Public Act 098-0818

SB2598 Enrolled LRB098 13500 MLW 48023 b

AN ACT concerning transportation.

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

Section 5. The Illinois Highway Code is amended by changing

Section 6-501 as follows:

(605 ILCS 5/6-501) (from Ch. 121, par. 6-501)

Sec. 6-501. (a) Findings and purpose. The General Assembly

finds:

(1) That the financial conditions of the Township and

District road systems of the State of Illinois have

suffered adversely as a result of changes in law concerning

assessed valuation of property for tax purposes. That as a

result of the changes beginning in 1945, the rates of

permissible levy were first halved to accommodate full fair

value, but never restored when subsequent law change

established the legal assessed valuation at 50% of fair

market value as equalized by the Department of Revenue.

(2) Townships and district road systems, as a result of

the decreased financial support, have suffered a decline in

ability to maintain or improve roads and bridges in a safe

condition to permit the normal and ordinary use of its

highway system. In many instances bridges have been closed

and detours required because of impossible road conditions

resulting in hardships for school districts in

transporting pupils and for farms in moving products to

market.

(3) Further, cost for maintenance and improvements

have risen faster than the valuations of property, the base

of financial support.

(4) To solve these problems, this Act makes changes in

rates of taxation -- returning Townships and District road

systems to their approximate financial viability prior to

1945.

(b) The highway commissioner for each road district in each

county not under township organization shall on or before the

third Tuesday in December of each year determine and certify to

the county board the amount necessary to be raised by taxation

for road purposes and for the salaries of elected road district

officials in the road district.

Should any highway commissioner during the last year of his

term of office for any reason not file the certificate in the

office of the county clerk, as required by this Section, in

time for presentation to the regular September meeting of the

county board, the clerk shall present in lieu thereof a

certificate equal in amount to that presented for the preceding

year.

In every such county the certificate shall be filed in the

office of the county clerk and by that official presented to

the county board at the regular September meeting for the

consideration of the board. The amount so certified if approved

by the county board, or the part thereof as the county board

does approve, shall be extended by the county clerk as road

taxes against the taxable property of the district.

(c) The highway commissioner in each road district in each

county having adopted township organization shall in

accordance with the Illinois Municipal Budget Law at least 30

days prior to the public meeting required by this paragraph,

each year prepare or cause to be prepared a tentative budget

and appropriation ordinance and file the same with the clerk of

the township or consolidated township road district, as the

case may be, who shall make the tentative budget and

appropriation ordinance conveniently available to the public

inspection for at least 30 days prior to final action. One

public hearing shall be held. This public hearing shall be held

on or before the last day of the first quarter of the fiscal

year before the township board of trustees or the highway board

of trustees, as the case may be. Notice of the hearing shall be

given by publication in a newspaper published in the road

district at least 30 days prior to the time of the hearing. If

there is no newspaper published in the road district, notice of

the public hearing shall be given by posting notices in 5 of

the most public places in the district. It shall be the duty of

the clerk of the road district to arrange for the public

hearing. The township board of trustees or highway board of

trustees, as the case may be, at the public hearing shall adopt

the tentative budget and appropriation ordinance, or any part

as the board of trustees deem necessary.

On or before the last Tuesday in December the township

board of trustees or highway board of trustees or road district

commissioner, as the case may be, shall levy and certify to the

county clerk the amount necessary to be raised by taxation for

road purposes and the road district commissioner shall levy and

certify to the county clerk the amount necessary to be raised

by taxation for the salaries of elected road district officials

in the road district, as determined by the highway

commissioner.

The amount so certified shall be extended by the county

clerk as road taxes against the taxable property of the

district.

On or after October 10, 1991, a road district commissioner

whose district is located in a county not under township

organization may not levy separately a tax for salaries of

elected road district officials unless the tax has been first

approved by a majority of the electors voting on the question

at a referendum conducted in accordance with the general

election law. The question submitted to the electors at the

referendum shall be in substantially the following form: "Shall

the road district commissioner be authorized to levy an annual

tax for the salaries of elected road district officials under

Section 6-501 of the Illinois Highway Code?"

Except as is otherwise permitted by this Code and when the

road district commissioner establishes the tax rate for the

salaries of elected road district officials, the county clerk

shall not extend taxes for road purposes against the taxable

property in any road district at rates in excess of the

following:

(1) in a road district comprised of a single township

in a county having township organization, at a rate in

excess of .125% of the value, as equalized or assessed by

the Department of Revenue; unless before the last Tuesday

in December annually the highway commissioner of the

township road district shall have secured the consent in

writing of a majority of the members of the township board

of trustees to the extension of a greater rate, in which

case the rate shall not exceed that approved by a majority

of the members of the township board of trustees, but in no

case shall it exceed .165% of the value, as equalized or

assessed by the Department. Once approved by the township

board of trustees, the rate shall remain in effect until

changed by the township board of trustees;

(2) in a consolidated township road district, at a rate

in excess of .175% of the value, as equalized or assessed

by the Department of Revenue;

(3) in a road district in a county not having township

organization, at a rate in excess of .165% of the value, as

equalized or assessed by the Department of Revenue.

However, road districts that have higher tax rate

limitations on a permanent basis for road purposes on July 1,

1967, than the limitations herein provided, may continue to

levy the road taxes at the higher limitations, and the county

clerk shall extend the taxes at not to exceed the higher

limitations.

If the amount of taxes levied by the township board of

trustees or the highway board of trustees or approved by the

county board in any case is in excess of the amount that may be

extended the county clerk shall reduce the amount so that the

rate extended shall be no greater than authorized by law.

However, the tax shall not be reduced or scaled in any manner

whatever by reason of the levy and extension by the county

clerk of any tax to pay the principal or interest, or both, of

any bonds issued by a road district.

The taxes, when collected, shall be held by the treasurer

of the district as the regular road fund of the district.

Notwithstanding any other provision of law, for a period of

time ending 18 years after the effective date of this

amendatory Act of 1994, a road district or consolidated road

district may accumulate up to 50% of the taxes collected from a

subdivision under this Section for improvements of

nondedicated roads within the subdivision from which and for

which the taxes were collected. These nondedicated roads will

become a part of the township and district road system if the

roads meet the criteria established by the counties in which

the roads are located. The total accumulations under this

provision may not exceed 10% of the total funds held by the

district for road purposes. This provision applies only to

townships within counties adjacent to a county with a

population of 3,000,000 or more and only with respect to

subdivisions whose plats were filed or recorded before July 23,

1959.

Notwithstanding any other provision of law, for a period of

time ending 10 years after the effective date of this

amendatory Act of the 98th General Assembly, a road district or

consolidated road district may accumulate up to 50% of the

taxes collected from a subdivision under this Section for

improvements of nondedicated roads within the subdivision from

which and for which the taxes were collected. These

nondedicated roads will become a part of the township and

district road system if the roads meet the criteria established

by the counties in which the roads are located. The total

accumulations under this provision may not exceed 10% of the

total funds held by the district for road purposes. This

provision applies only to townships within counties adjacent to

a county with a population of 3,000,000 or more and only with

respect to subdivisions whose plats were filed or recorded

before July 23, 1959.

Any road district may accumulate funds for the purpose of

acquiring, constructing, repairing and improving buildings and

procuring land in relation to the building and for the purpose

of procuring road maintenance apparatus and equipment, and for

the construction of roads, and may annually levy taxes for the

purposes in excess of its current requirements for other

purposes, subject to the tax rate limitations provided in this

Section, provided a proposition to accumulate funds for the

purposes is first submitted to and approved by the electors of

the district. The proposition shall be certified to the proper

election officials by the district clerk upon the direction of

the highway commissioner, and the election officials shall

submit the proposition at a regular election. Notice and

conduct of the referendum shall be in accordance with the

general election law. The proposition shall be in substantially

the following form:

-------------------------------------------------------------

Shall .......... road district

accumulate funds in the amount

of $......... for ........ years YES

for the purpose of acquiring,

constructing, repairing and improving --------------------

buildings and procuring land

therefor, and for procuring road NO

maintenance apparatus and equipment

and for the construction of roads?

-------------------------------------------------------------

If a majority of the electors voting on the proposition

vote in favor of it, the road district may use a portion of the

funds levied, subject to the tax rate limitations provided in

this Section, for the purposes for which accumulation was

authorized. It shall not be a valid objection to any subsequent

tax levy made under this Section, that there remains unexpended

money arising from the levy of a prior year because of an

accumulation permitted by this Section and provided for in the

budget for that prior year.

(d) Any road district may accumulate moneys in a dedicated

fund for a specific capital construction or maintenance project

or a major equipment purchase without submitting a proposition

to the electors of the district if the annual budget and

appropriation ordinance for the road district states the

amount, purpose, and duration of any accumulation of funds

authorized under this Section, with specific reference to each

project to be constructed or equipment to be purchased. Nothing

in this subsection precludes a road district from accumulating

moneys for non-specific purposes as provided in this Section.

(Source: P.A. 92-395, eff. 8-16-01; 92-656, eff. 7-16-02.)

Section 99. Effective date. This Act takes effect upon

becoming law.