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Illinois Compiled Statutes
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MUNICIPALITIES (65 ILCS 5/) Illinois Municipal Code. 65 ILCS 5/8-4-26
(65 ILCS 5/8-4-26) (from Ch. 24, par. 8-4-26)
Sec. 8-4-26.
Subject to the requirements of the Bond Issue Notification
Act, the corporate authorities of any municipality having a board of election
commissioners may issue bonds, in such amounts as may be required for the
purpose of acquiring voting machines or electronic voting systems as
required by Sections 24-1.1 and 24A-3 of The Election Code and may levy a
direct annual tax upon all taxable property in the municipality for the
purpose of paying the principal of and interest on such bonds. The
ordinance authorizing the issuance of such bonds shall specify the total
amount of bonds to be issued, the form and denomination of the bonds, the
date they are to bear, the place where they are payable, the date or dates
of maturity, which shall not be more than 10 years from the date of
issuance, the rate of interest, and the dates on which interest is payable.
Such ordinance shall prescribe all the details of the bonds and shall
provide for the levy and collection of a direct annual tax upon all taxable
property in the municipality sufficient to pay the principal of the bonds
at maturity and the interest thereon as it falls due. Such tax is in
addition to taxes for general corporate purposes and is not included in any
statutory tax rate limitation.
(Source: P.A. 89-655, eff. 1-1-97.)
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65 ILCS 5/8-4-27 (65 ILCS 5/8-4-27) (Section scheduled to be repealed on January 1, 2025) Sec. 8-4-27. Municipal Water and Wastewater Funding Study Committee. (a) The Municipal Water and Wastewater Funding Study Committee is established. (b) The Committee shall be comprised of the following members, and the appointed members of the Committee shall be appointed to the Committee no later than 30 days after May 13, 2022 (the effective date of Public Act 102-865): (1) The Governor, or his or her designee, who shall | | (2) The Director of the Illinois Environmental
| | Protection Agency, or his or her designee.
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| (3) The Executive Director of the Illinois Finance
| | Authority, or his or her designee.
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| (4) One member appointed by the President of the
| | (5) One member appointed by the Minority Leader of
| | (6) One member appointed by the Speaker of the House
| | (7) One member appointed by the Minority Leader of
| | the House of Representatives.
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| (8) Members appointed by the Director of the Illinois
| | Environmental Protection Agency as follows:
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| (A) one member who is a representative of a
| | publicly owned drinking water or wastewater utility with a service population of 25,000 or less;
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| (B) one member who is a representative of a
| | publicly owned drinking water or wastewater utility with a service population over 25,000 people to 125,000 people;
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| (C) one member who is a representative of a
| | publicly owned drinking water or wastewater utility with a service population over 125,000 people;
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| (D) one member who is a representative of a
| | statewide organization representing wastewater agencies; and
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| (E) one member who is a representative of a
| | statewide organization representing drinking water agencies.
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| The Committee shall meet at the call of the chair. Committee members shall serve without compensation. If a vacancy occurs in the Committee membership, the vacancy shall be filled in the same manner as the original appointment for the remainder of the Committee.
(c) The Committee shall study and make recommendations concerning any needed modifications to Illinois Environmental Protection Agency and Illinois Pollution Control Board regulations and policies as they relate to municipal water and wastewater funding to ensure that the State's revolving loan fund programs account for and prioritize the following principles, to the fullest extent allowed by federal law:
(1) A community shall not be deemed ineligible for
| | disadvantaged community status based on size or service area of any size, with regard to special rates, loan terms, and eligibility for loan or grant funds.
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| (2) In determining whether a community is
| | disadvantaged, consideration should be given to impacts of funding on water and wastewater expenses for low-income populations.
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| (3) In determining whether a community is eligible
| | for funds and special rates or loan terms, environmental justice concepts should be considered.
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| (4) In determining how funding is allocated, a
| | community facing water supply shortages should be considered a high priority based on urgency of need.
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| (5) The funding programs should promote formation and
| | implementation of regional water partnerships.
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| (6) Targeted funding should be provided for
| | addressing emerging contaminants, including PFAS.
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| (7) In determining eligibility for assistance, the
| | role that the State revolving fund programs play for small communities should be understood and fully considered.
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| (8) Any recommendations for changes to the programs
| | must be fully consistent with federal law and must not adversely affect any community's eligibility for loans under federal law.
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| (d) The Committee shall prepare a report that summarizes its work and makes recommendations resulting from its study. The Committee shall submit the report of its findings and recommendations to the Governor and the General Assembly no later than March 1, 2024. Once the Committee has submitted the report to the General Assembly and Governor, the Committee is dissolved.
(e) This Section is repealed on January 1, 2025.
(Source: P.A. 102-865, eff. 5-13-22; 103-154, eff. 6-30-23; 103-316, eff. 7-28-23.)
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65 ILCS 5/Art. 8 Div. 4.1
(65 ILCS 5/Art. 8 Div. 4.1 heading)
DIVISION 4.1.
MUNICIPAL BOND REFORM ACT
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65 ILCS 5/8-4.1-1
(65 ILCS 5/8-4.1-1) (from Ch. 24, par. 8-4.1-1)
Sec. 8-4.1-1.
This Division shall be known
and may be cited as the "Municipal Bond Reform Act."
(Source: P.A. 85-158.)
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65 ILCS 5/8-4.1-2
(65 ILCS 5/8-4.1-2) (from Ch. 24, par. 8-4.1-2)
Sec. 8-4.1-2.
In addition to other words and terms as
defined in this Code, the following words or terms shall as used in this
Division have the meanings set forth opposite each unless the context or
usage clearly indicates that another meaning is intended.
"Applicable Law" means any provision of this Code or any other provision
of law authorizing municipalities to issue Bonds.
"Backdoor Referendum" means the submission of a public question to the
voters of a municipality, initiated by a petition of voters or residents or
property owners of such municipality, to determine whether an action by the
corporate authorities of such municipality shall be effective, adopted or rejected.
"Bonds" means any instrument evidencing the obligation to pay money
authorized or issued by or on behalf of a municipality under Applicable Law
including, without limiting the generality of the foregoing, bonds, notes,
installment or financing contracts, leases, certificates, tax anticipation
warrants or notes, vouchers, or any evidence of indebtedness.
"General Obligation Bonds" means Bonds of a municipality for the payment
of which the municipality is empowered to levy ad valorem property taxes
upon all taxable property in the municipality without limitation as to rate or amount.
"Municipality" for the purpose of this Division also includes water
commissions under Division 135 of Article 11 of this Code or any other entity
created by intergovernmental agreement and comprised solely of cities,
villages, or incorporated towns.
"Revenue Bonds" means any Bonds of a municipality other than General Obligation Bonds.
(Source: P.A. 85-158.)
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65 ILCS 5/8-4.1-3
(65 ILCS 5/8-4.1-3) (from Ch. 24, par. 8-4.1-3)
Sec. 8-4.1-3.
The provisions of this Act are intended to be
supplemental and in addition to all other power or authority granted to
municipalities, shall be construed liberally and shall not be construed as
a limitation of any power or authority otherwise granted.
(Source: P.A. 85-158.)
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65 ILCS 5/8-4.1-4
(65 ILCS 5/8-4.1-4) (from Ch. 24, par. 8-4.1-4)
Sec. 8-4.1-4.
Whenever Applicable Law provides that the authorization
or the issuance of Bonds, or the becoming effective of an ordinance or
resolution providing for the authorization or issuance of Bonds, may be
subject to a backdoor referendum, the provisions of this Section may be
used as an alternative to the specific procedures as otherwise set forth by
Applicable Law.
A. The corporate authorities may adopt an authorizing ordinance
describing briefly the authority under which Bonds are proposed to be
issued, the nature of the project or purpose to be financed, the estimated
total costs of the project or purpose, including in such costs
all items related to financing the project or purpose, and the maximum
amount of Bonds authorized to be issued to pay such costs. No further
details or specifications are required in such authorizing ordinance. Such
authorizing ordinance, along with any other notice as required by
Applicable Law, including any notice as to the right of electors to file a
petition and the number of voters required to sign any such
petition, shall be published or posted as required by Applicable Law. A
petition may be filed after such publication or posting during the period
as provided by Applicable Law; but upon the expiration of any such period,
the corporate authorities shall be authorized to issue such Bonds as if
they had followed all necessary procedures set forth in such Applicable Law.
B. If no petition meeting the requirements of the Applicable Law is
filed during the petition period hereinabove referred to, then the
corporate authorities may adopt additional ordinances or proceedings
supplementing or amending the authorizing ordinance so long as the maximum
amount of Bonds as set forth in the authorizing ordinance hereinabove
provided for is not exceeded, and there is no material change in the
project or purpose described in the authorizing ordinance. Such additional
ordinances or proceedings shall in all instances become effective
immediately without publication or posting or any further act or
requirement. The authorizing ordinance, together with such additional
ordinances or proceedings, shall constitute complete authority for the
issuance of such Bonds under the Applicable Law.
(Source: P.A. 85-158.)
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65 ILCS 5/8-4.1-5
(65 ILCS 5/8-4.1-5) (from Ch. 24, par. 8-4.1-5)
Sec. 8-4.1-5.
The corporate authorities may provide for a reserve fund
solely for the payment of the principal of and interest on Bonds. Bond
proceeds may be used to provide such reserve fund.
(Source: P.A. 85-158.)
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65 ILCS 5/8-4.1-6
(65 ILCS 5/8-4.1-6) (from Ch. 24, par. 8-4.1-6)
Sec. 8-4.1-6.
The corporate authorities are
authorized and may covenant and contract with the holders of Revenue Bonds
to levy, charge and collect moneys pledged as security for the payment of
Revenue Bonds in amounts sufficient to provide for the prompt payment of
the principal of and interest on such Bonds, and to provide an additional
amount of money, as debt service coverage, computed as a percentage of the
amount of principal and interest scheduled to be payable in any given year.
(Source: P.A. 85-158.)
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65 ILCS 5/8-4.1-7
(65 ILCS 5/8-4.1-7) (from Ch. 24, par. 8-4.1-7)
Sec. 8-4.1-7.
The proceeds of Bonds may be used
to provide for the payment of interest upon such Bonds for a period not to
exceed the greater of 2 years or a period ending 6 months after the
estimated date of completion of the acquisition and construction of the
project or accomplishment of the purpose for which such Bonds are issued.
In addition it shall be lawful for the corporate authorities of any
municipality issuing Bonds to appropriate money for the purpose of paying
interest on such Bonds during the period described above. Such
appropriation may be made in the ordinance authorizing such Bonds and shall
be fully effective upon the effective date of such ordinance without any
further notice, publication or approval whatsoever.
(Source: P.A. 85-158.)
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65 ILCS 5/8-4.1-8
(65 ILCS 5/8-4.1-8) (from Ch. 24, par. 8-4.1-8)
Sec. 8-4.1-8.
Bonds authorized by
Applicable Law may be issued in one or more series, bear such date or
dates, become due at such time or times within the period of years provided
by Applicable Law, bear interest payable at such intervals and at such rate
or rates as authorized under Section 2 of "An Act to authorize public
corporations to issue bonds, other evidences of indebtedness and tax
anticipation warrants subject to interest rate limitations set forth
therein," approved May 26, 1970, as now or hereafter amended, which rates
may be fixed or variable, be in such denominations, be in such form, either
coupon or registered or book-entry, carry such conversion, registration, and
exchange privileges, be subject to defeasance upon such terms, have such
rank or priority, be executed in such manner, be payable in such medium of
payment at such place or places within or without the State of Illinois, be
subject to such terms of redemption with or without premium, and be sold in
such manner at private or public sale and at such price as the corporate
authorities shall determine. Whenever such bonds are sold at a price less
than par, they shall be sold at such price and bear interest at such rate
or rates such that the net interest rate received upon the sale of such
Bonds does not exceed the maximum rate determined under Section 2 of "An
Act to authorize public corporations to issue bonds, other evidences of
indebtedness and tax anticipation warrants subject to interest rate
limitations set forth therein", approved May 26, 1970, as now or hereafter
amended.
(Source: P.A. 85-158.)
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65 ILCS 5/8-4.1-9
(65 ILCS 5/8-4.1-9) (from Ch. 24, par. 8-4.1-9)
Sec. 8-4.1-9.
Any redemption premium
payable upon the redemption of Bonds may be payable from the proceeds of
refunding Bonds which may be issued under Applicable Law for the purpose of
refunding such Bonds, from any other lawfully available source or from both
proceeds and such other sources.
(Source: P.A. 85-158.)
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65 ILCS 5/8-4.1-10
(65 ILCS 5/8-4.1-10) (from Ch. 24, par. 8-4.1-10)
Sec. 8-4.1-10.
In addition to the
authority otherwise available to invest funds, corporate authorities may
authorize and upon such authorization the Treasurer of any municipality may
invest proceeds of Bonds or money on deposit in any debt service or reserve
fund or account relating to Bonds in obligations the interest upon which is
tax exempt under the provisions of Section 103 of the Internal Revenue Code
of 1986, as amended, or successor code or provision, subject to such
tax-exempt obligations being rated at the time of purchase within the 4
highest general classifications established by a rating service of
nationally recognized expertise in rating bonds of states and the political
subdivisions thereof.
(Source: P.A. 85-158.)
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