LEGISLATIVE REPORT

By
Robert A. Stuart

PARK DISTRICTS have served as the primary unit of local government charged with the administration of parks and recreation in the local communities of Illinois since 1869 when the three original park districts were created within the City of Chicago by special legislative enactment. Since 1900 the number of park districts within the State has grown continuously until there are presently some 300 park districts in existence within the State and additional park districts are being formed as a result of public referendum at a rate of approximately 10 districts each year.

Park District legislation codified by legislative commissions in 1947 under "The Park District Code" has been generally recognized throughout the United States as being the most effective and outstanding legislation in the nation for the administration and conduct of park and recreational facilities and programs on the local level.

As a result of certain proposed legislation pertaining to Federal revenue sharing and a freeze on ad valorem property taxes, park districts in Illinois are facing a critical economic problem which could ultimately destroy the effective local administration of park and recreation matters which has been built up within the State as a result of sound and well considered legislation during the past 100 years.

This general situation has made the consideration of an effective legislative program by the Illinois Association of Park Districts since the passage of the new Illinois Constitution in 1970 of major importance. Unless serious consideration of the tax and economic problems facing local government and local governmental units within the State of Illinois is given by each elected local government official within the State, it is quite possible that the efforts of the past years may be lost to the local communities. This means that every elected park district commissioner or trustee and every director of parks and recreation within the State must thoroughly understand the problems confronting the districts and undertake an affirmative program to guarantee the continued effectiveness of park and recreation administration within each community within the State.

The following legislation which has been passed by the General Assembly in Illinois and the Congress of the United States during the past year is of particular importance to all park districts.

1. Illinois Government Ethics Act (Chapter 127, Illinois Revised Statutes 1971, Sections 604-101; 606-111, as amended) requires the disclosure of economic interests by all elected park district commissioners and trustees as well as all persons employed by a park district who are compensated for services as employees and not as independent contractors at the rate of $20,000.00 per year or more.

This statement of economic interest must be filed not only by all of the said commissioners or trustees after election, but must also be filed by all candidates filing for election. Forms for the filing of such disclosure statements are secured through the county clerk's office of the county in which the park district is located and are filed with that office.

2. The Property Tax Freeze Act of 1972 (proposed for consideration by special session to convene November 26, 1972). This proposed legislation provides for a freeze on all ad valorem property taxes levied by any unit of local government, including both general purpose and special purpose governments, during the period between January 1, 1973 through January 1, 1977. The effect of the provisions of this Act will be:

(a) To freeze all future extensions of the tax levy of local units of government to the level of 1972 extensions which will be reflected in the tax bills issued in the ordinary course in April and May of 1973. In other words, the unit of local government, including park districts, will not receive any more money from ad valorem real property taxes than it received in 1973 until after January 1, of 1977, regardless of whether the assessed valuation of the district is increased. It should be noted particularly that this freeze is more than simply a freeze on taxing rate levies. It is a freeze on the amount reflected in the tax bills.

As a practical matter, therefore, property taxes will be frozen at the level which has been determined by the present park district budget now set in each district. Units of local government, including park districts, will not be able to evade the freeze by inflating their budgets, inasmuch as

Robert A. Stuart is Legal Counsel for the Illinois Association of Park Districts.

Illinois Parks and Recreation 6 January/February, 1973

those budgets are reflected in the tax bills to be sent in April and May of 1973 and all tax levies have been certified in September and cannot be changed. The Supreme Court of Illinois has held repeatedly that the statutory provisions setting forth the time for making tax levies are mandatory and any levy is void if made after the date fixed by statute (People ex rel. Joseph vs. Pennsylvania Railroad Co. 18 Ill. 2nd 61).

(b) The statutory authority granted to park districts under the provisions of Section 6-2 to issue bonds without referendum would be effectively frozen, inasmuch as there could be no increased levy for such purpose on real property.

(c) The only method by which units of local government, including park districts could increase the sum received from ad valorem real property taxes would be as the result of referendum.

(d) The proposed freeze is not retroactive and any levy filed or obligation created prior to the effective date of the Act would not be affected.

3. The Property Tax Refund Act of 1972 (proposed for consideration by the special session of the General Assembly to be convened November 26.) The companion bill to "The Property Tax Freeze Act" proposed would have no effect upon park districts, inasmuch as it would make provision for a rebate by general local governmental units of real property taxes upon the basis of Federal revenue sharing funds which had been received. (Inasmuch as park districts are ineligible to receive such funds from Federal revenue sharing directly, the refunding provisions would not be applicable to taxes levied by park districts or other special units of local government.

4. Federal Legislation—"State and Local Fiscal Assistance Act of 1972" (Public Law 92-512; 92nd Congress HR 14370). This Federal legislation signed into law by the President on October 20, 1972 is more commonly known as the "Federal Revenue Sharing Bill". The final version of this Federal revenue sharing bill differed from the original House version which was reported in the "Legislative Report" which appeared in the September-October, 1972 edition of "Illinois Parks and Recreation" in that "recreation" was added as one of the "priority expenditures" designated. In the original House version prior to the Conference Committee concerning "parks and recreation" it had not been included as a priority expenditure. However, no change was made in the restriction of the distribution of funds under "Revenue Sharing" to "units of local government" which are "units of general government". Thus, under the final version of the Bill as passed, while such funds may be used for recreational purposes (which I would presume would include parks and park development), a local park district in Illinois cannot be a direct recipient from the Federal government of such funds.

The result of these provisions, therefore, is that such Federal revenue sharing can only be participated in by park districts within this State in the event that they can secure a portion of the funds received by the State of Illinois or a portion of the funds received by the county, city, village or township.

At the meeting of the Board of Directors of the Illinois Association of Park Districts held in September the following items of legislation were approved for inclusion in the Legislative Program to be presented to the 78th Session of the General Assembly.

1. An amendment of The Park District Code to provide that no park district could be organized with an assessed valuation of less than $20,000,000.

2. An amendment of Section 5-2 of The Park District Code to authorize a levy of .12% of the equalized assessed value of all taxable property without referendum.

3. An amendment of Section 6-4 of The Park District Code to permit an increase in the bonding power of park districts to 1% of the total assessed valuation of all taxable property without referendum.

4. An amendment of Section 5-1 of The Park District Code to authorize an increase in the general corporate levy from .10% to .12% without referendum.

5. An amendment to the Revenue Act, Chapter 120 Illinois Revised Statutes, to authorize the participation by park districts in income tax and sales tax revenues.

6. An amendment to The Park District Code to provide for a special tax for the maintenance of police systems by and within park districts.

7. An amendment of Chapter 102 Illinois Revised Statutes, Section 5-10 to eliminate the requirement of the publication of a full treasurer's report/or an authorization of a special publication tax.

8. An amendment of Article Two of The Park District Code to permit districts to increase the number of commissioners from 5 to 7.

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Illinois Parks and Recreation 7 January/February, 1973

LEGISLATION . . .

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9. An amendment to The Park District Code to increase the authorized interest rates on bonds and other forms of park district indebtedness to 7%.

10. An amendment of Section 9-2 of The Park District Code to authorize park districts operating airports to levy the presently authorized tax of .075% without further referendum.

It should be noted that in August the Association circularized each member district within the State requesting suggestions and legislative amendments and program. It was felt that this program was perhaps the most vital of any business of the Association. It should be noted that of the some 200 members of the Association returns from that questionnaire were made by only 12 districts within the State.

It is also of interest to note that the major suggestions and requests for legislation pertain to the increase of taxes by a park district without referendum. As previously pointed out in this report, Governor Ogilvie proposed a freeze on all real estate taxes without referendum and, in effect, had recommended the effective revocation during a four year period of any existing authority of any local governmental unit to increase taxes without referendum. Governor-Elect Dan Walker has issued a statement approving in principle and signifying his support for the passage of tax freeze legislation in the special session called for November 26. A survey taken by the Chicago Tribune indicated that on October 24, 79 members of the House of Representatives and 33 members of the Senate were for the passage of the tax freeze legislation; that 23 additional members of the House and 12 additional members of the Senate had indicated that they were leaning toward a support of the legislation. Only 6 members of the House and Senate indicated opposition to the Bills, although 27 indicated that they were undecided. President Nixon, in a statement made on national television on November 6, indicated that Federal revenue sharing to states and local governmental units would not be approved on the Federal level to states and local governments which were not seeking to reduce taxes on real property within those states and local communities.

At the Annual Meeting of the Board of Trustees of the National Recreation and Park Association your General Counsel, as a member of that Board, proposed the following resolution which were adopted by the Board with a unanimous vote:

"WHEREAS, current law permits the distribution of federal surplus personal property to organizations and agencies; and

"WHEREAS, park and recreation departments or districts (park and recreation) are not currently eligible for such surplus property; and

"WHEREAS, park and recreation departments and park and recreation districts are able to make use of such surplus property for the general good of their communities;

"THEREFORE, BE IT RESOLVED that the Board of Trustees of NRPA endorses Federal legislation which would make park and recreation departments and park and recreation districts eligible recipients for federal surplus property.

"WHEREAS, current legislation pertaining to general and special revenue sharing restricts the distribution of Federal funds to general purpose units of local governments; and

"WHEREAS, elective units of local government in a number of states known as park districts, or park and recreation districts, will not be eligible for direct participation in, or receipt of such funds; and

"WHEREAS, such units of local government are directly responsible to the local electorate, and are deeply involved and effective in the environmental protective and improvement process in their respective communities;

"NOW, THEREFORE BE IT RESOLVED that the Board of Trustees of NRPA endorses and urges the passage of Federal legislation which would make local units of government, elective in character, created by statute and authorized to receive such funds, eligible recipients of general and special Federal revenue sharing funds."

The Illinois Association of Park Districts, Illinois Park and Recreation Society and the Department of Conservation cooperated in urging the amendment of the "State and Local Fiscal Assistance Act of 1972" passed by the United States Congress to include "recreation" as a priority expenditure. It is the recommendation of the legal counsel that through the Illinois Association of Park Districts and the National Recreation and Park Association efforts be actively pursued through all members of Congress and through legislative representatives at all levels to include the participation by park districts primarily and all park and recreation units of local government in Federal revenue sharing funds.

Illinois Parks and Recreation 34 January/February, 1973