101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2465

 

Introduced 1/15/2020, by Sen. Laura M. Murphy

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-7  from Ch. 24, par. 11-74.4-7

    Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that all surplus funds in the special tax allocation fund shall be distributed as soon as possible after they are calculated (rather than distributed annually within 180 days after the close of the municipality's fiscal year).


LRB101 16160 AWJ 65528 b

 

 

A BILL FOR

 

SB2465LRB101 16160 AWJ 65528 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 11-74.4-7 as follows:
 
6    (65 ILCS 5/11-74.4-7)  (from Ch. 24, par. 11-74.4-7)
7    Sec. 11-74.4-7. Obligations secured by the special tax
8allocation fund set forth in Section 11-74.4-8 for the
9redevelopment project area may be issued to provide for
10redevelopment project costs. Such obligations, when so issued,
11shall be retired in the manner provided in the ordinance
12authorizing the issuance of such obligations by the receipts of
13taxes levied as specified in Section 11-74.4-9 against the
14taxable property included in the area, by revenues as specified
15by Section 11-74.4-8a and other revenue designated by the
16municipality. A municipality may in the ordinance pledge all or
17any part of the funds in and to be deposited in the special tax
18allocation fund created pursuant to Section 11-74.4-8 to the
19payment of the redevelopment project costs and obligations. Any
20pledge of funds in the special tax allocation fund shall
21provide for distribution to the taxing districts and to the
22Illinois Department of Revenue of moneys not required, pledged,
23earmarked, or otherwise designated for payment and securing of

 

 

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1the obligations and anticipated redevelopment project costs
2and such excess funds shall be calculated annually and deemed
3to be "surplus" funds. In the event a municipality only applies
4or pledges a portion of the funds in the special tax allocation
5fund for the payment or securing of anticipated redevelopment
6project costs or of obligations, any such funds remaining in
7the special tax allocation fund after complying with the
8requirements of the application or pledge, shall also be
9calculated annually and deemed "surplus" funds. All surplus
10funds in the special tax allocation fund shall be distributed
11as soon as possible after they are calculated under this
12Section annually within 180 days after the close of the
13municipality's fiscal year by being paid by the municipal
14treasurer to the County Collector, to the Department of Revenue
15and to the municipality in direct proportion to the tax
16incremental revenue received as a result of an increase in the
17equalized assessed value of property in the redevelopment
18project area, tax incremental revenue received from the State
19and tax incremental revenue received from the municipality, but
20not to exceed as to each such source the total incremental
21revenue received from that source. The County Collector shall
22thereafter make distribution to the respective taxing
23districts in the same manner and proportion as the most recent
24distribution by the county collector to the affected districts
25of real property taxes from real property in the redevelopment
26project area.

 

 

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1    Without limiting the foregoing in this Section, the
2municipality may in addition to obligations secured by the
3special tax allocation fund pledge for a period not greater
4than the term of the obligations towards payment of such
5obligations any part or any combination of the following: (a)
6net revenues of all or part of any redevelopment project; (b)
7taxes levied and collected on any or all property in the
8municipality; (c) the full faith and credit of the
9municipality; (d) a mortgage on part or all of the
10redevelopment project; (d-5) repayment of bonds issued
11pursuant to subsection (p-130) of Section 19-1 of the School
12Code; or (e) any other taxes or anticipated receipts that the
13municipality may lawfully pledge.
14    Such obligations may be issued in one or more series
15bearing interest at such rate or rates as the corporate
16authorities of the municipality shall determine by ordinance.
17Such obligations shall bear such date or dates, mature at such
18time or times not exceeding 20 years from their respective
19dates, be in such denomination, carry such registration
20privileges, be executed in such manner, be payable in such
21medium of payment at such place or places, contain such
22covenants, terms and conditions, and be subject to redemption
23as such ordinance shall provide. Obligations issued pursuant to
24this Act may be sold at public or private sale at such price as
25shall be determined by the corporate authorities of the
26municipalities. No referendum approval of the electors shall be

 

 

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1required as a condition to the issuance of obligations pursuant
2to this Division except as provided in this Section.
3    In the event the municipality authorizes issuance of
4obligations pursuant to the authority of this Division secured
5by the full faith and credit of the municipality, which
6obligations are other than obligations which may be issued
7under home rule powers provided by Article VII, Section 6 of
8the Illinois Constitution, or pledges taxes pursuant to (b) or
9(c) of the second paragraph of this section, the ordinance
10authorizing the issuance of such obligations or pledging such
11taxes shall be published within 10 days after such ordinance
12has been passed in one or more newspapers, with general
13circulation within such municipality. The publication of the
14ordinance shall be accompanied by a notice of (1) the specific
15number of voters required to sign a petition requesting the
16question of the issuance of such obligations or pledging taxes
17to be submitted to the electors; (2) the time in which such
18petition must be filed; and (3) the date of the prospective
19referendum. The municipal clerk shall provide a petition form
20to any individual requesting one.
21    If no petition is filed with the municipal clerk, as
22hereinafter provided in this Section, within 30 days after the
23publication of the ordinance, the ordinance shall be in effect.
24But, if within that 30 day period a petition is filed with the
25municipal clerk, signed by electors in the municipality
26numbering 10% or more of the number of registered voters in the

 

 

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1municipality, asking that the question of issuing obligations
2using full faith and credit of the municipality as security for
3the cost of paying for redevelopment project costs, or of
4pledging taxes for the payment of such obligations, or both, be
5submitted to the electors of the municipality, the corporate
6authorities of the municipality shall call a special election
7in the manner provided by law to vote upon that question, or,
8if a general, State or municipal election is to be held within
9a period of not less than 30 or more than 90 days from the date
10such petition is filed, shall submit the question at the next
11general, State or municipal election. If it appears upon the
12canvass of the election by the corporate authorities that a
13majority of electors voting upon the question voted in favor
14thereof, the ordinance shall be in effect, but if a majority of
15the electors voting upon the question are not in favor thereof,
16the ordinance shall not take effect.
17    The ordinance authorizing the obligations may provide that
18the obligations shall contain a recital that they are issued
19pursuant to this Division, which recital shall be conclusive
20evidence of their validity and of the regularity of their
21issuance.
22    In the event the municipality authorizes issuance of
23obligations pursuant to this Section secured by the full faith
24and credit of the municipality, the ordinance authorizing the
25obligations may provide for the levy and collection of a direct
26annual tax upon all taxable property within the municipality

 

 

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1sufficient to pay the principal thereof and interest thereon as
2it matures, which levy may be in addition to and exclusive of
3the maximum of all other taxes authorized to be levied by the
4municipality, which levy, however, shall be abated to the
5extent that monies from other sources are available for payment
6of the obligations and the municipality certifies the amount of
7said monies available to the county clerk.
8    A certified copy of such ordinance shall be filed with the
9county clerk of each county in which any portion of the
10municipality is situated, and shall constitute the authority
11for the extension and collection of the taxes to be deposited
12in the special tax allocation fund.
13    A municipality may also issue its obligations to refund in
14whole or in part, obligations theretofore issued by such
15municipality under the authority of this Act, whether at or
16prior to maturity, provided however, that the last maturity of
17the refunding obligations may not be later than the dates set
18forth under Section 11-74.4-3.5.
19    In the event a municipality issues obligations under home
20rule powers or other legislative authority the proceeds of
21which are pledged to pay for redevelopment project costs, the
22municipality may, if it has followed the procedures in
23conformance with this division, retire said obligations from
24funds in the special tax allocation fund in amounts and in such
25manner as if such obligations had been issued pursuant to the
26provisions of this division.

 

 

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1    All obligations heretofore or hereafter issued pursuant to
2this Act shall not be regarded as indebtedness of the
3municipality issuing such obligations or any other taxing
4district for the purpose of any limitation imposed by law.
5(Source: P.A. 100-531, eff. 9-22-17.)