Diversification of Illinois Local Governments By JAY HEDGES, Director, Department of Commerce & Community Affairs

Illinois is unique. When we compare the characteristics of Illinois with those of other states, we find both similarities and differences that compose its separate personality.

It is often pointed out that we have more divisions of local government than any other state — over 6,000. These are divided into two categories, the general purpose local governments consisting of municipalities, counties and townships and the special or specific purpose taxing bodies such as school districts, park districts, water districts, fire protection districts, sanitary districts and even mosquito abatement districts.

In many cases, certain of the services which can be provided by special purpose districts are provided by municipalities. There are municipalities which directly provide fire protection through a municipal fire department, own and maintain the water distribution system, provide parks and recreation areas, and own and operate their own sewage treatment facilities. There are other municipalities which are in a fire protection district or contract with a district for fire protection. Some do not own parks, but are within a more expansive park district system. Others do not operate their own sewage system and may be within a larger sanitary district. There are many combinations of sell/purchase agreements between municipalities and water districts.

Yet, with the many combinations of overlapping or abutting jurisdictions that exist, the incorporated municipality reflects an autonomy that thrives and is responsible because of its geographic compactness. In other words, people congregate to form a community as a means to enhance economic and social well-being and the incorporated municipality is the centralized public entity responsible in that endeavor.

The diversification of Illinois is also reflected in the various characteristics of municipalities. There are 1,279 cities, villages and incorporated towns in Illinois ranging in population between the largest of over 3 million inhabitants to the smallest with just 27 inhabitants. Outside of Chicago, there are only three cities with populations in excess of 100,000. There are 66 municipalities with populations between 25,000 and 100,000. Of the remaining 1,209 municipalities, 624 have populations under 1,000, representing 48 percent of all municipalities in the State.

Per capita incomes and per capita assessed valuations vary considerably throughout the State and the size of the municipality may not necessarily be directly related to those statistics.

Regardless of the variation of economic influences, the interesting observation is, that, like states, there are similarities and differences between municipalities, and each has a personality unto itself. The common objective of a municipal government is to consistently improve the general conditions that exist within itself. In order to do this, the municipality must strive to provide the facilities and services for which it has the legal authority to undertake.

This is not an easy process. Hard decisions must be made relative to the desirability and feasibility of any undertaking. Financing and the ultimate cost to the constituent is a matter of serious consideration. Both the short and long-term operating and maintenance requirements of any service or public facilities venture must be thoroughly examined.

Historically, one might, justifiably come to the conclusion that the formation of so many different kinds of

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local governments in Illinois was motivated to meet certain needs and desires otherwise not attainable. Importantly, changes have taken place in the powers and capabilities in these governmental entities and most notably in municipal government, which permit adaptability to the wide range of conditions that exist in Illinois.

Intergovernmental agreements, contracts, special assessment projects, special service areas, lease or purchase agreements, tax increment financing, franchising, licensing, and general obligation or revenue bonding are just some of the tools that are statutorily authorized and available to be utilized by municipalities.

But before application of any of these procedures, the decision must be made by the municipality whether it should or must go it alone, enter into a joint, cooperative, or contract venture with another governmental unit, or — in the case of providing a service — whether it should or can be done by a special purpose government or the private sector.

We realize that the broad disparity of resources available to municipalities make each and every situation different in any one particular community. What is desirable in one may not necessarily be so in another.

In order to be successful, capital improvements and the providing of services require astute management practices. As the functions and facilities of a municipality increase, more sophisticated financial planning and internal control is needed.

From the smallest to the largest of municipal operations, some more or less affluent than others, we find that municipal officials have the same desire to make things better within their communities. Regardless of the variables, we believe that proper appropriations, budgets, levies, and accounting procedures help to provide more within the confines of the available resources. We believe that enterprise operations must be self-sustaining through the user charges collected. We believe that certain accomplishments may be realized if local officials are willing to utilize the statutory authority which is best adaptable to the situation.

That is why the Department of Commerce and Community Affairs offers technical, informational and educational assistance to municipalities in the areas of appropriations, budgeting, levies, revenue sources, accounting, water and sewer rate studies, capital improvement planning and budgeting, and project financing. Doing the best with what we have is the only method through which we can expect to do better in the future.

For further information, call our Office of Local Government Management Services on our toll-free number, 1-800-562-4688 (LOC-GOVT). •

Page 14 / Illinois Municipal Review / July 1989