Public Act 93-0196
HB2317 Enrolled LRB093 08053 MKM 08254 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Special Assessment Supplemental Bond and
Procedures Act is amended by changing Sections 20, 45, and 55
and adding Section 65 as follows:
(50 ILCS 460/20)
Sec. 20. Additional costs allowed. In addition to and in
excess of all costs otherwise permitted to be assessed under
any special assessment law in any special assessment
proceeding, the governing body may in the special assessment
ordinance provide for the following additional amounts in the
assessment:
(a) an additional reserve, not to exceed 10% of the
amount of the bonds issued pursuant to this Act, as a
reserve for the payment of interest on or principal of
bonds when due in the event of nonpayment of any
assessments; provided however, the interest earnings, if
any, on the additional reserve shall be applied to the
next installment as a partial reduction of payment due;
(b) an amount for the payment of interest upon
bonds for a period not to exceed the greater of 2 years
or a period ending 6 months after the estimated date of
completion of the acquisition and construction of the
local improvement that is the subject of the special
assessment proceeding; and
(c) an amount for bond discount (the difference
between the face amount of a bond and the price at which
the bond is to be sold, exclusive of original issue
discount) not to exceed 4% of the total cost of the
improvement. The reserve provided for by clause (a) of
this Section shall be in addition to and in excess of any
other reserve otherwise permitted by special assessment
law including reserves for interest deficiencies. Any
additional cost or reserve to be included by authority of
this Section shall be expressly provided for in the
special assessment ordinance and shall further be
expressly stated in any engineer's estimate of cost
prepared in connection with a special assessment
ordinance as provided by a special assessment law.
(Source: P.A. 90-480, eff. 8-17-97.)
(50 ILCS 460/45)
Sec. 45. Bonds. In lieu of the issuance of vouchers or
bonds provided by a special assessment law, Supplemental Act
Assessment Bonds payable from the assessments made under a
special assessment proceeding may be issued under this
Section. Supplemental Act Assessment Bonds shall be issued
under the following terms and provisions:
(a) They shall be payable from the assessments made
under a special assessment proceeding and such other income
or revenues as may lawfully be pledged to the payment of such
bonds by a governmental unit.
(b) They may be issued in lieu of vouchers at any time
after the date of the judicial order of final confirmation of
the assessment roll and report. Special Assessment Bonds may
be issued prior to the expiration of the appeal period
provided for in the special assessment law and the issuer and
owners of such bonds may rely on any waiver of the statutory
appeal period executed by a municipality, county, or other
issuer of such bonds and the owners and parties interested in
land taken, damaged, or assessed therein, as conclusive
evidence of the non-appealability of the final judgment or
order. Parties interested in land taken, damaged, or assessed
for purposes of such waiver and appeal shall include only the
owners of record, mortgagees of record, lien holders of
record, and contract purchasers of any land taken, damaged,
or assessed on or after the time when interest begins to run
on the assessments made under a special assessment
proceeding.
(c) They may be issued in an amount not to exceed the
amount of the assessments confirmed in a special assessment
proceeding less the principal amount of any assessments
previously paid and less the principal amount of any vouchers
that may have previously been issued.
(d) They may bear interest at any rate or rates not to
exceed the rate or rates permitted by the Bond Authorization
Act; provided, however, that such rate or rates shall not
exceed the rate or rates provided for the unpaid installments
of the assessments made under the special assessment
proceeding.
(e) They may pay interest upon such date or dates either
annually, semi-annually, monthly, weekly, or otherwise.
(f) They may be subject to redemption with or without
premium upon such terms and provisions as may be provided by
the governing body, including, without limitation, terms as
to the order of redemption (numerical, pro-rata, by series,
or otherwise) and as to the timing thereof.
(g) They shall be negotiable instruments under Illinois
law.
(h) They may be made payable either serially or at term,
or any combination thereof, in such order of preference,
priority, lien position, or rank (including, without
limitation, numerical, pro-rata, by series, or otherwise) and
otherwise have any attributes permitted to bonds under the
Local Government Debt Reform Act, as the governing body may
provide.
(Source: P.A. 90-480, eff. 8-17-97.)
(50 ILCS 460/55)
Sec. 55. County clerk may collect. Pursuant to the
Illinois constitutional and statutory provisions relating to
intergovernmental cooperation, the county clerk of any county
in which property subject to a special assessment is located
may, but shall not be required to, agree to mail bills for a
special assessment with the regular tax bills of the county,
or otherwise as may be provided by a special assessment law.
If the clerk agrees to mail such bills with the regular tax
bills, then the annual amount due as of January 2 shall
become due instead in even installments with each tax bill
made during the year in which such January 2 date occurs,
thus deferring to later date in the year the obligation to
pay the assessments.
In the event that the county clerk does not agree to mail
such bills, or in the event that the municipality declines to
request the county clerk to mail said bills, the municipality
still may bill the annual amount due as of January 2 in 2
installments to become due on or about the due dates for the
real estate tax bills issued by the county clerk during the
year in which such January 2 date occurs, thus deferring to
later dates in said year the obligation to pay the assessment
installment.
In the event that the county clerk agrees to mail such
bills on behalf of a municipality, the county may charge a
fee for such services to be paid from the special assessment.
Such fee shall be considered as a cost of making, levying,
and collecting the assessment provided for in Section 9-2-139
of the Illinois Municipal Code.
(Source: P.A. 90-480, eff. 8-17-97.)
(50 ILCS 460/65 new)
Sec. 65. Rebates. If, after final settlement with the
contractor for any improvements, there is any surplus
remaining, the Board of Local Improvements shall declare a
surplus and rebate upon each lot, block, tract, or parcel of
land assessed the pro rata proportion of that surplus. The
Board of Local Improvements shall state which specific
assessment installments (including interest thereon) are
being reduced. If the Board of Local Improvements determines
these excess amounts have been collected for making, levying,
and collecting or for reserves for deficiencies, the
governing body can declare a surplus and credit such amount
to each lot, block, tract, or parcel of land assessed or a
pro rata proportion to the next installment as a partial
reduction of the payment due or, alternatively, may use such
surplus to retire bonds in any manner so determined.
Section 10. The Illinois Municipal Code is amended by
changing Section 9-2-9 as follows:
(65 ILCS 5/9-2-9) (from Ch. 24, par. 9-2-9)
Sec. 9-2-9. Preliminary procedure for local improvements
by special assessment. All ordinances for local improvements
to be paid for wholly or in part by special assessment or
special taxation shall originate with the board of local
improvements. Petitions for any local improvement shall be
addressed to that board. The board may originate a scheme for
any local improvement to be paid for by special assessment or
special tax, either with or without a petition, and in either
case shall adopt a resolution describing the proposed
improvement. This resolution may provide that specifications
for the proposed improvement be made part of the resolution
by reference to specifications previously adopted by
resolution by the municipality, or to specifications adopted
or published by the State of Illinois or a political
subdivision thereof, provided that a copy of the
specifications so adopted by reference is on file in the
office of the clerk of the municipality. This resolution
shall be at once transcribed into the records of the board.
The proposed local improvement may consist of the
acquisition of the necessary interests in real property and
the construction of any public improvement or any combination
of public improvements, including, but not limited to,
streets street, storm drain sewers sewer, water mains main,
or sanitary sewer improvements, sidewalks, walkways, bicycle
paths, landscaping, lighting improvements, signage
improvements, vehicular parking improvements, any additional
improvements necessary to provide access to the public
improvements, and all necessary and appurtenances, or any
combination thereof, in a local contiguous area pursuant to a
single special assessment project, provided that in assessing
each lot, block, tract, and parcel of property, the
commissioner so assessing shall take into consideration
whether each lot, block, tract, or parcel is benefited by all
or only some of the improvements combined into the single
special assessment project. For purposes hereof, a local
contiguous area shall be defined as an area in which all of
the lots, blocks, tracts, or parcels located within the
boundaries thereof will be benefited by one or more of the
proposed improvements. The fact that more than one
improvement is being constructed as part of a single special
assessment project shall not be grounds for an objection by
an assessee to the special assessment proceeding in court.
Whenever the proposed improvement requires that private
or public property be taken or damaged, the resolution shall
describe the property proposed to be taken or damaged for
that purpose. The board, by the same resolution, shall fix a
day and hour for a public hearing thereon. The hearing shall
not be less than 10 days after the adoption of the
resolution. The board shall also have an estimate of the cost
of the improvement (omitting land to be acquired) made in
writing by the engineer of the board, (if there is an
engineer, if not, then by the president) over his signature.
This estimate shall be itemized to the satisfaction of the
board and shall be made a part of the record of the
resolution. However, such an estimate is not required in
municipalities having a population of 100,000 or more when
the proposed improvement consists only of taking or damaging
private or public property. And in cities and villages which
have adopted prior to the effective date of this Code or
which after the effective date of this Code adopt the
commission form of municipal government, the estimate of the
cost of the improvement, (omitting land to be acquired),
shall be made in writing by the public engineer if there is
one, of the city or village, if not, then by the mayor or
president of the city or village.
Notice of the time and place of the public hearing shall
be sent by mail directed to the person who paid the general
taxes for the last preceding year on each lot, block, tract,
or parcel of land fronting on the proposed improvement not
less than 5 days prior to the time set for the public
hearing. These notices shall contain (1) the substance of the
resolution adopted by the board, (2) when an estimate is
required by this Division 2 the estimate of the cost of the
proposed improvement, and (3) a notification that the extent,
nature, kind, character, and (when an estimate is required by
this article) the estimated cost of the proposed improvement
may be changed by the board at the public hearing thereon. If
upon the hearing the board deems the proposed improvement
desirable, it shall adopt a resolution and prepare and submit
an ordinance therefor. But in proceedings only for the
laying, building, constructing, or renewing of any sidewalk,
water service pipe, or house drain, no resolution, public
hearing, or preliminary proceedings leading up to the same
are necessary. In such proceedings the board may submit to
the corporate authorities an ordinance, together with its
recommendation and (when an estimate is required) the
estimated cost of the improvement, as made by the engineer.
Such proceedings shall have the same effect as though a
public hearing had been held thereon.
In the event that a local improvement is to be
constructed with the assistance of any agency of the Federal
government, or other governmental agency, the resolution of
the board of local improvements shall set forth that fact and
the estimate of cost shall set forth and indicate, in dollars
and cents, the estimated amount of assistance to be so
provided.
(Source: 90-480, eff. 8-17-97.)
Section 99. Effective date. This Act takes effect upon
becoming law, except that Section 10 takes effect on January
1, 2004.