093_HB2317enr

 
HB2317 Enrolled                      LRB093 08053 MKM 08254 b

 1        AN ACT concerning local government.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5. The Special Assessment Supplemental  Bond  and
 5    Procedures Act is amended by changing Sections 20, 45, and 55
 6    and adding Section 65 as follows:

 7        (50 ILCS 460/20)
 8        Sec. 20.  Additional costs allowed. In addition to and in
 9    excess  of all costs otherwise permitted to be assessed under
10    any  special  assessment  law  in  any   special   assessment
11    proceeding,  the governing body may in the special assessment
12    ordinance provide for the following additional amounts in the
13    assessment:
14             (a)  an additional reserve, not to exceed 10% of the
15        amount of the bonds issued pursuant to  this  Act,  as  a
16        reserve  for  the  payment of interest on or principal of
17        bonds  when  due  in  the  event  of  nonpayment  of  any
18        assessments; provided however, the interest earnings,  if
19        any,  on  the  additional reserve shall be applied to the
20        next installment as a partial reduction of payment due;
21             (b)  an amount for  the  payment  of  interest  upon
22        bonds  for  a period not to exceed the greater of 2 years
23        or a period ending 6 months after the estimated  date  of
24        completion  of  the  acquisition  and construction of the
25        local improvement that is  the  subject  of  the  special
26        assessment proceeding; and
27             (c)  an  amount  for  bond  discount (the difference
28        between the face amount of a bond and the price at  which
29        the  bond  is  to  be  sold,  exclusive of original issue
30        discount) not to exceed 4%  of  the  total  cost  of  the
31        improvement.  The  reserve  provided for by clause (a) of
 
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 1        this Section shall be in addition to and in excess of any
 2        other reserve otherwise permitted by  special  assessment
 3        law  including  reserves  for  interest deficiencies. Any
 4        additional cost or reserve to be included by authority of
 5        this Section shall  be  expressly  provided  for  in  the
 6        special   assessment   ordinance  and  shall  further  be
 7        expressly stated  in  any  engineer's  estimate  of  cost
 8        prepared   in   connection   with  a  special  assessment
 9        ordinance as provided by a special assessment law.
10    (Source: P.A. 90-480, eff. 8-17-97.)

11        (50 ILCS 460/45)
12        Sec. 45.  Bonds. In lieu of the issuance of  vouchers  or
13    bonds  provided by a special assessment law, Supplemental Act
14    Assessment Bonds payable from the assessments  made  under  a
15    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
23    after the date of the judicial order of final confirmation of
24    the  assessment roll and report. Special Assessment Bonds may
25    be issued prior  to  the  expiration  of  the  appeal  period
26    provided for in the special assessment law and the issuer and
27    owners  of such bonds may rely on any waiver of the statutory
28    appeal period executed by a municipality,  county,  or  other
29    issuer of such bonds and the owners and parties interested in
30    land  taken,  damaged,  or  assessed  therein,  as conclusive
31    evidence of the non-appealability of the  final  judgment  or
32    order. Parties interested in land taken, damaged, or assessed
33    for purposes of such waiver and appeal shall include only the
 
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 1    owners  of  record,  mortgagees  of  record,  lien holders of
 2    record, and contract purchasers of any land  taken,  damaged,
 3    or  assessed on or after the time when interest begins to run
 4    on  the  assessments  made   under   a   special   assessment
 5    proceeding.
 6        (c)  They  may  be  issued in an amount not to exceed the
 7    amount of the assessments confirmed in a  special  assessment
 8    proceeding  less  the  principal  amount  of  any assessments
 9    previously paid and less the principal amount of any vouchers
10    that may have previously been issued.
11        (d)  They may bear interest at any rate or rates  not  to
12    exceed  the rate or rates permitted by the Bond Authorization
13    Act; provided, however, that such rate  or  rates  shall  not
14    exceed the rate or rates provided for the unpaid installments
15    of   the   assessments  made  under  the  special  assessment
16    proceeding.
17        (e)  They may pay interest upon such date or dates either
18    annually, semi-annually, monthly, weekly, or otherwise.
19        (f)  They may be subject to redemption  with  or  without
20    premium  upon such terms and provisions as may be provided by
21    the governing body, including, without limitation,  terms  as
22    to  the  order of redemption (numerical, pro-rata, by series,
23    or otherwise) and as to the timing thereof.
24        (g)  They shall be negotiable instruments under  Illinois
25    law.
26        (h)  They may be made payable either serially or at term,
27    or  any  combination  thereof,  in  such order of preference,
28    priority,  lien  position,  or   rank   (including,   without
29    limitation, numerical, pro-rata, by series, or otherwise) and
30    otherwise  have  any  attributes permitted to bonds under the
31    Local Government Debt Reform Act, as the governing  body  may
32    provide.
33    (Source: P.A. 90-480, eff. 8-17-97.)
 
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 1        (50 ILCS 460/55)
 2        Sec.  55.  County  clerk  may  collect.  Pursuant  to the
 3    Illinois constitutional and statutory provisions relating  to
 4    intergovernmental cooperation, the county clerk of any county
 5    in  which property subject to a special assessment is located
 6    may, but shall not be required to, agree to mail bills for  a
 7    special  assessment with the regular tax bills of the county,
 8    or otherwise as may be provided by a special assessment  law.
 9    If  the  clerk agrees to mail such bills with the regular tax
10    bills, then the annual amount  due  as  of  January  2  shall
11    become  due  instead  in even installments with each tax bill
12    made during the year in which such  January  2  date  occurs,
13    thus  deferring  to  later date in the year the obligation to
14    pay the assessments.
15        In the event that the county clerk does not agree to mail
16    such bills, or in the event that the municipality declines to
17    request the county clerk to mail said bills, the municipality
18    still may bill the annual amount due as of  January  2  in  2
19    installments  to become due on or about the due dates for the
20    real estate tax bills issued by the county clerk  during  the
21    year  in  which such January 2 date occurs, thus deferring to
22    later dates in said year the obligation to pay the assessment
23    installment.
24        In the event that the county clerk agrees  to  mail  such
25    bills  on  behalf  of a municipality, the county may charge a
26    fee for such services to be paid from the special assessment.
27    Such fee shall be considered as a cost  of  making,  levying,
28    and collecting the assessment provided for in Section 9-2-139
29    of the Illinois Municipal Code.
30    (Source: P.A. 90-480, eff. 8-17-97.)

31        (50 ILCS 460/65 new)
32        Sec.  65.  Rebates.  If,  after final settlement with the
33    contractor  for  any  improvements,  there  is  any   surplus
 
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 1    remaining,  the  Board  of Local Improvements shall declare a
 2    surplus and rebate upon each lot, block, tract, or parcel  of
 3    land  assessed  the  pro rata proportion of that surplus. The
 4    Board  of  Local  Improvements  shall  state  which  specific
 5    assessment  installments  (including  interest  thereon)  are
 6    being reduced. If the Board of Local Improvements  determines
 7    these excess amounts have been collected for making, levying,
 8    and   collecting   or  for  reserves  for  deficiencies,  the
 9    governing body can declare a surplus and credit  such  amount
10    to  each  lot,  block, tract, or parcel of land assessed or a
11    pro rata proportion to the  next  installment  as  a  partial
12    reduction  of the payment due or, alternatively, may use such
13    surplus to retire bonds in any manner so determined.

14        Section 10. The Illinois Municipal  Code  is  amended  by
15    changing Section 9-2-9 as follows:

16        (65 ILCS 5/9-2-9) (from Ch. 24, par. 9-2-9)
17        Sec. 9-2-9.  Preliminary procedure for local improvements
18    by  special assessment. All ordinances for local improvements
19    to be paid for wholly or in part  by  special  assessment  or
20    special  taxation  shall  originate  with  the board of local
21    improvements. Petitions for any local  improvement  shall  be
22    addressed to that board. The board may originate a scheme for
23    any local improvement to be paid for by special assessment or
24    special tax, either with or without a petition, and in either
25    case   shall  adopt  a  resolution  describing  the  proposed
26    improvement. This resolution may provide that  specifications
27    for  the  proposed improvement be made part of the resolution
28    by  reference  to  specifications   previously   adopted   by
29    resolution  by the municipality, or to specifications adopted
30    or  published  by  the  State  of  Illinois  or  a  political
31    subdivision  thereof,   provided   that   a   copy   of   the
32    specifications  so  adopted  by  reference  is on file in the
 
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 1    office of the clerk  of  the  municipality.  This  resolution
 2    shall be at once transcribed into the records of the board.
 3        The   proposed  local  improvement  may  consist  of  the
 4    acquisition of the necessary interests in real  property  and
 5    the construction of any public improvement or any combination
 6    of  public  improvements,  including,  but  not  limited  to,
 7    streets  street,  storm drain sewers sewer, water mains main,
 8    or sanitary sewer improvements, sidewalks, walkways,  bicycle
 9    paths,    landscaping,    lighting    improvements,   signage
10    improvements, vehicular parking improvements, any  additional
11    improvements  necessary  to  provide  access  to  the  public
12    improvements,  and  all  necessary  and appurtenances, or any
13    combination thereof, in a local contiguous area pursuant to a
14    single special assessment project, provided that in assessing
15    each  lot,  block,  tract,  and  parcel  of   property,   the
16    commissioner  so  assessing  shall  take  into  consideration
17    whether each lot, block, tract, or parcel is benefited by all
18    or  only  some  of  the improvements combined into the single
19    special assessment project.  For  purposes  hereof,  a  local
20    contiguous  area  shall be defined as an area in which all of
21    the lots, blocks,  tracts,  or  parcels  located  within  the
22    boundaries  thereof  will  be benefited by one or more of the
23    proposed  improvements.    The  fact  that  more   than   one
24    improvement  is being constructed as part of a single special
25    assessment project shall not be grounds for an  objection  by
26    an assessee to the special assessment proceeding in court.
27        Whenever  the  proposed improvement requires that private
28    or public property be taken or damaged, the resolution  shall
29    describe  the  property  proposed  to be taken or damaged for
30    that purpose. The board, by the same resolution, shall fix  a
31    day  and hour for a public hearing thereon. The hearing shall
32    not  be  less  than  10  days  after  the  adoption  of   the
33    resolution. The board shall also have an estimate of the cost
34    of  the  improvement  (omitting  land to be acquired) made in
 
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 1    writing by the  engineer  of  the  board,  (if  there  is  an
 2    engineer,  if not, then by the president) over his signature.
 3    This estimate shall be itemized to the  satisfaction  of  the
 4    board  and  shall  be  made  a  part  of  the  record  of the
 5    resolution. However, such an  estimate  is  not  required  in
 6    municipalities  having  a  population of 100,000 or more when
 7    the proposed improvement consists only of taking or  damaging
 8    private  or public property. And in cities and villages which
 9    have adopted prior to the effective  date  of  this  Code  or
10    which  after  the  effective  date  of  this  Code  adopt the
11    commission form of municipal government, the estimate of  the
12    cost  of  the  improvement,  (omitting  land to be acquired),
13    shall be made in writing by the public engineer if  there  is
14    one,  of  the  city  or village, if not, then by the mayor or
15    president of the city or village.
16        Notice of the time and place of the public hearing  shall
17    be  sent  by mail directed to the person who paid the general
18    taxes for the last preceding year on each lot, block,  tract,
19    or  parcel  of  land fronting on the proposed improvement not
20    less than 5 days  prior  to  the  time  set  for  the  public
21    hearing. These notices shall contain (1) the substance of the
22    resolution  adopted  by  the  board,  (2) when an estimate is
23    required by this Division 2 the estimate of the cost  of  the
24    proposed improvement, and (3) a notification that the extent,
25    nature, kind, character, and (when an estimate is required by
26    this  article) the estimated cost of the proposed improvement
27    may be changed by the board at the public hearing thereon. If
28    upon the hearing the board  deems  the  proposed  improvement
29    desirable, it shall adopt a resolution and prepare and submit
30    an  ordinance  therefor.  But  in  proceedings  only  for the
31    laying, building, constructing, or renewing of any  sidewalk,
32    water  service  pipe,  or  house drain, no resolution, public
33    hearing, or preliminary proceedings leading up  to  the  same
34    are  necessary.  In  such proceedings the board may submit to
 
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 1    the corporate authorities an  ordinance,  together  with  its
 2    recommendation   and  (when  an  estimate  is  required)  the
 3    estimated cost of the improvement, as made by  the  engineer.
 4    Such  proceedings  shall  have  the  same  effect as though a
 5    public hearing had been held thereon.
 6        In  the  event  that  a  local  improvement  is   to   be
 7    constructed  with the assistance of any agency of the Federal
 8    government, or other governmental agency, the  resolution  of
 9    the board of local improvements shall set forth that fact and
10    the estimate of cost shall set forth and indicate, in dollars
11    and  cents,  the  estimated  amount  of  assistance  to be so
12    provided.
13    (Source: 90-480, eff. 8-17-97.)

14        Section 99. Effective date. This Act  takes  effect  upon
15    becoming  law, except that Section 10 takes effect on January
16    1, 2004.