1. What is a Special Service Area?
A special service area is a defined geographic area within a municipality created by the government at the request of the owners of the property in the proposed special
2. What is the purpose of a Special Service Area?
The purpose of a special service area is to provide a means for planning, financing and constructing various public improvements within and outside the special service area for the benefit of the property owners within the special service area.
3. What is the authority for the Village of Lakemoor (the “Village”) to create a Special Service Area?
Section 7(6) of Article VII of the Illinois Constitution of 1970 (the “Act”), the Special Service Area Tax Law and the Illinois Local Government Debt Reform Act of the
State of Illinois, provides a method of financing certain infrastructure improvements by the Corporate Authorities of the municipality within which the special service area is located. The Act provides that bonds may be issued to provide for the special services and that such bonds are to be retired by a special tax. On March 20, 1997, the Village Board adopted Ordinance No. 97-O-04 (the “Establishing Ordinance”), which established the special service area to provide certain public improvements, and authorized the Village to levy and collect a special tax in the manner set forth in the Rate and Method of Apportionment of the Special Tax.
4. When and how were the Series 2006 Refunding Bonds issued?
On June 21, 2006, $9,000,000 in Series 2006 Special Tax Refunding Bonds (the “Series 2006 Refunding Bonds”) were issued pursuant to the Act, Ordinance No. 06-O-
12 of the Village adopted on June 8, 2006 (the “Bond Ordinance”) and certain other proceedings of the Village, including a Trust Indenture, dated as of July 1, 1997, by and
between the Village of Lakemoor, Illinois and The Bank of New York Mellon (formerly J.P. Morgan Trust Company, National Association) (the “Trustee”).
5. What were the proceeds of the Series 2006 Refunding Bonds used to finance?
The proceeds of the Series 2006 Refunding Bonds were used to defease the $9,000,000 Series 1997 Special Tax Bonds Lakemoor Special Service Area Number 97-1
(the “Prior Bonds”), which were issued to finance certain public improvements including right of way preparation and improvement and street, lighting, utilities, traffic control,
pedestrian traffic, storm sewer and detention facilities, potable water system, sanitary sewer, environmental and park improvements, and the attributable costs of related legal, architectural engineering and construction management services to the special service area.
6. How are the proceeds of the Series 2006 Refunding Bonds being disbursed?
Pursuant to the Escrow Agreement, dated June 28, 2006, the sum of $9,000,000 shall be borrowed by the Village pursuant to the Special Service Area Tax Law and the
Illinois Local Government Debt Reform Act of the State of Illinois for the purpose of refunding in advance of their maturity all of the Prior Bonds, and paying the costs of the
Village in connection with the issuance of the Series 2006 Refunding Bonds and the refunding of the Prior Bonds, and making deposits to the Reserve Fund and the
Administrative Expense Fund.
7. What were the benefits of the refunding?
The Series 2006 Refunding Bonds reduced the interest rate paid on the Series 1997 Refunded Bonds from 7.80 percent to 4.55 percent on the Term 2016 Bonds and
5.00 percent on the Term 2027 Bonds. This reduced the annual interest charges on the bonds. These savings were passed on to the homeowners through a reduction in the proportional special tax rates levied and collected each year. The terms of the orginal SSA Bonds from 1997 were not extended.
8. Don’t my regular real estate taxes pay for these public improvements?
No. The real property taxes paid to the Village of Lakemoor, other than the Special Tax, are used to pay for Village services.
9. What is the security for the Series 2006 Refunding Bonds?
The Series 2006 Refunding Bonds are secured by (i) proceeds of Special Taxes, including any scheduled payments and any prepayments thereof, interest thereon and
proceeds of the sale of property sold or other remedies taken as a result of a delinquent Special Tax sale action and (ii) moneys on deposit in the funds and accounts that are pledged in the Trust Indenture for the repayment of the Series 2006 Refunding Bonds. The Series 2006 Refunding Bonds are not a general obligation debt of the Village
and they do not constitute a pledge of the Village’s full faith and credit or taxing power.
10. Why do we have to pay this additional tax?
The Special Tax is being collected to pay the interest and principal on the Series 2006 Refunding Bonds that were issued to refund the original Series 1997 Bonds, which
funded the public improvements in the special service area. Like a mortgage, the original bond payments were spread over a thirty-year period to keep the annual payments
11. When do the Series 2006 Refunding Bonds mature and how long are Special Taxes levied?
The Series 2006 Refunding Bonds will mature on March 1, 2027. Except for any delinquent special taxes and related penalties and interest, special taxes shall not be
levied and extended after Calendar Year 2026 and collected after Calendar Year 2027. The Village cannot unilaterally reduce the term of the bonds, which are subject to certain covenants provided in the Trust Indenture.
12. Who is responsible for paying the Special Tax and when is it due?
A homeowner is responsible for the Special Tax from the time they take possession of the home. The Special Tax is listed as a separate line item on your ad
valorem property tax bill and is due in two installments at the same time as your property taxes, which for owner-occupied residential property is June 4 and September 4 for McHenry County and June 3 and September 3 for Lake County residents, respectively.
13. Who bills and collects the Special Tax and how is it distributed?
The annual Special Tax is billed by and paid to the respective County, who in turn remits the funds to the Trustee who pays the Bondholders each September 1st and
March 1st. Other than approving the Trustee’s payment of the annual administrative expenses of the SSA, the Village does not handle or control any Special Taxes. (The
Special Taxes are never made part of the Village’s General Fund or commingled with the Village’s other revenue sources.)
14. How is the Special Tax determined each year?
The Special Tax is calculated each year pursuant to the Rate and Method (RMA) of Apportionment of the Special Tax, which was approved by the Village in the
15. What happens if a homeowner fails to pay his/her Special Taxes?
The failure of a homeowner to pay his/her Special Taxes will not affect any other homeowner in the District. If a homeowner fails to pay his/her Special Taxes, the Village
will employ the normal collection procedures available to them for all delinquent general ad valorem property tax collection efforts.
16. How much is the Special Tax?
The annual Special Tax is limited to the “Assigned and Backup Special Tax” as set forth in the Rate and Method of Apportionment of the Special Tax, and if you are the
original homebuyer, in the rider attached to your sales contract. On each October 1, commencing October 1, 1998, the Assigned and Backup Special Tax Rates shall be
17. Can I payoff the Special Tax?
Homeowners have the option of prepaying the Special Tax at any time and thereby fully satisfying the obligation to pay the annual Special Tax. For further details, please contact the Administrator at the toll free number provided below.
18. Who is responsible for disclosing the Special Tax?
The Special Tax represents a lien on the property subject to the Special Tax and is disclosed when a title search is performed on the property. For the original homebuyers
who purchased the property from the builder, the builder would have also disclosed the Special Tax. (If you look in your closing documents, you should find this document.)
19. Where can a homeowner review copies of the documents related to the Series 2006 Refunding Bonds?
Copies of all of the documents related to the Series 2006 Refunding Bonds are on file with the Mayor and Council of Lakemoor at the Village Hall.
If you have any additional questions regarding the Special Tax or the Special Service Area, please call the Administrator at 888-317-9970and reference 97-1
Mayor Ryan "Todd" Weihofen
2016 Annual Continuing Disclosure Report CLICK HERE
AN ORDINANCE PROPOSING THE ESTABLISHMENT OF VILLAGE OF LAKEMOOR SPECIAL SERVICE AREA 96-1 FOR THE BURNSIDE PLANNED UNIT DEVELOPMENT CLICK HERE
AN ORDINANCE PROVIDING FOR ISSUANCE OF $9,000,000 VILLAGE OF LAKEMOOR, MCHENRY AND LAKE COUNTIES, ILLINOIS SPECIAL SERVICE AREA NUMBER 97-1 SPECIAL TAX REFUNDING BONDS, SERIES 2006, AND PROVIDING FOR THE LEVY OF A DIRECT ANNUAL TAX ON TAXABLE PROPERTY IN SUCH SPECIAL SERVICE AREA FOR THE PAYMENT OF PRINCIPAL OF AND INTEREST ON SUCH BONDS CLICK HERE
Copyright 2019 © The Village of Lakemoor ALL RIGHTS RESERVED.
28581 Illinois Route 120 Lakemoor IL 60051
Community & Economic Development
28581 Illinois Route 120
Lakemoor IL 60051
28581 Illinois Route 120
Lakemoor IL 60051
Public Works Department
333 Wegner Road
Lakemoor IL 60051