary sewer improvements and appurtenances, or any
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1 combination thereof, in a local contiguous area pursuant to a
2 single special assessment project, provided that in assessing
3 each lot, block, tract, and parcel of property, the
4 commissioner so assessing shall take into consideration
5 whether each lot, block, tract, or parcel is benefited by all
6 or only some of the improvements combined into the single
7 special assessment project. For purposes hereof, a local
8 contiguous area shall be defined as an area in which all of
9 the lots, blocks, tracts, or parcels located within the
10 boundaries thereof will be benefited by one or more of the
11 proposed improvements. The fact that more than one
12 improvement is being constructed as part of a single special
13 assessment project shall not be grounds for an objection by
14 an assessee to the special assessment proceeding in court.
15 Whenever the proposed improvement requires that private
16 or public property be taken or damaged, the resolution shall
17 describe the property proposed to be taken or damaged for
18 that purpose. The board, by the same resolution, shall fix a
19 day and hour for a public hearing thereon. The hearing shall
20 not be less than 10 days after the adoption of the
21 resolution. The board shall also have an estimate of the cost
22 of the improvement (omitting land to be acquired) made in
23 writing by the engineer of the board, (if there is an
24 engineer, if not, then by the president) over his signature.
25 This estimate shall be itemized to the satisfaction of the
26 board and shall be made a part of the record of the
27 resolution. However, such an estimate is not required in
28 municipalities having a population of 100,000 or more when
29 the proposed improvement consists only of taking or damaging
30 private or public property. And in cities and villages which
31 have adopted prior to the effective date of this Code or
32 which after the effective date of this Code adopt the
33 commission form of municipal government, the estimate of the
34 cost of the improvement, (omitting land to be acquired),
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1 shall be made in writing by the public engineer if there is
2 one, of the city or village, if not, then by the mayor or
3 president of the city or village.
4 Notice of the time and place of the public hearing shall
5 be sent by mail directed to the person who paid the general
6 taxes for the last preceding year on each lot, block, tract,
7 or parcel of land fronting on the proposed improvement not
8 less than 5 days prior to the time set for the public
9 hearing. These notices shall contain (1) the substance of the
10 resolution adopted by the board, (2) when an estimate is
11 required by this Division 2 the estimate of the cost of the
12 proposed improvement, and (3) a notification that the extent,
13 nature, kind, character, and (when an estimate is required by
14 this article) the estimated cost of the proposed improvement
15 may be changed by the board at the public hearing thereon. If
16 upon the hearing the board deems the proposed improvement
17 desirable, it shall adopt a resolution and prepare and submit
18 an ordinance therefor. But in proceedings only for the
19 laying, building, constructing, or renewing of any sidewalk,
20 water service pipe, or house drain, no resolution, public
21 hearing, or preliminary proceedings leading up to the same
22 are necessary. In such proceedings the board may submit to
23 the corporate authorities an ordinance, together with its
24 recommendation and (when an estimate is required) the
25 estimated cost of the improvement, as made by the engineer.
26 Such proceedings shall have the same effect as though a
27 public hearing had been held thereon.
28 In the event that a local improvement is to be
29 constructed with the assistance of any agency of the Federal
30 government, or other governmental agency, the resolution of
31 the board of local improvements shall set forth that fact and
32 the estimate of cost shall set forth and indicate, in dollars
33 and cents, the estimated amount of assistance to be so
34 provided.
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1 (Source: Laws 1963, p. 2425.)
2 Section 99. Effective date. This Act takes effect upon
3 becoming law.