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90_SB0103ham001
LRB9000658KDksam01
1 AMENDMENT TO SENATE BILL 103
2 AMENDMENT NO. . Amend Senate Bill 103 by replacing
3 the title with the following:
4 "AN ACT to provide for supplemental procedures and
5 issuance of obligations in connection with the making of
6 local improvements through special assessments."; and
7 by replacing everything after the enacting clause with the
8 following:
9 "Section 1. Short Title. This Act may be cited as the
10 Special Assessment Supplemental Bond and Procedures Act.
11 Section 5. Finding. The General Assembly finds that: (a)
12 there have been many important changes in the financial
13 markets and practices with respect to the issuance of
14 obligations to provide funds for the payment of local
15 improvements to be paid from the imposition of special
16 assessments; (b) various provisions of Illinois law relating
17 to the making of local improvements and the provision for
18 payment of same through the imposition of special assessments
19 according to benefits are now outdated; (c) these outdated
20 provisions result in additional costs for the citizens of
21 the State of Illinois who are property owners and subject to
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1 the payment of such special assessments; (d) the General
2 Assembly deems it advisable and in the best interest of such
3 property owners to provide supplemental authority regarding
4 the procedures for the making of local improvements and the
5 payment for same by special assessment and the issuance and
6 sale of obligations payable from such special assessments in
7 order to accommodate current and anticipated financial
8 markets and practices and the provisions of current federal
9 income tax law.
10 Section 10. Definitions. As used in this Act, unless the
11 context or usage clearly indicates otherwise:
12 "Governing body" means the legislative body, council,
13 board, commission, trustees, or any other body by whatever
14 name it is known having charge of the corporate affairs of a
15 governmental unit.
16 "Governmental unit" means a county, township,
17 municipality, municipal corporation, unit of local
18 government, or a special district, by whatever name known,
19 authorized by any special assessment law to make local
20 improvements by special assessment.
21 "Special assessment bond" means any instrument evidencing
22 the obligation to pay money authorized or issued by or on
23 behalf of a governmental unit under a special assessment law
24 or under this Act, being payable from assessments made under
25 a special assessment law, and when applicable, as
26 supplemented by this Act.
27 "Special assessment law" means any law of the State of
28 Illinois authorizing governmental units to make local
29 improvements payable wholly or in part by special assessment,
30 and includes, without limitation, Division 2 of Article 9 of
31 the Illinois Municipal Code, Division 5-32 of Article 5 of
32 the Counties Code, Section 21 of the North Shore Sanitary
33 District Act, Section 19 of the Sanitary District Act of
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1 1917, Sections 22a.1 through 22a.55 of the Sanitary District
2 Act of 1917, and Section 28 of the Sanitary District Act of
3 1936.
4 "Special assessment proceeding" means the proceeding by
5 any governmental unit under a special assessment law to
6 provide for the making of a specific local improvement by
7 special assessment.
8 "Special assessment ordinance" means an ordinance, or
9 when applicable a resolution, as provided for by any special
10 assessment law by which the governing body institutes, calls
11 for, or provides for the making of a local improvement to be
12 paid by the imposition of a special assessment pursuant to
13 such special assessment law.
14 "Supplemental Act Assessment Bonds" are those special
15 assessment bonds issued under Section 100 of this Act.
16 "Voucher" means any voucher issued under a special
17 assessment law for work done in connection with the making
18 of a local improvement.
19 Section 15. Supplemental powers; election. The provisions
20 of this Act are intended to be supplemental to and in
21 addition to all other powers or authorities granted to any
22 governmental unit, shall be construed liberally, and shall
23 not be construed as a limitation of any power or authority
24 otherwise granted. Any governmental unit may use the
25 provisions of this Act by making an election referring to
26 this Act in the special assessment ordinance. In addition,
27 a governmental unit may use the provisions of this Act that
28 relate exclusively to Supplemental Act Assessment Bonds by
29 making an election referring to this Act in any ordinance or
30 resolution passed subsequent to the special assessment
31 ordinance.
32 Section 20. Additional costs allowed. In addition to
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1 and in excess of all costs otherwise permitted to be
2 assessed under any special assessment law in any special
3 assessment proceeding, the governing body may in the special
4 assessment ordinance provide for the following additional
5 amounts in the assessment:
6 (a) an additional reserve, not to exceed 10% of the
7 amount of the bonds issued pursuant to this Act, as a
8 reserve for the payment of interest on or principal of
9 bonds when due in the event of nonpayment of any
10 assessments; provided however, the interest earnings, if
11 any, on the additional reserve shall be applied to the
12 next installment as a partial reduction of payment due;
13 (b) an amount for the payment of interest upon
14 bonds for a period not to exceed the greater of 2 years
15 or a period ending 6 months after the estimated date of
16 completion of the acquisition and construction of the
17 local improvement that is the subject of the special
18 assessment proceeding; and
19 (c) an amount for bond discount (the difference
20 between the face amount of a bond and the price at which
21 the bond is to be sold) not to exceed 4% of the total
22 cost of the improvement. The reserve provided for by
23 clause (a) of this Section shall be in addition to and
24 in excess of any other reserve otherwise permitted by
25 special assessment law including reserves for interest
26 deficiencies. Any additional cost or reserve to be
27 included by authority of this Section shall be expressly
28 provided for in the special assessment ordinance and
29 shall further be expressly stated in any engineer's
30 estimate of cost prepared in connection with a special
31 assessment ordinance as provided by a special assessment
32 law.
33 Section 25. Interest on assessments. The unpaid portion
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1 of any assessment imposed under a special assessment
2 proceeding may bear interest at an interest rate or rates
3 not exceeding the rate or rates on bonds permitted by the
4 Bond Authorization Act; provided, however, that the time of
5 the adoption of the special assessment ordinance shall be
6 the date that the maximum rate or rates shall be calculated
7 rather than at the time the contract is made for the sale of
8 the bonds, as provided in the Bond Authorization Act.
9 Notwithstanding the foregoing provision, from and after the
10 due date of any installment of an assessment, the following
11 additional rates and charges may be imposed with respect to
12 the delinquent amount of such installment:
13 (a) an additional rate of interest of 1 1/2% per
14 month; and
15 (b) a collection charge of not to exceed 1% of the
16 amount of the delinquent installment.
17 Section 30. Amount and term of installments. An
18 assessment under a special assessment proceeding may be
19 payable in one or more installments coming due not more than
20 31 years after the date of the judgment order of final
21 confirmation of the assessment roll and report for such
22 special assessment proceeding. The first installment for
23 interest on such special assessment may be deferred for such
24 period of time during which interest upon bonds payable from
25 such special assessment has been provided for pursuant to the
26 provisions of Section 50 of this Act. Installments of
27 principal of a special assessment need not become due in
28 equal amounts, but rather, if provided for in the special
29 assessment ordinance, shall become due in the years and in
30 the amounts as shall be provided in the special assessment
31 ordinance. In the event that a governing body deems it
32 advisable to refund Supplemental Act Assessment Bonds in a
33 manner that would either increase installments or extend the
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1 number of years in which installments may be payable, the
2 governing body may do so through a supplemental special
3 assessment ordinance and proceeding under applicable special
4 assessment law, provided the number of installments shall not
5 be increased so as to become due beyond the original maximum
6 term of 31 years provided in this Section. In the event such
7 a refunding does not increase installments or extend the
8 years in which payable, the governing body may refund
9 Supplemental Act Assessment Bonds through a supplemental
10 special assessment ordinance only.
11 Section 35. Notice of first installment and accrual of
12 interest. In lieu of the establishment of the date of the
13 first installment of a special assessment and the accrual of
14 interest on assessments by the issuance of a first voucher
15 and the filing of a certificate with the clerk of court or
16 other act as may be provided by a special assessment law,
17 either the governing body or the board of local improvements
18 may, at any time, after the judicial order of final
19 confirmation of the assessment roll and report, file with the
20 clerk of court in which the assessment was confirmed a notice
21 of the due date of the first installment and the date from
22 which interest shall accrue on the assessments. The notice
23 shall state the due date of the first installment, which
24 shall be not earlier than January 2 of the following year or
25 such later year as shall have been determined under Section
26 70 of this Act, and also the date upon which interest shall
27 begin to accrue on the assessments, which date shall be not
28 earlier than 60 days after the date the notice provided for
29 in this Section shall have been filed with the clerk of
30 court. In connection with the application of any special
31 assessment law, the notice shall be treated upon its filing
32 as if the notice were a certificate of first voucher or other
33 act as may be provided by a special assessment law, and all
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1 procedures related to the filing of a certificate of first
2 voucher or such other act shall be deemed to have been
3 appropriately followed, subject only to the modifications to
4 such procedures provided for in this Act.
5 Section 40. Award of contract. In any special assessment
6 proceeding, upon the vote of two-thirds of the members of the
7 governing body then in office, the governing body or the
8 board of local improvements, as may be applicable, may award
9 a contract or contracts for the improvement pursuant to
10 negotiation with one or more persons, without the requirement
11 of competitive bidding.
12 Section 45. Bonds. In lieu of the issuance of vouchers
13 or bonds provided by a special assessment law, Supplemental
14 Act Assessment Bonds payable from the assessments made under
15 a special assessment proceeding may be issued under this
16 Section. Supplemental Act Assessment Bonds shall be issued
17 under the following terms and provisions:
18 (a) They shall be payable from the assessments made
19 under a special assessment proceeding and such other income
20 or revenues as may lawfully be pledged to the payment of such
21 bonds by a governmental unit.
22 (b) They may be issued in lieu of vouchers at any time on
23 or after the time when interest begins to run on the
24 assessments made under a special assessment proceeding.
25 (c) They may be issued in an amount not to exceed the
26 amount of the assessments confirmed in a special assessment
27 proceeding less the principal amount of any assessments
28 previously paid and less the principal amount of any vouchers
29 that may have previously been issued.
30 (d) They may bear interest at any rate or rates not to
31 exceed the rate or rates permitted by the Bond Authorization
32 Act; provided, however, that such rate or rates shall not
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1 exceed the rate or rates provided for the unpaid installments
2 of the assessments made under the special assessment
3 proceeding.
4 (e) They may pay interest upon such date or dates either
5 annually, semi-annually, monthly, weekly, or otherwise.
6 (f) They may be subject to redemption with or without
7 premium upon such terms and provisions as may be provided by
8 the governing body, including, without limitation, terms as
9 to the order of redemption (numerical, pro-rata, by series,
10 or otherwise) and as to the timing thereof.
11 (g) They shall be negotiable instruments under Illinois
12 law.
13 (h) They may be made payable either serially or at term,
14 or any combination thereof, in such order of preference,
15 priority, lien position, or rank (including, without
16 limitation, numerical, pro-rata, by series, or otherwise) and
17 otherwise have any attributes permitted to bonds under the
18 Local Government Debt Reform Act, as the governing body may
19 provide.
20 Section 50. Alternative local procedure. Upon the request
21 of all of the owners of record to be subject to assessment in
22 a special assessment proceeding, the alternative procedure
23 for the proceeding set forth in this Section may be used. In
24 this alternative procedure, the board of local improvements
25 shall conduct all of the proceedings and perform all of the
26 acts otherwise performed by the court. There shall be no
27 right to jury trial or any reference to the rules of civil
28 procedure applicable to the court, but the board of local
29 improvements shall conduct its proceedings with due notice,
30 fairly and impartially. Determinations of the board of local
31 improvements shall be treated as the determination of an
32 administrative agency and shall be subject to appeal under
33 the same procedures as an appeal of an administrative
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1 decision of an administrative agency under the Administrative
2 Review Law.
3 Section 55. County clerk may collect. Pursuant to the
4 Illinois constitutional and statutory provisions relating to
5 intergovernmental cooperation, the county clerk of any county
6 in which property subject to a special assessment is located
7 may, but shall not be required to, agree to mail bills for a
8 special assessment with the regular tax bills of the county,
9 or otherwise as may be provided by a special assessment law.
10 If the clerk agrees to mail such bills with the regular tax
11 bills, then the annual amount due as of January 2 shall
12 become due instead in even installments with each tax bill
13 made during the year in which such January 2 date occurs,
14 thus deferring to later date in the year the obligation to
15 pay the assessments.
16 Section 60. Recital. Supplemental Act Assessment Bonds
17 that are issued in part under this Act may contain a recital
18 to that effect and any such recital shall be conclusive as
19 against the governmental body thereof and any other person as
20 to the validity of the Supplemental Act Assessment Bonds and
21 as to their compliance with the provisions of this Act.
22 Section 70. The Statute on Statutes is amended by
23 changing Section 8 as follows:
24 (5 ILCS 70/8) (from Ch. 1, par. 1107)
25 Sec. 8. Omnibus Bond Acts.
26 (a) A citation to the Omnibus Bond Acts is a citation to
27 all of the following Acts, collectively, as amended from time
28 to time: the Bond Authorization Act, the Registered Bond
29 Act, the Municipal Bond Reform Act, the Local Government Debt
30 Reform Act, subsection (a) of Section 1-7 of the Property Tax
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1 Extension Limitation Act, subsection (a) of Section 18-190 of
2 the Property Tax Code, the Uniform Facsimile Signature of
3 Public Officials Act, the Local Government Bond Validity Act,
4 the Illinois Development Finance Authority Act, the Public
5 Funds Investment Act, the Local Government Credit Enhancement
6 Act, the Local Government Defeasance of Debt Law, the
7 Intergovernmental Cooperation Act, the Local Government
8 Financial Planning and Supervision Act, the Special
9 Assessment Supplemental Bond and Procedure Act, and any
10 similar Act granting additional omnibus bond powers to
11 governmental entities generally, whether enacted before, on,
12 or after the effective date of this amendatory Act of 1989.
13 (b) The General Assembly recognizes that the
14 proliferation of governmental entities has resulted in the
15 enactment of hundreds of statutory provisions relating to the
16 borrowing and other powers of governmental entities. The
17 General Assembly addresses and has addressed problems common
18 to all such governmental entities so that they have equal
19 access to the municipal bond market. It has been, and will
20 continue to be, the intention of the General Assembly to
21 enact legislation applicable to governmental entities in an
22 omnibus fashion, as has been done in the provisions of the
23 Omnibus Bond Acts.
24 (c) It is and always has been the intention of the
25 General Assembly that the Omnibus Bond Acts are and always
26 have been supplementary grants of power, cumulative in nature
27 and in addition to any power or authority granted in any
28 other laws of the State. The Omnibus Bond Acts are
29 supplementary grants of power when applied in connection with
30 any similar grant of power or limitation contained in any
31 other law of the State, whether or not the other law is
32 enacted or amended after an Omnibus Bond Act or appears to be
33 more restrictive than an Omnibus Bond Act, unless the General
34 Assembly expressly declares in such other law that a
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1 specifically named Omnibus Bond Act does not apply.
2 (d) All instruments providing for the payment of money
3 executed by or on behalf of any governmental entity organized
4 by or under the laws of this State, including without
5 limitation the State, to carry out a public governmental or
6 proprietary function, acting through its corporate
7 authorities, or which any governmental entity has assumed or
8 agreed to pay, which were:
9 (1) issued or authorized to be issued by
10 proceedings adopted by such corporate authorities before
11 the effective date of this amendatory Act of 1989;
12 (2) issued or authorized to be issued in accordance
13 with the procedures set forth in or pursuant to any
14 authorization contained in any of the Omnibus Bond Acts;
15 and
16 (3) issued or authorized to be issued for any
17 purpose authorized by the laws of this State,
18 are valid and legally binding obligations of the governmental
19 entity issuing such instruments, payable in accordance with
20 their terms.
21 (Source: P.A. 87-17; 88-670, eff. 12-2-94.)
22 Section 75. The Illinois Municipal Code is amended by
23 changing Section 9-2-9 as follows:
24 (65 ILCS 5/9-2-9) (from Ch. 24, par. 9-2-9)
25 Sec. 9-2-9. Preliminary procedure for local improvements
26 by special assessment. All ordinances for local improvements
27 to be paid for wholly or in part by special assessment or
28 special taxation shall originate with the board of local
29 improvements. Petitions for any local improvement shall be
30 addressed to that board. The board may originate a scheme for
31 any local improvement to be paid for by special assessment or
32 special tax, either with or without a petition, and in either
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1 case shall adopt a resolution describing the proposed
2 improvement. This resolution may provide that specifications
3 for the proposed improvement be made part of the resolution
4 by reference to specifications previously adopted by
5 resolution by the municipality, or to specifications adopted
6 or published by the State of Illinois or a political
7 subdivision thereof, provided that a copy of the
8 specifications so adopted by reference is on file in the
9 office of the clerk of the municipality. This resolution
10 shall be at once transcribed into the records of the board.
11 The proposed local improvement may consist of the
12 construction of street, storm drain sewer, water main, or
13 sanitary sewer improvements and appurtenances, or any
14 combination thereof, in a local contiguous area pursuant to a
15 single special assessment project, provided that in assessing
16 each lot, block, tract, and parcel of property, the
17 commissioner so assessing shall take into consideration
18 whether each lot, block, tract, or parcel is benefited by all
19 or only some of the improvements combined into the single
20 special assessment project. For purposes hereof, a local
21 contiguous area shall be defined as an area in which all of
22 the lots, blocks, tracts, or parcels located within the
23 boundaries thereof will be benefited by one or more of the
24 proposed improvements. The fact that more than one
25 improvement is being constructed as part of a single special
26 assessment project shall not be grounds for an objection by
27 an assessee to the special assessment proceeding in court.
28 Whenever the proposed improvement requires that private
29 or public property be taken or damaged, the resolution shall
30 describe the property proposed to be taken or damaged for
31 that purpose. The board, by the same resolution, shall fix a
32 day and hour for a public hearing thereon. The hearing shall
33 not be less than 10 days after the adoption of the
34 resolution. The board shall also have an estimate of the cost
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1 of the improvement (omitting land to be acquired) made in
2 writing by the engineer of the board, (if there is an
3 engineer, if not, then by the president) over his signature.
4 This estimate shall be itemized to the satisfaction of the
5 board and shall be made a part of the record of the
6 resolution. However, such an estimate is not required in
7 municipalities having a population of 100,000 or more when
8 the proposed improvement consists only of taking or damaging
9 private or public property. And in cities and villages which
10 have adopted prior to the effective date of this Code or
11 which after the effective date of this Code adopt the
12 commission form of municipal government, the estimate of the
13 cost of the improvement, (omitting land to be acquired),
14 shall be made in writing by the public engineer if there is
15 one, of the city or village, if not, then by the mayor or
16 president of the city or village.
17 Notice of the time and place of the public hearing shall
18 be sent by mail directed to the person who paid the general
19 taxes for the last preceding year on each lot, block, tract,
20 or parcel of land fronting on the proposed improvement not
21 less than 5 days prior to the time set for the public
22 hearing. These notices shall contain (1) the substance of the
23 resolution adopted by the board, (2) when an estimate is
24 required by this Division 2 the estimate of the cost of the
25 proposed improvement, and (3) a notification that the extent,
26 nature, kind, character, and (when an estimate is required by
27 this article) the estimated cost of the proposed improvement
28 may be changed by the board at the public hearing thereon. If
29 upon the hearing the board deems the proposed improvement
30 desirable, it shall adopt a resolution and prepare and submit
31 an ordinance therefor. But in proceedings only for the
32 laying, building, constructing, or renewing of any sidewalk,
33 water service pipe, or house drain, no resolution, public
34 hearing, or preliminary proceedings leading up to the same
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1 are necessary. In such proceedings the board may submit to
2 the corporate authorities an ordinance, together with its
3 recommendation and (when an estimate is required) the
4 estimated cost of the improvement, as made by the engineer.
5 Such proceedings shall have the same effect as though a
6 public hearing had been held thereon.
7 In the event that a local improvement is to be
8 constructed with the assistance of any agency of the Federal
9 government, or other governmental agency, the resolution of
10 the board of local improvements shall set forth that fact and
11 the estimate of cost shall set forth and indicate, in dollars
12 and cents, the estimated amount of assistance to be so
13 provided.
14 (Source: Laws 1963, p. 2425.)
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.".