93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4183

 

Introduced 1/23/2004, by Patricia Reid Lindner

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/19-1   from Ch. 122, par. 19-1

    Amends the School Code. Provides that for school districts that maintain grades K to 12, inclusive, the debt limit is 20% (instead of 15%) of the value of the taxable property in the district. Effective immediately.


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A BILL FOR

 

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1     AN ACT concerning education.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The School Code is amended by changing Section
5 19-1 as follows:
 
6     (105 ILCS 5/19-1)  (from Ch. 122, par. 19-1)
7     Sec. 19-1. Debt limitations of school districts.
8     (a) School districts shall not be subject to the provisions
9 limiting their indebtedness prescribed in "An Act to limit the
10 indebtedness of counties having a population of less than
11 500,000 and townships, school districts and other municipal
12 corporations having a population of less than 300,000",
13 approved February 15, 1928, as amended.
14     No school districts maintaining grades K through 8 or 9
15 through 12 shall become indebted in any manner or for any
16 purpose to an amount, including existing indebtedness, in the
17 aggregate exceeding 6.9% on the value of the taxable property
18 therein to be ascertained by the last assessment for State and
19 county taxes or, until January 1, 1983, if greater, the sum
20 that is produced by multiplying the school district's 1978
21 equalized assessed valuation by the debt limitation percentage
22 in effect on January 1, 1979, previous to the incurring of such
23 indebtedness.
24     No school districts maintaining grades K through 12 shall
25 become indebted in any manner or for any purpose to an amount,
26 including existing indebtedness, in the aggregate exceeding
27 13.8% on the value of the taxable property therein to be
28 ascertained by the last assessment for State and county taxes
29 or, until January 1, 1983, if greater, the sum that is produced
30 by multiplying the school district's 1978 equalized assessed
31 valuation by the debt limitation percentage in effect on
32 January 1, 1979, previous to the incurring of such

 

 

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1 indebtedness.
2     Notwithstanding the provisions of any other law to the
3 contrary, in any case in which the voters of a school district
4 have approved a proposition for the issuance of bonds of such
5 school district at an election held prior to January 1, 1979,
6 and all of the bonds approved at such election have not been
7 issued, the debt limitation applicable to such school district
8 during the calendar year 1979 shall be computed by multiplying
9 the value of taxable property therein, including personal
10 property, as ascertained by the last assessment for State and
11 county taxes, previous to the incurring of such indebtedness,
12 by the percentage limitation applicable to such school district
13 under the provisions of this subsection (a).
14     (b) Notwithstanding the debt limitation prescribed in
15 subsection (a) of this Section, additional indebtedness may be
16 incurred in an amount not to exceed the estimated cost of
17 acquiring or improving school sites or constructing and
18 equipping additional building facilities under the following
19 conditions:
20         (1) Whenever the enrollment of students for the next
21     school year is estimated by the board of education to
22     increase over the actual present enrollment by not less
23     than 35% or by not less than 200 students or the actual
24     present enrollment of students has increased over the
25     previous school year by not less than 35% or by not less
26     than 200 students and the board of education determines
27     that additional school sites or building facilities are
28     required as a result of such increase in enrollment; and
29         (2) When the Regional Superintendent of Schools having
30     jurisdiction over the school district and the State
31     Superintendent of Education concur in such enrollment
32     projection or increase and approve the need for such
33     additional school sites or building facilities and the
34     estimated cost thereof; and
35         (3) When the voters in the school district approve a
36     proposition for the issuance of bonds for the purpose of

 

 

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1     acquiring or improving such needed school sites or
2     constructing and equipping such needed additional building
3     facilities at an election called and held for that purpose.
4     Notice of such an election shall state that the amount of
5     indebtedness proposed to be incurred would exceed the debt
6     limitation otherwise applicable to the school district.
7     The ballot for such proposition shall state what percentage
8     of the equalized assessed valuation will be outstanding in
9     bonds if the proposed issuance of bonds is approved by the
10     voters; or
11         (4) Notwithstanding the provisions of paragraphs (1)
12     through (3) of this subsection (b), if the school board
13     determines that additional facilities are needed to
14     provide a quality educational program and not less than 2/3
15     of those voting in an election called by the school board
16     on the question approve the issuance of bonds for the
17     construction of such facilities, the school district may
18     issue bonds for this purpose; or
19         (5) Notwithstanding the provisions of paragraphs (1)
20     through (3) of this subsection (b), if (i) the school
21     district has previously availed itself of the provisions of
22     paragraph (4) of this subsection (b) to enable it to issue
23     bonds, (ii) the voters of the school district have not
24     defeated a proposition for the issuance of bonds since the
25     referendum described in paragraph (4) of this subsection
26     (b) was held, (iii) the school board determines that
27     additional facilities are needed to provide a quality
28     educational program, and (iv) a majority of those voting in
29     an election called by the school board on the question
30     approve the issuance of bonds for the construction of such
31     facilities, the school district may issue bonds for this
32     purpose.
33     For school districts maintaining grades K to 8, inclusive,
34 or 9 to 12, inclusive, in no event shall the indebtedness
35 incurred pursuant to this subsection (b) and the existing
36 indebtedness of the school district exceed 15% of the value of

 

 

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1 the taxable property therein to be ascertained by the last
2 assessment for State and county taxes, previous to the
3 incurring of such indebtedness or, until January 1, 1983, if
4 greater, the sum that is produced by multiplying the school
5 district's 1978 equalized assessed valuation by the debt
6 limitation percentage in effect on January 1, 1979. For school
7 districts maintaining grades K to 12, inclusive, in no event
8 shall the indebtedness incurred pursuant to this subsection (b)
9 and the existing indebtedness of the school district exceed 20%
10 of the value of the taxable property therein to be ascertained
11 by the last assessment for State and county taxes, previous to
12 the incurring of such indebtedness.
13     The indebtedness provided for by this subsection (b) shall
14 be in addition to and in excess of any other debt limitation.
15     (c) Notwithstanding the debt limitation prescribed in
16 subsection (a) of this Section, in any case in which a public
17 question for the issuance of bonds of a proposed school
18 district maintaining grades kindergarten through 12 received
19 at least 60% of the valid ballots cast on the question at an
20 election held on or prior to November 8, 1994, and in which the
21 bonds approved at such election have not been issued, the
22 school district pursuant to the requirements of Section 11A-10
23 may issue the total amount of bonds approved at such election
24 for the purpose stated in the question.
25     (d) Notwithstanding the debt limitation prescribed in
26 subsection (a) of this Section, a school district that meets
27 all the criteria set forth in paragraphs (1) and (2) of this
28 subsection (d) may incur an additional indebtedness in an
29 amount not to exceed $4,500,000, even though the amount of the
30 additional indebtedness authorized by this subsection (d),
31 when incurred and added to the aggregate amount of indebtedness
32 of the district existing immediately prior to the district
33 incurring the additional indebtedness authorized by this
34 subsection (d), causes the aggregate indebtedness of the
35 district to exceed the debt limitation otherwise applicable to
36 that district under subsection (a):

 

 

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1         (1) The additional indebtedness authorized by this
2     subsection (d) is incurred by the school district through
3     the issuance of bonds under and in accordance with Section
4     17-2.11a for the purpose of replacing a school building
5     which, because of mine subsidence damage, has been closed
6     as provided in paragraph (2) of this subsection (d) or
7     through the issuance of bonds under and in accordance with
8     Section 19-3 for the purpose of increasing the size of, or
9     providing for additional functions in, such replacement
10     school buildings, or both such purposes.
11         (2) The bonds issued by the school district as provided
12     in paragraph (1) above are issued for the purposes of
13     construction by the school district of a new school
14     building pursuant to Section 17-2.11, to replace an
15     existing school building that, because of mine subsidence
16     damage, is closed as of the end of the 1992-93 school year
17     pursuant to action of the regional superintendent of
18     schools of the educational service region in which the
19     district is located under Section 3-14.22 or are issued for
20     the purpose of increasing the size of, or providing for
21     additional functions in, the new school building being
22     constructed to replace a school building closed as the
23     result of mine subsidence damage, or both such purposes.
24     (e) Notwithstanding the debt limitation prescribed in
25 subsection (a) of this Section, a school district that meets
26 all the criteria set forth in paragraphs (1) through (5) of
27 this subsection (e) may, without referendum, incur an
28 additional indebtedness in an amount not to exceed the lesser
29 of $5,000,000 or 1.5% of the value of the taxable property
30 within the district even though the amount of the additional
31 indebtedness authorized by this subsection (e), when incurred
32 and added to the aggregate amount of indebtedness of the
33 district existing immediately prior to the district incurring
34 that additional indebtedness, causes the aggregate
35 indebtedness of the district to exceed or increases the amount
36 by which the aggregate indebtedness of the district already

 

 

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1 exceeds the debt limitation otherwise applicable to that
2 district under subsection (a):
3         (1) The State Board of Education certifies the school
4     district under Section 19-1.5 as a financially distressed
5     district.
6         (2) The additional indebtedness authorized by this
7     subsection (e) is incurred by the financially distressed
8     district during the school year or school years in which
9     the certification of the district as a financially
10     distressed district continues in effect through the
11     issuance of bonds for the lawful school purposes of the
12     district, pursuant to resolution of the school board and
13     without referendum, as provided in paragraph (5) of this
14     subsection.
15         (3) The aggregate amount of bonds issued by the
16     financially distressed district during a fiscal year in
17     which it is authorized to issue bonds under this subsection
18     does not exceed the amount by which the aggregate
19     expenditures of the district for operational purposes
20     during the immediately preceding fiscal year exceeds the
21     amount appropriated for the operational purposes of the
22     district in the annual school budget adopted by the school
23     board of the district for the fiscal year in which the
24     bonds are issued.
25         (4) Throughout each fiscal year in which certification
26     of the district as a financially distressed district
27     continues in effect, the district maintains in effect a
28     gross salary expense and gross wage expense freeze policy
29     under which the district expenditures for total employee
30     salaries and wages do not exceed such expenditures for the
31     immediately preceding fiscal year. Nothing in this
32     paragraph, however, shall be deemed to impair or to require
33     impairment of the contractual obligations, including
34     collective bargaining agreements, of the district or to
35     impair or require the impairment of the vested rights of
36     any employee of the district under the terms of any

 

 

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1     contract or agreement in effect on the effective date of
2     this amendatory Act of 1994.
3         (5) Bonds issued by the financially distressed
4     district under this subsection shall bear interest at a
5     rate not to exceed the maximum rate authorized by law at
6     the time of the making of the contract, shall mature within
7     40 years from their date of issue, and shall be signed by
8     the president of the school board and treasurer of the
9     school district. In order to issue bonds under this
10     subsection, the school board shall adopt a resolution
11     fixing the amount of the bonds, the date of the bonds, the
12     maturities of the bonds, the rates of interest of the
13     bonds, and their place of payment and denomination, and
14     shall provide for the levy and collection of a direct
15     annual tax upon all the taxable property in the district
16     sufficient to pay the principal and interest on the bonds
17     to maturity. Upon the filing in the office of the county
18     clerk of the county in which the financially distressed
19     district is located of a certified copy of the resolution,
20     it is the duty of the county clerk to extend the tax
21     therefor in addition to and in excess of all other taxes at
22     any time authorized to be levied by the district. If bond
23     proceeds from the sale of bonds include a premium or if the
24     proceeds of the bonds are invested as authorized by law,
25     the school board shall determine by resolution whether the
26     interest earned on the investment of bond proceeds or the
27     premium realized on the sale of the bonds is to be used for
28     any of the lawful school purposes for which the bonds were
29     issued or for the payment of the principal indebtedness and
30     interest on the bonds. The proceeds of the bond sale shall
31     be deposited in the educational purposes fund of the
32     district and shall be used to pay operational expenses of
33     the district. This subsection is cumulative and
34     constitutes complete authority for the issuance of bonds as
35     provided in this subsection, notwithstanding any other law
36     to the contrary.

 

 

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1     (f) Notwithstanding the provisions of subsection (a) of
2 this Section or of any other law, bonds in not to exceed the
3 aggregate amount of $5,500,000 and issued by a school district
4 meeting the following criteria shall not be considered
5 indebtedness for purposes of any statutory limitation and may
6 be issued in an amount or amounts, including existing
7 indebtedness, in excess of any heretofore or hereafter imposed
8 statutory limitation as to indebtedness:
9         (1) At the time of the sale of such bonds, the board of
10     education of the district shall have determined by
11     resolution that the enrollment of students in the district
12     is projected to increase by not less than 7% during each of
13     the next succeeding 2 school years.
14         (2) The board of education shall also determine by
15     resolution that the improvements to be financed with the
16     proceeds of the bonds are needed because of the projected
17     enrollment increases.
18         (3) The board of education shall also determine by
19     resolution that the projected increases in enrollment are
20     the result of improvements made or expected to be made to
21     passenger rail facilities located in the school district.
22     (g) Notwithstanding the provisions of subsection (a) of
23 this Section or any other law, bonds in not to exceed an
24 aggregate amount of 25% of the equalized assessed value of the
25 taxable property of a school district and issued by a school
26 district meeting the criteria in paragraphs (i) through (iv) of
27 this subsection shall not be considered indebtedness for
28 purposes of any statutory limitation and may be issued pursuant
29 to resolution of the school board in an amount or amounts,
30 including existing indebtedness, in excess of any statutory
31 limitation of indebtedness heretofore or hereafter imposed:
32         (i) The bonds are issued for the purpose of
33     constructing a new high school building to replace two
34     adjacent existing buildings which together house a single
35     high school, each of which is more than 65 years old, and
36     which together are located on more than 10 acres and less

 

 

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1     than 11 acres of property.
2         (ii) At the time the resolution authorizing the
3     issuance of the bonds is adopted, the cost of constructing
4     a new school building to replace the existing school
5     building is less than 60% of the cost of repairing the
6     existing school building.
7         (iii) The sale of the bonds occurs before July 1, 1997.
8         (iv) The school district issuing the bonds is a unit
9     school district located in a county of less than 70,000 and
10     more than 50,000 inhabitants, which has an average daily
11     attendance of less than 1,500 and an equalized assessed
12     valuation of less than $29,000,000.
13     (h) Notwithstanding any other provisions of this Section or
14 the provisions of any other law, until January 1, 1998, a
15 community unit school district maintaining grades K through 12
16 may issue bonds up to an amount, including existing
17 indebtedness, not exceeding 27.6% of the equalized assessed
18 value of the taxable property in the district, if all of the
19 following conditions are met:
20         (i) The school district has an equalized assessed
21     valuation for calendar year 1995 of less than $24,000,000;
22         (ii) The bonds are issued for the capital improvement,
23     renovation, rehabilitation, or replacement of existing
24     school buildings of the district, all of which buildings
25     were originally constructed not less than 40 years ago;
26         (iii) The voters of the district approve a proposition
27     for the issuance of the bonds at a referendum held after
28     March 19, 1996; and
29         (iv) The bonds are issued pursuant to Sections 19-2
30     through 19-7 of this Code.
31     (i) Notwithstanding any other provisions of this Section or
32 the provisions of any other law, until January 1, 1998, a
33 community unit school district maintaining grades K through 12
34 may issue bonds up to an amount, including existing
35 indebtedness, not exceeding 27% of the equalized assessed value
36 of the taxable property in the district, if all of the

 

 

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1 following conditions are met:
2         (i) The school district has an equalized assessed
3     valuation for calendar year 1995 of less than $44,600,000;
4         (ii) The bonds are issued for the capital improvement,
5     renovation, rehabilitation, or replacement of existing
6     school buildings of the district, all of which existing
7     buildings were originally constructed not less than 80
8     years ago;
9         (iii) The voters of the district approve a proposition
10     for the issuance of the bonds at a referendum held after
11     December 31, 1996; and
12         (iv) The bonds are issued pursuant to Sections 19-2
13     through 19-7 of this Code.
14     (j) Notwithstanding any other provisions of this Section or
15 the provisions of any other law, until January 1, 1999, a
16 community unit school district maintaining grades K through 12
17 may issue bonds up to an amount, including existing
18 indebtedness, not exceeding 27% of the equalized assessed value
19 of the taxable property in the district if all of the following
20 conditions are met:
21         (i) The school district has an equalized assessed
22     valuation for calendar year 1995 of less than $140,000,000
23     and a best 3 months average daily attendance for the
24     1995-96 school year of at least 2,800;
25         (ii) The bonds are issued to purchase a site and build
26     and equip a new high school, and the school district's
27     existing high school was originally constructed not less
28     than 35 years prior to the sale of the bonds;
29         (iii) At the time of the sale of the bonds, the board
30     of education determines by resolution that a new high
31     school is needed because of projected enrollment
32     increases;
33         (iv) At least 60% of those voting in an election held
34     after December 31, 1996 approve a proposition for the
35     issuance of the bonds; and
36         (v) The bonds are issued pursuant to Sections 19-2

 

 

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1     through 19-7 of this Code.
2     (k) Notwithstanding the debt limitation prescribed in
3 subsection (a) of this Section, a school district that meets
4 all the criteria set forth in paragraphs (1) through (4) of
5 this subsection (k) may issue bonds to incur an additional
6 indebtedness in an amount not to exceed $4,000,000 even though
7 the amount of the additional indebtedness authorized by this
8 subsection (k), when incurred and added to the aggregate amount
9 of indebtedness of the school district existing immediately
10 prior to the school district incurring such additional
11 indebtedness, causes the aggregate indebtedness of the school
12 district to exceed or increases the amount by which the
13 aggregate indebtedness of the district already exceeds the debt
14 limitation otherwise applicable to that school district under
15 subsection (a):
16         (1) the school district is located in 2 counties, and a
17     referendum to authorize the additional indebtedness was
18     approved by a majority of the voters of the school district
19     voting on the proposition to authorize that indebtedness;
20         (2) the additional indebtedness is for the purpose of
21     financing a multi-purpose room addition to the existing
22     high school;
23         (3) the additional indebtedness, together with the
24     existing indebtedness of the school district, shall not
25     exceed 17.4% of the value of the taxable property in the
26     school district, to be ascertained by the last assessment
27     for State and county taxes; and
28         (4) the bonds evidencing the additional indebtedness
29     are issued, if at all, within 120 days of the effective
30     date of this amendatory Act of 1998.
31     (l) Notwithstanding any other provisions of this Section or
32 the provisions of any other law, until January 1, 2000, a
33 school district maintaining grades kindergarten through 8 may
34 issue bonds up to an amount, including existing indebtedness,
35 not exceeding 15% of the equalized assessed value of the
36 taxable property in the district if all of the following

 

 

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1 conditions are met:
2         (i) the district has an equalized assessed valuation
3     for calendar year 1996 of less than $10,000,000;
4         (ii) the bonds are issued for capital improvement,
5     renovation, rehabilitation, or replacement of one or more
6     school buildings of the district, which buildings were
7     originally constructed not less than 70 years ago;
8         (iii) the voters of the district approve a proposition
9     for the issuance of the bonds at a referendum held on or
10     after March 17, 1998; and
11         (iv) the bonds are issued pursuant to Sections 19-2
12     through 19-7 of this Code.
13     (m) Notwithstanding any other provisions of this Section or
14 the provisions of any other law, until January 1, 1999, an
15 elementary school district maintaining grades K through 8 may
16 issue bonds up to an amount, excluding existing indebtedness,
17 not exceeding 18% of the equalized assessed value of the
18 taxable property in the district, if all of the following
19 conditions are met:
20         (i) The school district has an equalized assessed
21     valuation for calendar year 1995 or less than $7,700,000;
22         (ii) The school district operates 2 elementary
23     attendance centers that until 1976 were operated as the
24     attendance centers of 2 separate and distinct school
25     districts;
26         (iii) The bonds are issued for the construction of a
27     new elementary school building to replace an existing
28     multi-level elementary school building of the school
29     district that is not handicapped accessible at all levels
30     and parts of which were constructed more than 75 years ago;
31         (iv) The voters of the school district approve a
32     proposition for the issuance of the bonds at a referendum
33     held after July 1, 1998; and
34         (v) The bonds are issued pursuant to Sections 19-2
35     through 19-7 of this Code.
36     (n) Notwithstanding the debt limitation prescribed in

 

 

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1 subsection (a) of this Section or any other provisions of this
2 Section or of any other law, a school district that meets all
3 of the criteria set forth in paragraphs (i) through (vi) of
4 this subsection (n) may incur additional indebtedness by the
5 issuance of bonds in an amount not exceeding the amount
6 certified by the Capital Development Board to the school
7 district as provided in paragraph (iii) of this subsection (n),
8 even though the amount of the additional indebtedness so
9 authorized, when incurred and added to the aggregate amount of
10 indebtedness of the district existing immediately prior to the
11 district incurring the additional indebtedness authorized by
12 this subsection (n), causes the aggregate indebtedness of the
13 district to exceed the debt limitation otherwise applicable by
14 law to that district:
15         (i) The school district applies to the State Board of
16     Education for a school construction project grant and
17     submits a district facilities plan in support of its
18     application pursuant to Section 5-20 of the School
19     Construction Law.
20         (ii) The school district's application and facilities
21     plan are approved by, and the district receives a grant
22     entitlement for a school construction project issued by,
23     the State Board of Education under the School Construction
24     Law.
25         (iii) The school district has exhausted its bonding
26     capacity or the unused bonding capacity of the district is
27     less than the amount certified by the Capital Development
28     Board to the district under Section 5-15 of the School
29     Construction Law as the dollar amount of the school
30     construction project's cost that the district will be
31     required to finance with non-grant funds in order to
32     receive a school construction project grant under the
33     School Construction Law.
34         (iv) The bonds are issued for a "school construction
35     project", as that term is defined in Section 5-5 of the
36     School Construction Law, in an amount that does not exceed

 

 

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1     the dollar amount certified, as provided in paragraph (iii)
2     of this subsection (n), by the Capital Development Board to
3     the school district under Section 5-15 of the School
4     Construction Law.
5         (v) The voters of the district approve a proposition
6     for the issuance of the bonds at a referendum held after
7     the criteria specified in paragraphs (i) and (iii) of this
8     subsection (n) are met.
9         (vi) The bonds are issued pursuant to Sections 19-2
10     through 19-7 of the School Code.
11     (o) Notwithstanding any other provisions of this Section or
12 the provisions of any other law, until November 1, 2007, a
13 community unit school district maintaining grades K through 12
14 may issue bonds up to an amount, including existing
15 indebtedness, not exceeding 20% of the equalized assessed value
16 of the taxable property in the district if all of the following
17 conditions are met:
18         (i) the school district has an equalized assessed
19     valuation for calendar year 2001 of at least $737,000,000
20     and an enrollment for the 2002-2003 school year of at least
21     8,500;
22         (ii) the bonds are issued to purchase school sites,
23     build and equip a new high school, build and equip a new
24     junior high school, build and equip 5 new elementary
25     schools, and make technology and other improvements and
26     additions to existing schools;
27         (iii) at the time of the sale of the bonds, the board
28     of education determines by resolution that the sites and
29     new or improved facilities are needed because of projected
30     enrollment increases;
31         (iv) at least 57% of those voting in a general election
32     held prior to January 1, 2003 approved a proposition for
33     the issuance of the bonds; and
34         (v) the bonds are issued pursuant to Sections 19-2
35     through 19-7 of this Code.
36 (Source: P.A. 93-13, eff. 6-9-03.)
 

 

 

HB4183 - 15 - LRB093 14550 NHT 40041 b

1     Section 99. Effective date. This Act takes effect upon
2 becoming law.