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91_HB3923
LRB9110865SMdv
1 AN ACT concerning local governments, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Local Government Debt Reform Act is
5 amended by changing Sections 3, 15, and 15.01 as follows:
6 (30 ILCS 350/3) (from Ch. 17, par. 6903)
7 Sec. 3. Definitions. In this Act words or terms shall
8 have the following meanings unless the context or usage
9 clearly indicates that another meaning is intended.
10 (a) "Alternate bonds" means bonds issued in lieu of
11 revenue bonds or payable from a revenue source as provided in
12 Section 15.
13 (b) "Applicable law" means any provision of law,
14 including this Act, authorizing governmental units to issue
15 bonds.
16 (c) "Backdoor referendum" means the submission of a
17 public question to the voters of a governmental unit,
18 initiated by a petition of voters, residents or property
19 owners of such governmental unit, to determine whether an
20 action by the governing body of such governmental unit shall
21 be effective, adopted or rejected.
22 (d) "Bond" means any instrument evidencing the
23 obligation to pay money authorized or issued by or on behalf
24 of a governmental unit under applicable law, including
25 without limitation, bonds, notes, installment or financing
26 contracts, leases, certificates, tax anticipation warrants or
27 notes, vouchers, and any other evidences of indebtedness.
28 (e) "Debt service" on bonds means the amount of
29 principal, interest and premium, if any, when due either at
30 stated maturity or upon mandatory redemption.
31 (f) "Enterprise revenues" means the revenues of a
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1 utility or revenue producing enterprise from which revenue
2 bonds may be payable.
3 (g) "General obligation bonds" means bonds of a
4 governmental unit for the payment of which the governmental
5 unit is empowered to levy ad valorem property taxes upon all
6 taxable property in a governmental unit without limitation as
7 to rate or amount.
8 (h) "Governing body" means the legislative body,
9 council, board, commission, trustees, or any other body, by
10 whatever name it is known, having charge of the corporate
11 affairs of a governmental unit.
12 (i) "Governmental unit" means a county, township,
13 municipality, municipal corporation, unit of local
14 government, school district, special district, public
15 corporation, body corporate and politic, forest preserve
16 district, fire protection district, conservation district,
17 park district, sanitary district, and all other local
18 governmental agencies, including any entity created by
19 intergovernmental agreement among any of the foregoing
20 governmental units, but does not include any office, officer,
21 department, division, bureau, board, commission, university,
22 or similar agency of the State.
23 (j) "Ordinance" means an ordinance duly adopted by a
24 governing body or, if appropriate under applicable law, a
25 resolution so adopted.
26 (k) "Revenue bonds" means any bonds of a governmental
27 unit other than general obligation bonds, but "revenue bonds"
28 does include any debt authorized under Section 11-29.3-1 of
29 the Illinois Municipal Code.
30 (l) "Revenue source" means a source of funds, other than
31 enterprise revenues, received or available to be received by
32 a governmental unit and available for any one or more of its
33 corporate purposes, including any public building commission
34 lease rental base alternate tax levy.
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1 (m) "Limited bonds" means bonds, including public
2 building commission leases, but excluding other leases,
3 notes, installment or financing contracts, certificates, tax
4 anticipation warrants or notes, vouchers, and any other
5 evidences of indebtedness, issued under Section 15.01 of this
6 Act.
7 (n) "Public building commission lease rental base" means
8 that term as defined in the Property Tax Extension Limitation
9 Law.
10 (o) "Public building commission lease rental base
11 alternate tax levy" means a special purpose levy authorized
12 to be levied by a unit of local government for the payment of
13 alternate bonds as a revenue source, which levy may be in an
14 annual amount not in excess of the public building commission
15 lease rental base less the amount of that base levied for the
16 payment of lease rentals under a public building commission
17 lease.
18 (Source: P.A. 89-385, eff. 8-18-95; 89-658, eff. 1-1-97.)
19 (30 ILCS 350/15) (from Ch. 17, par. 6915)
20 Sec. 15. Double-barrelled bonds. Whenever revenue bonds
21 have been authorized to be issued pursuant to applicable law
22 or whenever there exists for a governmental unit a revenue
23 source, the procedures set forth in this Section may be used
24 by a governing body. General obligation bonds may be issued
25 in lieu of such revenue bonds as authorized, and general
26 obligation bonds may be issued payable from any revenue
27 source. Such general obligation bonds may be referred to as
28 "alternate bonds". Alternate bonds may be issued without any
29 referendum or backdoor referendum except as provided in this
30 Section, upon the terms provided in Section 10 of this Act
31 without reference to other provisions of law, but only upon
32 the conditions provided in this Section. Alternate bonds
33 shall not be regarded as or included in any computation of
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1 indebtedness for the purpose of any statutory provision or
2 limitation except as expressly provided in this Section.
3 Such conditions are:
4 (a) Alternate bonds shall be issued for a lawful
5 corporate purpose. If issued in lieu of revenue bonds,
6 alternate bonds shall be issued for the purposes for which
7 such revenue bonds shall have been authorized. If issued
8 payable from a revenue source in the manner hereinafter
9 provided, which revenue source is limited in its purposes or
10 applications, then the alternate bonds shall be issued only
11 for such limited purposes or applications. Alternate bonds
12 may be issued payable from either enterprise revenues or
13 revenue sources, or both. As a revenue source for alternate
14 bonds, any unit of local government having a public building
15 commission lease rental base is hereby authorized to levy a
16 public building commission lease rental base alternate tax
17 levy. Alternate bonds supported by the levy may be issued
18 pursuant to the provisions of this Section for any lawful
19 corporate purpose of the unit of local government.
20 (b) Alternate bonds shall be subject to backdoor
21 referendum. The provisions of Section 5 of this Act shall
22 apply to such backdoor referendum, together with the
23 provisions hereof. The authorizing ordinance shall be
24 published in a newspaper of general circulation in the
25 governmental unit. Along with or as part of the authorizing
26 ordinance, there shall be published a notice of (1) the
27 specific number of voters required to sign a petition
28 requesting that the issuance of the alternate bonds be
29 submitted to referendum, (2) the time when such petition must
30 be filed, (3) the date of the prospective referendum, and
31 (4), with respect to authorizing ordinances adopted on or
32 after January 1, 1991, a statement that identifies any
33 revenue source that will be used to pay the principal of and
34 interest on the alternate bonds. The clerk or secretary of
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1 the governmental unit shall make a petition form available to
2 anyone requesting one. If no petition is filed with the
3 clerk or secretary within 30 days of publication of the
4 authorizing ordinance and notice, the alternate bonds shall
5 be authorized to be issued. But if within this 30 days
6 period, a petition is filed with such clerk or secretary
7 signed by electors numbering the greater of (i) 7.5% of the
8 registered voters in the governmental unit or (ii) 200 of
9 those registered voters or 15% of those registered voters,
10 whichever is less, asking that the issuance of such alternate
11 bonds be submitted to referendum, the clerk or secretary
12 shall certify such question for submission at an election
13 held in accordance with the general election law. The
14 question on the ballot shall include a statement of any
15 revenue source that will be used to pay the principal of and
16 interest on the alternate bonds. The alternate bonds shall be
17 authorized to be issued if a majority of the votes cast on
18 the question at such election are in favor thereof provided
19 that notice of the bond referendum, if held before July 1,
20 1999, has been given in accordance with the provisions of
21 Section 12-5 of the Election Code in effect at the time of
22 the bond referendum, at least 10 and not more than 45 days
23 before the date of the election, notwithstanding the time for
24 publication otherwise imposed by Section 12-5. Notices
25 required in connection with the submission of public
26 questions on or after July 1, 1999 shall be as set forth in
27 Section 12-5 of the Election Code. Backdoor referendum
28 proceedings for bonds and alternate bonds to be issued in
29 lieu of such bonds may be conducted at the same time.
30 (c) To the extent payable from enterprise revenues, such
31 revenues shall have been determined by the governing body to
32 be sufficient to provide for or pay in each year to final
33 maturity of such alternate bonds all of the following: (1)
34 costs of operation and maintenance of the utility or
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1 enterprise, but not including depreciation, (2) debt service
2 on all outstanding revenue bonds payable from such enterprise
3 revenues, (3) all amounts required to meet any fund or
4 account requirements with respect to such outstanding revenue
5 bonds, (4) other contractual or tort liability obligations,
6 if any, payable from such enterprise revenues, and (5) in
7 each year, an amount not less than 1.25 times debt service of
8 all (i) alternate bonds payable from such enterprise revenues
9 previously issued and outstanding and (ii) alternate bonds
10 proposed to be issued. To the extent payable from one or
11 more revenue sources, such sources shall have been determined
12 by the governing body to provide in each year, an amount not
13 less than 1.25 times debt service of all alternate bonds
14 payable from such revenue sources previously issued and
15 outstanding and alternate bonds proposed to be issued. The
16 conditions enumerated in this subsection (c) need not be met
17 for that amount of debt service provided for by the setting
18 aside of proceeds of bonds or other moneys at the time of the
19 delivery of such bonds.
20 (d) The determination of the sufficiency of enterprise
21 revenues or a revenue source, as applicable, shall be
22 supported by reference to the most recent audit of the
23 governmental unit, which shall be for a fiscal year ending
24 not earlier than 18 months previous to the time of issuance
25 of the alternate bonds. If such audit does not adequately
26 show such enterprise revenues or revenue source, as
27 applicable, or if such enterprise revenues or revenue source,
28 as applicable, are shown to be insufficient, then the
29 determination of sufficiency shall be supported by the report
30 of an independent accountant or feasibility analyst, the
31 latter having a national reputation for expertise in such
32 matters, demonstrating the sufficiency of such revenues and
33 explaining, if appropriate, by what means the revenues will
34 be greater than as shown in the audit. Whenever such
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1 sufficiency is demonstrated by reference to a schedule of
2 higher rates or charges for enterprise revenues or a higher
3 tax imposition for a revenue source, such higher rates,
4 charges or taxes shall have been properly imposed by an
5 ordinance adopted prior to the time of delivery of alternate
6 bonds. The reference to and acceptance of an audit or
7 report, as the case may be, and the determination of the
8 governing body as to sufficiency of enterprise revenues or a
9 revenue source shall be conclusive evidence that the
10 conditions of this Section have been met and that the
11 alternate bonds are valid.
12 (e) The enterprise revenues or revenue source, as
13 applicable, shall be in fact pledged to the payment of the
14 alternate bonds; and the governing body shall covenant, to
15 the extent it is empowered to do so, to provide for, collect
16 and apply such enterprise revenues or revenue source, as
17 applicable, to the payment of the alternate bonds and the
18 provision of not less than an additional .25 times debt
19 service. The pledge and establishment of rates or charges
20 for enterprise revenues, or the imposition of taxes in a
21 given rate or amount, as provided in this Section for
22 alternate bonds, shall constitute a continuing obligation of
23 the governmental unit with respect to such establishment or
24 imposition and a continuing appropriation of the amounts
25 received. All covenants relating to alternate bonds and the
26 conditions and obligations imposed by this Section are
27 enforceable by any bondholder of alternate bonds affected,
28 any taxpayer of the governmental unit, and the People of the
29 State of Illinois acting through the Attorney General or any
30 designee, and in the event that any such action results in an
31 order finding that the governmental unit has not properly set
32 rates or charges or imposed taxes to the extent it is
33 empowered to do so or collected and applied enterprise
34 revenues or any revenue source, as applicable, as required by
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1 this Act, the plaintiff in any such action shall be awarded
2 reasonable attorney's fees. The intent is that such
3 enterprise revenues or revenue source, as applicable, shall
4 be sufficient and shall be applied to the payment of debt
5 service on such alternate bonds so that taxes need not be
6 levied, or if levied need not be extended, for such payment.
7 Nothing in this Section shall inhibit or restrict the
8 authority of a governing body to determine the lien priority
9 of any bonds, including alternate bonds, which may be issued
10 with respect to any enterprise revenues or revenue source.
11 In the event that alternate bonds shall have been issued
12 and taxes, other than a designated revenue source, shall have
13 been extended pursuant to the general obligation, full faith
14 and credit promise supporting such alternate bonds, then the
15 amount of such alternate bonds then outstanding shall be
16 included in the computation of indebtedness of the
17 governmental unit for purposes of all statutory provisions or
18 limitations until such time as an audit of the governmental
19 unit shall show that the alternate bonds have been paid from
20 the enterprise revenues or revenue source, as applicable,
21 pledged thereto for a complete fiscal year.
22 Alternate bonds may be issued to refund or advance refund
23 alternate bonds without meeting any of the conditions set
24 forth in this Section, except that the term of the refunding
25 bonds shall not be longer than the term of the refunded bonds
26 and that the debt service payable in any year on the
27 refunding bonds shall not exceed the debt service payable in
28 such year on the refunded bonds.
29 Once issued, alternate bonds shall be and forever remain
30 until paid or defeased the general obligation of the
31 governmental unit, for the payment of which its full faith
32 and credit are pledged, and shall be payable from the levy of
33 taxes as is provided in this Act for general obligation
34 bonds.
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1 The changes made by this amendatory Act of 1990 do not
2 affect the validity of bonds authorized before September 1,
3 1990.
4 (Source: P.A. 90-812, eff. 1-26-99; 91-57, eff. 6-30-99;
5 91-493, eff. 8-13-99; revised 10-9-99.)
6 (30 ILCS 350/15.01)
7 Sec. 15.01. Limited bonds. A governmental unit is
8 authorized to issue limited bonds payable from the debt
9 service extension base or the public building commission
10 lease, or both, as defined in the Property Tax Extension
11 Limitation Law, as provided in this amendatory Act of 1995.
12 Bonds authorized by Public Act 88-503 and issued under
13 Section 20a of the Chicago Park District Act for aquarium or
14 museum projects shall not be issued as limited bonds. A
15 governmental unit issuing limited bonds authorized by this
16 Section shall provide in the bond ordinance that the bonds
17 are issued as limited bonds and are also issued pursuant to
18 applicable law, other than this amendatory Act of 1995,
19 enabling the governmental unit to issue bonds. This
20 amendatory Act of 1995 shall not change the rate, amount,
21 purposes, limitations, source of funds for payment of
22 principal or interest, or method of payment or defeasance of
23 the bonds that a governmental unit may issue under any
24 applicable law; provided, that limited bonds that are
25 otherwise to be issued as general obligation bonds may be
26 payable solely from the debt service extension base or public
27 building commission lease rental base, or both. This
28 amendatory Act of 1995 provides no additional authority to
29 any governmental unit to issue bonds that the governmental
30 unit is not otherwise authorized to issue by a law other than
31 this amendatory Act of 1995.
32 (Source: P.A. 89-385, eff. 8-18-95; 89-449, eff. 6-1-96.)
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1 Section 10. The Property Tax Code is amended by changing
2 Section 18-185 as follows:
3 (35 ILCS 200/18-185)
4 Sec. 18-185. Short title; definitions. This Division 5
5 may be cited as the Property Tax Extension Limitation Law.
6 As used in this Division 5:
7 "Consumer Price Index" means the Consumer Price Index for
8 All Urban Consumers for all items published by the United
9 States Department of Labor.
10 "Extension limitation" means (a) the lesser of 5% or the
11 percentage increase in the Consumer Price Index during the
12 12-month calendar year preceding the levy year or (b) the
13 rate of increase approved by voters under Section 18-205.
14 "Affected county" means a county of 3,000,000 or more
15 inhabitants or a county contiguous to a county of 3,000,000
16 or more inhabitants.
17 "Taxing district" has the same meaning provided in
18 Section 1-150, except as otherwise provided in this Section.
19 For the 1991 through 1994 levy years only, "taxing district"
20 includes only each non-home rule taxing district having the
21 majority of its 1990 equalized assessed value within any
22 county or counties contiguous to a county with 3,000,000 or
23 more inhabitants. Beginning with the 1995 levy year, "taxing
24 district" includes only each non-home rule taxing district
25 subject to this Law before the 1995 levy year and each
26 non-home rule taxing district not subject to this Law before
27 the 1995 levy year having the majority of its 1994 equalized
28 assessed value in an affected county or counties. Beginning
29 with the levy year in which this Law becomes applicable to a
30 taxing district as provided in Section 18-213, "taxing
31 district" also includes those taxing districts made subject
32 to this Law as provided in Section 18-213.
33 "Aggregate extension" for taxing districts to which this
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1 Law applied before the 1995 levy year means the annual
2 corporate extension for the taxing district and those special
3 purpose extensions that are made annually for the taxing
4 district, excluding special purpose extensions: (a) made for
5 the taxing district to pay interest or principal on general
6 obligation bonds that were approved by referendum; (b) made
7 for any taxing district to pay interest or principal on
8 general obligation bonds issued before October 1, 1991; (c)
9 made for any taxing district to pay interest or principal on
10 bonds issued to refund or continue to refund those bonds
11 issued before October 1, 1991; (d) made for any taxing
12 district to pay interest or principal on bonds issued to
13 refund or continue to refund bonds issued after October 1,
14 1991 that were approved by referendum; (e) made for any
15 taxing district to pay interest or principal on revenue bonds
16 issued before October 1, 1991 for payment of which a property
17 tax levy or the full faith and credit of the unit of local
18 government is pledged; however, a tax for the payment of
19 interest or principal on those bonds shall be made only after
20 the governing body of the unit of local government finds that
21 all other sources for payment are insufficient to make those
22 payments; (f) made for payments under a building commission
23 lease when the lease payments are for the retirement of bonds
24 issued by the commission before October 1, 1991, to pay for
25 the building project; (g) made for payments due under
26 installment contracts entered into before October 1, 1991;
27 (h) made for payments of principal and interest on bonds
28 issued under the Metropolitan Water Reclamation District Act
29 to finance construction projects initiated before October 1,
30 1991; (i) made for payments of principal and interest on
31 limited bonds, as defined in Section 3 of the Local
32 Government Debt Reform Act, in an amount not to exceed the
33 debt service extension base less the amount in items (b),
34 (c), (e), and (h) of this definition for non-referendum
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1 obligations, except obligations initially issued pursuant to
2 referendum, plus an amount not to exceed the public building
3 commission lease rental base less the amount (deductible only
4 from the public building commission lease rental base and not
5 from the debt service extension base) in item (f) of this
6 definition for lease payments; (j) made for payments of
7 principal and interest on bonds issued under Section 15 of
8 the Local Government Debt Reform Act, including the public
9 building commission lease rental base alternate tax levy
10 allocable to those payments; and (k) made by a school
11 district that participates in the Special Education District
12 of Lake County, created by special education joint agreement
13 under Section 10-22.31 of the School Code, for payment of the
14 school district's share of the amounts required to be
15 contributed by the Special Education District of Lake County
16 to the Illinois Municipal Retirement Fund under Article 7 of
17 the Illinois Pension Code; the amount of any extension under
18 this item (k) shall be certified by the school district to
19 the county clerk.
20 "Aggregate extension" for the taxing districts to which
21 this Law did not apply before the 1995 levy year (except
22 taxing districts subject to this Law in accordance with
23 Section 18-213) means the annual corporate extension for the
24 taxing district and those special purpose extensions that are
25 made annually for the taxing district, excluding special
26 purpose extensions: (a) made for the taxing district to pay
27 interest or principal on general obligation bonds that were
28 approved by referendum; (b) made for any taxing district to
29 pay interest or principal on general obligation bonds issued
30 before March 1, 1995; (c) made for any taxing district to pay
31 interest or principal on bonds issued to refund or continue
32 to refund those bonds issued before March 1, 1995; (d) made
33 for any taxing district to pay interest or principal on bonds
34 issued to refund or continue to refund bonds issued after
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1 March 1, 1995 that were approved by referendum; (e) made for
2 any taxing district to pay interest or principal on revenue
3 bonds issued before March 1, 1995 for payment of which a
4 property tax levy or the full faith and credit of the unit of
5 local government is pledged; however, a tax for the payment
6 of interest or principal on those bonds shall be made only
7 after the governing body of the unit of local government
8 finds that all other sources for payment are insufficient to
9 make those payments; (f) made for payments under a building
10 commission lease when the lease payments are for the
11 retirement of bonds issued by the commission before March 1,
12 1995 to pay for the building project; (g) made for payments
13 due under installment contracts entered into before March 1,
14 1995; (h) made for payments of principal and interest on
15 bonds issued under the Metropolitan Water Reclamation
16 District Act to finance construction projects initiated
17 before October 1, 1991; (i) made for payments of principal
18 and interest on limited bonds, as defined in Section 3 of the
19 Local Government Debt Reform Act, in an amount not to exceed
20 the debt service extension base less the amount in items (b),
21 (c), and (e) of this definition for non-referendum
22 obligations, except obligations initially issued pursuant to
23 referendum and bonds described in subsection (h) of this
24 definition; (j) made for payments of principal and interest
25 on bonds issued under Section 15 of the Local Government Debt
26 Reform Act; (k) made for payments of principal and interest
27 on bonds authorized by Public Act 88-503 and issued under
28 Section 20a of the Chicago Park District Act for aquarium or
29 museum projects; and (l) made for payments of principal and
30 interest on bonds authorized by Public Act 87-1191 and issued
31 under Section 42 of the Cook County Forest Preserve District
32 Act for zoological park projects.
33 "Aggregate extension" for all taxing districts to which
34 this Law applies in accordance with Section 18-213, except
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1 for those taxing districts subject to paragraph (2) of
2 subsection (e) of Section 18-213, means the annual corporate
3 extension for the taxing district and those special purpose
4 extensions that are made annually for the taxing district,
5 excluding special purpose extensions: (a) made for the taxing
6 district to pay interest or principal on general obligation
7 bonds that were approved by referendum; (b) made for any
8 taxing district to pay interest or principal on general
9 obligation bonds issued before the date on which the
10 referendum making this Law applicable to the taxing district
11 is held; (c) made for any taxing district to pay interest or
12 principal on bonds issued to refund or continue to refund
13 those bonds issued before the date on which the referendum
14 making this Law applicable to the taxing district is held;
15 (d) made for any taxing district to pay interest or principal
16 on bonds issued to refund or continue to refund bonds issued
17 after the date on which the referendum making this Law
18 applicable to the taxing district is held if the bonds were
19 approved by referendum after the date on which the referendum
20 making this Law applicable to the taxing district is held;
21 (e) made for any taxing district to pay interest or principal
22 on revenue bonds issued before the date on which the
23 referendum making this Law applicable to the taxing district
24 is held for payment of which a property tax levy or the full
25 faith and credit of the unit of local government is pledged;
26 however, a tax for the payment of interest or principal on
27 those bonds shall be made only after the governing body of
28 the unit of local government finds that all other sources for
29 payment are insufficient to make those payments; (f) made for
30 payments under a building commission lease when the lease
31 payments are for the retirement of bonds issued by the
32 commission before the date on which the referendum making
33 this Law applicable to the taxing district is held to pay for
34 the building project; (g) made for payments due under
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1 installment contracts entered into before the date on which
2 the referendum making this Law applicable to the taxing
3 district is held; (h) made for payments of principal and
4 interest on limited bonds, as defined in Section 3 of the
5 Local Government Debt Reform Act, in an amount not to exceed
6 the debt service extension base less the amount in items (b),
7 (c), and (e) of this definition for non-referendum
8 obligations, except obligations initially issued pursuant to
9 referendum; (i) made for payments of principal and interest
10 on bonds issued under Section 15 of the Local Government Debt
11 Reform Act; and (j) made for a qualified airport authority to
12 pay interest or principal on general obligation bonds issued
13 for the purpose of paying obligations due under, or financing
14 airport facilities required to be acquired, constructed,
15 installed or equipped pursuant to, contracts entered into
16 before March 1, 1996 (but not including any amendments to
17 such a contract taking effect on or after that date).
18 "Aggregate extension" for all taxing districts to which
19 this Law applies in accordance with paragraph (2) of
20 subsection (e) of Section 18-213 means the annual corporate
21 extension for the taxing district and those special purpose
22 extensions that are made annually for the taxing district,
23 excluding special purpose extensions: (a) made for the taxing
24 district to pay interest or principal on general obligation
25 bonds that were approved by referendum; (b) made for any
26 taxing district to pay interest or principal on general
27 obligation bonds issued before the effective date of this
28 amendatory Act of 1997; (c) made for any taxing district to
29 pay interest or principal on bonds issued to refund or
30 continue to refund those bonds issued before the effective
31 date of this amendatory Act of 1997; (d) made for any taxing
32 district to pay interest or principal on bonds issued to
33 refund or continue to refund bonds issued after the effective
34 date of this amendatory Act of 1997 if the bonds were
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1 approved by referendum after the effective date of this
2 amendatory Act of 1997; (e) made for any taxing district to
3 pay interest or principal on revenue bonds issued before the
4 effective date of this amendatory Act of 1997 for payment of
5 which a property tax levy or the full faith and credit of the
6 unit of local government is pledged; however, a tax for the
7 payment of interest or principal on those bonds shall be made
8 only after the governing body of the unit of local government
9 finds that all other sources for payment are insufficient to
10 make those payments; (f) made for payments under a building
11 commission lease when the lease payments are for the
12 retirement of bonds issued by the commission before the
13 effective date of this amendatory Act of 1997 to pay for the
14 building project; (g) made for payments due under installment
15 contracts entered into before the effective date of this
16 amendatory Act of 1997; (h) made for payments of principal
17 and interest on limited bonds, as defined in Section 3 of the
18 Local Government Debt Reform Act, in an amount not to exceed
19 the debt service extension base less the amount in items (b),
20 (c), and (e) of this definition for non-referendum
21 obligations, except obligations initially issued pursuant to
22 referendum; (i) made for payments of principal and interest
23 on bonds issued under Section 15 of the Local Government Debt
24 Reform Act; and (j) made for a qualified airport authority to
25 pay interest or principal on general obligation bonds issued
26 for the purpose of paying obligations due under, or financing
27 airport facilities required to be acquired, constructed,
28 installed or equipped pursuant to, contracts entered into
29 before March 1, 1996 (but not including any amendments to
30 such a contract taking effect on or after that date).
31 "Debt service extension base" means an amount equal to
32 that portion of the extension for a taxing district for the
33 1994 levy year, or for those taxing districts subject to this
34 Law in accordance with Section 18-213, except for those
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1 subject to paragraph (2) of subsection (e) of Section 18-213,
2 for the levy year in which the referendum making this Law
3 applicable to the taxing district is held, or for those
4 taxing districts subject to this Law in accordance with
5 paragraph (2) of subsection (e) of Section 18-213 for the
6 1996 levy year, constituting an extension for payment of
7 principal and interest on bonds issued by the taxing district
8 without referendum, but not including (i) bonds authorized by
9 Public Act 88-503 and issued under Section 20a of the Chicago
10 Park District Act for aquarium and museum projects; (ii)
11 bonds issued under Section 15 of the Local Government Debt
12 Reform Act; or (iii) refunding obligations issued to refund
13 or to continue to refund obligations initially issued
14 pursuant to referendum. The debt service extension base may
15 be established or increased as provided under Section 18-212.
16 "Special purpose extensions" include, but are not limited
17 to, extensions for levies made on an annual basis for
18 unemployment and workers' compensation, self-insurance,
19 contributions to pension plans, and extensions made pursuant
20 to Section 6-601 of the Illinois Highway Code for a road
21 district's permanent road fund whether levied annually or
22 not. The extension for a special service area is not
23 included in the aggregate extension.
24 "Aggregate extension base" means the taxing district's
25 last preceding aggregate extension as adjusted under Sections
26 18-215 through 18-230.
27 "Levy year" has the same meaning as "year" under Section
28 1-155.
29 "New property" means (i) the assessed value, after final
30 board of review or board of appeals action, of new
31 improvements or additions to existing improvements on any
32 parcel of real property that increase the assessed value of
33 that real property during the levy year multiplied by the
34 equalization factor issued by the Department under Section
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1 17-30 and (ii) the assessed value, after final board of
2 review or board of appeals action, of real property not
3 exempt from real estate taxation, which real property was
4 exempt from real estate taxation for any portion of the
5 immediately preceding levy year, multiplied by the
6 equalization factor issued by the Department under Section
7 17-30. In addition, the county clerk in a county containing
8 a population of 3,000,000 or more shall include in the 1997
9 recovered tax increment value for any school district, any
10 recovered tax increment value that was applicable to the 1995
11 tax year calculations.
12 "Public building commission lease rental base" means an
13 amount equal to that portion of the extension for a taxing
14 district for the 1999 levy year constituting an extension for
15 payment of lease rentals under a public building commission
16 lease allocable to the retirement of bonds issued by the
17 commission.
18 "Qualified airport authority" means an airport authority
19 organized under the Airport Authorities Act and located in a
20 county bordering on the State of Wisconsin and having a
21 population in excess of 200,000 and not greater than 500,000.
22 "Recovered tax increment value" means, except as
23 otherwise provided in this paragraph, the amount of the
24 current year's equalized assessed value, in the first year
25 after a municipality terminates the designation of an area as
26 a redevelopment project area previously established under the
27 Tax Increment Allocation Development Act in the Illinois
28 Municipal Code, previously established under the Industrial
29 Jobs Recovery Law in the Illinois Municipal Code, or
30 previously established under the Economic Development Area
31 Tax Increment Allocation Act, of each taxable lot, block,
32 tract, or parcel of real property in the redevelopment
33 project area over and above the initial equalized assessed
34 value of each property in the redevelopment project area.
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1 For the taxes which are extended for the 1997 levy year, the
2 recovered tax increment value for a non-home rule taxing
3 district that first became subject to this Law for the 1995
4 levy year because a majority of its 1994 equalized assessed
5 value was in an affected county or counties shall be
6 increased if a municipality terminated the designation of an
7 area in 1993 as a redevelopment project area previously
8 established under the Tax Increment Allocation Development
9 Act in the Illinois Municipal Code, previously established
10 under the Industrial Jobs Recovery Law in the Illinois
11 Municipal Code, or previously established under the Economic
12 Development Area Tax Increment Allocation Act, by an amount
13 equal to the 1994 equalized assessed value of each taxable
14 lot, block, tract, or parcel of real property in the
15 redevelopment project area over and above the initial
16 equalized assessed value of each property in the
17 redevelopment project area. In the first year after a
18 municipality removes a taxable lot, block, tract, or parcel
19 of real property from a redevelopment project area
20 established under the Tax Increment Allocation Development
21 Act in the Illinois Municipal Code, the Industrial Jobs
22 Recovery Law in the Illinois Municipal Code, or the Economic
23 Development Area Tax Increment Allocation Act, "recovered tax
24 increment value" means the amount of the current year's
25 equalized assessed value of each taxable lot, block, tract,
26 or parcel of real property removed from the redevelopment
27 project area over and above the initial equalized assessed
28 value of that real property before removal from the
29 redevelopment project area.
30 Except as otherwise provided in this Section, "limiting
31 rate" means a fraction the numerator of which is the last
32 preceding aggregate extension base times an amount equal to
33 one plus the extension limitation defined in this Section and
34 the denominator of which is the current year's equalized
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1 assessed value of all real property in the territory under
2 the jurisdiction of the taxing district during the prior levy
3 year. For those taxing districts that reduced their
4 aggregate extension for the last preceding levy year, the
5 highest aggregate extension in any of the last 3 preceding
6 levy years shall be used for the purpose of computing the
7 limiting rate. The denominator shall not include new
8 property. The denominator shall not include the recovered
9 tax increment value.
10 (Source: P.A. 90-485, eff. 1-1-98; 90-511, eff. 8-22-97;
11 90-568, eff. 1-1-99; 90-616, eff. 7-10-98; 90-655, eff.
12 7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.)
13 Section 15. The Public Building Commission Act is
14 amended by changing Sections 3 and 18 as follows:
15 (50 ILCS 20/3) (from Ch. 85, par. 1033)
16 Sec. 3. The following terms, wherever used, or referred
17 to in this Act, mean unless the context clearly requires a
18 different meaning:
19 (a) "Commission" means a Public Building Commission
20 created pursuant to this Act.
21 (b) "Commissioner" or "Commissioners" means a
22 Commissioner or Commissioners of a Public Building
23 Commission.
24 (c) "County seat" means a city, village or town which is
25 the county seat of a county.
26 (d) "Municipality" means any city, village or
27 incorporated town of the State of Illinois.
28 (e) "Municipal corporation" includes a county, city,
29 village, town, (including a county seat), park district,
30 school district in a county of 3,000,000 or more population,
31 board of education of a school district in a county of
32 3,000,000 or more population, sanitary district, airport
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1 authority contiguous with the County Seat as of July 1, 1969
2 and any other municipal body or governmental agency of the
3 State but does not include a school district in a county of
4 less than 3,000,000 population, a board of education of a
5 school district in a county of less than 3,000,000
6 population, or a community college district in a county of
7 less than 3,000,000 population.
8 (f) "Governing body" includes a city council, county
9 board, or any other body or board, by whatever name it may be
10 known, charged with the governing of a municipal corporation.
11 (g) "Presiding officer" includes the mayor or president
12 of a city, village or town, the presiding officer of a county
13 board, or the presiding officer of any other board or
14 commission, as the case may be.
15 (h) "Oath" means oath or affirmation.
16 (i) "Building" means an improvement to real estate to be
17 made available for use by a municipal corporation for the
18 furnishing of governmental services to its citizens, together
19 with any land or interest in land necessary or useful in
20 connection with the improvement.
21 (j) "Public building commission lease rental base" means
22 that term as defined in the Property Tax Extension Limitation
23 Law.
24 (Source: P.A. 88-304.)
25 (50 ILCS 20/18) (from Ch. 85, par. 1048)
26 Sec. 18. Whenever, and as often as, a municipal
27 corporation having taxing power enters into a lease with a
28 Public Building Commission, the governing body of such
29 municipal corporation shall provide by ordinance or
30 resolution, as the case may be, for the levy and collection
31 of a direct annual tax sufficient to pay the annual rent
32 payable under such lease as and when it becomes due and
33 payable, or, if applicable, in the amount of the public
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1 building commission lease rental base levied for the lease. A
2 certified copy of the lease of such municipal corporation and
3 a certified copy of the tax levying ordinance or resolution,
4 as the case may be, of such municipal corporation shall be
5 filed in the office of the county clerk in each county in
6 which any portion of the territory of such municipal
7 corporation is situated, which certified copies shall
8 constitute the authority for the county clerk or clerks, in
9 each case, to extend the taxes annually necessary to pay the
10 annual rent payable under such lease as and when it becomes
11 due and payable, or, if applicable, in the amount of the
12 public building commission lease rental base levied for the
13 lease. No taxes shall be extended for any lease entered into
14 after the effective date of this amendatory Act of 1993,
15 however, until after a public hearing on the lease. The clerk
16 or secretary of the governing body of the municipal
17 corporation shall cause notice of the time and place of the
18 hearing to be published at least once, at least 15 days
19 before the hearing, in a newspaper published or having
20 general circulation within the municipal corporation. If no
21 such newspaper exists, the clerk or secretary shall cause the
22 notice to be posted, at least 15 days before the hearing, in
23 at least 10 conspicuous places within the municipal
24 corporation. The notice shall be in the following form:
25 NOTICE OF PUBLIC HEARING ON LEASE between (name of the
26 municipal corporation) and (name of the public building
27 commission).
28 A public hearing regarding a lease between (name of the
29 municipal corporation) and (name of the public building
30 commission) will be held by (name of the governing body of
31 the municipal corporation) on (date) at (time) at (location).
32 The largest yearly rental payment set forth in the lease is
33 ($ amount). The maximum length of the lease is (years).
34 The purpose of the lease is (explain in 25 words or
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1 less).
2 Dated (insert date). this day of .
3 By Order of (name of the governing body
4 of the Municipal Corporation)
5 /s/............
6 Clerk or Secretary.
7 At the hearing, all persons residing or owning property
8 in the municipal corporation shall have an opportunity to be
9 heard orally, in writing, or both.
10 Upon the filing of the certified copies of the lease and
11 the tax levying ordinance or resolution in the office of the
12 county clerk or clerks of the proper county or counties, it
13 shall be the duty of such county clerk or clerks to ascertain
14 the rate per cent which, upon the value of all property
15 subject to taxation within the municipal corporation, as that
16 property is assessed or equalized by the Department of
17 Revenue, will produce a net amount of not less than the
18 amount of the annual rent reserved in such lease, or, if
19 applicable, in the amount of the public building commission
20 lease rental base levied for the lease. The county clerk or
21 clerks shall thereupon, and thereafter annually during the
22 term of the lease, extend taxes against all of the taxable
23 property contained in that municipal corporation sufficient
24 to pay the annual rental reserved in such lease, or, if
25 applicable, in the amount of the public building commission
26 lease rental base levied for the lease. Such tax shall be
27 levied and collected in like manner with the other taxes of
28 such municipal corporation and shall be in addition to all
29 other taxes now or hereafter authorized to be levied by that
30 municipal corporation. This tax shall not be included within
31 any statutory limitation of rate or amount for that municipal
32 corporation but shall be excluded therefrom and be in
33 addition thereto and in excess thereof. If this tax is levied
34 after the year 1999, however, as part of a public building
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1 commission lease rental base, the tax is subject to
2 limitation as to the amount of the public building commission
3 lease rental base. The fund realized from such tax levy shall
4 be set aside for the payment of the annual rent and shall not
5 be disbursed for any other purpose until the annual rental
6 has been paid in full. This Section shall not be construed
7 to limit the power of the Commission to enter into leases
8 with any municipal corporation whether or not the municipal
9 corporation has the power of taxation. This Section shall not
10 be construed to require taxes to be levied or extended in
11 excess of the public building commission lease rental base,
12 if applicable.
13 (Source: P.A. 87-1208; 87-1279; revised 1-10-00.)
14 Section 99. Effective date. This Act takes effect upon
15 becoming law.