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This following questions and answers below have been drafted by the Township Officials of Illinois (TOI). They are to act as a guide to assist townships in performing their daily duties. The information contained herein should not be considered legal advice. It is advisory in nature. If you have specific legal questions, we encourage you to contact your township attorney. Click the below questions to see the answers.
Does the supervisor vote in votes taken by the township board?
Can the township board tell the highway commissioner what to do?
Can the township board refuse to pay a legally incurred bill for the road district?
Must our township have a CPA audit each year?
Can the road district and the township enter into an intergovernmental agreement whereby the road district could repair and maintain township owned facilities?
Is the three-year budget mandatory?
Does the board of trustees adopt the highway commissioner budget?
Must the road district budget be adopted at the public hearing?
Does the township and road district budgets have to be filed with the county clerk?
Are budget changes allowed by law?
Can the budget notice be published in the local shopper's guide to save money?
Is the maximum cash reserves allowed by law unlimited?
Can all property taxes be put into one fund?
Must the tax levy ordinance be filed by the 1st Tuesday in December?
Does the board of trustees adopt the road district levy?
Are township and road district tax levies combined for computation of the truth-in-taxation law and tax caps?
Is the permanent road levy approved annually?
Must the township levy .10% annually to qualify for state aid under the general assistance program?
Does the truth-in-taxation law apply in tax cap counties?
Must the levy be determined 30 days prior to adoption?
Can the board of trustees make transfers from the general town fund to the road fund?
Can the road district obtain bridge aid from the State of Illinois without levying maximum taxes?
Can health insurance premiums be paid out of the insurance levy?
Do townships have to share their replacement tax with the township library?
How is the employer's share of social security costs paid?
How are total tax revenues calculated for a specific levy?
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Question: Does the supervisor vote in votes taken by the township board?
Answer: Yes, the supervisor has a vote on all matters. The supervisor may make or second motions, participate in discussions on all matters and should exercise his/her voting power on all issues.
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Question: Can the township board tell the highway commissioner what to do?
Answer: No. A township road district is, in many aspects, a separate government. Neither the township board of trustees nor the township supervisor has any jurisdiction, or authority, over the highway commissioner and/or employees of the road district. The employees of the road district are subject to the directions and requirements set forth by the highway commissioner, not the township board. However, it has been demonstrated clearly that where the highway commissioner, the supervisor, the clerk and the township board work in harmony, the taxpayer usually benefits.
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Question: Can the township board refuse to pay a legally incurred bill for the road district?
Answer: No. The township board has an obligation to approve all legally incurred bills to the extent that there is an appropriation in the road district budget for the expenditure and that the proper order for payment has been submitted by the highway commissioner and countersigned by the township clerk. Conversely, the township board has an obligation to reject payment of any road district bills that are not legally incurred debts.
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Question: Must our township have a CPA audit each year?
Answer: That depends on the amount of revenue that your township receives each year. If your township receives revenues in a fiscal year of less than $850,000, exclusive of road funds, the annual audit may be done by an independent auditing committee composed of three township electors. If your township receives revenues of in a fiscal year of $850,000 or more, exclusive of road funds, you must have a CPA audit completed each year. Furthermore, a township receiving less than $850,000 during a fiscal year, must have all township accounts and records audited by a certified public accountant within six months after the end of each term of office of the township supervisor or if there is a vacancy in the office of supervisor during a term of office.
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Question: Can the road district and the township enter into an intergovernmental agreement whereby the road district could repair and maintain township owned facilities?
Answer: Yes, an intergovernmental agreement can be arranged for this situation. The agreement should spell out all of the details, including the work that is to be performed by the road district as well as the specifics of who is paying and when. I suggest that the township have an attorney review any agreement before it is approved to ensure that it was completed properly. Once the agreement has been signed, the road district may purchase supplies and utilize road district manpower for the purpose of conducting work on township facilities if these expenses are accounted for in the road district budget.
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Question: Is the three-year budget format mandatory?
Answer: No. Recommended by the Department of Commerce and Economic Opportunity. Township and road districts may design their own format. State statute requirements are: Beginning balance, revenues, expenditures, ending balance.
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Question: Does the board of trustees adopt the highway commissioner budget?
Answer: Yes. Highway commissioner prepares the budget. Board of trustees adopt the budget. Board of trustees may change line item amounts in the budget.
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Question: Must the road district budget be adopted at the public hearing?
Answer: Yes the road district budget, or any portion the board deems necessary, must be adopted at the corresponding public hearing. Further, now the township budget may also be adopted at the public hearing.
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Question: Does the township and road district budgets have to be filed with the county clerk?
Answer: Yes. Within 30 days after adoption. Clerk certifies ordinance. Supervisor certifies estimate of revenues by source.
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Question: Are budget changes allowed by law?
Answer: Yes. Transfers are allowed between line items in same fund up to 10% of amount budgeted. Contingencies may be transferred to any line item in the same fund. Budget may be amended by following original adoption procedures.
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Question: Can the budget notice be published in the local shopper's guide to save money?
Answer: No. Clerk publishes notice in newspaper. Publish in township newspaper. No township newspaper, post in 5 most public places.
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Question: Is the maximum cash reserves allowed by law unlimited?
Answer: No. Court cases have allowed only about 200% of the average expenses over last three years. However, this amount may be hard to justify. DCEO recommends minimum cash reserve should be 6 months operating expense. A capital fund should be established to dedicate funds toward capital improvement as a part of the annual budget and appropriation ordinance for both the township and road district.
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Question: Can all property taxes be put into one fund?
Answer: No. Separate fund should be established for each levy. Separate bank accounts are not required. Accounting system must be able to maintain separate fund balances.
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Question: Must the tax levy ordinance be filed by the 1st Tuesday in December?
Answer: No. Last Tuesday in December. Tax levy ordinance is certified by the township clerk to the county clerk. Attach the applicable certificate of compliance with truth-in-taxation act signed by presiding officer, Click here for Truth-In-Taxation pamphlet.
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Question: Does the board of trustees adopt the road district levy?
Answer: Yes. Highway commissioner determines levy. Board of trustees must adopt levy.
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Question: Are township and road district tax levies combined for computation of the truth-in-taxation law and tax caps?
Answer: No. Township and road district are two separate governments. Permanent road levy is included for tax caps, but excluded for truth-in-taxation law.
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Question: Is the permanent road levy approved annually?
Answer: No. Approved by the electors at an annual or special town meeting or general election. Levied annually by the county clerk. Repealed by the electors.
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Question: Must the township levy .10% annually to qualify for state aid under the general assistance program?
Answer: No. The amount levied plus the unobligated balance must equal .10%. No levy is required if the unobligated balance exceeds .10%.
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Question: Does the truth-in-taxation law apply in tax cap counties?
Answer: Yes. New construction exceeds 5%. Township wants to receive maximum revenues.
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Question: Must the levy be determined 30 days prior to adoption?
Answer: Twenty (20) days for townships and road district outside of Cook County and is now twenty (20) days for townships and road district within Cook County.
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Question: Can the board of trustees make transfers from the general town fund to the road fund?
Answer: No. Board of trustees determine a surplus. Electors adopt a resolution authorizing transfer. Electors approve resolution at annual town meeting.
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Question: Can the road district obtain bridge aid from the State of Illinois without levying maximum taxes?
Answer: No. Levy road & bridge tax at .165% for two years at last known certified EAV. Levy joint bridge tax at .05% for two years at last known certified EAV. Transfers allowed from non-road district funds to meet joint bridge levy amount.
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Question: Can health insurance premiums be paid out of the insurance levy?
Answer: No. Liability insurance. Workmen's compensation insurance. Unemployment insurance. General insurance.
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Question: Do townships have to share their replacement tax with the township library?
Answer: Yes. Based on 1978 library taxes collected, divided by total taxes collected in 1978. Effective date for library is 10-01-83. Effective date for library districts is 01-01-88.
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Question: How is the employer's share of social security costs paid?
Answer: Township and road district may levy a social security tax. The township must pay all employer costs for the elected officials and employees. The road district must pay all employer costs for its employees. A separate fund must be established if social security tax is levied.
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Question: How are total tax revenues calculated for a specific levy?
Answer: Maximum rate times the total equalized assessed valuation. Limited by truth-in-taxation law and tax caps.
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