Establishment, increase or decrease of fees or special assessments; liens; penalties for nonpayment

1. A board may, after a public hearing, establish, and from time to time increase or decrease, fees or special assessments for facilities, improvements or projects and pledge the revenue for the payment of any indebtedness or special obligations of the district. A board may not impose any fee or special assessment upon property owned by a governmental entity. 2. All fees or special assessments constitute a perpetual lien on and against the property located within the district. A perpetual lien is prior and superior to all liens, claims and titles other than liens of general taxes and other special assessments and is not subject to extinguishment by the sale of any property on account of nonpayment of any liens, claims and titles including the liens of general taxes and other special assessments. A perpetual lien must be foreclosed in the same manner as provided by the laws of this State for the foreclosure of mechanics’ liens. Before any lien is foreclosed, the board shall hold a hearing thereon after providing notice thereof by publication and by registered or certified first-class mail, postage prepaid, addressed to the last known owner at his or her last known address according to the records of the district and the real property assessment roll in the county in which the property is located. 3. The board may provide for a basic penalty for nonpayment of the charges within the time and in the manner prescribed by it. The basic penalty must not be more than 10 percent of each month’s charges for the first month delinquent. In addition to the basic penalty, the board may provide for a penalty of not more than 1.5 percent per month for nonpayment of the charges and basic penalty. The board may prescribe and enforce regulations that set forth the date on which a charge becomes delinquent. The board may provide for collection of the penalties provided for in this section. 4. A lien against the property served is not effective until a notice of the lien, separately prepared for each lot affected, is: (a) Mailed to the last known owner at his or her last known address according to the records of the district and the real property assessment roll of the county in which the property is located; (b) Delivered by the board to the office of the county recorder of the county within which the property subject to such lien is located; (c) Recorded by the county recorder in a book kept by the county recorder for the purpose of recording instruments encumbering land; and (d) Indexed in the real estate index as deeds and other conveyances are required by law to be indexed.