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City of Des Plaines Neighborhood Traffic Management Policy Step 4 Special Service Area (SSA) If the minimum thresholds are met from the neighborhood survey then City staff will prepare a more detailed engineering design of the proposed measures with detailed cost estimates. Similarly the Legal Department will prepare the necessary paperwork for a special service area (SSA). The SSA is a mechanism for contiguous residential areas to fund localized public improvements through a localized property levy. The SSA process for traffic calming measures will work as follows: 1. A representative of the neighborhood must work with the Legal Department in submitting an application to create the SSA. The application will include: the precise area and list of residences to be included within the SSA; the total dollar amount to be levied upon the SSA; the breakdown of the dollar share attributable to each individual property based upon assessed property value; and the repayment period (between 1 and 15 years). a. SSA Boundary The general rule for the SSA is that it includes all of the homes that directly benefit from the improvements to be implemented. For traffic calming measures that occur between intersections (e.g. speed humps, curb extensions), the SSA will include all homes located on the individual block (as determined by driveway frontage). For intersection traffic calming measures (e.g. traffic circles, curb extensions), the SSA will include all homes along the blocks that feed into the intersection. These are general rules only and it is expected that each application will need to be examined individually in order to make a rational determination of the appropriate boundary area. An exhibit showing some sample applications of the policy is included in Appendix E. b. Repayment Period Illinois law provides for a maximum repayment period of 15 years for SSA's. Since the City will be fronting the construction funds, the City naturally favors shorter payback periods. A reasonable annual interest rate, as determined by the Director of Finance at the time of the SSA creation, will be applied to the current construction cost in order to account for borrowing costs over the course of the selected repayment period. An exhibit showing sample costs per residence for the boundary area examples, given the various repayment periods, is included in Appendix E. Page 9 of 12 2. A letter will be sent to each of the homes in the proposed SSA explaining the SSA application, the SSA process and indicating the date for the public hearing. 3. A public hearing will be held for the SSA application at a City Council meeting. The public hearing will be advertised in accordance with State and local requirements. 4. Each residence in the proposed SSA that opposes the formation of the SSA, must submit a counter petition to the City expressing that opposition. Counter petitions will be accepted for a period of 60 days following the public hearing. 5. If 51 percent or more of the affected residences within the SSA file counter petitions within the 60 -day period, then the application to form the SSA will be terminated. City staff will work with the residents to determine if there are any alternatives that might be more acceptable to the neighborhood and if necessary repeat the above process.