(65 ILCS 5/8-12-17) (from Ch. 24, par. 8-12-17)
Sec. 8-12-17.
(a) No contract or other obligation shall be entered into
by the financially distressed city unless it is consistent with the
Financial Plan and Budget in effect. No multi-year employment contract or
collective bargaining agreement authorized or entered into by the city in
accordance with applicable statutes and ordinances shall, with respect to
any terms and provisions thereof which are operative after expiration of
the first year of any such contract or agreement, be deemed inconsistent
with a Financial Plan and Budget at any time in effect; provided, however,
that any terms and provisions of a contract or agreement which would
increase expenditures for salaries, benefits or other forms of compensation
after the expiration of the first year of such contract or agreement shall
be contingent upon the attainment of sufficient available revenues,
considering all necessary expenditures, to support such increases.
(b) The Authority may adopt, and from time to time amend,
regulations identifying categories and types of contracts and other
obligations that shall be subject to approval by the Authority and
the procedure for submitting contracts for approval. Each contract or
other obligation that is entered into by the financially distressed city
and that requires approval by the Authority shall contain a provision
stating (i) that it shall not become legally binding on the city unless and
until it has received the approval of the Authority, and (ii) that the
Authority shall approve the contract if, in the Authority's judgment, the
information required to be submitted is complete with respect to the
contract or other obligation being an authorized expenditure within the
Financial Plan and Budget and the contract or other obligation is
consistent with the Financial Plan and Budget in effect. No contract or
other obligation that requires the approval of the Authority shall be
legally binding on the city unless and until it has received the approval
of the Authority. Subject to the foregoing, the prior approval of the
Authority is not required in order for the city to enter into a contract.
(c) The Authority shall approve the contract or obligation if, in
its judgement, the information required to be submitted is complete
and the contract or other obligation is consistent with the Budget and
Financial Plan in effect. Otherwise, the Authority shall reject the
contract or other obligation; provided, however, that any multi-year
employment contract or collective bargaining agreement authorized or
entered into by the city in accordance with applicable statutes and
ordinances shall be approved by the Authority if, in its judgement, the
terms and provisions operative during the first year of such contract
or agreement are consistent with the Budget and Financial Plan in
effect for that period, subject to the limitation that any terms and
provisions of any such contract or agreement which would increase
expenditures for salaries, benefits or other forms of compensation after
the expiration of the first year of the contract or agreement shall be
contingent upon the attainment of sufficient available revenues,
considering all necessary expenditures, to support such increases.
(Source: P.A. 86-1211.)
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