Public Act 90-0480 of the 90th General Assembly

State of Illinois
Public Acts
90th General Assembly

[ Home ] [ Public Acts ] [ ILCS ] [ Search ] [ Bottom ]


Public Act 90-0480

SB103 Enrolled                                 LRB9000658PTcw

    AN  ACT  to  provide  for  supplemental  procedures   and
issuance  of  obligations  in  connection  with the making of
local improvements through special assessments.

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

    Section  1.  Short  Title.   This Act may be cited as the
Special Assessment Supplemental Bond and Procedures Act.

    Section 5. Finding.  The General Assembly finds that: (a)
there have been many important  changes  in  the    financial
markets  and  practices  with  respect  to  the  issuance  of
obligations  to  provide  funds  for  the  payment  of  local
improvements  to  be  paid  from  the  imposition  of special
assessments; (b) various provisions of Illinois law  relating
to  the  making  of  local improvements and the provision for
payment of same through the imposition of special assessments
according to  benefits are now outdated; (c)  these  outdated
provisions  result    in additional costs for the citizens of
the State of Illinois who  are property owners and subject to
the payment of such  special  assessments;  (d)  the  General
Assembly  deems it advisable and in the best interest of such
property owners to provide supplemental  authority  regarding
the  procedures  for the making of local improvements and the
payment for same by special assessment and  the issuance  and
sale of obligations payable from such special  assessments in
order   to  accommodate  current  and  anticipated  financial
markets and practices and the provisions of current   federal
income tax law.

    Section 10. Definitions.  As used in this Act, unless the
context or usage clearly indicates otherwise:
    "Governing  body"  means  the  legislative body, council,
board, commission, trustees, or any other  body  by  whatever
name it is  known having charge of the corporate affairs of a
governmental  unit.
    "Governmental    unit"    means   a   county,   township,
municipality,   municipal   corporation,   unit   of    local
government,  or  a special  district, by whatever name known,
authorized by  any  special  assessment  law  to  make  local
improvements by special assessment.
    "Special assessment bond" means any instrument evidencing
the    obligation  to pay money authorized or issued by or on
behalf of a  governmental unit under a special assessment law
or under this  Act, being payable from assessments made under
a  special  assessment   law,   and   when   applicable,   as
supplemented by this Act.
    "Special  assessment  law"  means any law of the State of
Illinois    authorizing  governmental  units  to  make  local
improvements payable wholly or in part by special assessment,
and includes, without limitation, Division 2 of Article 9  of
the  Illinois  Municipal  Code, Division 5-32 of Article 5 of
the Counties Code, Section 21 of  the  North  Shore  Sanitary
District  Act,  Section  19  of  the Sanitary District Act of
1917, Sections 22a.1 through 22a.55 of the Sanitary  District
Act  of  1917, and Section 28 of the Sanitary District Act of
1936.
    "Special assessment proceeding" means the  proceeding  by
any  governmental  unit  under  a  special  assessment law to
provide for the making of a  specific  local  improvement  by
special assessment.
    "Special  assessment  ordinance"  means  an ordinance, or
when  applicable a resolution, as provided for by any special
assessment law by which the governing body institutes,  calls
for,  or provides for the making of a local improvement to be
paid  by   the imposition of a special assessment pursuant to
such special  assessment law.
    "Supplemental Act Assessment  Bonds"  are  those  special
assessment  bonds issued under Section 100 of this Act.
    "Voucher"  means  any  voucher  issued  under  a  special
assessment  law   for work done in connection with the making
of a local  improvement.

    Section 15. Supplemental powers; election. The provisions
of this Act  are  intended  to  be  supplemental  to  and  in
addition  to  all  other powers or authorities granted to any
governmental unit, shall be construed  liberally,  and  shall
not  be  construed  as a limitation of any power or authority
otherwise  granted.   Any  governmental  unit  may  use   the
provisions  of  this  Act  by making an election referring to
this Act in the special  assessment ordinance.  In  addition,
a  governmental unit may use  the provisions of this Act that
relate exclusively to  Supplemental Act Assessment  Bonds  by
making an election referring  to this Act in any ordinance or
resolution  passed  subsequent  to    the  special assessment
ordinance.

    Section 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) 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.

    Section 25. Interest on assessments.  The unpaid  portion
of   any   assessment  imposed  under  a  special  assessment
proceeding may bear interest at an interest rate  or    rates
not  exceeding  the  rate  or rates on bonds permitted by the
Bond Authorization Act; provided, however, that the  time  of
the    adoption  of the special assessment ordinance shall be
the date  that the maximum rate or rates shall be  calculated
rather than at  the time the contract is made for the sale of
the  bonds,  as  provided  in  the  Bond  Authorization  Act.
Notwithstanding  the  foregoing provision, from and after the
due date of any  installment of an assessment, the  following
additional  rates and  charges may be imposed with respect to
the delinquent amount of  such installment:
         (a)  an additional rate of interest of  1  1/2%  per
    month; and
         (b)  a  collection charge of not to exceed 1% of the
    amount of the delinquent installment.

    Section  30.  Amount  and  term  of   installments.    An
assessment  under  a  special  assessment  proceeding  may be
payable in one or more installments coming due not more  than
31  years  after  the  date  of  the  judgment order of final
confirmation of the  assessment  roll  and  report  for  such
special  assessment  proceeding.   The  first installment for
interest on such special assessment may be deferred for  such
period  of time during which interest upon bonds payable from
such special assessment has been provided for pursuant to the
provisions of  Section  50  of  this  Act.   Installments  of
principal  of  a  special  assessment  need not become due in
equal amounts, but rather, if provided  for  in  the  special
assessment  ordinance,  shall  become due in the years and in
the amounts as shall be provided in  the  special  assessment
ordinance.  In  the  event  that  a  governing  body deems it
advisable to refund Supplemental Act Assessment  Bonds  in  a
manner  that would either increase installments or extend the
number of years in which installments  may  be  payable,  the
governing  body  may  do  so  through  a supplemental special
assessment ordinance and proceeding under applicable  special
assessment law, provided the number of installments shall not
be  increased so as to become due beyond the original maximum
term of 31 years provided in this Section. In the event  such
a  refunding  does  not  increase  installments or extend the
years  in  which  payable,  the  governing  body  may  refund
Supplemental Act  Assessment  Bonds  through  a  supplemental
special assessment ordinance only.

    Section  35.  Notice  of first installment and accrual of
interest.  In lieu of the establishment of the  date  of  the
first  installment of a special assessment and the accrual of
interest on assessments by the issuance of  a  first  voucher
and  the  filing  of a certificate with the clerk of court or
other act as may be provided by  a  special  assessment  law,
either  the governing body or the board of local improvements
may,  at  any  time,  after  the  judicial  order  of   final
confirmation of the assessment roll and report, file with the
clerk of court in which the assessment was confirmed a notice
of  the  due  date of the first installment and the date from
which interest shall accrue on the assessments.   The  notice
shall  state  the  due  date  of the first installment, which
shall be not earlier than January 2 of the following year  or
such  later  year as shall have been determined under Section
70 of this Act, and also the date upon which  interest  shall
begin  to  accrue on the assessments, which date shall be not
earlier than 60 days after the date the notice  provided  for
in  this  Section  shall  have  been  filed with the clerk of
court.  In connection with the  application  of  any  special
assessment  law,  the notice shall be treated upon its filing
as if the notice were a certificate of first voucher or other
act as may be provided by a special assessment law,  and  all
procedures  related  to  the filing of a certificate of first
voucher or such other  act  shall  be  deemed  to  have  been
appropriately  followed, subject only to the modifications to
such procedures provided for in this Act.

    Section 40. Award of contract.  In any special assessment
proceeding, upon the vote of two-thirds of the members of the
governing body then in office,  the  governing  body  or  the
board  of local improvements, as may be applicable, may award
a contract or  contracts  for  the  improvement  pursuant  to
negotiation with one or more persons, without the requirement
of competitive bidding.
    Section  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 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.

    Section 50. Alternative local procedure. Upon the request
of all of the owners of record to be subject to assessment in
a  special  assessment  proceeding, the alternative procedure
for the proceeding set forth in this Section may be used.  In
this alternative procedure, the board of  local  improvements
shall  conduct  all of the proceedings and perform all of the
acts otherwise performed by the court.   There  shall  be  no
right  to  jury  trial or any reference to the rules of civil
procedure applicable to the court, but  the  board  of  local
improvements  shall  conduct its proceedings with due notice,
fairly and impartially.  Determinations of the board of local
improvements shall be treated  as  the  determination  of  an
administrative  agency  and  shall be subject to appeal under
the  same  procedures  as  an  appeal  of  an  administrative
decision of an administrative agency under the Administrative
Review Law.

    Section 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.

    Section  60.  Recital.  Supplemental Act Assessment Bonds
that are issued in part under this Act may contain a  recital
to  that  effect  and any such recital shall be conclusive as
against the governmental body thereof and any other person as
to the validity of the Supplemental Act Assessment Bonds  and
as to their compliance with the provisions of this Act.

    Section  70.   The  Statute  on  Statutes  is  amended by
changing Section 8 as follows:

    (5 ILCS 70/8) (from Ch. 1, par. 1107)
    Sec. 8.  Omnibus Bond Acts.
    (a) A citation to the Omnibus Bond Acts is a citation  to
all of the following Acts, collectively, as amended from time
to  time:   the  Bond  Authorization Act, the Registered Bond
Act, the Municipal Bond Reform Act, the Local Government Debt
Reform Act, subsection (a) of Section 1-7 of the Property Tax
Extension Limitation Act, subsection (a) of Section 18-190 of
the Property Tax Code, the  Uniform  Facsimile  Signature  of
Public Officials Act, the Local Government Bond Validity Act,
the  Illinois  Development  Finance Authority Act, the Public
Funds Investment Act, the Local Government Credit Enhancement
Act,  the  Local  Government  Defeasance  of  Debt  Law,  the
Intergovernmental  Cooperation  Act,  the  Local   Government
Financial   Planning   and   Supervision   Act,  the  Special
Assessment Supplemental  Bond  and  Procedure  Act,  and  any
similar  Act  granting  additional  omnibus  bond  powers  to
governmental  entities generally, whether enacted before, on,
or after the effective date of this amendatory Act of 1989.
    (b)  The   General   Assembly   recognizes    that    the
proliferation  of  governmental  entities has resulted in the
enactment of hundreds of statutory provisions relating to the
borrowing and other  powers  of  governmental  entities.  The
General  Assembly addresses and has addressed problems common
to all such governmental entities so  that  they  have  equal
access  to  the  municipal bond market. It has been, and will
continue to be, the intention  of  the  General  Assembly  to
enact  legislation  applicable to governmental entities in an
omnibus fashion, as has been done in the  provisions  of  the
Omnibus Bond Acts.
    (c)  It  is  and  always  has  been  the intention of the
General Assembly that the Omnibus Bond Acts  are  and  always
have been supplementary grants of power, cumulative in nature
and  in  addition  to  any  power or authority granted in any
other  laws  of  the  State.    The  Omnibus  Bond  Acts  are
supplementary grants of power when applied in connection with
any similar grant of power or  limitation  contained  in  any
other  law  of  the  State,  whether  or not the other law is
enacted or amended after an Omnibus Bond Act or appears to be
more restrictive than an Omnibus Bond Act, unless the General
Assembly  expressly  declares  in  such  other  law  that   a
specifically named Omnibus Bond Act does not apply.
    (d)  All  instruments  providing for the payment of money
executed by or on behalf of any governmental entity organized
by or  under  the  laws  of  this  State,  including  without
limitation  the  State, to carry out a public governmental or
proprietary   function,   acting   through   its    corporate
authorities,  or which any governmental entity has assumed or
agreed to pay, which were:
         (1)  issued  or   authorized   to   be   issued   by
    proceedings  adopted by such corporate authorities before
    the effective date of this amendatory Act of 1989;
         (2)  issued or authorized to be issued in accordance
    with the procedures set  forth  in  or  pursuant  to  any
    authorization  contained in any of the Omnibus Bond Acts;
    and
         (3)  issued or  authorized  to  be  issued  for  any
    purpose authorized by the laws of this State,
are valid and legally binding obligations of the governmental
entity  issuing  such instruments, payable in accordance with
their terms.
(Source: P.A. 87-17; 88-670, eff. 12-2-94.)

    Section 75.  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
construction  of    street, storm drain sewer, water main, or
sanitary  sewer  improvements  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: Laws 1963, p. 2425.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

[ Top ]