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90_HB2485ham001
LRB9008874THdvam01
1 AMENDMENT TO HOUSE BILL 2485
2 AMENDMENT NO. . Amend House Bill 2485 by replacing
3 the title with the following:
4 "AN ACT to amend the School Code by changing Section
5 19-1."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The School Code is amended by changing
9 Section 19-1 as follows:
10 (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
11 Sec. 19-1. Debt limitations of school districts.
12 (a) School districts shall not be subject to the
13 provisions limiting their indebtedness prescribed in "An Act
14 to limit the indebtedness of counties having a population of
15 less than 500,000 and townships, school districts and other
16 municipal corporations having a population of less than
17 300,000", approved February 15, 1928, as amended.
18 No school districts maintaining grades K through 8 or 9
19 through 12 shall become indebted in any manner or for any
20 purpose to an amount, including existing indebtedness, in the
21 aggregate exceeding 6.9% on the value of the taxable property
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1 therein to be ascertained by the last assessment for State
2 and county taxes or, until January 1, 1983, if greater, the
3 sum that is produced by multiplying the school district's
4 1978 equalized assessed valuation by the debt limitation
5 percentage in effect on January 1, 1979, previous to the
6 incurring of such indebtedness.
7 No school districts maintaining grades K through 12 shall
8 become indebted in any manner or for any purpose to an
9 amount, including existing indebtedness, in the aggregate
10 exceeding 13.8% on the value of the taxable property therein
11 to be ascertained by the last assessment for State and county
12 taxes or, until January 1, 1983, if greater, the sum that is
13 produced by multiplying the school district's 1978 equalized
14 assessed valuation by the debt limitation percentage in
15 effect on January 1, 1979, previous to the incurring of such
16 indebtedness.
17 Notwithstanding the provisions of any other law to the
18 contrary, in any case in which the voters of a school
19 district have approved a proposition for the issuance of
20 bonds of such school district at an election held prior to
21 January 1, 1979, and all of the bonds approved at such
22 election have not been issued, the debt limitation applicable
23 to such school district during the calendar year 1979 shall
24 be computed by multiplying the value of taxable property
25 therein, including personal property, as ascertained by the
26 last assessment for State and county taxes, previous to the
27 incurring of such indebtedness, by the percentage limitation
28 applicable to such school district under the provisions of
29 this subsection (a).
30 (b) Notwithstanding the debt limitation prescribed in
31 subsection (a) of this Section, additional indebtedness may
32 be incurred in an amount not to exceed the estimated cost of
33 acquiring or improving school sites or constructing and
34 equipping additional building facilities under the following
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1 conditions:
2 (1) Whenever the enrollment of students for the
3 next school year is estimated by the board of education
4 to increase over the actual present enrollment by not
5 less than 35% or by not less than 200 students or the
6 actual present enrollment of students has increased over
7 the previous school year by not less than 35% or by not
8 less than 200 students and the board of education
9 determines that additional school sites or building
10 facilities are required as a result of such increase in
11 enrollment; and
12 (2) When the Regional Superintendent of Schools
13 having jurisdiction over the school district and the
14 State Superintendent of Education concur in such
15 enrollment projection or increase and approve the need
16 for such additional school sites or building facilities
17 and the estimated cost thereof; and
18 (3) When the voters in the school district approve
19 a proposition for the issuance of bonds for the purpose
20 of acquiring or improving such needed school sites or
21 constructing and equipping such needed additional
22 building facilities at an election called and held for
23 that purpose. Notice of such an election shall state that
24 the amount of indebtedness proposed to be incurred would
25 exceed the debt limitation otherwise applicable to the
26 school district. The ballot for such proposition shall
27 state what percentage of the equalized assessed valuation
28 will be outstanding in bonds if the proposed issuance of
29 bonds is approved by the voters; or
30 (4) Notwithstanding the provisions of paragraphs
31 (1) through (3) of this subsection (b), if the school
32 board determines that additional facilities are needed to
33 provide a quality educational program and not less than
34 2/3 of those voting in an election called by the school
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1 board on the question approve the issuance of bonds for
2 the construction of such facilities, the school district
3 may issue bonds for this purpose; or.
4 (5) Notwithstanding the provisions of paragraphs
5 (1) through (3) of this subsection (b), if (i) the school
6 district has previously availed itself of the provisions
7 of paragraph (4) of this subsection (b) to enable it to
8 issue bonds, (ii) the voters of the school district have
9 not defeated a proposition for the issuance of bonds
10 since the referendum described in paragraph (4) of this
11 subsection (b) was held, (iii) the school board
12 determines that additional facilities are needed to
13 provide a quality educational program, and (iv) a
14 majority of those voting in an election called by the
15 school board on the question approve the issuance of
16 bonds for the construction of such facilities, the school
17 district may issue bonds for this purpose.
18 In no event shall the indebtedness incurred pursuant to
19 this subsection (b) and the existing indebtedness of the
20 school district exceed 15% of the value of the taxable
21 property therein to be ascertained by the last assessment for
22 State and county taxes, previous to the incurring of such
23 indebtedness or, until January 1, 1983, if greater, the sum
24 that is produced by multiplying the school district's 1978
25 equalized assessed valuation by the debt limitation
26 percentage in effect on January 1, 1979.
27 The indebtedness provided for by this subsection (b)
28 shall be in addition to and in excess of any other debt
29 limitation.
30 (c) Notwithstanding the debt limitation prescribed in
31 subsection (a) of this Section, in any case in which a public
32 question for the issuance of bonds of a proposed school
33 district maintaining grades kindergarten through 12 received
34 at least 60% of the valid ballots cast on the question at an
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1 election held on or prior to November 8, 1994, and in which
2 the bonds approved at such election have not been issued, the
3 school district pursuant to the requirements of Section
4 11A-10 may issue the total amount of bonds approved at such
5 election for the purpose stated in the question.
6 (d) Notwithstanding the debt limitation prescribed in
7 subsection (a) of this Section, a school district that meets
8 all the criteria set forth in paragraphs (1) and (2) of this
9 subsection (d) may incur an additional indebtedness in an
10 amount not to exceed $4,500,000, even though the amount of
11 the additional indebtedness authorized by this subsection
12 (d), when incurred and added to the aggregate amount of
13 indebtedness of the district existing immediately prior to
14 the district incurring the additional indebtedness authorized
15 by this subsection (d), causes the aggregate indebtedness of
16 the district to exceed the debt limitation otherwise
17 applicable to that district under subsection (a):
18 (1) The additional indebtedness authorized by this
19 subsection (d) is incurred by the school district through
20 the issuance of bonds under and in accordance with
21 Section 17-2.11a for the purpose of replacing a school
22 building which, because of mine subsidence damage, has
23 been closed as provided in paragraph (2) of this
24 subsection (d) or through the issuance of bonds under and
25 in accordance with Section 19-3 for the purpose of
26 increasing the size of, or providing for additional
27 functions in, such replacement school buildings, or both
28 such purposes.
29 (2) The bonds issued by the school district as
30 provided in paragraph (1) above are issued for the
31 purposes of construction by the school district of a new
32 school building pursuant to Section 17-2.11, to replace
33 an existing school building that, because of mine
34 subsidence damage, is closed as of the end of the 1992-93
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1 school year pursuant to action of the regional
2 superintendent of schools of the educational service
3 region in which the district is located under Section
4 3-14.22 or are issued for the purpose of increasing the
5 size of, or providing for additional functions in, the
6 new school building being constructed to replace a school
7 building closed as the result of mine subsidence damage,
8 or both such purposes.
9 (e) Notwithstanding the debt limitation prescribed in
10 subsection (a) of this Section, a school district that meets
11 all the criteria set forth in paragraphs (1) through (5) of
12 this subsection (e) may, without referendum, incur an
13 additional indebtedness in an amount not to exceed the lesser
14 of $5,000,000 or 1.5% of the value of the taxable property
15 within the district even though the amount of the additional
16 indebtedness authorized by this subsection (e), when incurred
17 and added to the aggregate amount of indebtedness of the
18 district existing immediately prior to the district incurring
19 that additional indebtedness, causes the aggregate
20 indebtedness of the district to exceed or increases the
21 amount by which the aggregate indebtedness of the district
22 already exceeds the debt limitation otherwise applicable to
23 that district under subsection (a):
24 (1) The State Board of Education certifies the
25 school district under Section 19-1.5 as a financially
26 distressed district.
27 (2) The additional indebtedness authorized by this
28 subsection (e) is incurred by the financially distressed
29 district during the school year or school years in which
30 the certification of the district as a financially
31 distressed district continues in effect through the
32 issuance of bonds for the lawful school purposes of the
33 district, pursuant to resolution of the school board and
34 without referendum, as provided in paragraph (5) of this
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1 subsection.
2 (3) The aggregate amount of bonds issued by the
3 financially distressed district during a fiscal year in
4 which it is authorized to issue bonds under this
5 subsection does not exceed the amount by which the
6 aggregate expenditures of the district for operational
7 purposes during the immediately preceding fiscal year
8 exceeds the amount appropriated for the operational
9 purposes of the district in the annual school budget
10 adopted by the school board of the district for the
11 fiscal year in which the bonds are issued.
12 (4) Throughout each fiscal year in which
13 certification of the district as a financially distressed
14 district continues in effect, the district maintains in
15 effect a gross salary expense and gross wage expense
16 freeze policy under which the district expenditures for
17 total employee salaries and wages do not exceed such
18 expenditures for the immediately preceding fiscal year.
19 Nothing in this paragraph, however, shall be deemed to
20 impair or to require impairment of the contractual
21 obligations, including collective bargaining agreements,
22 of the district or to impair or require the impairment of
23 the vested rights of any employee of the district under
24 the terms of any contract or agreement in effect on the
25 effective date of this amendatory Act of 1994.
26 (5) Bonds issued by the financially distressed
27 district under this subsection shall bear interest at a
28 rate not to exceed the maximum rate authorized by law at
29 the time of the making of the contract, shall mature
30 within 40 years from their date of issue, and shall be
31 signed by the president of the school board and treasurer
32 of the school district. In order to issue bonds under
33 this subsection, the school board shall adopt a
34 resolution fixing the amount of the bonds, the date of
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1 the bonds, the maturities of the bonds, the rates of
2 interest of the bonds, and their place of payment and
3 denomination, and shall provide for the levy and
4 collection of a direct annual tax upon all the taxable
5 property in the district sufficient to pay the principal
6 and interest on the bonds to maturity. Upon the filing
7 in the office of the county clerk of the county in which
8 the financially distressed district is located of a
9 certified copy of the resolution, it is the duty of the
10 county clerk to extend the tax therefor in addition to
11 and in excess of all other taxes at any time authorized
12 to be levied by the district. If bond proceeds from the
13 sale of bonds include a premium or if the proceeds of the
14 bonds are invested as authorized by law, the school board
15 shall determine by resolution whether the interest earned
16 on the investment of bond proceeds or the premium
17 realized on the sale of the bonds is to be used for any
18 of the lawful school purposes for which the bonds were
19 issued or for the payment of the principal indebtedness
20 and interest on the bonds. The proceeds of the bond sale
21 shall be deposited in the educational purposes fund of
22 the district and shall be used to pay operational
23 expenses of the district. This subsection is cumulative
24 and constitutes complete authority for the issuance of
25 bonds as provided in this subsection, notwithstanding any
26 other law to the contrary.
27 (f) Notwithstanding the provisions of subsection (a) of
28 this Section or of any other law, bonds in not to exceed the
29 aggregate amount of $5,500,000 and issued by a school
30 district meeting the following criteria shall not be
31 considered indebtedness for purposes of any statutory
32 limitation and may be issued in an amount or amounts,
33 including existing indebtedness, in excess of any heretofore
34 or hereafter imposed statutory limitation as to indebtedness:
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1 (1) At the time of the sale of such bonds, the
2 board of education of the district shall have determined
3 by resolution that the enrollment of students in the
4 district is projected to increase by not less than 7%
5 during each of the next succeeding 2 school years.
6 (2) The board of education shall also determine by
7 resolution that the improvements to be financed with the
8 proceeds of the bonds are needed because of the projected
9 enrollment increases.
10 (3) The board of education shall also determine by
11 resolution that the projected increases in enrollment are
12 the result of improvements made or expected to be made to
13 passenger rail facilities located in the school district.
14 (g) Notwithstanding the provisions of subsection (a) of
15 this Section or any other law, bonds in not to exceed an
16 aggregate amount of 25% of the equalized assessed value of
17 the taxable property of a school district and issued by a
18 school district meeting the criteria in paragraphs (i)
19 through (iv) of this subsection shall not be considered
20 indebtedness for purposes of any statutory limitation and may
21 be issued pursuant to resolution of the school board in an
22 amount or amounts, including existing indebtedness, in excess
23 of any statutory limitation of indebtedness heretofore or
24 hereafter imposed:
25 (i) The bonds are issued for the purpose of
26 constructing a new high school building to replace two
27 adjacent existing buildings which together house a single
28 high school, each of which is more than 65 years old, and
29 which together are located on more than 10 acres and less
30 than 11 acres of property.
31 (ii) At the time the resolution authorizing the
32 issuance of the bonds is adopted, the cost of
33 constructing a new school building to replace the
34 existing school building is less than 60% of the cost of
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1 repairing the existing school building.
2 (iii) The sale of the bonds occurs before July 1,
3 1997.
4 (iv) The school district issuing the bonds is a
5 unit school district located in a county of less than
6 70,000 and more than 50,000 inhabitants, which has an
7 average daily attendance of less than 1,500 and an
8 equalized assessed valuation of less than $29,000,000.
9 (h) Notwithstanding any other provisions of this Section
10 or the provisions of any other law, until January 1, 1998, 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 27.6% 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 $24,000,000;
19 (ii) The bonds are issued for the capital
20 improvement, renovation, rehabilitation, or replacement
21 of existing school buildings of the district, all of
22 which buildings were originally constructed not less than
23 40 years ago;
24 (iii) The voters of the district approve a
25 proposition for the issuance of the bonds at a referendum
26 held after March 19, 1996; and
27 (iv) The bonds are issued pursuant to Sections 19-2
28 through 19-7 of this Code.
29 (i) Notwithstanding any other provisions of this Section
30 or the provisions of any other law, until January 1, 1998, a
31 community unit school district maintaining grades K through
32 12 may issue bonds up to an amount, including existing
33 indebtedness, not exceeding 27% of the equalized assessed
34 value of the taxable property in the district, if all of the
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1 following conditions are met:
2 (i) The school district has an equalized assessed
3 valuation for calendar year 1995 of less than
4 $44,600,000;
5 (ii) The bonds are issued for the capital
6 improvement, renovation, rehabilitation, or replacement
7 of existing school buildings of the district, all of
8 which existing buildings were originally constructed not
9 less than 80 years ago;
10 (iii) The voters of the district approve a
11 proposition for the issuance of the bonds at a referendum
12 held after December 31, 1996; and
13 (iv) The bonds are issued pursuant to Sections 19-2
14 through 19-7 of this Code.
15 (j) Notwithstanding any other provisions of this Section
16 or the provisions of any other law, until January 1, 1999, a
17 community unit school district maintaining grades K through
18 12 may issue bonds up to an amount, including existing
19 indebtedness, not exceeding 27% of the equalized assessed
20 value of the taxable property in the district if all of the
21 following conditions are met:
22 (i) The school district has an equalized assessed
23 valuation for calendar year 1995 of less than
24 $140,000,000 and a best 3 months average daily attendance
25 for the 1995-96 school year of at least 2,800;
26 (ii) The bonds are issued to purchase a site and
27 build and equip a new high school, and the school
28 district's existing high school was originally
29 constructed not less than 35 years prior to the sale of
30 the bonds;
31 (iii) At the time of the sale of the bonds, the
32 board of education determines by resolution that a new
33 high school is needed because of projected enrollment
34 increases;
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1 (iv) At least 60% of those voting in an election
2 held after December 31, 1996 approve a proposition for
3 the issuance of the bonds; and
4 (v) The bonds are issued pursuant to Sections 19-2
5 through 19-7 of this Code.
6 (k) Notwithstanding any other provisions of this Section
7 or the provisions of any other law, until July 1, 1999, an
8 elementary school district maintaining grades K through 8 may
9 issue bonds up to an amount, excluding existing indebtedness,
10 not exceeding 18% of the equalized assessed value of the
11 taxable property in the district, if all of the following
12 conditions are met:
13 (i) The school district has an equalized assessed
14 valuation for calendar year 1995 of less than $7,700,000;
15 (ii) The school district operates 2 elementary
16 attendance centers that until 1976 were operated as the
17 attendance centers of 2 separate and distinct school
18 districts;
19 (iii) The bonds are issued for the construction of
20 a new elementary school building to replace an existing
21 multi-level elementary school building of the school
22 district that is not handicapped accessible at all levels
23 and parts of which were constructed more than 75 years
24 ago;
25 (iv) The voters of the school district approve a
26 proposition for the issuance of the bonds at a referendum
27 held after July 1, 1998; and
28 (v) The bonds are issued pursuant to Sections 19-2
29 through 19-7 of this Code.
30 (Source: P.A. 89-47, eff. 7-1-95; 89-661, eff. 1-1-97;
31 89-698, eff. 1-14-97; 90-570, eff. 1-28-98.)
32 Section 99. Effective date. This Act takes effect upon
33 becoming law.".
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