Special Tax Bond Policy

General Statement
The United City of Yorkville issues Special Tax Bonds as a municipal financing instrument in order to provide a more comprehensive public infrastructure for projects undertaken in the city and to help projects meet or exceed the desired standards and guidelines of Yorkville. The Special Tax Bonds are issued as either Special Service Area Bonds or Special Assessment Bonds. Such Bonds shall finance public infrastructure for defined areas where the burden of the tax or assessment is limited to that specific area. The city will not be liable or responsible for, nor will it pledge any general obligation or other city revenue for the repayment of such Special Tax Bonds. The Bonds shall be repaid only from a tax or assessment on the benefited property. No other taxpayers are obligated to pay this special tax.

Eligible Infrastructure Costs

The city will consider the issuance of Special Tax Bonds for the following public costs associated with a proposed project:
  • Certain connection fees
  • Certain mass grading costs
  • Certain pro-rata costs for police, fire and/or public works facilities related to the project
  • Engineering and related professional fees
  • Offsite land acquisition costs for stormwater and detention improvements including regional or multiparty stormwater management use
  • Park improvements
  • Right of way landscaping and curbs
  • Roads including signaling
  • Sewer interceptors, mains and laterals
  • Sewer treatment facilities
  • Walking paths and sidewalks
  • Water mains, laterals and qualified water storage and production facilities
All such costs shall pay for public improvements that are either owned by the public or are the subject to permanent public easements. All such costs shall be reviewed and approved by the City and its bond counsel and financial advisor before issuance.

Eligible Projects
The city will consider such bonds for housing, retail, commercial, office and/or industrial projects. Realizing that there is an expenditure of time and effort on the part of the city and its professionals, the city requests that a qualified bond underwriter review all Special Tax Bond proposals for reasonableness and marketability before the formal presentation to the city.

The city may further and likely will hire the services of an independent financial consultant to review the terms of any Special Tax Service Area or Special Assessment Area Bonds, advising the city of the appropriateness of the issue, the marketability, and providing financial advice to the city. Further, the city shall seek an independent Bond Counsel to issue a Legal Opinion Letter ensuring that the city has no direct liability or residual liability on said Bonds. All the consulting fees incurred by the city, whether for legal services or independent financial consulting shall be reimbursed to the city out of the Bonds proceeds, at the first draw down upon said bonds.

Policies & Procedures
All normal and regular city ordinances, policies, procedures and subdivision control standards shall be followed and required of the proposed project.

The City of Yorkville reserves the right to suspend or stop discussion or proceedings concerning Special Tax Bonds at anytime.