CITY OF BATAVIA DATE: August 9, 2007 TO: Community Development Committee FROM: Mary Ann Monzani SUBJECT: Special Service Areas It has been the City’s practice to require the establishment of Special Service Areas (SSAs) as part of annexation agreements. A number of developments exist where this provision was included in the annexation agreement, but the SSA was not established. Of these developments, staff has identified eight as high priority, based on the stage of development and, in the case of residential projects, the immediacy of the transition from developer to homeowner control of the association. They are:

• Ritter Farm • Pine Gate • Coventry Hills • Barkei Farms • Tanglewood Hills Unit 3 • Tanglewood Hills Unit 4 • Wal-Mart Plaza • Randall-Fabyan Plaza (Circuit City Shopping Center)

With most new residential and commercial developments the City has not established SSAs for the purpose of aiding in the development of the area, but rather to serve as a “fall-back or back-up” mechanism. They would pay for the maintenance of existing infrastructure improvements that are the responsibility of the property owner association should that association dissolve or no longer be able to maintain them. Staff intends to bring the SSAs for the developments listed above to the Community Development Committee and City Council for approval as a group, although individual hearings will be held as required. The following steps outline the process to establish SSAs for these developments:

1. Staff would prepare ordinances for each of the developments that propose the establishment of the SSA. These ordinances would contain the parcel/owner information of the properties contained in the SSA, the tax rate applicable to the area and the notice of the public hearing.

2. These ordinances will be brought to a future Community Development Committee meeting to

be discussed and for a recommendation to City Council.

3. If the CDC approves all of the proposing ordinances, they will go to the following City Council meeting for adoption.

4. If all of the proposing ordinances are approved by City Council, staff will begin to prepare all

of the ordinances establishing the SSAs for the public hearing process. This includes publication of the hearing notice in a general circulation newspaper within 15 days of the hearing, and notification to the property owners by U.S. Mail within 10 days of the public hearing.

5. At the public hearings, conducted at a City Council meeting, a separate staff presentation will

be made on each proposed SSA and all parties will have an opportunity to be heard.

6. Once the hearing has been closed, State Law requires that the City wait 60 days before taking final action. If a petition is filed during that time period with at least 51% of the registered voters residing in the proposed SSA, and at least 51% of the property owners of record in the

2

area, petitioning against the creation of an SSA, the formation of that SSA automatically fails.

7. If a petition is not filed or a petition is filed without the required number of signatures, then

the City may pass the ordinances and the SSAs will be legally formed.

Attached is a map of the eight Special Service Areas being proposed along with samples of the two ordinances proposing and establishing the SSAs. Also attached is a sample letter addressed to the property owners that will accompany the public hearing notice. Please review this staff memo and all attached materials for discussion at the August 14 meeting of the Community Development Committee. Staff would like to get feedback and answer any questions concerning this process before the actual ordinances proposing the Special Service Areas are placed on a CDC agenda for recommendation.

Cc: Mayor & City Council Department Heads

File

Month Day, 2007 Mr. Smith 123 Street Batavia, IL 60510 Re: Backup Special Service Area for the (Insert Sub. Name) Subdivision Dear , The City of Batavia will be proposing a Special Service Area (SSA) for your subdivision (development) at the City Council meeting on . This special tax area would serve as a backup to the homeowners association for maintaining the, (insert e.g. drainage facilities), of the subdivision. The annexation agreement for your neighborhood (development) called for the City to establish the backup SSA after the project was started. An SSA is a special district where property taxes can be levied to pay for a service for that district. The amount that can be levied is specified in the law and the funds can be used only for specific purposes in that district. In the case of backup SSAs no tax levy is set; the SSA remains in place to be used only if the homeowners association for some reason fails to maintain the specified common area improvements. If necessary, the SSA would be allowed to assess up to (insert tax rate e.g. $.50 per $100.00) of your equalized assessed value. However, this would be assessed only in the event that needed repair or maintenance to the subdivision’s (insert e.g. drainage facilities) were not done by the association. If the association continues to maintain and repair its facilities, there would not be any additional taxes on your tax bill. If a repair is required and the association does not do it, all of the properties in the subdivision would be taxed at the same rate and the money would only be available for (insert e.g. drainage repairs in the XXX Subdivision). SSA tax money cannot be used for any purpose other than what is specified in the adopting ordinance. Most (insert e.g. drainage facilities) in the City are controlled and maintained by homeowners associations. However, it is City policy to have these SSA’s in place as

backups. There are currently over forty SSAs in the City and there is one for almost all of the newer subdivisions. At this time only (insert #) are actually assessing any tax. There have, however, occasions where homeowners associations have not been able or willing to make major repairs to these private facilities. To avoid placing this burden on the general City taxpayers the City wants to have these SSA’s in place now, before the need arises. If you have any questions or concerns please feel free to contact (insert Staff Contact) in the Community Development Department at (630) 879-1424. There will also be an opportunity to voice your concerns at the City Council City Public Hearing. Enclosed is a notice of the hearing. Sincerely, (Insert Staff Name, Title) Community Development Department Enclosure: Public Hearing Notice

CITY OF BATAVIA, ILLINOIS ORDINANCE ____

AN ORDINANCE ESTABLISHING SPECIAL SERVICE

AREA #SSANUMBER (SUBDIVISION NAME)

ADOPTED BY THE MAYOR AND CITY COUNCIL

THIS __ DAY OF _________, ______

Published in pamphlet form Prepared by and mail to: by authority of the Mayor and City Council of the City of Batavia, City of Batavia Kane & DuPage Counties, Illinois, 100 N. Island Ave. This __ day of __________, _____ Batavia, IL 60510

Page 1 of # including title page Excluding Exhibits __________

CITY OF BATAVIA, ILLINOIS ORDINANCE ___

Be it hereby ordained by the Mayor and City Council of the City of Batavia, Kane and DuPage Counties, Illinois, as follows:

SECTION 1 - Authority to Establish Special Service Area: Special Service Areas are established pursuant to Article VII, Section 7, of the Constitution of the State of Illinois, in force July 1,1971, which provides:

"Counties and municipalities which are not home-rule units shall have only powers granted to them by law and the powers. . . (6) to levy or impose additional taxes upon areas within their boundaries in the manner provided by law for the provision of special services to those areas and for the payment of debt incurred in order to provide those special services. "

and are established pursuant to the provisions of an Act to provide the manner of levying or imposing taxes for the provision of special services to areas within the boundaries of home-rule units and non-home-rule municipalities and counties and pursuant to the Revenue act of 1939.

SECTION 2 – Findings:

A. The question of the establishment of the Area hereinafter described as a Special Service Area is considered by the City Council pursuant to an Ordinance entitled, "An Ordinance Proposing Establishment of a Special Service Area (Special Service Area No. (SSA Number) in the City of Batavia, Kane County, Illinois, and Providing for a Public Hearing and Other Procedures in Connection Therewith", adopted (Date of Proposing Ord), and is considered pursuant to a Hearing held on (Hearing Date), by the City Council, pursuant to Notice duly published in the (Newspaper), a newspaper published in the City of Batavia, at least fifteen (15) days prior to the Hearing, and pursuant to Notice by mail addressed to the person or persons or trustee in whose name the general taxes for the last preceding year were paid on each lot, block, tract or parcel of land lying within the Special Service Area. Said Notice was given by depositing said Notice in the United States Mails not less than ten (10) days prior to the time set for Public Hearing. A Certificate of Publication of said Notice and Receipts of Mailing of said Notice are attached to this Ordinance as Exhibits 1 and 2; said Notices conformed in all respects to the requirements of Section 5 of Public Act 78-901, aforesaid.

Page 1 of # including title page Excluding Exhibits __________

CITY OF BATAVIA ORDINANCE ____

B. That a Public Hearing on the questions set forth in the Notice was held on (Hearing Date). All interested persons were given an opportunity to be heard on the question of an annual tax for maintenance of said basins, as set forth in the Notice. The Public Hearing was adjourned at (Time) p.m. on (Hearing Date).

C. That after considering the information, as presented at the Public Hearing, the City finds that it is in the public interest and in the interest of the City of Batavia Special Service Area No. (SSA number) that said Special Service Area, as hereinafter described, be established.

D. Said Area is compact and contiguous and constitutes a unique residential area of Batavia.

E. It is in the best interests of said Special Service Area that the furnishing of the municipal services proposed be provided. The proposed municipal services are unique and in addition to the municipal services provided to the City of Batavia as a whole.

SECTION 3 - The City of Batavia Special Service Area No. (SSA number) Established: A Special Service Area to be known and designated as "City of Batavia Special Service Area No. (SSA number)" is hereby established and shall consist of the territory described on Exhibit 3 attached hereto.

SECTION 4 – Purpose of Area: City of Batavia Special Service Area No. (SSA number) is established to provide special municipal services to said Area in addition to services provided to the City generally. The purpose of the formation of the City of Batavia Special Service Area No. (SSA number) in general is to provide special municipal services to the Area in connection with the maintenance of certain improvements, including but not limited to detention areas, open space areas, inlet and outlet structures therein, including the structures and landscaping and certain fencing therein, also including landscaping and maintenance of portions of the detention and common areas to be kept as "prairie" style plantings which will require periodic controlled burning, all of which is pursuant to the terms of an annexation agreement between the owners of the Property and the City of Batavia.

Annual taxes may be levied for the special services enumerated herein, on property in said Special Service Area No. (SSA number), for said Special Service Area, in addition to all other City taxes; provided, that the special annual taxes shall be limited so that the total of said tax does not exceed an annual amount of 50 cents ($.50) per $100.00 of assessed value, as equalized, to be levied against the property included in Special Service Area No. (SSA number).

Section 5 – Effective Date: This ordinance shall become effective from and after its passage, approval and publication in pamphlet form in the manner prescribed by law.

Page 2 of # including title page Excluding Exhibits __________

CITY OF BATAVIA ORDINANCE ____

PRESENTED to the City Council of the City of Batavia, Illinois, this ___ day of _________, ____. PASSED by the City Council of the City of Batavia, Illinois, this ___ day of _________, ____. APPROVED by me as Mayor of said City of Batavia, Illinois, this ___ day of _________, ____.

Mayor ATTEST:

City Clerk COUNCIL VOTE: Ayes Nays Absent Abstentions (counted as ayes or nays) Total Holding Office 14

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CITY OF BATAVIA ORDINANCE ____

EXHIBIT A CERTIFICATE OF PUBLICATION

TO BE INSERTED LATER

Page 4 of # including title page Excluding Exhibits __________

CITY OF BATAVIA ORDINANCE ____

EXHIBIT 2 RECIEPT OF MAILING

(Person Mailing Notice), being first duly sworn on oath, states that s/he did deposit a copy of the document hereinafter specified in the United States Post Office Box in the City of Batavia, Kane County, Illinois, certified with the US postage fully prepaid thereon, on the date herein set forth, enclosed in an envelope properly and securely sealed and plainly addressed to the person or persons hereinafter specified:

Description of Document: Notice of Hearing – SSA #46

Date of Mailing: (DATE)

Addressed to:

PIN Property Address

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CITY OF BATAVIA ORDINANCE ____

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EXHIBIT 3 LEGAL DESCRIPTION

(LEGAL DESCRIPTION OF SUBDIVISON)

CITY OF BATAVIA, ILLINOIS ORDINANCE ____

AN ORDINANCE PROPOSING THE ESTABLISHMENT OF SPECIAL SERVICE AREA NUMBER #SSANUMBER IN THE CITY OF BATAVIA AND PROVIDING FOR A PUBLIC HEARING AND OTHER PROCEDURES IN

CONJUNCTION THEREWITH #SUBDIVISIONNAME

ADOPTED BY THE MAYOR AND CITY COUNCIL

THIS __ DAY OF _________, ______

Published in pamphlet form Prepared by and mail to: by authority of the Mayor and City Council of the City of Batavia, City of Batavia Kane & DuPage Counties, Illinois, 100 N. Island Ave. This __ day of __________, _____ Batavia, IL 60510

Page 1 of # including title page Excluding Exhibits __________

CITY OF BATAVIA, ILLINOIS ORDINANCE ___

AN ORDINANCE PROPOSING THE ESTABLISHMENT OF SPECIAL SERVICE AREA NUMBER #SSANUMBER IN THE CITY OF BATAVIA AND PROVIDING FOR A PUBLIC HEARING AND OTHER PROCEDURES IN

CONJUNCTION THEREWITH #SUBDIVISIONNAME

WHEREAS, the City of Batavia is an Illinois non-home rule municipality pursuant to the provisions of Article VII, Section 6, of the Illinois Constitution, 1970, and as such may exercise any power and perform any function pertaining to its government and affairs, including, but not limited to, the power to tax; and

WHEREAS, Sections 200/27-5, et seq. of Chapter 35 of the Illinois Compiled Statute set forth procedures by which special service areas may be established and taxes levied; and

WHEREAS, this ordinance is to propose the establishment of Special Service Area Number #SSANumber providing a tax associated with the provision of special services area be levied; and

WHEREAS, the establishment of Special Service Area Number #SSA Number and the levy of a special tax against the real estate within the special service area pertains to the government and affairs of the City of Batavia; and is platted as (Subdivision Name and Unit), and

WHEREAS, Special Service Area Number #SSANumber is legally described as (LEGAL DESCRIPTION IN WHOLE – LOT NUMBERS or EXHIBIT A) within the City of Batavia, (hereinafter the "Property"), and

WHEREAS, it is in the best interests of the City of Batavia that Special Service Area Number #SSANumber be established.

NOW THEREFORE, be it hereby ordained by the Mayor and City Council of the City of Batavia, Kane and DuPage Counties, Illinois, pursuant to its non-home rule powers as follows:

SECTION 1 - Authority to Establish Special Service Area: The City of Batavia is authorized to establish Special Service Area #SSANUMBER pursuant to

Page 1 of # including title page Excluding Exhibits __________

CITY OF BATAVIA ORDINANCE ____

Article VII, Section 6, of the Illinois Constitution, 1970, and further pursuant to the provisions of the Illinois Special Service Areas Act (Illinois Compiled Statutes, Chapter 35, Paragraph 200/27-5, et seq.:

SECTION 2 - Findings: The City of Batavia Finds as follows:

A. It is in the public interest that the creation of Special Service Area Number (SSA Number) as described in this Ordinance for the purposes set forth in this Ordinance be considered.

B. Special Service Area Number (SSA Number) is located in the (Quadrant) quadrant of the City, is approximately located between (Rough Bounds by Streets), (Distance from Major Street) (Direction from Major Street) of (Major Street) immediately (direction) of (Adjacent Subdivision Name) Subdivision, consists of (acreage) acres platted and (to be) developed as Lots (Lot Numbers) of the (Subdivision and Unit), (and is the subject of an annexation agreement between the City and the owners thereof covering the Property.):(New Language) The permanent tax index numbers of all parcels located within the area of the proposed SSA Number are as follows:

PIN LIST

C. That the area of the special service area is so situated that it will receive specific and unique benefit to the owners of property within, namely the maintenance of certain improvements, including but not limited to detention areas, open space areas, inlet and outlet structures therein, and certain landscaping and perimeter fencing.

SECTION 3 - Public Hearing: Tax Rate: A public hearing shall be conducted on the (Date) day of (Month, Year) at (Time) p.m in the City Council Chambers of the City of Batavia, 100 North Island Avenue, Batavia, Illinois, to consider the establishment of Special Service Area Number (SSA Number) of the City of Batavia, Illinois, in the territory described in the Notice set forth in Section 4 of this ordinance. At the hearing, there shall be considered the levy of an annual tax of not to exceed an annual rate of 50 cents ($0.50) per $100 of assessed valuation, as equalized, of the property in the special service area. The special service area taxes shall be in addition to all other taxes provided by law and shall be levied pursuant to the provisions of the Illinois Revenue Act, 1939, as amended.

Page 2 of # including title page Excluding Exhibits __________

SECTION 4 - Notice of Hearing: A notice of hearing shall be published at least once, not less than fifteen (15) days prior to the public hearing in the (Newspaper) newspaper. Additionally, notice shall be provided by United States mail, addressed to the person or persons in whose name the general taxes for the last preceding year were paid

CITY OF BATAVIA ORDINANCE ____

on each lot, block, tract, or parcel of land lying within the proposed Special Service Area Number (SSA Number). The notice shall be mailed not less than ten (10) days prior to the date set for the public hearing. In the event taxes for the last preceding year were not paid, notice shall be sent to the person last listed on the tax rolls prior to that year as the owner of the property. The Notice shall be in substantial conformance with the following form:

NOTICE OF HEARING - CITY OF BATAVIA

SPECIAL SERVICE AREA NUMBER (SSA Number)

NOTICE is given that on the (Date) day of (Month), (Year) at (Time) p.m. in the City Council Chambers of the Batavia City Hall, 100 North Island Avenue, Batavia, Illinois, a hearing will be held by the City Council to consider the establishment of a special service area consisting of Lots (Lot Number) through (lot number) in (Subdivision, Unit Number), in the City of Batavia, Kane County, Illinois.

The area is a (Acreage) acre tract is located in the (QUADRANT) quadrant of the City, is approximately located between (Rough Bounds by Streets), (Distance from Major Street) (Direction from Major Street) of (Major Street) immediately (direction) of (Adjacent Subdivision Name) Subdivision, consists of (acreage) acres platted and (to be) developed as Lots (Lot Numbers) of the (Subdivision and Unit), (and is the subject of an annexation agreement between the City and the owners thereof covering the Property.)

All interested parties affected by the formation of City of Batavia Special Service Area Number (SSA Number) will be given an opportunity to be heard regarding the formation of, the boundaries of, the special service area and may object to the formation of the area and the levy of taxes affecting the area.

The purpose of the formation of the City of Batavia Special Service Area Number (SSA Number), in general, is to provide special municipal services to the area including the maintenance of certain improvements, including but not limited to detention areas, open space areas, inlet and outlet structures therein, including the structures and landscaping and certain fencing therein, also including landscaping and maintenance of portions of the detention and common areas to be kept as "prairie" style plantings which will require periodic controlled burning, (all of which is pursuant to the terms of an annexation agreement between the owners of the Property and the City of Batavia.)

There will be considered at the public hearing a special tax to be levied against the real property included within the special service area. The special tax shall be levied and shall not exceed a rate of 50 cents ($0.50) per $100 of assessed valuation, as equalized, of the real property included in the special service area.

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CITY OF BATAVIA ORDINANCE ____

At the hearing, all persons affected will be given an opportunity to be heard. The hearing may be adjourned by the City Council to another date without further notice other than a motion to be entered upon the minutes affixing the date and place of its adjournment.

If a petition signed by at least 51% of the electors residing within the Special Service Area Number (SSA Number) and by at least 51% of the owners of record of the land included within the boundaries of Special Service Area Number (SSA Number) is filed with the City Clerk within sixty (60) days following the final adjournment of the public hearing, objecting to the formation of the special service area, the levy or imposition of a tax or the provision of the special services to the area, no such district may be created or tax may be imposed.

Dated this DAY th day of MONTH. YEAR.

__________________

City Clerk

Section 5: This ordinance shall become effective from and after its passage, approval and publication in pamphlet form in the manner prescribed by law.

PRESENTED to the City Council of the City of Batavia, Illinois, this ___ day of _________, ____. PASSED by the City Council of the City of Batavia, Illinois, this ___ day of _________, ____. APPROVED by me as Mayor of said City of Batavia, Illinois, this ___ day of _________, ____. Mayor ATTEST:

City Clerk

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CITY OF BATAVIA ORDINANCE ____

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COUNCIL VOTE: Ayes Nays Absent Abstentions (counted as ayes or nays) Total Holding Office 14

Proposed Special Service AreasCorporate Limits

C̄ommunity Development - 8/9/2007

Pinegate

Ritter Farm

SEC Randall Fabyan PlazaWal-Mart Plaza

Tanglewood 3

Tanglewood 4 Coventry Hills

Barkei Farm