State of Illinois
91st General Assembly
Legislation

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[ Engrossed ]

91_HB1476

 
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 1        AN ACT to amend the School Code by changing Section 19-1.

 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
 5    Section 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
 9    provisions limiting their indebtedness prescribed in "An  Act
10    to  limit the indebtedness of counties having a population of
11    less than 500,000 and townships, school districts  and  other
12    municipal  corporations  having  a  population  of  less than
13    300,000", 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
19    and  county  taxes or, until January 1, 1983, if greater, the
20    sum that is produced by  multiplying  the  school  district's
21    1978  equalized  assessed  valuation  by  the debt limitation
22    percentage in effect on January  1,  1979,  previous  to  the
23    incurring  of  such  indebtedness.  However,  if  the  school
24    district  is  eligible  to  receive  a grant under the School
25    Construction  Law,  the  debt  limit  rate  of  6.9%  may  be
26    increased to 8.6%  for  a  school  construction  project,  as
27    defined in the School Construction Law.
28        No school districts maintaining grades K through 12 shall
29    become  indebted  in  any  manner  or  for  any purpose to an
30    amount, including existing  indebtedness,  in  the  aggregate
31    exceeding  13.8% on the value of the taxable property therein
 
                            -2-                LRB9103826NTsb
 1    to be ascertained by the last assessment for State and county
 2    taxes or, until January 1, 1983, if greater, the sum that  is
 3    produced  by multiplying the school district's 1978 equalized
 4    assessed valuation  by  the  debt  limitation  percentage  in
 5    effect  on January 1, 1979, previous to the incurring of such
 6    indebtedness. However, if the school district is eligible  to
 7    receive  a  grant under the School Construction Law, the debt
 8    limit rate of 13.8% may be increased to 17.2%  for  a  school
 9    construction  project,  as defined in the School Construction
10    Law.
11        Notwithstanding the provisions of any other  law  to  the
12    contrary,  in  any  case  in  which  the  voters  of a school
13    district have approved a  proposition  for  the  issuance  of
14    bonds  of  such  school district at an election held prior to
15    January 1, 1979, and  all  of  the  bonds  approved  at  such
16    election have not been issued, the debt limitation applicable
17    to  such  school district during the calendar year 1979 shall
18    be computed by multiplying  the  value  of  taxable  property
19    therein,  including  personal property, as ascertained by the
20    last assessment for State and county taxes, previous  to  the
21    incurring  of such indebtedness, by the percentage limitation
22    applicable to such school district under  the  provisions  of
23    this subsection (a).
24        (b)  Notwithstanding  the  debt  limitation prescribed in
25    subsection (a) of this Section, additional  indebtedness  may
26    be  incurred in an amount not to exceed the estimated cost of
27    acquiring or  improving  school  sites  or  constructing  and
28    equipping  additional building facilities under the following
29    conditions:
30             (1)  Whenever the enrollment  of  students  for  the
31        next  school  year is estimated by the board of education
32        to increase over the actual  present  enrollment  by  not
33        less  than  35%  or  by not less than 200 students or the
34        actual present enrollment of students has increased  over
 
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 1        the  previous  school year by not less than 35% or by not
 2        less  than  200  students  and  the  board  of  education
 3        determines  that  additional  school  sites  or  building
 4        facilities are required as a result of such  increase  in
 5        enrollment; and
 6             (2)  When  the  Regional  Superintendent  of Schools
 7        having jurisdiction over  the  school  district  and  the
 8        State   Superintendent   of   Education  concur  in  such
 9        enrollment projection or increase and  approve  the  need
10        for  such  additional school sites or building facilities
11        and the estimated cost thereof; and
12             (3)  When the voters in the school district  approve
13        a  proposition  for the issuance of bonds for the purpose
14        of acquiring or improving such  needed  school  sites  or
15        constructing   and   equipping   such  needed  additional
16        building facilities at an election called  and  held  for
17        that purpose. Notice of such an election shall state that
18        the  amount of indebtedness proposed to be incurred would
19        exceed the debt limitation otherwise  applicable  to  the
20        school  district.   The ballot for such proposition shall
21        state what percentage of the equalized assessed valuation
22        will be outstanding in bonds if the proposed issuance  of
23        bonds is approved by the voters; or
24             (4)  Notwithstanding  the  provisions  of paragraphs
25        (1) through (3) of this subsection  (b),  if  the  school
26        board determines that additional facilities are needed to
27        provide  a  quality educational program and not less than
28        2/3 of those voting in an election called by  the  school
29        board  on  the question approve the issuance of bonds for
30        the construction of such facilities, the school  district
31        may issue bonds for this purpose; or
32             (5)  Notwithstanding  the  provisions  of paragraphs
33        (1) through (3) of this subsection (b), if (i) the school
34        district has previously availed itself of the  provisions
 
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 1        of  paragraph  (4) of this subsection (b) to enable it to
 2        issue bonds, (ii) the voters of the school district  have
 3        not  defeated  a  proposition  for  the issuance of bonds
 4        since the referendum described in paragraph (4)  of  this
 5        subsection   (b)   was   held,  (iii)  the  school  board
 6        determines  that  additional  facilities  are  needed  to
 7        provide  a  quality  educational  program,  and  (iv)   a
 8        majority  of  those  voting  in an election called by the
 9        school board on the  question  approve  the  issuance  of
10        bonds for the construction of such facilities, the school
11        district may issue bonds for this purpose.
12        In  no  event shall the indebtedness incurred pursuant to
13    this subsection (b) and  the  existing  indebtedness  of  the
14    school  district  exceed  15%  of  the  value  of the taxable
15    property therein to be ascertained by the last assessment for
16    State and county taxes, previous to  the  incurring  of  such
17    indebtedness  or,  until January 1, 1983, if greater, the sum
18    that is produced by multiplying the  school  district's  1978
19    equalized   assessed   valuation   by   the  debt  limitation
20    percentage in effect on January 1, 1979.
21        The indebtedness provided  for  by  this  subsection  (b)
22    shall  be  in  addition  to  and  in excess of any other debt
23    limitation.
24        (c)  Notwithstanding the debt  limitation  prescribed  in
25    subsection (a) of this Section, in any case in which a public
26    question  for  the  issuance  of  bonds  of a proposed school
27    district maintaining grades kindergarten through 12  received
28    at  least 60% of the valid ballots cast on the question at an
29    election held on or prior to November 8, 1994, and  in  which
30    the bonds approved at such election have not been issued, the
31    school  district  pursuant  to  the  requirements  of Section
32    11A-10 may issue the total amount of bonds approved  at  such
33    election for the purpose stated in the question.
34        (d)  Notwithstanding  the  debt  limitation prescribed in
 
                            -5-                LRB9103826NTsb
 1    subsection (a) of this Section, a school district that  meets
 2    all  the criteria set forth in paragraphs (1) and (2) of this
 3    subsection (d) may incur an  additional  indebtedness  in  an
 4    amount  not  to  exceed $4,500,000, even though the amount of
 5    the additional indebtedness  authorized  by  this  subsection
 6    (d),  when  incurred  and  added  to  the aggregate amount of
 7    indebtedness of the district existing  immediately  prior  to
 8    the district incurring the additional indebtedness authorized
 9    by  this subsection (d), causes the aggregate indebtedness of
10    the  district  to  exceed  the  debt   limitation   otherwise
11    applicable to that district under subsection (a):
12             (1)  The  additional indebtedness authorized by this
13        subsection (d) is incurred by the school district through
14        the issuance  of  bonds  under  and  in  accordance  with
15        Section  17-2.11a  for  the purpose of replacing a school
16        building which, because of mine  subsidence  damage,  has
17        been   closed  as  provided  in  paragraph  (2)  of  this
18        subsection (d) or through the issuance of bonds under and
19        in accordance  with  Section  19-3  for  the  purpose  of
20        increasing  the  size  of,  or  providing  for additional
21        functions in, such replacement school buildings, or  both
22        such purposes.
23             (2)  The  bonds  issued  by  the  school district as
24        provided in  paragraph  (1)  above  are  issued  for  the
25        purposes  of construction by the school district of a new
26        school building pursuant to Section 17-2.11,  to  replace
27        an   existing  school  building  that,  because  of  mine
28        subsidence damage, is closed as of the end of the 1992-93
29        school  year  pursuant  to   action   of   the   regional
30        superintendent  of  schools  of  the  educational service
31        region in which the district  is  located  under  Section
32        3-14.22  or  are issued for the purpose of increasing the
33        size of, or providing for additional  functions  in,  the
34        new school building being constructed to replace a school
 
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 1        building  closed as the result of mine subsidence damage,
 2        or both such purposes.
 3        (e)  Notwithstanding the debt  limitation  prescribed  in
 4    subsection  (a) of this Section, a school district that meets
 5    all the criteria set forth in paragraphs (1) through  (5)  of
 6    this   subsection  (e)  may,  without  referendum,  incur  an
 7    additional indebtedness in an amount not to exceed the lesser
 8    of $5,000,000 or 1.5% of the value of  the  taxable  property
 9    within  the district even though the amount of the additional
10    indebtedness authorized by this subsection (e), when incurred
11    and added to the aggregate  amount  of  indebtedness  of  the
12    district existing immediately prior to the district incurring
13    that    additional   indebtedness,   causes   the   aggregate
14    indebtedness of the  district  to  exceed  or  increases  the
15    amount  by  which  the aggregate indebtedness of the district
16    already exceeds the debt limitation otherwise  applicable  to
17    that district under subsection (a):
18             (1)  The  State  Board  of  Education  certifies the
19        school district under Section  19-1.5  as  a  financially
20        distressed district.
21             (2)  The  additional indebtedness authorized by this
22        subsection (e) is incurred by the financially  distressed
23        district  during the school year or school years in which
24        the  certification  of  the  district  as  a  financially
25        distressed  district  continues  in  effect  through  the
26        issuance of bonds for the lawful school purposes  of  the
27        district,  pursuant to resolution of the school board and
28        without referendum, as provided in paragraph (5) of  this
29        subsection.
30             (3)  The  aggregate  amount  of  bonds issued by the
31        financially distressed district during a fiscal  year  in
32        which   it  is  authorized  to  issue  bonds  under  this
33        subsection does  not  exceed  the  amount  by  which  the
34        aggregate  expenditures  of  the district for operational
 
                            -7-                LRB9103826NTsb
 1        purposes during the  immediately  preceding  fiscal  year
 2        exceeds  the  amount  appropriated  for  the  operational
 3        purposes  of  the  district  in  the annual school budget
 4        adopted by the school  board  of  the  district  for  the
 5        fiscal year in which the bonds are issued.
 6             (4)  Throughout    each   fiscal   year   in   which
 7        certification of the district as a financially distressed
 8        district continues in effect, the district  maintains  in
 9        effect  a  gross  salary  expense  and gross wage expense
10        freeze policy under which the district  expenditures  for
11        total  employee  salaries  and  wages  do not exceed such
12        expenditures for the immediately preceding  fiscal  year.
13        Nothing  in  this  paragraph, however, shall be deemed to
14        impair  or  to  require  impairment  of  the  contractual
15        obligations, including collective bargaining  agreements,
16        of the district or to impair or require the impairment of
17        the  vested  rights of any employee of the district under
18        the terms of any contract or agreement in effect  on  the
19        effective date of this amendatory Act of 1994.
20             (5)  Bonds  issued  by  the  financially  distressed
21        district  under  this subsection shall bear interest at a
22        rate not to exceed the maximum rate authorized by law  at
23        the  time  of  the  making  of the contract, shall mature
24        within 40 years from their date of issue,  and  shall  be
25        signed by the president of the school board and treasurer
26        of  the  school  district.  In order to issue bonds under
27        this  subsection,  the  school  board   shall   adopt   a
28        resolution  fixing  the  amount of the bonds, the date of
29        the bonds, the maturities of  the  bonds,  the  rates  of
30        interest  of  the  bonds,  and their place of payment and
31        denomination,  and  shall  provide  for  the   levy   and
32        collection  of  a  direct annual tax upon all the taxable
33        property in the district sufficient to pay the  principal
34        and  interest  on the bonds to maturity.  Upon the filing
 
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 1        in the office of the county clerk of the county in  which
 2        the  financially  distressed  district  is  located  of a
 3        certified copy of the resolution, it is the duty  of  the
 4        county  clerk  to  extend the tax therefor in addition to
 5        and in excess of all other taxes at any  time  authorized
 6        to  be levied by the district.  If bond proceeds from the
 7        sale of bonds include a premium or if the proceeds of the
 8        bonds are invested as authorized by law, the school board
 9        shall determine by resolution whether the interest earned
10        on  the  investment  of  bond  proceeds  or  the  premium
11        realized on the sale of the bonds is to be used  for  any
12        of  the  lawful  school purposes for which the bonds were
13        issued or for the payment of the  principal  indebtedness
14        and interest on the bonds.  The proceeds of the bond sale
15        shall  be  deposited  in the educational purposes fund of
16        the  district  and  shall  be  used  to  pay  operational
17        expenses of the district.  This subsection is  cumulative
18        and  constitutes  complete  authority for the issuance of
19        bonds as provided in this subsection, notwithstanding any
20        other law to the contrary.
21        (f)  Notwithstanding the provisions of subsection (a)  of
22    this  Section or of any other law, bonds in not to exceed the
23    aggregate  amount  of  $5,500,000  and  issued  by  a  school
24    district  meeting  the  following  criteria  shall   not   be
25    considered   indebtedness   for  purposes  of  any  statutory
26    limitation and  may  be  issued  in  an  amount  or  amounts,
27    including  existing indebtedness, in excess of any heretofore
28    or hereafter imposed statutory limitation as to indebtedness:
29             (1)  At the time of the  sale  of  such  bonds,  the
30        board  of education of the district shall have determined
31        by resolution that the  enrollment  of  students  in  the
32        district  is  projected  to  increase by not less than 7%
33        during each of the next succeeding 2 school years.
34             (2)  The board of education shall also determine  by
 
                            -9-                LRB9103826NTsb
 1        resolution  that the improvements to be financed with the
 2        proceeds of the bonds are needed because of the projected
 3        enrollment increases.
 4             (3)  The board of education shall also determine  by
 5        resolution that the projected increases in enrollment are
 6        the result of improvements made or expected to be made to
 7        passenger rail facilities located in the school district.
 8        (g)  Notwithstanding  the provisions of subsection (a) of
 9    this Section or any other law, bonds  in  not  to  exceed  an
10    aggregate  amount  of  25% of the equalized assessed value of
11    the taxable property of a school district  and  issued  by  a
12    school  district  meeting  the  criteria  in  paragraphs  (i)
13    through  (iv)  of  this  subsection  shall  not be considered
14    indebtedness for purposes of any statutory limitation and may
15    be issued pursuant to resolution of the school  board  in  an
16    amount or amounts, including existing indebtedness, in excess
17    of  any  statutory  limitation  of indebtedness heretofore or
18    hereafter imposed:
19             (i)  The  bonds  are  issued  for  the  purpose   of
20        constructing  a  new  high school building to replace two
21        adjacent existing buildings which together house a single
22        high school, each of which is more than 65 years old, and
23        which together are located on more than 10 acres and less
24        than 11 acres of property.
25             (ii)  At the time  the  resolution  authorizing  the
26        issuance   of   the   bonds   is  adopted,  the  cost  of
27        constructing  a  new  school  building  to  replace   the
28        existing  school building is less than 60% of the cost of
29        repairing the existing school building.
30             (iii)  The sale of the bonds occurs before  July  1,
31        1997.
32             (iv)  The  school  district  issuing  the bonds is a
33        unit school district located in a  county  of  less  than
34        70,000  and  more  than  50,000 inhabitants, which has an
 
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 1        average daily  attendance  of  less  than  1,500  and  an
 2        equalized assessed valuation of less than $29,000,000.
 3        (h)  Notwithstanding any other provisions of this Section
 4    or  the provisions of any other law, until January 1, 1998, a
 5    community unit school district maintaining grades  K  through
 6    12  may  issue  bonds  up  to  an  amount, including existing
 7    indebtedness, not exceeding 27.6% of the  equalized  assessed
 8    value  of the taxable property in the district, if all of the
 9    following conditions are met:
10             (i)  The school district has an  equalized  assessed
11        valuation   for   calendar   year   1995   of  less  than
12        $24,000,000;
13             (ii)  The  bonds  are   issued   for   the   capital
14        improvement,  renovation,  rehabilitation, or replacement
15        of existing school buildings  of  the  district,  all  of
16        which buildings were originally constructed not less than
17        40 years ago;
18             (iii)  The   voters   of   the  district  approve  a
19        proposition for the issuance of the bonds at a referendum
20        held after March 19, 1996; and
21             (iv)  The bonds are issued pursuant to Sections 19-2
22        through 19-7 of this Code.
23        (i)  Notwithstanding any other provisions of this Section
24    or the provisions of any other law, until January 1, 1998,  a
25    community  unit  school district maintaining grades K through
26    12 may issue  bonds  up  to  an  amount,  including  existing
27    indebtedness,  not  exceeding  27%  of the equalized assessed
28    value of the taxable property in the district, if all of  the
29    following conditions are met:
30             (i)  The  school  district has an equalized assessed
31        valuation  for  calendar   year   1995   of   less   than
32        $44,600,000;
33             (ii)  The   bonds   are   issued   for  the  capital
34        improvement, renovation, rehabilitation,  or  replacement
 
                            -11-               LRB9103826NTsb
 1        of  existing  school  buildings  of  the district, all of
 2        which existing buildings were originally constructed  not
 3        less than 80 years ago;
 4             (iii)  The   voters   of   the  district  approve  a
 5        proposition for the issuance of the bonds at a referendum
 6        held after December 31, 1996; and
 7             (iv)  The bonds are issued pursuant to Sections 19-2
 8        through 19-7 of this Code.
 9        (j)  Notwithstanding any other provisions of this Section
10    or the provisions of any other law, until January 1, 1999,  a
11    community  unit  school district maintaining grades K through
12    12 may issue  bonds  up  to  an  amount,  including  existing
13    indebtedness,  not  exceeding  27%  of the equalized assessed
14    value of the taxable property in the district if all  of  the
15    following conditions are met:
16             (i)  The  school  district has an equalized assessed
17        valuation  for  calendar   year   1995   of   less   than
18        $140,000,000 and a best 3 months average daily attendance
19        for the 1995-96 school year of at least 2,800;
20             (ii)  The  bonds  are  issued to purchase a site and
21        build and  equip  a  new  high  school,  and  the  school
22        district's    existing   high   school   was   originally
23        constructed not less than 35 years prior to the  sale  of
24        the bonds;
25             (iii)  At  the  time  of  the sale of the bonds, the
26        board of education determines by resolution  that  a  new
27        high  school  is  needed  because of projected enrollment
28        increases;
29             (iv)  At least 60% of those voting  in  an  election
30        held  after  December  31, 1996 approve a proposition for
31        the issuance of the bonds; and
32             (v)  The bonds are issued pursuant to Sections  19-2
33        through 19-7 of this Code.
34        (k)  Notwithstanding  the  debt  limitation prescribed in
 
                            -12-               LRB9103826NTsb
 1    subsection (a) of this Section, a school district that  meets
 2    all  the  criteria set forth in paragraphs (1) through (4) of
 3    this subsection (k) may issue bonds to  incur  an  additional
 4    indebtedness  in  an  amount  not  to  exceed $4,000,000 even
 5    though the amount of the additional  indebtedness  authorized
 6    by  this  subsection  (k),  when  incurred  and  added to the
 7    aggregate amount  of  indebtedness  of  the  school  district
 8    existing  immediately  prior to the school district incurring
 9    such   additional   indebtedness,   causes   the    aggregate
10    indebtedness  of  the  school district to exceed or increases
11    the  amount  by  which  the  aggregate  indebtedness  of  the
12    district  already  exceeds  the  debt  limitation   otherwise
13    applicable to that school district under subsection (a):
14             (1)  the  school  district is located in 2 counties,
15        and a referendum to authorize the additional indebtedness
16        was approved by a majority of the voters  of  the  school
17        district  voting  on  the  proposition  to authorize that
18        indebtedness;
19             (2)  the additional indebtedness is for the  purpose
20        of   financing  a  multi-purpose  room  addition  to  the
21        existing high school;
22             (3)  the additional indebtedness, together with  the
23        existing  indebtedness  of the school district, shall not
24        exceed 17.4% of the value of the taxable property in  the
25        school district, to be ascertained by the last assessment
26        for State and county taxes; and
27             (4)  the    bonds    evidencing    the    additional
28        indebtedness  are  issued,  if at all, within 120 days of
29        the effective date of this amendatory Act of 1998.
30        (l)  Notwithstanding any other provisions of this Section
31    or the provisions of any other law, until January 1, 2000,  a
32    school district maintaining grades kindergarten through 8 may
33    issue bonds up to an amount, including existing indebtedness,
34    not  exceeding  15%  of  the  equalized assessed value of the
 
                            -13-               LRB9103826NTsb
 1    taxable property in the district  if  all  of  the  following
 2    conditions are met:
 3             (i)  the   district   has   an   equalized  assessed
 4        valuation  for  calendar   year   1996   of   less   than
 5        $10,000,000;
 6             (ii)  the  bonds are issued for capital improvement,
 7        renovation, rehabilitation, or replacement of one or more
 8        school buildings of the district,  which  buildings  were
 9        originally constructed not less than 70 years ago;
10             (iii)  the   voters   of   the  district  approve  a
11        proposition for the issuance of the bonds at a referendum
12        held on or after March 17, 1998; and
13             (iv)  the bonds are issued pursuant to Sections 19-2
14        through 19-7 of this Code.
15        (m)  Notwithstanding any other provisions of this Section
16    or the provisions of any other law, until January 1, 1999, an
17    elementary school district maintaining grades K through 8 may
18    issue bonds up to an amount, excluding existing indebtedness,
19    not exceeding 18% of the  equalized  assessed  value  of  the
20    taxable  property  in  the  district, if all of the following
21    conditions are met:
22             (i)  The school district has an  equalized  assessed
23        valuation for calendar year 1995 or less than $7,700,000;
24             (ii)  The  school  district  operates  2  elementary
25        attendance  centers  that until 1976 were operated as the
26        attendance centers of  2  separate  and  distinct  school
27        districts;
28             (iii)  The  bonds are issued for the construction of
29        a new elementary school building to replace  an  existing
30        multi-level  elementary  school  building  of  the school
31        district that is not handicapped accessible at all levels
32        and parts of which were constructed more  than  75  years
33        ago;
34             (iv)  The  voters  of  the school district approve a
 
                            -14-               LRB9103826NTsb
 1        proposition for the issuance of the bonds at a referendum
 2        held after July 1, 1998; and
 3             (v)  The bonds are issued pursuant to Sections  19-2
 4        through 19-7 of this Code.
 5    (Source: P.A.   89-47,  eff.  7-1-95;  89-661,  eff.  1-1-97;
 6    89-698, eff. 1-14-97;  90-570,  eff.  1-28-98;  90-757,  eff.
 7    8-14-98.)

 8        Section  99.  Effective date.  This Act takes effect upon
 9    becoming law.

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