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HomeMy WebLinkAboutOrdinance 68-O-25, Amending Sections 7-15-3 and 7-15-7 to Eliminate Interest Payments on Special Assessments (1) (1)9/29/2025 68-O-25 AN ORDINANCE Amending Sections 7-15-3 and 7-15-7 to Eliminate Interest Payments on Special Assessments WHEREAS, the City of Evanston’s Special Assessment program currently cost-sharing a through paving alley projects to owners property allows initiate agreement whereby the City pays for 50% of the project and the participating property owners pay the remaining balance over a ten (10) year period; and WHEREAS, for those property owners choosing to pay in installments, interest is charged on the principal, and WHEREAS, the financialhigh aboutresidents voiced have concern burden of their individual assessments, and removing interest payments will help alleviate those concerns and may improve collection rates and promote broader participation in the program; and WHEREAS, eliminating interest payments will have the added benefit of improved operational efficiency as well as reduced financial burden on residents.; and WHEREAS, the Evanston City Council finds that it is in the best interest of the City of Evanston to amend City Code Sections 7-15-3 and 7-15-7 to eliminate interest payments on special assessments; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: 1 of 5 68-O-25 SECTION 1:Section 7-15-3, “Public Improvement By Special Assessment” of Evanston City Code of 2012, as amended, is hereby further amended as follows: 7-15-3. – PUBLIC IMPROVEMENT BY SPECIAL ASSESSMENT. All contracts for the making of public improvements to be paid wholly or in part by special assessment or special tax will be advertised and let in strict accordance with the provisions of 65 ILCS 5/9-2-1 et seq. All such contracts will contain provisions protecting the interests of the City, and in all cases bonds will be required from contractors as specified in 65 ILCS 5/9-2-1 et seq. The Superintendent of Special Assessments will account for all Special Assessment activity in the Special Assessment Fund. Special Assessment payments shall be made by City residents either by paying to the City one (1) aggregate sum of their respective portion of the assessment or in ten (10) installments with an interest rate as determined by the Chief Financial Officer annual; Special Assessment payments shall then be deposited in the City's Special Assessment Fund, in accordance with 65 ILCS 9-2-1 et seq. All vendor payments will be made in accordance with the City of Evanston Purchasing Manual and the annual bid approval by the City Council. All contracts to be paid wholly or in part by special assessment or special tax will contain covenants, in substance, to the effect that the contractor will have no claim or lien against or upon any property of the City in any event, except from the collection of the special assessment or special tax made for the work contracted for. Furthermore, no liability will attach to the City, except for unreasonable delinquency in the collection of 2 of 5 68-O-25 such special assessment or special tax and the payment of the contractor for the improvement specified in the contract. SECTION 2: Section 7-15-7, “Alley Paving Improvements” of Evanston City Code of 2012, as amended, is hereby further amended as follows: 7-15-7. – ALLEY PAVING IMPROVEMENTS. (A) Alley Improvements. The owners of at least fifty-one percent (51%) of the property abutting any unimproved alley or portion thereof, may petition the City for construction of a concrete pavement alley and related storm sewer and drainage improvements for the alley thereon. Such petition shall be filed with the City Manager or his/her designee. When the Board of Local Improvements receives a petition to pave an alley specialthefollow willImprovements Local of Boardthe City, thewithin assessment procedure established in the Illinois Municipal Code, 65 ILCS 5/9-2-1/et seq. for the petition to pave the alley. If the alley paving improvement is confirmed by the Cook County Circuit Court in accordance with the state statue, the City will pay fifty percent (50%) of the project cost with the property owners paying the remaining fifty percent (50%). The project cost will be established by an estimate of cost issued by the City Engineer plus an additional four and one-half percent (4.5%) of the total estimated cost for engineering services and an additional four and one-half percent (4.5%) of the total estimate cost for legal services. The property owner may elect to pay his/her share of the project cost as a lump sum or annually over a ten (10) year period including interest. The interest will be no more than two percent (2%) above the ten (10) year United States Treasury note yield as 3 of 5 68-O-25 determined by the City's Chief Financial Officer or his/her designee on the first day of the calendar year for the year in which the assessment is approved at a public hearing. (B) In locations where the soil type is conducive to green infrastructure the City may design and construct the alley with porous pavement. Any additional costs associated with the porous pavement will be paid for by the Sewer Fund allocated for green infrastructure. (C) The assessment cost attributable to each property owner is based on the unit cost method, unless a more equitable alternative method is appropriate and approved by the Board of Local Improvements and approved by a majority (at least fifty-one percent (51%)) of the property owners abutting the subject alley. Votes by the property owners shall be weighted by the value of the assessment cost attributable to their property. (D) If the owners of at least eighty percent (80%) of the properties abutting any unimproved alley or portion thereof, petition the City with the intent to pay one hundred percent (100%) of the estimated cost of the alley construction, the petition will be accepted by the Board of Local Improvements and the construction of the alley will take place in the following construction season. This project will be in addition to the Alley Improvements as stated in paragraph A and will not replace any planned City projects. The cost per unit will not include engineering or legal fees when property owners are paying one hundred percent (100%) of the construction costs. SECTION 3: All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 4: If any provision of this Ordinance 68-O-25 or application 4 of 5 68-O-25 thereof to any person or circumstance is held unconstitutional or otherwise invalid, such invalidity shall not affect other provisions or applications of this Ordinance that can be given effect without the invalid application or provision, and each invalid application of this Ordinance is severable. SECTION 5: Ordinance 68-O-25 eliminating interest shall be in full force and effect for all interest due on or after January 1, 2026. SECTION 6: The findings and recitals contained herein are declared to be prima facie evidence of the law of the City and shall be received in evidence as provided by the Illinois Compiled Statutes and the courts of the State of Illinois. Introduced: _________________, 2025 Adopted: ___________________, 2025 Approved: __________________________, 2025 _______________________________ Daniel Biss, Mayor Attest: _______________________________ Stephanie Mendoza, City Clerk Approved as to form: ______________________________ Alexandra B. Ruggie, Corporation Counsel September 29 5 of 5 October 13