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90_SB0569ccr001
LRB9005753THpkccr3
1 90TH GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON SENATE BILL 569
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to House Amendment
10 No. 1 to Senate Bill 569, recommend the following:
11 (1) that the House recede from House Amendment No. 1;
12 and
13 (2) that Senate Bill 569 be amended by replacing the
14 title with the following:
15 "AN ACT to amend the School Code by changing Section
16 19-1."; and
17 by replacing everything after the enacting clause with the
18 following:
19 "Section 5. The School Code is amended by changing
20 Section 19-1 as follows:
21 (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
22 Sec. 19-1. Debt limitations of school districts.
23 (a) School districts shall not be subject to the
24 provisions limiting their indebtedness prescribed in "An Act
25 to limit the indebtedness of counties having a population of
26 less than 500,000 and townships, school districts and other
27 municipal corporations having a population of less than
28 300,000", approved February 15, 1928, as amended.
29 No school districts maintaining grades K through 8 or 9
30 through 12 shall become indebted in any manner or for any
31 purpose to an amount, including existing indebtedness, in the
32 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
35 conditions:
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1 (1) Whenever the enrollment of students for the
2 next school year is estimated by the board of education
3 to increase over the actual present enrollment by not
4 less than 35% or by not less than 200 students or the
5 actual present enrollment of students has increased over
6 the previous school year by not less than 35% or by not
7 less than 200 students and the board of education
8 determines that additional school sites or building
9 facilities are required as a result of such increase in
10 enrollment; and
11 (2) When the Regional Superintendent of Schools
12 having jurisdiction over the school district and the
13 State Superintendent of Education concur in such
14 enrollment projection or increase and approve the need
15 for such additional school sites or building facilities
16 and the estimated cost thereof; and
17 (3) When the voters in the school district approve
18 a proposition for the issuance of bonds for the purpose
19 of acquiring or improving such needed school sites or
20 constructing and equipping such needed additional
21 building facilities at an election called and held for
22 that purpose. Notice of such an election shall state that
23 the amount of indebtedness proposed to be incurred would
24 exceed the debt limitation otherwise applicable to the
25 school district. The ballot for such proposition shall
26 state what percentage of the equalized assessed valuation
27 will be outstanding in bonds if the proposed issuance of
28 bonds is approved by the voters; or
29 (4) Notwithstanding the provisions of paragraphs
30 (1) through (3) of this subsection (b), if the school
31 board determines that additional facilities are needed to
32 provide a quality educational program and not less than
33 2/3 of those voting in an election called by the school
34 board on the question approve the issuance of bonds for
35 the construction of such facilities, the school district
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1 may issue bonds for this purpose.
2 In no event shall the indebtedness incurred pursuant to
3 this subsection (b) and the existing indebtedness of the
4 school district exceed 15% of the value of the taxable
5 property therein to be ascertained by the last assessment for
6 State and county taxes, previous to the incurring of such
7 indebtedness or, until January 1, 1983, if greater, the sum
8 that is produced by multiplying the school district's 1978
9 equalized assessed valuation by the debt limitation
10 percentage in effect on January 1, 1979.
11 The indebtedness provided for by this subsection (b)
12 shall be in addition to and in excess of any other debt
13 limitation.
14 (c) Notwithstanding the debt limitation prescribed in
15 subsection (a) of this Section, in any case in which a public
16 question for the issuance of bonds of a proposed school
17 district maintaining grades kindergarten through 12 received
18 at least 60% of the valid ballots cast on the question at an
19 election held on or prior to November 8, 1994, and in which
20 the bonds approved at such election have not been issued, the
21 school district pursuant to the requirements of Section
22 11A-10 may issue the total amount of bonds approved at such
23 election for the purpose stated in the question.
24 (d) Notwithstanding the debt limitation prescribed in
25 subsection (a) of this Section, a school district that meets
26 all the criteria set forth in paragraphs (1) and (2) of this
27 subsection (d) may incur an additional indebtedness in an
28 amount not to exceed $4,500,000, even though the amount of
29 the additional indebtedness authorized by this subsection
30 (d), when incurred and added to the aggregate amount of
31 indebtedness of the district existing immediately prior to
32 the district incurring the additional indebtedness authorized
33 by this subsection (d), causes the aggregate indebtedness of
34 the district to exceed the debt limitation otherwise
35 applicable to that district under subsection (a):
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1 (1) The additional indebtedness authorized by this
2 subsection (d) is incurred by the school district through
3 the issuance of bonds under and in accordance with
4 Section 17-2.11a for the purpose of replacing a school
5 building which, because of mine subsidence damage, has
6 been closed as provided in paragraph (2) of this
7 subsection (d) or through the issuance of bonds under and
8 in accordance with Section 19-3 for the purpose of
9 increasing the size of, or providing for additional
10 functions in, such replacement school buildings, or both
11 such purposes.
12 (2) The bonds issued by the school district as
13 provided in paragraph (1) above are issued for the
14 purposes of construction by the school district of a new
15 school building pursuant to Section 17-2.11, to replace
16 an existing school building that, because of mine
17 subsidence damage, is closed as of the end of the 1992-93
18 school year pursuant to action of the regional
19 superintendent of schools of the educational service
20 region in which the district is located under Section
21 3-14.22 or are issued for the purpose of increasing the
22 size of, or providing for additional functions in, the
23 new school building being constructed to replace a school
24 building closed as the result of mine subsidence damage,
25 or both such purposes.
26 (e) Notwithstanding the debt limitation prescribed in
27 subsection (a) of this Section, a school district that meets
28 all the criteria set forth in paragraphs (1) through (5) of
29 this subsection (e) may, without referendum, incur an
30 additional indebtedness in an amount not to exceed the lesser
31 of $5,000,000 or 1.5% of the value of the taxable property
32 within the district even though the amount of the additional
33 indebtedness authorized by this subsection (e), when incurred
34 and added to the aggregate amount of indebtedness of the
35 district existing immediately prior to the district incurring
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1 that additional indebtedness, causes the aggregate
2 indebtedness of the district to exceed or increases the
3 amount by which the aggregate indebtedness of the district
4 already exceeds the debt limitation otherwise applicable to
5 that district under subsection (a):
6 (1) The State Board of Education certifies the
7 school district under Section 19-1.5 as a financially
8 distressed district.
9 (2) The additional indebtedness authorized by this
10 subsection (e) is incurred by the financially distressed
11 district during the school year or school years in which
12 the certification of the district as a financially
13 distressed district continues in effect through the
14 issuance of bonds for the lawful school purposes of the
15 district, pursuant to resolution of the school board and
16 without referendum, as provided in paragraph (5) of this
17 subsection.
18 (3) The aggregate amount of bonds issued by the
19 financially distressed district during a fiscal year in
20 which it is authorized to issue bonds under this
21 subsection does not exceed the amount by which the
22 aggregate expenditures of the district for operational
23 purposes during the immediately preceding fiscal year
24 exceeds the amount appropriated for the operational
25 purposes of the district in the annual school budget
26 adopted by the school board of the district for the
27 fiscal year in which the bonds are issued.
28 (4) Throughout each fiscal year in which
29 certification of the district as a financially distressed
30 district continues in effect, the district maintains in
31 effect a gross salary expense and gross wage expense
32 freeze policy under which the district expenditures for
33 total employee salaries and wages do not exceed such
34 expenditures for the immediately preceding fiscal year.
35 Nothing in this paragraph, however, shall be deemed to
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1 impair or to require impairment of the contractual
2 obligations, including collective bargaining agreements,
3 of the district or to impair or require the impairment of
4 the vested rights of any employee of the district under
5 the terms of any contract or agreement in effect on the
6 effective date of this amendatory Act of 1994.
7 (5) Bonds issued by the financially distressed
8 district under this subsection shall bear interest at a
9 rate not to exceed the maximum rate authorized by law at
10 the time of the making of the contract, shall mature
11 within 40 years from their date of issue, and shall be
12 signed by the president of the school board and treasurer
13 of the school district. In order to issue bonds under
14 this subsection, the school board shall adopt a
15 resolution fixing the amount of the bonds, the date of
16 the bonds, the maturities of the bonds, the rates of
17 interest of the bonds, and their place of payment and
18 denomination, and shall provide for the levy and
19 collection of a direct annual tax upon all the taxable
20 property in the district sufficient to pay the principal
21 and interest on the bonds to maturity. Upon the filing
22 in the office of the county clerk of the county in which
23 the financially distressed district is located of a
24 certified copy of the resolution, it is the duty of the
25 county clerk to extend the tax therefor in addition to
26 and in excess of all other taxes at any time authorized
27 to be levied by the district. If bond proceeds from the
28 sale of bonds include a premium or if the proceeds of the
29 bonds are invested as authorized by law, the school board
30 shall determine by resolution whether the interest earned
31 on the investment of bond proceeds or the premium
32 realized on the sale of the bonds is to be used for any
33 of the lawful school purposes for which the bonds were
34 issued or for the payment of the principal indebtedness
35 and interest on the bonds. The proceeds of the bond sale
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1 shall be deposited in the educational purposes fund of
2 the district and shall be used to pay operational
3 expenses of the district. This subsection is cumulative
4 and constitutes complete authority for the issuance of
5 bonds as provided in this subsection, notwithstanding any
6 other law to the contrary.
7 (f) Notwithstanding the provisions of subsection (a) of
8 this Section or of any other law, bonds in not to exceed the
9 aggregate amount of $5,500,000 and issued by a school
10 district meeting the following criteria shall not be
11 considered indebtedness for purposes of any statutory
12 limitation and may be issued in an amount or amounts,
13 including existing indebtedness, in excess of any heretofore
14 or hereafter imposed statutory limitation as to indebtedness:
15 (1) At the time of the sale of such bonds, the
16 board of education of the district shall have determined
17 by resolution that the enrollment of students in the
18 district is projected to increase by not less than 7%
19 during each of the next succeeding 2 school years.
20 (2) The board of education shall also determine by
21 resolution that the improvements to be financed with the
22 proceeds of the bonds are needed because of the projected
23 enrollment increases.
24 (3) The board of education shall also determine by
25 resolution that the projected increases in enrollment are
26 the result of improvements made or expected to be made to
27 passenger rail facilities located in the school district.
28 (g) Notwithstanding the provisions of subsection (a) of
29 this Section or any other law, bonds in not to exceed an
30 aggregate amount of 25% of the equalized assessed value of
31 the taxable property of a school district and issued by a
32 school district meeting the criteria in paragraphs (i)
33 through (iv) of this subsection shall not be considered
34 indebtedness for purposes of any statutory limitation and may
35 be issued pursuant to resolution of the school board in an
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1 amount or amounts, including existing indebtedness, in excess
2 of any statutory limitation of indebtedness heretofore or
3 hereafter imposed:
4 (i) The bonds are issued for the purpose of
5 constructing a new high school building to replace two
6 adjacent existing buildings which together house a single
7 high school, each of which is more than 65 years old, and
8 which together are located on more than 10 acres and less
9 than 11 acres of property.
10 (ii) At the time the resolution authorizing the
11 issuance of the bonds is adopted, the cost of
12 constructing a new school building to replace the
13 existing school building is less than 60% of the cost of
14 repairing the existing school building.
15 (iii) The sale of the bonds occurs before July 1,
16 1997.
17 (iv) The school district issuing the bonds is a
18 unit school district located in a county of less than
19 70,000 and more than 50,000 inhabitants, which has an
20 average daily attendance of less than 1,500 and an
21 equalized assessed valuation of less than $29,000,000.
22 (h) Notwithstanding any other provisions of this Section
23 or the provisions of any other law, until January 1, 1998, a
24 community unit school district maintaining grades K through
25 12 may issue bonds up to an amount, including existing
26 indebtedness, not exceeding 27.6% of the equalized assessed
27 value of the taxable property in the district, if all of the
28 following conditions are met:
29 (i) The school district has an equalized assessed
30 valuation for calendar year 1995 of less than
31 $24,000,000;
32 (ii) The bonds are issued for the capital
33 improvement, renovation, rehabilitation, or replacement
34 of existing school buildings of the district, all of
35 which buildings were originally constructed not less than
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1 40 years ago;
2 (iii) The voters of the district approve a
3 proposition for the issuance of the bonds at a referendum
4 held after March 19, 1996; and
5 (iv) The bonds are issued pursuant to Sections 19-2
6 through 19-7 of this Code.
7 (i) Notwithstanding any other provisions of this Section
8 or the provisions of any other law, until January 1, 1998, a
9 community unit school district maintaining grades K through
10 12 may issue bonds up to an amount, including existing
11 indebtedness, not exceeding 27% of the equalized assessed
12 value of the taxable property in the district, if all of the
13 following conditions are met:
14 (i) The school district has an equalized assessed
15 valuation for calendar year 1995 of less than
16 $44,600,000;
17 (ii) The bonds are issued for the capital
18 improvement, renovation, rehabilitation, or replacement
19 of existing school buildings of the district, all of
20 which existing buildings were originally constructed not
21 less than 80 years ago;
22 (iii) The voters of the district approve a
23 proposition for the issuance of the bonds at a referendum
24 held after December 31, 1996; and
25 (iv) The bonds are issued pursuant to Sections 19-2
26 through 19-7 of this Code.
27 (j) Notwithstanding any other provisions of this Section
28 or the provisions of any other law, until January 1, 1999, a
29 community unit school district maintaining grades K through
30 12 located in a county of more than 240,000 but less than
31 260,000 inhabitants may issue bonds up to an amount,
32 including existing indebtedness, not exceeding 27% of the
33 equalized assessed value of the taxable property in the
34 district if all of the following conditions are met:
35 (i) The school district has an equalized assessed
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1 valuation for calendar year 1995 of less than
2 $140,000,000 $137,400,000 and a best 3 months average
3 daily attendance for the 1995-96 1994-95 school year of
4 at least 2,800, but less than 3,000;
5 (ii) The bonds are issued to purchase a site and
6 build and equip a new high school, and the school
7 district's for the capital improvement, renovation,
8 rehabilitation, or replacement of existing school
9 buildings of the district, all of which existing high
10 school was buildings were originally constructed not less
11 than 35 80 years prior to the sale of the bonds ago, or
12 for the construction of new school facilities;
13 (iii) At the time of the sale of the bonds, the
14 board of education determines by resolution that a new
15 high school is needed because of projected enrollment
16 increases;
17 (iv iii) At least 60% of those voting in an
18 election held after December 31, 1996 The voters of the
19 district approve a proposition for the issuance of the
20 bonds at a referendum held after December 31, 1996; and
21 (v iv) The bonds are issued pursuant to Sections
22 19-2 through 19-7 of this Code.
23 (Source: P.A. 88-376; 88-641, eff. 9-9-94; 88-686, eff.
24 1-24-95; 89-47, eff. 7-1-95; 89-661, eff. 1-1-97; 89-698,
25 eff. 1-14-97.)
26 Section 99. Effective date. This Act takes effect upon
27 becoming law.".
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1 Submitted on , 1998.
2 ______________________________ _____________________________
3 Senator Watson Representative Holbrook
4 ______________________________ _____________________________
5 Senator Cronin Representative Phelps
6 ______________________________ _____________________________
7 Senator O'Malley Representative Hannig
8 ______________________________ _____________________________
9 Senator Berman Representative Stephens
10 ______________________________ _____________________________
11 Senator Collins Representative Churchill
12 Committee for the Senate Committee for the House
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