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Legal & Legislative Notes
PARK DISTRICTS MAY LEGALLY RECEIVE FEDERAL REVENUE SHARING FUNDS FROM COUNTIES, TOWNSHIPS AND CITIES, VILLAGES OR INCORPORATED TOWNS Under the provisions of the State and Local Fiscal Assistance Act of 1972 (31 U.S.C.A., Sec. 1221, et seq.) only units of general government, i.e. counties, townships, cities, villages and incorporated towns, may receive directly from the Federal Government federal revenue sharing funds. Therefore, as units of special government, park districts in Illinois are not authorized to receive directly such funds. A review of the provisions of the State and Local Fiscal Assistance Act of 1972 and the statutes of Illinois establishes clearly that park districts may legally receive from counties, townships and cities in Illinois a share of such federal revenue sharing funds as may be allocated and received by those units of general government for park and recreation purposes. Under the provisions of the State and Local Fiscal Assistance Act of 1972 (31 U.S.C.A., Sec. 1221, et seq.) units of general government, i.e. counties, townships and cities, are authorized to use federal revenue sharing funds only for priority expenditures. Priority expenditures are defined in Section 103 of the Act as follows: ". . . For purposes of this chapter, the term 'priority expenditures' means only: (1) ordinary and necessary maintenance and operating expense for;
(A) public safety (including law enforcement, fire protection and building code enforcement),
(2) ordinary and necessary capital expenditures authorized by law." (31 U.S.C.A., Sec. 1222) Section 123 of the Act (31 U.S.C.A., Sec. 1243) further limits the expenditures of federal revenue sharing funds as follows: "In order to qualify for any payment under subchapter I of this chapter for any entitlement period beginning on or after January 1, 1973, a State government or unit of local government must establish ... to the satisfaction of the Secretary that . . . (4) it will provide for the expenditure of the amounts received under subchapter I of this chapter only in accordance with the laws and procedures applicable to the expenditure of its own revenues . . ." Thus, the State and Local Fiscal Assistance Act of 1972 clearly authorizes units of general local government to expend revenue sharing funds for purposes which are authorized by State law, and which are qualified as "priority expenditures." COUNTIES Counties are authorized to appropriate, expend or dispose of county funds for park and recreational purposes. Chapter 34, III. Rev. Stats. 1971) Section 303.24 (19) provides as follows: "Each county shall have power . . . Nineteenth—To acquire and hold title to real property located within the county by dedication, purchase, gift, devise or lease, for park and recreational purposes and to charge reasonable fees for the use of or admission to any such park or recreational area . . ." TOWNSHIPS A Township is clearly authorized to appropriate, expend or dispose of township funds for park and recreational purposes. Chapter 105 III. Rev. Stats. 1971 provides for the authorization of townships to acquire lands and maintain the same for public parks. Section 319 provides as follows: ". . . townships of this state are hereby authorized, acting through their representative corporate authorities (meaning thereby the town supervisor and the town clerk of such township), to acquire lands (not exceeding for any one park ten acres in extent), to be set apart and forever held and maintained as public parks for the free use of the public." Section 320 provides further: "That any township in this state desiring to procure lands for park purposes as in the preceding section provided, may purchase the same from the owner or owners thereof, or in the discretion of its corporate authorities such township may acquire such lands by the exercise of the power of eminent domain in the manner now or hereafter Illinois Parks and Recreation 8 January/February, 1974 provided by the laws of the State of Illinois for the taking or damaging of private property for public purposes." Section 321 provides: "For the purpose of providing a fund for the maintenance of parks, the town supervisor and the town clerk of the township are hereby authorized to levy annual taxes not exceeding .02% . . . and shall be applied exclusively to the expense and upkeep, adornment and development of parks acquired by such township or the acquisition of other lands to be used for park purposes." CITIES, VILLAGES, INCORPORATED TOWNS A city, village or incorporated town is authorized to appropriate, expend or dispose of municipal funds for park and recreational purposes. Chapter 24 (III. Rev. Stats. 1971) Section 11-95-1 provides: "The corporate authorities of every municipality with a population of less than 500,000 may dedicate and set apart for use as playgrounds or recreation centers any land or buildings which are owned or leased by the municipality and are not dedicated or devoted to another or inconsistent public use ..." Section 11-96-1 provides as follows: "The corporate authorities of each municipality may control the property of the corporation and may provide for joint ownership with any one or more park district of real and personal property used for park purposes by such park district or districts. In case of joint ownership, the terms of the agreement shall be fair, just and equitable to all parties and shall be set forth in a written agreement entered into by the corporate authorities of each participating district and municapility." Section 11-98-1 provides as follows: "The corporate authorities of each city and village with a population of less than 85,000, whether incorporated under the general law or a special charter, may purchase, establish and maintain public parks for the use and benefit of the inhabitants of the municipality . . ." Clearly, from a review of the foregoing statutory provisions, counties, townships and municipalities (cities, villages and incorporated towns) have full and complete authority to expend funds for park and recreation purposes and may, therefore, properly appropriate, expend or dispose of federal revenue sharing funds for the priority expenditures of "recreation" as provided under the provisions of the State and Local Fiscal Assistance Act of 1972. The next question which has been raised by units of general government in Illinois is whether or not those units of general government may distribute the funds received by it to a park district organized and existing under the laws and statutes of the State of Illinois for purposes of "recreation". The Constitution of the State of Illinois adopted in 1970 authorizes full and complete intergovernmental cooperation between units of local government within this State. Article VII, Section 10 of the Illinois Constitution of 1970 provides as follows: "Section 10. INTERGOVERNMENTAL COOPERATION (a) Units of local government . . . may contract or otherwise associate among themselves, with the State, with other states and their units of local government. ... and with the United States to obtain or share services and to exercise, combine, or transfer any power or function in any manner not prohibited by law or by ordinance . . . Participating units of government may use their credit revenues, and other resources to pay costs and to service debt related to intergovernmental activities. (b) Officers and employees of units of local government . . . may participate in intergovernmental activities authorized by their units of government without relinquishing their offices and positions. (c) The State shall encourage intergovernmental cooperation and use its technical and financial resources to assist intergovernmental activities." In implementation of Section 10, Article VII of the Constitution, the General Assembly enacted in its 1973 Session HB 739 and HB 1141. House Bill 739 added Section 20 to Article XIII of "An Act to revise the law in relation to township organization", approved March 4, 1874, as amended, in the following manner: "Sec. 20. The board of town auditors may enter into any cooperative agreement or contract with any other governmental entity, and may contract and otherwise associate with individuals, associations and corporations in any manner not prohibited by law with respect to the expenditures of federal revenue sharing funds for purposes defined as 'priority expenditures' under Section 103 of the federal State and Local Fiscal Assistance Act of 1972." This Bill was approved by the Governor on July 18, 1973 and took effect upon its becoming law on said date. Further implementation of Section 10, Article VII of the Constitution of the State of Illinois was given by the provisions of House Bill 1141 which was approved by the Governor on September 11, 1973. This Act, cited as the Intergovernmental Cooperation Act, provided as follows: "Section 3. Intergovernmental Agreements. Any power or powers, privileges or authority exercised or which may be exercised by a public agency of this State may be exercised and enjoyed jointly with any other public agency of this State and jointly with any public agency or any other state or of the United States to the extent that laws of such other state or of the United States do not prohibit joint exercise or enjoyment. "Section 4. Appropriations. Furnishing of Property, Personnel and Services. Any public agency entering into an agreement pursuant to this Act may appropriate funds Continued on Page 13 Illinois Parks and Recreation 9 January/February, 1974 LEGAL AND LEGISLATIVE NOTES . . . Continued from Page 9 and may sell, lease, give, authorize the receipt of grants, or otherwise supply the administrative joint board or other legal or administrative entity created to operate the joint or cooperative undertaking by providing such personnel or services therefor as may be within its legal power to furnish. "Section 5. Intergovernmental Contracts. Any one or more public agencies may contract with any one or more other public agencies to perform any governmental service, activity or undertaking which any of the public agencies entering into the contract is authorized by law to perform, provided that such contract shall be authorized by the governing body of each party to the contract. Such contract shall set forth fully the purposes, powers, rights, objectives and responsibilities of the contracting parties . . ." Thus, it appears clear that counties, townships and municipalities in Illinois, as units of general government, which receive federal revenue sharing funds directly from the Federal Government are authorized to appropriate, expend, give away or dispose of federal revenue sharing funds received by it under the provisions of the State of Local Fiscal Assistance Act of 1972 (U.S.C.A. Sees. 1221, et seq.) to park districts, other units of local government or agencies properly recognized within the State of Illinois, or to enter into intergovernmental contracts and agreements with such units of local government (including park districts) for the expenditures of such funds for the priority expenditure of "recreation", Such expenditure without question includes the acquisition of parks and open space and the maintenance thereof for recreational purposes. This opinion is supported fully in essence by the opinion of the Attorney General of the State of Illinois dated April 26, 1973, File No. S-576 relating to the expenditure of revenue sharing funds and by the position taken by William C. Sager, Chief Counsel for the Federal Office of Revenue Sharing of the U. S. Treasury Department, Washington, D. C. PARK DISTRICTS ARE NOW REQUIRED TO ADOPT A COMBINED ANNUAL BUDGET AND APPROPRIATION ORDINANCE WITHIN THE FIRST QUARTER OF EACH FISCAL YEAR By an Amendment to H. B. 1008 passed by the General Assembly and signed into law by the Governor under date of August 28, 1973 Section 4-4 was added to The Park District Code. This Section was drafted and introduced by Senator Harris W. Fawell (Naperville) for the purpose of clarifying the question as to whether or not a park district was subject to the provisions of "THE ILLINOIS MUNICIPAL BUDGET LAW". Section 4-4 of The Park District Code (III. Rev. Stats. Chap. 105) provides as follows: "ADOPTION OF BUDGET AND PASSAGE OF ANNUAL APPROPRIATION ORDINANCE REQUIRED. The governing body of each Park District shall, within or before the first quarter of each fiscal year, adopt a combined annual budget and appropriation ordinance, by which ordinance the board may appropriate such sum or sums of money as may be deemed necessary to defray all necessary expenses and liabilities of such Park District, and in such annual budget and appropriation ordinance shall specify the objects and purposes for which such appropriations are made, and the amount appropriated for each object or purpose. "The budget included in such ordinance shall contain a statement of the cash on hand at the beginning of the fiscal year, an estimate of the cash expected to be received during such fiscal year from all sources, an estimate of the expenditures contemplated for such fiscal year, and a statement of the estimated cash expected to be on hand at the end of such year. The estimate of taxes to be received may Continued on Page 31 Illinois Parks and Recreation 13 January/February, 1974 LEGAL AND LEGISLATIVE NOTES . . . Continued from Page 13 be based upon the amount of actual cash receipts that may reasonably be expected by the Park District during such fiscal year, estimated from the experience of the Park District in prior years and with due regard for other circumstances that may substantially affect such receipts. However, nothing in this Act shall be construed as requiring any Park District to change or preventing any Park District from changing from a cash basis of financing to a surplus or deficit basis of financing; or as requiring any Park District to change or preventing any Park District from changing its system of accounting. "The governing body of each Park District shall fix a fiscal year therefor. If the beginning of the fiscal year of a Park District is subsequent to the time that the tax levy for such fiscal year shall be made, then such annual budget and appropriation ordinance shall be adopted prior to the time such tax levy shall be made. "Such budget and appropriation ordinance shall be prepared in tentative form by some person or persons designated by the governing body, and in such tentative form shall be made conveniently available to public inspection for at least 30 days prior to final action thereon. At least one public hearing shall be held as to such budget and appropriation ordinance prior to final action thereon, notice of which shall be given by publication in a newspaper published in such Park District, at least one week prior to the time of such hearing. If there is no newspaper published in such Park District, notice of such public hearing shall be given by posting notices thereof in 5 of the most public places in such Park District. It shall be the duty of the secretary of such Park District to make such tentative budget and appropriation ordinance available to public inspection, and to arrange for such public hearing or hearings. Except as otherwise provided by law, no further appropriations shall be made at any other time within such fiscal year, provided that the board of such Park District may from time to time make transfers between the various items in any fund in such appropriation ordinance not exceeding in the aggregate 10% of the total amount appropriated in such fund by such ordinance, and may amend such budget and appropriation ordinance from time to time by the same procedure as is herein provided for the original adoption of a budget and appropriation ordinance; provided that nothing in this Section shall be construed to permit transfers between funds required by law to be kept separate. "After the first 6 months of any fiscal year have elapsed the board may by two-thirds vote transfer from any appropriation item its anticipated unexpected funds to any other item of appropriation theretofore made, and the item to which said transfer is made may be increased to the extent of the amount so transferred. "The provisions of 'The Illinois Municipal Budget Law', approved July 12, 1937, as now or hereinafter amended, are not applicable to Park Districts organized under this Act." It should, therefore, be noted that in the adoption of the combined annual budget and appropriation ordinance the following points must be strictly adhered to: (1) The budget must contain:
(a) Statement of cash on hand at the beginning of the fiscal year.
(2) The budget and appropriation ordinance must be placed on file and available for public inspection at least 30 days prior to the adoption thereof. (3) Notice of a public hearing on the budget and appropriation ordinance must be given at least one week prior to the date of hearing. (4) The provisions of "The Illinois Municipal Budget Law" are specifically provided not to apply to park districts. Inasmuch as this is a substantial amendment to Article III of The Park District Code and inasmuch as this amendment vitally affects all tax levies of the district, these provisions of the Code should be thoroughly reviewed and studied by all park districts prior to their adoption of the next appropriation ordinance. Illinois Parks and Recreation 31 January/February, 1974 |
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