by Robert A. Stuart General Counsel

SENATE BILL 880 AND HOUSE BILL 1779 FAIL TO PASS GENERAL ASSEMBLY

While the negative action of the 1975 Session of the 79th General Assembly on Senate Bill 880 and House Bill 1779 which has, at least temporarily, denied to park districts throughout the State much needed relief from the ever increasing loss of tax revenues is discouraging, the growing support and interest of many of our Legislators in finding a satisfactory solution to the fiscal problems of park districts is most encouraging. That the concept developed by the Illinois Association of Park Districts of the "Park District Distribution Fund" from the net revenues realized from the Illinois income tax as set forth in these two Association bills is a practical and feasible approach to the problem is borne out in the fact that following the introduction of Senate Bill 880 and House Bill 1779, municipalities, counties and townships were quick to introduce similar measures designed to increase their participation in the "Local Government Distribution Fund" created by the provisions of the "State Revenue Sharing Act."

In the final analysis it must be borne in mind that the present financial condition of the State, together with the Governor's message calling for a "6% cut in all appropriations across the board," has had a strong influence upon the members of the General Assembly in their consideration of all measures affecting State revenues. It is to be hoped that the Revenue Committee in the House through its study of the concept of House Bill 1779 in its subcommittee on income tax, will develop a Committee Bill for consideration at the Fall Session designed to provide effective fiscal relief to park districts. Representative Sam Maragos, Chairman of the House Revenue Committee, has given assurance that the subcommittee will give its active attention to the problem rather than permitting it to lie dormant.

Perhaps more discouraging than the fate which befell Senate Bill 880 and House Bill 1779 was the defeat of House Bill 1281 (which had easily passed the House) and Senate Bill 886 in the Senate. These Bills, which would have permitted the levy of a tax of .025% by all park districts (rather than the few districts which were participating in the Illinois Police Training Program on or before July 1, 1973) without referendum for the purpose of "the organization, maintenance of, or contracting for a police system," were of particular importance to all districts. No problem more directly affects the citizens of the State of Illinois than that of illegal activities among the young people in our various communities within the parks and park areas. It is common knowledge to all police enforcement agencies that the major problems concerning the sale and use of drugs, alcoholic beverages, crimes of violence and general vandalism are centered within the local park and forest preserve areas.

No park district within the State of Illinois presently has sufficient funds to adequately police these areas and handle the problems which presently exist. It appears that the members of the General Assembly have given little serious thought to the solution of this problem which cannot be solved by other governmental agencies, including the municipality and the State. Further study and solution of this problem is essential and of a high priority.

STATUS OF LEGISLATION AFFECTING ALL PARK DISTRICTS

HOUSE BILLS:

H.B. 152—Juckett—Amends park district code; authorizes park district, by referendum or board resolution, to increase size of board from 5 to 7. (Passed House 4/26) (Passed Senate 6/23)

H.B. 154—Juckett—Amends park district code; reduces term of park commissioners from 6 to 4 years. (Referendum) (Passed House 5/15) (Tabled Senate Committee on Local Government 6/6) *See S.B. 965-A

H.B. 506—Geo-Karis—Authorizes park districts to enter into agreements with other governments on swimming pools or artificial ice skating rinks built by the park district with the proceeds of revenue bonds. Agreements give other governments right to use or operation of facility in exchange for payments. (Passed House 5/2) (Passed Senate 6/3)

H.B. 689—Leon, et al—Amends the Chicago Park Employees' Retirement Board Article of the Illinois Pension Code. Improves single sum death benefit and modifies related contribution requirements. Establishes minimum widows annuity to surviving spouse of employee with 20 or more years of service. Increases pensions of surviving spouses currently receiving annuities. Revises date for commencement of post-retirement increment for retirement annuities. Authorizes compensation of secretary of board. Provides that annuities of surviving spouses are to be charged to the annuity reserve. Effective immediately. (Passed House 5/10 A) (Passed Senate 6/16)

H.B. 909—Pierce, et al—Amends Dram Shop Act and Park District Code. Authorizes the sale or delivery of alcoholic liquors in the recreational centers of a park district if there is no municipality within the boundaries of such park districts. Such park district shall provide dram shop liability in maximum insurance coverage limits. (Passed House 5/17) (Passed Senate 6/17)

Illinois Parks and Recreation July/August, 1975

H.B. 967—R. K. Hoffman, et al—Amends Revenue Act of 1939 to provide that unimproved real estate set aside for park or recreational purposes is to be treated as "encumbered by a public easement" under certain conditions. In section regarding valuation of real property. (Study Committee—Revenue Committee in House 5/23)

H.B. 990—Committee on Revenue—Amends Revenue Act sections on assessment of property to change amount of assessment from 50 per cent of fair cash value to 33-1/3 per cent of fair cash value. Other provisions. (39) pages) (To Second without reference). (Passed House 4/11) (Passed Senate)

H.B. 1278— Hoffman, et al—Appropriates $100,000 to the Department of Transportation, Division of Waterways to repair erosion damage on Addison Creek at the Stevenson Park lagoon in Bellwood in Cook County, Effective July 1, 1975. (Passed House on 5/20) (Senate Appropriations Committee 5/28) (Recommended "Do Pass" 6/25)

H.B. 1281—R. K. Hoffman—Amends Park District Code to authorize levy of a tax if participating in program established under Illinois Police Training Act. (Passed House 5/20) (Failed Senate 6/17) *See S.B. 886

H.B. 1282—R. K. Hoffman—Authorizes levy of additional tax of .05 per cent for Park Districts to establish and maintain recreational programs. Requires referendum. (Passed House 5/10) (Tabled in Senate Local Government 6/6) * See S.B. 885

H.B. 1283—R. K. Hoffman—Increases from 5 per cent to 7 per cent allowable interest on Park District Bonds. (Passed House 5/10) (Tabled in Senate Local Government6/6) * See S.B. 884

H.B. 1289—Hart—Provides that park districts may issue notes for purchase and payment of land for parks or boulevards; (presently only bonds may be issued for such purposes.) (Passed House 5/20) (Passed Senate 6/24)

H.B. 1459—Deavers—Removes from General Assembly and places in county boards the power to appoint trustees in multi-county park districts. (Passed House 5/17) (Passed Senate 6/19) Affects only Aurora

H.B. 1465-A—Deavers—Amends Counties Act. Provides that personnel employed to provide police protection in park or recreational area owned by county, including areas partly within and partly outside the county, have the powers of police officers, including power of arrest. (Passed House 5/2) (Passed Senate 6/18)

H.B. 1682—Stone, et al—Amends the Open Meetings Act. Expands matters relating to employees which may be discussed in closed sessions, and authorizes closed sessions to discuss collective bargaining proposals. Provides that public notice is not required to be given for closed sessions. Effective immediately. (Passed House 5/22) (Failed Senate 6/18)

H.B. 1695—Chapman, et al—Allows a park district to improve and repair property as well as purchase it. (Oninstallment contract) (Passed House 5/10) (Passed Senate6/18)

H.B. 1779—(S.B. 880)—R.K. Hoffman, et al—Provides fordistribution of 1/48th of state income tax to park districts on formula based on population. (Revenue Committee)

H.B. 1782-A—(S. B. 881)—R. K. Hoffman, et al—Authorizes per diem for forest preserve district commissioners in exercise of duties by Board action. Increased from $25 to $36. (Passed House 5/22) (Passed Senate 6/19)

H.B. 1828-A—MacDonald, et al—Creates Park District Problems Study Committee. (Passed House 5/22) (Passed Senate 6/24)

H.B. 1829—MacDonald, et al—Appropriates $25,000 for Park District Problems Comsn. (Passed House 5/28) (Comm. on Approp. 6/5)

H.B. 1859—John Dunn, et al—Amends various acts to provide for members of governing boards of special districts which include territory in more than one county to be proportioned among the counties involved and set up appointing powers. (Passed House 5/23) (Passed Senate 6/19) Affects only Aurora

H.B. 2062—Dyer, et al—Amends an Act to provide for the creation and management of forest preserve districts. Increases corporate tax rate from .025% to .075%. Allows district to tax for constructing improvements and development of forest and lands at rate not to exceed .025 %. Makes other changes. (Study Calendar House Counties and Townships 5/29)

H.B. 2097—White—Amends Chicago Park District Act to raise permissible tax levy for aquariums and museums to .065 per cent. (Passed House 5/23) (Passed Senate 6/19)

H.B. 2098—White, et al—Raises permissible tax levy for aquariums and museums to .065 per cent in districts over 500,000. (Passed House 5/23) (Passed Senate 6/19)

H.B. 2191—Reed—Requires administrative head of each special district to register with clerks of counties in which district has territory. (Passed House 5/10) (Tabled Senate 6/14)

H.B. 2308—Patrick—Bans formation of special districts after 1975. (Study Calendar—Counties and Townships)

H.B. 2312—Taylor—Adds severability clause to an Act in relation to the creation maintenance, operation and improvement of the Chicago Park District. (Passed House 5/19) (Passed Senate 6/ 19)

H.B. 2478—Daniels—Authorizes Forest Preserve Districts to acquire land for recycling pollutants and waste-water for agriculture use. (Study Calendar—Counties and Townships 5/23)

H.B. 2554—Jane Barnes—Removes referendum requirement regarding park district recreation tax; permits tax up to .12 per cent. (Tabled)

H.B. 2574—Palmer—Same provisions as House Bill 2596. (Passed House 5/22) (Passed Senate 6/19)

H.B. 2596—Satterthwaite—Requires Park boards to appoint either 3 or 5 Judges of election for each polling place. (Cities/H) (Passed House 5/22) (Passed Senate 6/20)

H.B. 2604 —Chapman —Increases maximum term school property can be leased to another school district, city or body politic to 25 years (presently 10 years). (Elementary Educ/H) (Tabled)

H.B. 2704-A—Skinner—Authorizes candidates in park district election to appoint challengers or watchers in each polling place. (Passed House 5/10) (Passed Senate 6/19)

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H.B. 2821—Patrick—Provides no new units of local government may be created. (Study Calendar—Counties and Townships 5/2)

H.B. 2823—McPartlin—Converts each special district in the state into a special service area of the most populous government unit within each district. (Study Calendar— Counties and Townships 5/2)

H.B. 2837—Dyer—Amends Dram Shop Act. Permits sale of liquor by park district in buildings on golf courses across bar. (3rd Reading Senate)

SENATE BILLS:

S.B. 69-A—Vadalabene—Removes the ten-acre per park restriction from the Act authorizing townships to acquire lands for parks. (Passed Senate 3/19) (Passed House 6/5) (Senate Nonconcurrs in H. Amend. 6/20)

S.B. 220-A—Fawell, et al—Amends Park District Code. Deletes required referendum on tax levy for establishment of joint recreational programs for handicapped children. (3rd Reading/S-A w/ Backdoor Referendum Provision) (Passed Senate 5/20) (Passed House 6/16)

S.B. 221-A—Fawell, et al—Amends Municipal Code. Deletes required referendum for tax levy for establishment of joint recreational programs for handicapped children. (3rd Reading/S-A w/ Backdoor Referendum Provision) (Passed Senate 5/20) (Passed House 6/16)

S.B. 222—Fawell, et al—Amends the Park District Code providing a one year limitation period for contesting the annexation of any territory. (Passed Senate 3/19) (Passed House 6/9)

S.B. 804—Dougherty, et al—Amends Chicago Park District Act to authorize an increase in bonded indebtedness with referendum from 1 1/2 per cent to 2 per cent. Other authorization. (Passed Senate 5/16) (Passed House 6/12)

S.B. 880—Fawell—Creates "Park Districts Distribution Fund" in an amount equal to 1/48 of net revenue realized from Illinois income tax with monthly distribution on basis of population. (Failed in Senate 5/23) (Failed Motion to Reconsider 5/23)

S.B. 881-A (H.B. 1782)—Fawell—Authorizes per diem for Forest Preserve Districts by Board resolution. (Passed Senate 5/20) (Passed House 6/12) (Senate Nonconcurrs in H.Amend. 6/20)

S.B. 882—Fawell—Includes securities of federal agencies among authorized investments under act concerning municipal funds. (Passed Senate 5/20) (Passed House 6/21)

S.B. 884—Fawell—Amends Park District Code to delete 5 per cent interest provision after July 1, 1975. Provides for interest not exceeding 7 per cent per annum. (Passed Senate 5/20) (Passed House 6/ 13)

S.B. 885—Fawell—Adds to Park District Code provision for levy of additional tax of .05 per cent for planning recreational programs. Referendum. (Passed Senate 5/19)(Passed House 6/9)

S.B. 886—Fawell—Authorizes levy of a tax if park district is taking part in a program under Illinois Police Training Act. (Failed Senate 5/21)

S.B. 887 (H.B. 1780)—Fawell—Repeals Sections 3-12 and 3-13 of the Park District Code dealing with consolidation of park district territory and disconnection respectively. (Passed Senate 5/20) (Study Comm.—H. Cities and Vill. 5/28)

S.B. 916-A—Philip—Extends the powers given park district police in certain districts to all park district police. (Passed Senate 5/19) (Passed House 6/13)

S.B. 965-A—Glass, et al—Allows park districts to reduce terms of commissioners from 6 years to 4 years. (Passed Senate 5/20) (Passed House 6/20)

S.B. 1013-A (H.B. 2186)—Fawell—Permits issuance of liquor license to park districts upon application. (Passed Senate 5/21) (Passed House 6/3)

S.B. 1178—Berning—Permits forest district boards to regulate, control and license all types of travel on paths, drives and roads under its jurisdiction. (Passed Senate 5/20) (Passed House 6/13)

S.B. 1197—Nudelman—Repeals Act enabling forest preserves to repay money received from the sale of defectivebonds. (Tabled)

S.B. 1478-A—Shapiro—Amends municipal retirement, Chicago park district and Chicago sanitary district pensions; removes provisions requiring a reduction in widow's benefits on account of the age differential between spouses. (Passed Senate 5/20) (Passed House 6/19)

RECENT DECISIONS

Paul E. Hairier, et al., Appellees, v. Robert J. Lehn-hausen, Director of the Department of Local Government Affairs (Frank A. Kirk, Successor in Office, Appellant.) Docket No. 47353, Agenda 20, March, 1975 Illinois Supreme Court.

In its opinion filed in the case of Hairier, et al., Appellees v. Robert 3. Lehnhausen, et al., the Supreme Court of the State of Illinois again deferred action relative to requiring the Department of Local Government Affairs and the local authorities within the State to comply with provisions of the Revenue Act of 1939, as amended, in valuing property for purposes of taxation at 50% of its actual value and as a basis for such action once again relied upon the fact that to do so would interfere with the several county clerks who were then in the process of extending their tax levies. The Court also indicated as a basis of its decision the further fact that the General Assembly might be expected to enact legislation in the present Session to revise this provision of the Revenue Act. Since the filing of its opinion in April, 1975, the General Assembly has passed and sent to the Governor for action House Bill 990 sponsored by the joint House and Senate Committee on Revenue which will reduce the amount of required assessment from 50% of fair cash value to 33-1/3% of fair cash value with provisions for a three year transition period during which those counties which have been assessing at a higher evaluation will not lose the dollar amount of revenue which they have previously been receiving.

However, at the end of the transition period many counties (and as a result many park districts) will suffer a reduction in tax revenues received from the taxation of real property. Certain counties principally

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located in the southern part of the State may anticipate increased tax revenues.

While the Court in its opinion clearly recognized the fact that the Department of Local Government Affairs and the local assessing officials have consistently failed to perform their duties as directed by statute the Court has consistently permitted the practice to continue by repeatedly deferring action in each of the several cases which have come before it (People ex rel Hamer v Jones (1968) 39 Ill. 2d 360 Hamer v Mahin (1970) 47Ill. 2d 252 Harte v Lehnhausen (1975) No 46533 (under advisement), People ex rel Musso v Chicago Burlington & Quincy Railroad Company (1965) 33 Ill. 2d 88 )

The Court in its opinion stated:

"Illinois' system of taxing real and personal property is established by the Revenue Act of 1939 as amended (Ill. Rev. Stat. 1973 ch 120 pars 501-811.) It provides for valuation of both types of property for purposes of taxation at fair cash value (pars. 501, 502) defined, except in counties with a population of more than 200,000 which classify real property for purposes of taxation as 50% of actual value (Par. 482 (24).) Local boards are required to equalize intracounty assessments by local assessing officials among townships or assessment districts, or as between differing types of property (Par. 589.1)...

"Despite this statutory program designed to produce uniformity in assessed valuations no real effort has been made by State or local officials to assess all property at its fair cash value as required by statute. There are disparities in the values which local assessors place on different types of real property within the same township or assessment district. There are also disparities in the valuations of similar property in separate townships or assessment districts. That this situation exists in Lake County is demonstrated by the record in this case. That it is duplicated in varying degrees in other counties throughout this State is a matter of common knowledge of which we may take judicial notice. As earlier noted, our legislature recognized the problem and sought to remedy it by requiring Boards of Review in the counties to equalize assessments as between various types of property or as between the several townships or assessing districts. Boards of Review have, in large measure, ignored that requirement. Substantial disparities documented by the record in this case exist in the levels of assessed valuations as between the various counties. The Department of Local Government Affairs charged by the legislature with the duty of equalizing those valuations at 50% of actual value has, as is apparent from this record, deliberately chosen not to do so. The net results of this are intracounty and intercounty disparities in assessed valuations which are neither fair to individual taxpayers nor in accordance with law...

"It is clear that the legislature did not intend the Department of Local Government Affairs to have discretion as to whether to act as an equalizing authority. Instead, it stated the Department 'shall' perform that function and 'shall equalize the assessments between counties as in this Act provided.' (Ill Rev Stat 1973, ch 120, par 627.) The mandatory duty of the Department in this respect is well settled (People ex rel Ruchty v. Saad (1952) 411 Ill. 390.) The failure of both local officials and the Department to perform their duties has not only eliminated any possibility of uniformity of taxation, but has also disrupted the statutory scheme for distribution of various types of State did apportioned on the basis of equalized assessed valuations. Examples of the latter are the provisions for distribution of State school aid appearing in section 18-8 of the School Code (Ill Rev. Stat. 1973, ch. 122, par. 188) and section 12-21.13 of the Public Aid Code which authorizes State payments to supplement local funds for public aid if the local governmental unit levies taxes for such purposes equivalent to a specified percentage of the equalized value of all its taxable property Ill. Rev. Stat. 1973, ch. 23, par. 12-21.13...

"The real deterrent to compelling compliance by the Department with the statutory requirements is the delay which that course of action necessarily involves. County clerks have now been computing tax extensions for some time. To require the Department to recompute and recertify multipliers at this late date would nullify the progress heretofore made by the county clerks in the tax-extension process and require them to await recertification by the Department of a new multiplier before recommencing the tax extension work. Substantial delay in the collection of taxes would inevitably result necessitating the borrowing of funds by many taxing bodies in order to meet current operating expenses. The costs of such borrowing will ultimately reduce the funds available to the taxing bodies, thereby curtailing to some extent their normal operations.

"Given these alternatives, we feel compelled to once again defer action. We assume, however, that the plaintiffs will not abandon their efforts to obtain judicial relief as to the 1975 and subsequent tax years. It is appropriate therefore that the circuit court of Lake County retain jurisdiction for such further proceedings as may be instituted to insure that the Department performs its statutory duties. It should be evident from the views expressed earier in this opinion that the persistent disregard of the law apparent in these proceedings will not be permitted to continue"

Mr Justice Kluczynski in a dissenting opinion stated:

"The majority opinion refers to People ex rel. Hamer v. Jones (1968), 39 Ill. 2d 360, 372, and correctly notes that in that opinion this court stated 'we cannot abdicate our responsibilities even though our approach must necessarily be a negative one and chaos may ensue.' In effect, the majority result in this case is a clear abdication of judicial responsibility. I would adopt the first alternative suggested by the majority and require that the 1974 multipliers he recomputed so as to result in an equalized assessed valuation of 50% of actual value, as required by law.'

It now remains to be seen, in the event the Governor signs House Bill 990, as to whether or not the Department of Local Government Affairs and the local assessing authorities will carry out their statutory duties in providing a uniform scheme of evaluating real property for purposes of taxation within Illinois.

Illinois Parks and Recreation 21 July/August, 1976