97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1208

 

Introduced 02/08/11, by Rep. Maria Antonia Berrios

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-7  from Ch. 24, par. 11-74.4-7

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that all accumulated tax incremental revenues not specifically appropriated for defined costs for projects within a redevelopment project area by the end of a municipality's fiscal year shall be deemed "surplus" funds. Provides that all surplus funds in the special tax allocation fund shall be distributed annually within 60 (instead of 180) days after the close of the municipality's fiscal year. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 11-74.4-7 as follows:
 
6    (65 ILCS 5/11-74.4-7)  (from Ch. 24, par. 11-74.4-7)
7    Sec. 11-74.4-7. Obligations secured by the special tax
8allocation fund set forth in Section 11-74.4-8 for the
9redevelopment project area may be issued to provide for
10redevelopment project costs. Such obligations, when so issued,
11shall be retired in the manner provided in the ordinance
12authorizing the issuance of such obligations by the receipts of
13taxes levied as specified in Section 11-74.4-9 against the
14taxable property included in the area, by revenues as specified
15by Section 11-74.4-8a and other revenue designated by the
16municipality. A municipality may in the ordinance pledge all or
17any part of the funds in and to be deposited in the special tax
18allocation fund created pursuant to Section 11-74.4-8 to the
19payment of the redevelopment project costs and obligations. Any
20pledge of funds in the special tax allocation fund shall
21provide for distribution to the taxing districts and to the
22Illinois Department of Revenue of moneys not required, pledged,
23earmarked, or otherwise designated for payment and securing of

 

 

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1the obligations and anticipated redevelopment project costs
2and such excess funds shall be calculated annually and deemed
3to be "surplus" funds. In the event a municipality only applies
4or pledges a portion of the funds in the special tax allocation
5fund for the payment or securing of anticipated redevelopment
6project costs or of obligations, any such funds remaining in
7the special tax allocation fund after complying with the
8requirements of the application or pledge, shall also be
9calculated annually and deemed "surplus" funds.
10Notwithstanding the foregoing, after the effective date of this
11amendatory Act of the 97th General Assembly, all accumulated
12tax incremental revenues not specifically appropriated for
13defined costs for projects within a redevelopment project area
14by the end of a municipality's fiscal year shall also be deemed
15"surplus" funds. All surplus funds in the special tax
16allocation fund shall be distributed annually within 60 180
17days after the close of the municipality's fiscal year by being
18paid by the municipal treasurer to the County Collector, to the
19Department of Revenue and to the municipality in direct
20proportion to the tax incremental revenue received as a result
21of an increase in the equalized assessed value of property in
22the redevelopment project area, tax incremental revenue
23received from the State and tax incremental revenue received
24from the municipality, but not to exceed as to each such source
25the total incremental revenue received from that source. The
26County Collector shall thereafter make distribution to the

 

 

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1respective taxing districts in the same manner and proportion
2as the most recent distribution by the county collector to the
3affected districts of real property taxes from real property in
4the redevelopment project area.
5    Without limiting the foregoing in this Section, the
6municipality may in addition to obligations secured by the
7special tax allocation fund pledge for a period not greater
8than the term of the obligations towards payment of such
9obligations any part or any combination of the following: (a)
10net revenues of all or part of any redevelopment project; (b)
11taxes levied and collected on any or all property in the
12municipality; (c) the full faith and credit of the
13municipality; (d) a mortgage on part or all of the
14redevelopment project; or (e) any other taxes or anticipated
15receipts that the municipality may lawfully pledge.
16    Such obligations may be issued in one or more series
17bearing interest at such rate or rates as the corporate
18authorities of the municipality shall determine by ordinance.
19Such obligations shall bear such date or dates, mature at such
20time or times not exceeding 20 years from their respective
21dates, be in such denomination, carry such registration
22privileges, be executed in such manner, be payable in such
23medium of payment at such place or places, contain such
24covenants, terms and conditions, and be subject to redemption
25as such ordinance shall provide. Obligations issued pursuant to
26this Act may be sold at public or private sale at such price as

 

 

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1shall be determined by the corporate authorities of the
2municipalities. No referendum approval of the electors shall be
3required as a condition to the issuance of obligations pursuant
4to this Division except as provided in this Section.
5    In the event the municipality authorizes issuance of
6obligations pursuant to the authority of this Division secured
7by the full faith and credit of the municipality, which
8obligations are other than obligations which may be issued
9under home rule powers provided by Article VII, Section 6 of
10the Illinois Constitution, or pledges taxes pursuant to (b) or
11(c) of the second paragraph of this section, the ordinance
12authorizing the issuance of such obligations or pledging such
13taxes shall be published within 10 days after such ordinance
14has been passed in one or more newspapers, with general
15circulation within such municipality. The publication of the
16ordinance shall be accompanied by a notice of (1) the specific
17number of voters required to sign a petition requesting the
18question of the issuance of such obligations or pledging taxes
19to be submitted to the electors; (2) the time in which such
20petition must be filed; and (3) the date of the prospective
21referendum. The municipal clerk shall provide a petition form
22to any individual requesting one.
23    If no petition is filed with the municipal clerk, as
24hereinafter provided in this Section, within 30 days after the
25publication of the ordinance, the ordinance shall be in effect.
26But, if within that 30 day period a petition is filed with the

 

 

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1municipal clerk, signed by electors in the municipality
2numbering 10% or more of the number of registered voters in the
3municipality, asking that the question of issuing obligations
4using full faith and credit of the municipality as security for
5the cost of paying for redevelopment project costs, or of
6pledging taxes for the payment of such obligations, or both, be
7submitted to the electors of the municipality, the corporate
8authorities of the municipality shall call a special election
9in the manner provided by law to vote upon that question, or,
10if a general, State or municipal election is to be held within
11a period of not less than 30 or more than 90 days from the date
12such petition is filed, shall submit the question at the next
13general, State or municipal election. If it appears upon the
14canvass of the election by the corporate authorities that a
15majority of electors voting upon the question voted in favor
16thereof, the ordinance shall be in effect, but if a majority of
17the electors voting upon the question are not in favor thereof,
18the ordinance shall not take effect.
19    The ordinance authorizing the obligations may provide that
20the obligations shall contain a recital that they are issued
21pursuant to this Division, which recital shall be conclusive
22evidence of their validity and of the regularity of their
23issuance.
24    In the event the municipality authorizes issuance of
25obligations pursuant to this Section secured by the full faith
26and credit of the municipality, the ordinance authorizing the

 

 

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1obligations may provide for the levy and collection of a direct
2annual tax upon all taxable property within the municipality
3sufficient to pay the principal thereof and interest thereon as
4it matures, which levy may be in addition to and exclusive of
5the maximum of all other taxes authorized to be levied by the
6municipality, which levy, however, shall be abated to the
7extent that monies from other sources are available for payment
8of the obligations and the municipality certifies the amount of
9said monies available to the county clerk.
10    A certified copy of such ordinance shall be filed with the
11county clerk of each county in which any portion of the
12municipality is situated, and shall constitute the authority
13for the extension and collection of the taxes to be deposited
14in the special tax allocation fund.
15    A municipality may also issue its obligations to refund in
16whole or in part, obligations theretofore issued by such
17municipality under the authority of this Act, whether at or
18prior to maturity, provided however, that the last maturity of
19the refunding obligations may not be later than the dates set
20forth under Section 11-74.4-3.5.
21    In the event a municipality issues obligations under home
22rule powers or other legislative authority the proceeds of
23which are pledged to pay for redevelopment project costs, the
24municipality may, if it has followed the procedures in
25conformance with this division, retire said obligations from
26funds in the special tax allocation fund in amounts and in such

 

 

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1manner as if such obligations had been issued pursuant to the
2provisions of this division.
3    All obligations heretofore or hereafter issued pursuant to
4this Act shall not be regarded as indebtedness of the
5municipality issuing such obligations or any other taxing
6district for the purpose of any limitation imposed by law.
7(Source: P.A. 95-15, eff. 7-16-07; 95-164, eff. 1-1-08; 95-331,
8eff. 8-21-07; 95-346, eff. 8-21-07; 95-459, eff. 8-27-07;
995-653, eff. 1-1-08; 95-662, eff. 10-11-07; 95-683, eff.
1010-19-07; 95-709, eff. 1-29-08; 95-876, eff. 8-21-08; 95-932,
11eff. 8-26-08; 95-964, eff. 9-23-08; 95-977, eff. 9-22-08;
1295-1028, eff. 8-25-09 (see Section 5 of P.A. 96-717 for the
13effective date of changes made by P.A. 95-1028); 96-328, eff.
148-11-09; 96-1000, eff. 7-2-10.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.