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.