2023 Illinois Compiled Statutes › Chapter 50 - LOCAL GOVERNMENT › 50 ILCS 460/ - Special Assessment Supplemental Bond and Procedures Act.

(50 ILCS 460/1)
Sec. 1. 
		Short Title. 
		This Act may be cited as the Special Assessment Supplemental Bond and Procedures Act.
(Source: P.A. 90-480, eff. 8-17-97.)
(50 ILCS 460/5)
Sec. 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benefits are now outdated; (c) these outdated provisions result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.
(Source: P.A. 90-480, eff. 8-17-97.)
(50 ILCS 460/10)
Sec. 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 Water Reclamation 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.
(Source: P.A. 99-669, eff. 7-29-16.)
(50 ILCS 460/15)
Sec. 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.
(Source: P.A. 90-480, eff. 8-17-97.)
(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. 93-196, eff. 7-14-03.)
(50 ILCS 460/25)
Sec. 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.
(Source: P.A. 90-480, eff. 8-17-97.)
(50 ILCS 460/30)
Sec. 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.
(Source: P.A. 90-480, eff. 8-17-97.)
(50 ILCS 460/35)
Sec. 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.
(Source: P.A. 90-480, eff. 8-17-97.)
(50 ILCS 460/40)
Sec. 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.
(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.
(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. 93-196, eff. 7-14-03.)
(50 ILCS 460/50)
Sec. 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.
(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.
If the county clerk does not agree to mail
the bills, or if the municipality declines
to request the county clerk to
mail
the bills,
the
municipality still may bill the annual amount due, as of January 2,
in
2
even
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 the January 2 date occurs,
thus deferring 
the
obligation to pay the assessment installment to later dates in that year.
If the county clerk agrees to mail the bills on behalf of a
municipality, the county may charge a fee for such services to be paid from the
special assessment. The 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. 95-331, eff. 8-21-07.)
(50 ILCS 460/60)
Sec. 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.
(Source: P.A. 90-480, eff. 8-17-97.)
(50 ILCS 460/65)
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.
(Source: P.A. 93-196, eff. 7-14-03.)
(50 ILCS 460/70)
Sec. 70. 
		(Amendatory provisions; text omitted).
(Source: P.A. 90-480, eff. 8-17-97.)
(50 ILCS 460/75)
Sec. 75. 
		(Amendatory provisions; text omitted).
(Source: P.A. 90-480, eff. 8-17-97.)
(50 ILCS 460/99)
Sec. 99. 
		Effective date. 
		This Act takes effect upon becoming law.
(Source: P.A. 90-480, eff. 8-17-97.)