35 ILCS 200 Article 27 35 ILCS 200 Article 27 SPECIAL SERVICE AREA SPECIAL SERVICE AREA

TAXING DISTRICTTAXING DISTRICT

Creating Community Creating Community Excitement for Lake Excitement for Lake

Dredging/Restoration ProjectsDredging/Restoration Projects

"Special Service Area" (Sec. "Special Service Area" (Sec. 27-5)27-5)

"Special Services" means all forms of "Special Services" means all forms of services pertaining to the government and services pertaining to the government and affairs of the municipality or county affairs of the municipality or county

REQUIREMENTSREQUIREMENTS• Contiguous PropertiesContiguous Properties• Service other than those generally provided Service other than those generally provided

by the municipality or countyby the municipality or county• Paid for through taxes levied on property Paid for through taxes levied on property

located within the special service area.located within the special service area.

Providing Special Providing Special servicesservices

Section 27-10Section 27-10 In any case in which a municipality or In any case in which a municipality or

county exercises the power granted to county exercises the power granted to provide special services, a tax to provide special services, a tax to provide those special services or provide those special services or provide for the payment of debt provide for the payment of debt incurred for that purpose shall be incurred for that purpose shall be levied or imposed in accordance with levied or imposed in accordance with this Article.this Article.

Governing bodyGoverning body - - SSASSA

Sec. 27‑15Sec. 27‑15 The corporate authorities of the The corporate authorities of the

municipality municipality oror county shall be the county shall be the governing body of the special service governing body of the special service area.area.

Establishing a SSAEstablishing a SSA

Sec. 27‑20Sec. 27‑20

To propose the establishment of a To propose the establishment of a special service area, other than one special service area, other than one initiated by the corporate authorities, initiated by the corporate authorities, an application shall be filed with the an application shall be filed with the chief elected official of the chief elected official of the municipality or county. municipality or county.

Application for SSA to Application for SSA to Include:Include:• the name and legal status of the the name and legal status of the

applicant; applicant; • the special services to be provided; the special services to be provided; • the boundaries of the proposed special the boundaries of the proposed special

service area; service area; • the estimated amount of funding the estimated amount of funding

required; required; • and the stated need and local support and the stated need and local support

for the proposed special service area. for the proposed special service area.

COMPLETE APPLICATION COMPLETE APPLICATION

• must be signed by an owner of must be signed by an owner of record within the proposed special record within the proposed special service area. service area.

• The corporate authorities may accept The corporate authorities may accept or reject the application.or reject the application.

Form of Hearing Notice.Form of Hearing Notice.

Sec. 27‑25Sec. 27‑25

• Taxes may be levied or imposed by the Taxes may be levied or imposed by the municipality or county in the SSA in an municipality or county in the SSA in an amount of tax sufficient to produce revenues amount of tax sufficient to produce revenues required to provide the special services.required to provide the special services.

• Prior to the first levy of taxes in the SSA, Prior to the first levy of taxes in the SSA, notice shall be given and a hearing shall be notice shall be given and a hearing shall be held under the provisions of Sections 27‑30 held under the provisions of Sections 27‑30 and 27‑35 and 27‑35

Manner of noticeManner of notice of SSAof SSA

Sec 27-30 Sec 27-30

Prior to or within 60 days after the Prior to or within 60 days after the adoption of the ordinance proposing adoption of the ordinance proposing the establishment of a special the establishment of a special service area the municipality or service area the municipality or county shall fix a time and a place county shall fix a time and a place for a public hearing. Notice of the for a public hearing. Notice of the hearing shall be given by publication hearing shall be given by publication and mailing.and mailing.

Notice by publicationNotice by publication Notice shall be given by publicationNotice shall be given by publication at at

least once not less than 15 days prior to the least once not less than 15 days prior to the hearing in a newspaper of general hearing in a newspaper of general circulation within the municipality or county. circulation within the municipality or county.

Notice by mailNotice by mail shall be deposited in the shall be deposited in the

United States mails not less than 10 days United States mails not less than 10 days prior to hearing-addressed to the person or prior to hearing-addressed to the person or persons in whose name the general taxes persons in whose name the general taxes for the last preceding year were paid on for the last preceding year were paid on each property lying within the special each property lying within the special service area. service area.

Notice shall includeNotice shall include • The time and placeThe time and place of hearing of hearing• The boundaries of the areaThe boundaries of the area - - legal legal

descriptiondescription and, and, street locationstreet location; ; • The permanent tax index number (PIN) of The permanent tax index number (PIN) of

each parceleach parcel;;• The nature of the proposed special services;The nature of the proposed special services;• Whether for new construction, maintenance, or Whether for new construction, maintenance, or

other;other;• A notification that all interested persons, will be A notification that all interested persons, will be

given an opportunity to be heard and an given an opportunity to be heard and an opportunity to file objections to the amount of the opportunity to file objections to the amount of the tax levy if the tax is a tax upon property;tax levy if the tax is a tax upon property;

• The maximum rate of taxes to be extended The maximum rate of taxes to be extended within the SSAwithin the SSA in any yearin any year & & max. number of max. number of years taxes will be leviedyears taxes will be levied..

Issuance of bondsIssuance of bonds

Sec 27-45Sec 27-45• Bonds secured by the full faith and Bonds secured by the full faith and

credit of the area included in the credit of the area included in the special service area may be issued for special service area may be issued for providing the special services. providing the special services.

• The county clerk shall annually The county clerk shall annually extend taxes against all of the extend taxes against all of the taxable property situated in the taxable property situated in the county and contained in such special county and contained in such special service areaservice area

Objection petitionObjection petition Sec. 27-55Sec. 27-55 Within 60 days following Within 60 days following

the final adjournment of the public the final adjournment of the public hearing, if signed petitions against hearing, if signed petitions against the SSA containing,the SSA containing,

• 51% of the electors51% of the electors by by countycounty recordrecord residing within the SSA and residing within the SSA and

• 51% of the owners by 51% of the owners by countycounty record record of the land included within the of the land included within the boundaries of the SSA are boundaries of the SSA are bothboth filed with filed with the clerk of the municipality or county, the clerk of the municipality or county, the the SSA FailsSSA Fails and cannot be proposed and cannot be proposed for for 2 years2 years..

Petition for disconnect Petition for disconnect from SSAfrom SSA

Sec. 27-60 Any territory located Sec. 27-60 Any territory located within the boundaries of any SSA within the boundaries of any SSA may petition the court to may petition the court to disconnect if at least 51% of disconnect if at least 51% of owners and electors owners and electors can prove in can prove in courtcourt that the SSA will not serve or that the SSA will not serve or benefit them and also that their benefit them and also that their EAV is less than 1 ½ % of all EAV EAV is less than 1 ½ % of all EAV within the SSAwithin the SSA

Extension of tax levyExtension of tax levy

Sec. 27‑75Sec. 27‑75

• the county clerk shall extend an ad valorem the county clerk shall extend an ad valorem tax levy based on the EAV of all property in tax levy based on the EAV of all property in SSA.SSA.

• in addition to an ad valorem property tax, a in addition to an ad valorem property tax, a special tax may instead be levied and special tax may instead be levied and extended within the SSA on any other basis extended within the SSA on any other basis that provides a rational relationship between that provides a rational relationship between the amount of the tax levied and the SSA the amount of the tax levied and the SSA benefit.benefit.

Risk/Advantage of SSARisk/Advantage of SSA• Divide the community (for vs. against).Divide the community (for vs. against).• Create a tax to fund a community need.Create a tax to fund a community need.• Enables a community to fairly fund Enables a community to fairly fund

improvements that benefit all.improvements that benefit all.• Provides a collection process – everybody Provides a collection process – everybody

pays. (real estate tax bill).pays. (real estate tax bill).• Generally lower interest rate if bonds sold.Generally lower interest rate if bonds sold.• No referendum-No referendum-allall have a say in SSA. have a say in SSA.• Potential litigation following the 60 days. Potential litigation following the 60 days.

NEEDSNEEDS• Thick skin.Thick skin.

• Accurate county records.Accurate county records.

• Governing bodies willing to take it on.Governing bodies willing to take it on.

• Good volunteer network of support.Good volunteer network of support.

• Money and an attorney.Money and an attorney.

• Proof of need to be funded through SSA.Proof of need to be funded through SSA.

• Communication network.Communication network.

• Support of the media.Support of the media.

• There is public benefit even if funding There is public benefit even if funding private property improvement.private property improvement.