Introducing the "Road Special Service Ordinance"

Every year I receive calls from residents concerning private roads in Riverwoods. Complaints range from the condition of the roads, lack of maintenance, lack of snow plowing or failure of residents to pay their fair share of the cost for the maintenance or snow plowing. It does not seem to matter whether the road association is a formal or informal one, the problems are the same.

This year I brought this matter to the attention of the Board of Trustees and expressed my concern and belief that the Village should help its residents in the administration of these vital services. I believe a solution has been created in the form of the new "Road Special Service Ordinance" that was passed January 18, 2011.

This ordinance concerns special service areas (SSA) for the purpose of maintaining private roads as well as providing for snow plowing and snow removal. Road SSAs are formed differently under state law than are utility SSAs, in that Road SSAs require the owners who represent 51% of the homes in the SSA to petition in favor of Village Board action. Once the owners have successfully petitioned, the Village Board passes an ordinance formally establishing the Road SSA. (On the other hand for a utility SSA, the Village Board must wait to see if a successful objection petition is lodged with the Village, which would bar the SSA).

In order to provide for the special comservices (snowplowing) and/or maintenance of the road, the new SSA Ordinance requires that the owners be formally organized as an Illinois not-for-profit corporation. The association's bylaws must ensure that by a 51% majority, the association, acting as a Road Committee, can authorize the requested projects. The Road Committee would determine what street maintenance or repair services or snowplowing would be needed and when they would be needed. It would make up a budget and submit a plan to the Village to establish an SSA Tax to pay for those services. This tax would be added to your regular property tax bill. Unless ad valorem taxes are specifically requested, the Village would impose the SSA Tax at a flat rate, with each homeowner paying the same amount. The taxes would be used to pay the costs to provide the special services, subject to availability of funds.

The Village will add a reasonable administrative fee each year to the taxes to offset the costs of administering this program. The Road Committee would be responsible for signing all contracts (in which the Village must be named as a third party beneficiary). The Village will not pay out anything beyond what is collected and available in the SSA account established for your Road SSA, and each Road Committee remains ultimately responsible for paying its contractors. All payments by the Village will be made directly to the contractors.

Once the Road SSA is formed, requests to set the annual amount of taxes must be given to the Village no later than October 31st of each year. Long range planning must be exercised. For example if a budget submission is made on October 31, 2011, the taxes for the Road SSA will not be collected until June of 2012 and will not be available until after that date. The Village will not advance funds. In cases where the Road SSA has both snow plowing and road maintenance, funds can be used to pay for extra ordinary snow plowing that was more than budgeted as long as the money is in the account. Each payment request must include a certification from the Road Committee that the amount claimed is properly due and owing.

To view the ordinance, go to www.villageofriverwoods.com, Click on Government Tab (Green) at Top of Page. Click on Board of Trustees tab Left of Page, Click on Ordinance No 11-1-3 under downloads on right side of page about 1/3 of the way down.

If you are interested please call the Village Hall at 847-945-3990 between 8:30am and 1:30pm. Ask for the Director of Community Services, and he will help you set up the Road SSA for your road association.

Very truly yours,

Bill Kaplan
Mayor of Riverwoods