S-898 - 04/28/1998 - SPECIAL USE - Ordinances ORDINANCE 98-SSA-RES-EX1-S-898
AN ORDINANCE ESTABLISHING THE POLICY OF THE VILLAGE OF OAK BROOK
CONCERNING RESIDENTIAL SPECIAL SERVICE AREAS
WHEREAS, the Illinois Compiled Statutes authorizes municipalities to establish special
service areas and procedures for the levy and collection of taxes for provision of special
services to such areas pursuant to the "Special Service Area Tax Law" (the "Statute") (35 ILCS
200/27-5 et. seq.), and
WHEREAS, the Statute permits the corporate authorities to initiate proposals to
establish special service areas and to receive applications from owners of record of property
within proposed special service areas seeking to establish such areas, and
WHEREAS, the Statute sets forth a detailed procedure providing for hearing of
applications or initiatives for establishment of special service areas by the corporate authorities
and providing further for the filing of objection petitions brought to prevent creation of special
service areas, and
WHEREAS, the Village President and Board of Trustees (the "Board") is of the opinion
that the statutory process involves a substantial investment of time and effort on the part of the
Village and of the owners of property within a proposed special service area, and therefore
should not be entered into lightly, and
WHEREAS, the Board has determined it to be necessary and desirable to set forth a
written policy concerning the establishment of residential special service areas within the
Village,
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE PRESIDENT AND BOARD
OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES,
ILLINOIS as follows:
Section 1: That the Board will consider establishment of residential special service
areas only in accordance with the provisions of the Special Service Area Tax Law (35 ILCS
200/27-5 et. seq.), attached hereto as Exhibit A, as the same may be amended from time to
time.
Section 2: That the establishment of residential special service areas as authorized by
the Statute and the imposition of special taxes in conjunction therewith is within the sole
discretion of the Board.
Section 3: That the Board will normally consider applications for establishment of
special service areas only in cases where the application is joined in by at least sixty percent
(60%) of the owners of record of property within the proposed special service area.
Section 4: That upon receipt of an application for establishment of a residential special
service area, and prior to consideration by the Board of an ordinance creating said special
service area, the Village Manager shall cause to be prepared a report describing the proposed
Ordinance 98-SSA-RES-EX1-S-898
Establishing Special Service
Area Policy, Page 2
area and the special services or physical improvements proposed. The report shall include
such preliminary estimates of costs and other financial terms as may be necessary to assist
the Board in determining whether to establish a special service area.
Section 5: That the legal description, the nature, rate and amount of the tax to be
levied, the amount, interest rate and life of bonds to be issued, if any, for the special service
area shall be determined in the sole discretion of the Board, upon the recommendation of the
Village Manager.
Section 6: That the Board may establish, in its sole discretion and based on a
recommendation from the Village Manager, a limitation on the costs to be incurred by the
Village prior to the expiration of the objection period as provided in the Statute.
Section 7: That the validity of any action otherwise taken by the Board in accordance
with applicable law shall not be invalidated, impaired or otherwise affected by noncompliance
with any part of the procedures or policy set forth in this ordinance.
Section 8: That all ordinances or resolutions or parts of ordinances and resolutions in
conflict with this ordinance are hereby repealed.
Section 9: That this ordinance shall be in full force and effect from and after passage
and approval pursuant to law.
PASSED THIS 28th day of April, 1998.
Ayes: Trustees Bartecki, Caleel, Kenny, Savino and Shumate
Nays:
None
Absent: Trustee McInerney
Abstain: None
APPROVED THIS 28th day of April, 1998.
*Ig siden t
ATTEST: Sol 04,j.
Q
Village Cle
�SUC� �v
CIJ�.1Z�'
Ordinance 98-SSA-RES-EX1-S- 898
Establishing Special Service
Area Policy, Page 3
Approv d as to Form:
d'>hm�t�
Village Attorney
Published
Date Paper
Not Published xx
35 ILCS 200/26-5 REVENUE EXHIBIT "A" 336
this Code shall be as legal and valid as if completed in the Section
time required by law. 200/27-85. Dissolution of weather modification area.
PA 85-455,Art.26, § 264,eff.Jan.1,1994.
200/27-5. Short title; definitions
200/26-10. Informality in assessments or lists § 27-5. Short title; definitions. This Article may be
§ 26-10. Informality in assessments or lists. An assess- cited as the Special Service Area Tax Law.
ment of property or charge for taxes thereon, shall not be When used in this Article:
considered illegal on account of any informality in making the "Special Service Area" means a contiguous area within a
assessment, or in the tax lists, or on account of the assess- municipality or county in which special governmental ser-
ments not being made or completed within the time required vices are provided in addition to those services provided
bylaw.
P.A.88-455,Art.26, § 26-10,eff.Jan. 1,1994. generally throughout the municipality or county, the cost of
the special services to be paid from revenues collected from
taxes levied or imposed upon property within that area.
200/26-15. Failure to deliver collector's books on Territory shall be considered contiguous for purposes of this
time Article even though certain completely surrounded portions
§ 26-15. Failure to deliver collector's books an time. of the territory are excluded from the special service area.
Any failure to deliver the collector's books within the time A county may create a special service area within a munici
required by this Code shall in no way affect the validity of pality or municipalities when the municipality or municipali-
the assessment and levy of taxes. In all cases of failure,the ties consent to the creation of the special service area. A
assessment and levy of taxes shall be held to be as valid and municipality may create a special service area within a
binding as if the books had been delivered at or within the municipality and the unincorporated area of a county or
time required by law. within another municipality when the county or other munici-
PA 88-455,Art.26,§ 26-15,eff.Jan. 1,1994. pity cents to the creation of the special service area.
"Special Services" means all forms of services pertaining
200/26-20. Tax charged to wrong owner to the government and affairs of the municipality or county,
§ 26-20. Tax charged to wrong owner. A sale of proper-
including but not limited to weather modification and im-
ty for taxes shall not be considered invalid on account of the pTO"�an�permissible under Article 9 of the Illinois Munic-
taxes having been man other name than that of ipal Code, and contracts for the supply of water as described
the rightful owner. charged Y in Section 11-124-1 of the Minois Municipal Code z which
PA 88-455,Art 26, § 26-20,eff.Jan 1,1994 may be entered into by the municipality or by the county on
behalf of a county service area
200/26-25. Savings clause for pending proceedings P.A.8ILCS'Art'27,§ 27�,e�Jan 1,1994.
§ 26-25. Savings clause for pending proceedings. The r 6b ILCS fill-i et seq.
enactment of this Code of 1993 shall not be construed to 2 II.CS F,i11-124-L
impair any right existing, or affect any proceeding pending,
at the time this Code takes effect; but all proceedings for the 200/27-10. Providing special services
assessment of any tax, or collection of any tax or special § 27-10. Providing special services. In any case in which
assessment then remaining incomplete, may be completed a municipality or county exercises the power granted in Part
pursuant to the provisions of this Code. The provisions of (6) of Section 7 of Article VII, or in Part (2), paragraph L of
this Act shall apply to redemptions from sales made for taxes Section 6 of Article VII,of the Constitution to provide special
or special assessment previous to the taking effect hereof, services,a tax to provide those special service or provide for
and the mode of giving notice, and of issuing deeds upon the payment of debt incurred for that purpose shall be levied
certificates of purchase made for taxes. or imposed in accordance with this Article.
PA 881155,Art.26, § 26-25,eff.Jan.1,1994. PA 8855,Art.27,§ 27-10,eff.Jan. 1, 1994.
ARTICLE 27. SPECIAL SERVICE AREA TAX LAW 200127-15. Governing body
Section § 27-15. Governing body. The corporate authorities of
200/27-5. Short title; definitions. the municipality or county shall be the governing body of the
200/27-10. Providing special services. special service area
200/27-15. Governing body. PA 88-455,Art.27,§ 27-15,efE Jan. 1, 1994.
200/27-20. Proposals to establish a special service area
200/27-25. Form of hearing notice. 200/27_20. proposals to establish a special service
200/27-30. Manner of notice
200/27-35. Public hearing, protests and objections. $
200/27110. Boundaries of special service area. § 27-20. Proposals to establish a special service area.
200/27-45. Issuance of bonds. To propose the establishment of a special service area, other
200/27-50. Enlargement of special service area than one initiated by the corporate authorities, an application
200/275. Objection petition. shall be filed with the chief elected official of the municipality
200/270. Petition for disconnection from special service or county explaining,at a minimum, the following: the name
tea. and legal status of the applicant; the special services to be
200/27-65. Public hearing on petition; court order. provided; the boundaries of the proposed special service
200/27-70. Effect of disconnection. area; the estimated amount of funding required; and the
200/27-75. Extension of tax levy. stated need and local support for the proposed special service
200/27-80. Weather modification referendum. area The application must be signed by an owner of record
337 REVENUE 35-MCS- 200/27-45
,.%ithin the proposed special service: area The corporate heard orally in respect to any issues embodied in the notice.
authorities may accept or reject the application. The mumaPality or county shall hear and determine all
P.,�_88-455,Art.27, § 27-20,eff.Jan. 1,1994. protests and objections at the hearing and the hearing may
be adjourned to another date without further notice other
200/27-25. Form of hearing notice than a.modkm to be entered upon the minutes.fixing the time
§ 27-25. Form of hearing notice. Taxes may be levied or and place it will reconvene. At the Public hearing or at the
imposed by the municipality or county in the special service first regular meeting of the corporate authorities thereafter,
the municipality or county may delete area from the special
area at a rate or amount of tax sufficient to produce revenues service atria. However, special service area must still
required to provide the special services. Prior to the first ,the
e%v of taxes in the special service area, notice shall be given a contiguous area as defined in Section 27-5.
and a hearing shall be held under the provisions of Sections PA 88 55,Art.27,t 27-,V3.eff.Jan.1,1994.
2-(--)o and 27-435. For purposes of this Section the notice
:hall include: 200/2740. Boundaries of special service area
(a) The time and place of hearing; § 27-40. Boundaries of special service area A certified
(b) The boundaries of the area by legal description and by copy of an ordinance establishing or altering the boundaries
<Lreet location,where possible; of a special service area, containing a description of the
(c) A notification that all interested persons, including all territory of the area,must be fled for record in the office of
persons owning taxable real property located within the the recorder in each county in which any part of the area is
,ly2cial service area,will be given an opportunity to be heard Iocated no later than 60 days after the effective date of the
at the hearing regarding the tax levy and an opportunity to ordinance. Ah ordinance establishing a
special service area
file objections to the amount of the tax levy if the taxis a tax recorded beyond the 60 days is not valid. The requirement
upon property; and 4 for recording within 60 days shall not apply to any establish-
(d) The maximum rate of taxes to be extended in any year ment or.alteration of the boundaries of a•service area that
and may include a maximum number of years taxes will be before
evied- P:A.&"55,Art.27,§ 27-40,effi Jan.1,1994.•
After the first levy, taxes may be extended against the
special service area for the services specified without addi- 200/27-45. Issuance of bones
t ional hearings. However, the taxes shall not exceed the § 27 ,5 Issuance of.bonds .Bonds secured by the full
•
rate specified in the notice and if a maximum number of faith and credit of.the area included in the special service
;ears is specified in the notice, the taxes shall not be area may be, issued for the special
and thed eriod nger period. Tax rates may be fact eased Bonds,when so issued,;shall bete retired b the services.
P specified may be extended, if notice is en Y ea of taxes in
�v addition to the taxes specified in Section 27-25 against all of
and new public hearings are held in accordance with Sections the taxable real property,included in the area as provided in
27-30 and 275. the ordinance authorizing the issuance of the bonds or by the
PA 88-455,Art.27, § 27-25,eff.Jan. 1, 1994. imposition of another to within the special service area-
The county clerk shall annually extend taxes against all of
200/27-30. Manner of notice the taxable property situated in the county and contained in
§ 27-30. Manner of notice. Prior to or within 60 days such spy service area in amounts sufficient to pay matur-
after the adoption of the ordinance proposing the establish- ing principal and interest of those bonds without limitation as
ment of a special service area the municipality or county to rate or amount and in addition to and in excess of any
-hall fix a time and a place for a public hearing. Notice of taxes that may now or hereafter be authorized to be levied
the hearing shall be given by publication and mailin&except by the municipality or county. Prior to the issuance of those
:hat notice of a public hearing to propose the establishment bonds, notice shall be given and a hearing shall be held
4 a special service area for weather modification purposes pursuant to the.provisions of Sections 27-30 and 2745. For
may be given by publication only. Notice by publication purposes of this Section a notice shall include:
-hall be given by publication at least once not less than 15 (a) The time and place of hearing
nays prior to the hearing in a newspaper of '
Lion within the municipality Notice by Lcn lin (b) The boundaries of the area by legal description and by
-hall be given by depositing the notice in the United States street location,where possible;
mails addressed to the person or persons in whose mne the (c) A notification that all interested persons, including all
.reneral taxes for the last preceding year were paid on each persons owning taxable property located within the special
wnperty lying within the special service area A notice shall service area,will be given an opportunity to be heard at the
:',e mailed not less than 10 days prior to the time set for the hearing regarding the issuance of the bonds and an opportu-
:,uhlic hearing. In the event taxes for the last preceding nity to file objections to the issuance of the bonds; and
par were not paid,the notice shall be sent to the person last (d) The maximum amount of bonds proposed to be issued,
'.,ted on the tax rolls prior to that year as the owner of the the maximum period of time over which the bonds will be
;property' retired, and the maximum interest rate the bonds will bear.
P.A.88-455,Art.27, § 2740,eff.Jan. 1,1994.
The question of the creation of a special service area, the
--'00/27,35. Public hearing-, levy or imposition of a tax in the special service area and the
g; protests and objections issuance of bonds for providing special services may all be
2745. Public hearing; protests and objections At the considered together at one hearing.
uhlic hearing, any interested person, including all persons Any bonds issued shall not exceed the number of bonds,
'arcing taxable property located within the proposed special the interest rate and the period of extension set forth in the
nice area, may file with the municipal clerk or county notice, unless an additional hearing is held. Bonds issued
:r•rk, as the case may be, written objections to and may be pursuant to this Article shall not be regarded as indebted-
35 ILCS 200/2745 REVENUE 338
ness of the municipality or county, as the case may be, for existing or then authorized by the special service area, and
the purpose of any limitation imposed by any law. that the territory constitutes less than 1%% of the special
PA 88-455,Art.27,§ 27-45,eff.Jan.1,1994. service area's total equalized assessed valuation.
PA 88-45N Art.27,§ 27-60,eff.Jan. 1, 1994.
200/27-0. Enlargement of special service area
§ 27-50. Enlargement of special service area. Bound- 200/27-65. Public hearing on petition; court order
aries of a special service area may be enlarged,but only after § 27-65. Public hearing on petition; court order. Upon
hearing and notice as provided in Sections 27-30 and 27-35. the filing of the petition, the court shall set it for public
The notice shall be served in the original area of the special hearing within 60 days after the date of the filing of the
service area and in any areas proposed to be added to the petition. The court shall give at least 45 days notice of the
special service area, except when the property being added hearing by publishing notice of the hearing once in a newspa-
represents less than 5% of the equalized assessed valuation per having a general circulation within the special service
of the entire original area,as determined by the clerk of the area from which the territory is sought to be disconnected.
county in which the land is located, the notice by mailing The notice (a) shall refer to the petition filed within the
requirement of Section 27-30 shall be limited only to the area court, (b)shall describe the territory proposed to be discon-
to be added and not to the original special service area The nected, (c) shall indicate the prayer of the petition and the
property added to the area shall be subject to all taxes levied date,time acid place at which the public hearing will be held,
in the area after the property becomes a part of the area and and (d) shall further indicate that the corporate authority
shall become additional security for bonded indebtedness which dated the special service area and any persons
outstanding at the time the property is added to the area. residing in or owning property in the territory involved or in
P.A.88-455,Art.27,§ 270,eff.Jan.1,1994. the special service area from which the territory is sought to
be disconnected shall have an opportunity to be heard on the
200/275. Objection petition prayer of the petition. Notice of the filing of the petition,the
substance of which shall be as prescribed above for the
§ 27-%5. Objection petition. If a petition signed by at published notice,shall also be mailed to the presiding officer
least 51% of the electors residing within the special service of the corporate authority from which the territory is sought
area and by at least 51% of the owners of record of the land to be disconnected.
included within the boundaries of the special service area is The public hearing may be continued from time to time by
filed with the municipal clerk or county clerk, as the case the court After the public hearing and having heard all
may be,within 60 days following the final adjournment of the persons desiring to be heard,including the corporate authori-
public hearing,objecting to the creation of the special service ty and all persons residing in or owning property in the
district, the enlargement of the area the levy or imposition territory involved or in the special service area from which
of a tax or the issuance of bonds for the provision of special the territory is sought to be disconnected, if the court fords
services to the area,or to a proposed increase in the tax rate, that all the eons of the petition are true,the court shall
the district shall not be created or enlarged, or the tax shall get the prayer of the petition and shall enter an order
not be levied or imposed nor the rate increased,or no bonds disconnecting the territory from the special service area.
may be issued. The subject matter of the petition shall not The order shall be entered at length in the records of the
be proposed relative to any signatories of the petition within court, and the clerk of the court shall file a certified copy of
the next 2 years. Each resident of the special service area the.order with the clerk of the municipality or county which
registered to vote at the time of the public hearing held with created the special service area from which the territory has
regard to the special service area shall be considered an been disconnected. If the court finds that the allegations
elector. Each person in whose name legal title to land co ntained in the petition are not true,the court shall enter an
included within the boundaries of the special service area is order dismissing it
held according to the records of the county in which the land
is located shall be considered an owner of record. Owners of PA 8855,Art.27,§ 27-65,eff.Jan. 1, 1994.
record shall be determined at the time of the public hearing
held with regard to a special service area. Land owned in 200/27-70. Effect of disconnection
the name of a land trust, corporation, estate or partnership §.27-70. Effect of disconnection. Any disconnected ter-
shall be considered to have a single owner of record. ritory shall cease to be subject to any taxes levied under this
PA 88-455,Art 27, § 27-55,eft:Jan.1,1994. Article and shall not be security for any future bonded
indebtedness. When the amount of any special service area
200/2740. Petition for disconnection fr om special levied taxes is cancelled due to disconnection of territory,the
service area court may, in the same disconnection proceeding, distribute
this cancellation upon the other property in the area as
§ 27-60. Petition for disconnection from special service
the boundaries of any in sensed,in such manner as the court finds just and equitable.
area Any territory located with
special service area organized under this Article,other than a will exceeding,m the special err, the amount by which the property'
special service area for weather modification, may become PA 88-4.55,Art.27, 0,eff:Jan. 1, 1994.
disconnected from the area in the manner provided in this
Section. A majority of the resident electors and a majority
of the record owners of land in the territory sought to be 200/27-75. Extension of tax levy
disconnected from the area may sign a petition. The petition § 27-75. Extension of tax levy. If a property tax i`
shall be addressed to the circuit court and shall contain a levied,the tax shall be extended by the county cleric in the
definite description of the boundaries of the territory and special service area in the manner provided by Articles 1
recite as a fact, that as of the date the petition is filed, the through 26 of this Code r based on equalized assessed value=
territory was not,is not,and is not intended by the corporate as established under Articles 1 through 26. The municipalit`
authority which created the special service area to be,either or county shall file a certified copy of the ordinance creatint'
benefited or served by any work or services either then the special service area, including an accurate map thereo:
339 REVENUE 35 ILCS 200/28-10
with the county clerk. The corporate authorities of the X7,85, Dissolution of weather modification
municipality or county may levy taxes in the special service
area prior to the date the levy must be filed with the county area
clerk, for the same year in which the ordinance and map are § 27,85. Dissolution of weather modification area If
filed with the county clerk. In addition, the corporate au- 10% of the electors residing in a special service area for
thorities shall file a certified copy of each ordinance levying weather modification petition the corporate authorities for
taxes in the special service area on or before the last dissolution of the special service
Tuesday of December of each be certified to area, the Proposition shall
year and shall file a certified PiroP�election officials who shall submit
copy of any ordinance authorizing the issuance of bonds and the Proposition to the voters at an election in accordance with
providing for a property tax levy in the area by December 31 the general election law The proposition shall be in sub-
of the year of the first levy. stantially the following form:
In lieu of or in addition to an ad valorem property tax, a Sliall the special tax may be levied and extended within the special for weather modifies' coon purposes S
service area on any other basis that provides a rational created by be dis-
relationship between the amount of the tax levied against and?
each lot, block,tract and parcel of land in the special service NO
area and the special service benefit rendered. In that case,a If a majority of the votes cast on the proposition are in
special tax roll shall be prepared-containing. (a)an explana- favor, the
tion of the method of spreading the special tax, (b) a list of service area is dissolved. If a special
lots, blocks, tracts and service area is dissolved and any unexpended funds remain
parcels of land in the special service from previous levies, the Rinds shall be paid to owners of
area and (c) the amount assessed against each. The special Property located in the
tax roll shall be included in the ordinance establishing he sP�� service area The payments
g shall be Prorated among the owners on the basis of acreage.
special service area or in an amendment of the ordinance,
and shall be filed with the county clerk for use in extending P.A.88-455,Art.27'§'27-&5,eft Jan.1,1994.
the tax. The lien and foreclosure remedies provided in
Article 9 of the Minoia Municipal Code 2 shall apply upon ARTICLE 28. SPECIAL ASSESSMENT
non-payment of the special tax. APPORTIONMENT LAW
P.A.88-155,Art.27, § 27-75,eft Jan.1,1994.
135 ILCS 200/1-1 et Section
seq.to 2oW26 6 et seq. 200/28-1. Short title-
2028-6-65 ILCS 5/9-1-1 et seq. 200/28--6. Apportionment upon subdivision.
2O 28-10. Apportionment petition.
200/27-80. Weather modification referendum 200/28-15. Approval of Petition by corporate authority, ef-
§ 27-80. Weather modification referendum A fect
service area for weather modification shall not be established ��' Apportionment by court
municipality or county until the question of establishing
the s 200/28-L Short title
special service area has first been submitted to the voters
of the proposed area and approved by a majority of the § 284. Short title. This Article may be cited as the
voters voting on the question. The corporate authorities Special Assessment Apportionment Law.
proposing a special service area shall certify the proposition PA
for establishment of the area to the Art�+§ 28-1, Jan.1,1994.
who shall submit the ro Proper officials
p position to the voters at an election 200/285.
in accordance with the general election law. The proposition Apportionment upon subdivision
shall be in substantially the following form• § 28-5. Apportionment upon subdivision. If a special
assessment that is Payable in installments has been grade by
Shall a special service area for any corporate authority,for supplying water, or other corpo-
weather modification be created by YES rate Purpose, and if all or some of the owner or owners of
....., and be authorized to levy any parcel of land so assessed desire to subdivide the parcel,
a tax not to exceed ...% of and to apportion the assessment and the several installments
the equalized and assessed value of NO" so that each parcel of the Proposed subdivision will bear its
farmland? just and equitable Proportion,it may be done as provided in
this Article.
If a majority of votes cast on the proposition are in favor, P.A.88-455,Art.28,§ 28-5,eff.Jan.1,1994.
the special service area is established. Notwithstanding any
other provision,a special service area established for weather 200/28-10. Apportionment petition
modification purposes shall not levy a tax in excess of.05%of
the equalized assessed value of all taxable property assessed § 28-10. Apportionment petition. The owner or owners
as farmland pursuant to Sections 10-110 through 10-140. of the parcel of land shall present to the corporate authority
Taxes levied by the municipality or county for a special a Petition,setting forth:
service area for weather modification may be used only for (a) The descriptive character of the assessment and the .
Purposes of weather modification, and may not be used for date of the confirmation of the assessment.
administrative purposes. Any taxes levied under this Sec- (b) The manes of the owners.
tion for weather modification purposes which are unpaid shall (c) A description of the land proposed to be subdivided,
be treated as delinquent taxes under Article 21 of this Code.' together with the amount of each installment thereon,
P.A.88-455,Art.27, § 27-80,eff.Jan. 1,1994. the year or years for which the installments are due. and
135 ILCS 200/21-5 et seq. (d) A plat showing the proposed subdivision.