97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2913

 

Introduced 2/23/2011, by Rep. Brandon W. Phelps

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Comptroller Act. Creates a provision allowing the Comptroller to establish and conduct a training and certification program for Tax Increment Finance administrators. Sets forth requirements of the program. Amends the Illinois Municipal Code. Provides that on and after the effective date of the amendatory Act, the State Comptroller must post on its website the information submitted by a municipality concerning audit reports. Sets forth the requirements for the posting and daily charges for delinquent reports. Provides that a Tax Increment Financing Report must be filed with the Comptroller within 180 days after the close of the municipal fiscal year or as soon thereafter as the audit becomes available, and allows the Comptroller to grant an extension if the Tax Increment Finance administrator provides the Comptroller's office with sufficient evidence that the report is in the process of being completed. Sets forth daily charges for delinquent reports. Amends the Industrial Jobs Recovery Law of the Illinois Municipal Code. Provides that a municipality must electronically submit financial statements for each redevelopment project area. Further provides that, for each redevelopment project area, municipalities must also submit a list of all intergovernmental agreements in effect during the fiscal year to which the municipality is a party and an accounting of any moneys transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. Requires the State Comptroller to post on its website the information submitted by a municipality concerning audit reports. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 State Comptroller Act is amended by adding
5Section 30 as follows:
 
6    (15 ILCS 405/30 new)
7    Sec. 30. Tax Increment Finance administrator training. The
8Comptroller, in consultation with the State Comptroller Local
9Government Advisory Board, shall establish and conduct a
10training and certification program for Tax Increment Finance
11administrators. The Comptroller shall issue a certificate to
12each administrator who satisfactorily completes the training
13program. In the case of any administrator who fails to
14satisfactorily complete the training program, the Comptroller
15shall so notify the Mayor or other elected official in the
16municipality in which that administrator is employed. The
17Comptroller shall reimburse administrators for their
18reasonable expenses incurred in completing the training
19program subject to moneys appropriated to the Comptroller for
20that purpose.
 
21    Section 10. The Illinois Municipal Code is amended by
22changing Sections 8-8-3, 8-8-3.5, and 11-74.6-22 as follows:
 

 

 

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1    (65 ILCS 5/8-8-3)  (from Ch. 24, par. 8-8-3)
2    Sec. 8-8-3. Audit requirements.
3    (a) The corporate authorities of each municipality coming
4under the provisions of this Division 8 shall cause an audit of
5the funds and accounts of the municipality to be made by an
6accountant or accountants employed by such municipality or by
7an accountant or accountants retained by the Comptroller, as
8hereinafter provided.
9    (b) The accounts and funds of each municipality having a
10population of 800 or more or having a bonded debt or owning or
11operating any type of public utility shall be audited annually.
12The audit herein required shall include all of the accounts and
13funds of the municipality. Such audit shall be begun as soon as
14possible after the close of the fiscal year, and shall be
15completed and the report submitted within 6 months after the
16close of such fiscal year, unless an extension of time shall be
17granted by the Comptroller in writing. The accountant or
18accountants making the audit shall submit not less than 2
19copies of the audit report to the corporate authorities of the
20municipality being audited. Municipalities not operating
21utilities may cause audits of the accounts of municipalities to
22be made more often than herein provided, by an accountant or
23accountants. The audit report of such audit when filed with the
24Comptroller together with an audit report covering the
25remainder of the period for which an audit is required to be

 

 

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1filed hereunder shall satisfy the requirements of this section.
2    (c) Municipalities of less than 800 population which do not
3own or operate public utilities and do not have bonded debt,
4shall file annually with the Comptroller a financial report
5containing information required by the Comptroller. Such
6annual financial report shall be on forms devised by the
7Comptroller in such manner as to not require professional
8accounting services for its preparation.
9    (d) In addition to any audit report required, all
10municipalities, except municipalities of less than 800
11population which do not own or operate public utilities and do
12not have bonded debt, shall file annually with the Comptroller
13a supplemental report on forms devised and approved by the
14Comptroller.
15    (e) Notwithstanding any provision of law to the contrary,
16if a municipality (i) has a population of less than 200, (ii)
17has bonded debt in the amount of $50,000 or less, and (iii)
18owns or operates a public utility, then the municipality shall
19cause an audit of the funds and accounts of the municipality to
20be made by an accountant employed by the municipality or
21retained by the Comptroller for fiscal year 2011 and every
22fourth fiscal year thereafter or until the municipality has a
23population of 200 or more, has bonded debt in excess of
24$50,000, or no longer owns or operates a public utility.
25Nothing in this subsection shall be construed as limiting the
26municipality's duty to file an annual financial report with the

 

 

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1Comptroller or to comply with the filing requirements
2concerning the county clerk.
3    (f) On and after the effective date of this amendatory Act
4of the 97th General Assembly, the State Comptroller must post
5on the State Comptroller's official website the information
6submitted by a municipality pursuant to subsections (b) and (c)
7of this Section. The information must be posted no later than
845 days after the State Comptroller receives the information
9from the municipality. The State Comptroller must also post a
10list of municipalities that are not in compliance with the
11reporting requirements set forth in subsections (b) and (c) of
12this Section.
13    (g) The State Comptroller has the authority to grant
14extensions for delinquent audit reports. The Comptroller may
15charge a municipality a fee for a delinquent audit of $5 per
16day for the first 15 days past due, $10 per day for 16 through
1730 days past due, $15 per day for 31 through 45 days past due,
18and $20 per day for the 46th day and every day thereafter.
19(Source: P.A. 96-1309, eff. 7-27-10.)
 
20    (65 ILCS 5/8-8-3.5)
21    Sec. 8-8-3.5. Tax Increment Financing Report. The reports
22filed under subsection (d) of Section 11-74.4-5 of the Tax
23Increment Allocation Redevelopment Act and the reports filed
24under subsection (d) of Section 11-74.6-22 of the Industrial
25Jobs Recovery Law in the Illinois Municipal Code must be

 

 

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1separate from any other annual report filed with the
2Comptroller. The Comptroller must, in cooperation with
3reporting municipalities, create a format for the reporting of
4information described in paragraphs (1.5) and (5) and in
5subparagraph (G) of paragraph (7) of subsection (d) of Section
611-74.4-5 of the Tax Increment Allocation Redevelopment Act and
7the information described in paragraphs (1.5) and (5) and in
8subparagraph (G) of paragraph (7) of subsection (d) of Section
911-74.6-22 of the Industrial Jobs Recovery Law that facilitates
10consistent reporting among the reporting municipalities. The
11Comptroller may allow these reports to be filed electronically
12and may display the report, or portions of the report,
13electronically via the Internet. All reports filed under this
14Section must be made available for examination and copying by
15the public at all reasonable times. A Tax Increment Financing
16Report must be filed with the Comptroller within 180 days after
17the close of the municipal fiscal year or as soon thereafter as
18the audit for the redevelopment project area for that fiscal
19year becomes available. If the Tax Increment Finance
20administrator provides the Comptroller's office with
21sufficient evidence that the report is in the process of being
22completed by an auditor, the Comptroller may grant an
23extension. If the required report is not filed within the time
24extended by the Comptroller, the Comptroller may charge a
25municipality a fee of $5 per day for the first 15 days past
26due, $10 per day for 16 through 30 days past due, $15 per day

 

 

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1for 31 through 45 days past due, and $20 per day for the 46th
2day and every day thereafter.
3(Source: P.A. 91-478, eff. 11-1-99; 91-900, eff. 7-6-00.)
 
4    (65 ILCS 5/11-74.6-22)
5    Sec. 11-74.6-22. Adoption of ordinance; requirements;
6changes.
7    (a) Before adoption of an ordinance proposing the
8designation of a redevelopment planning area or a redevelopment
9project area, or both, or approving a redevelopment plan or
10redevelopment project, the municipality or commission
11designated pursuant to subsection (l) of Section 11-74.6-15
12shall fix by ordinance or resolution a time and place for
13public hearing. Prior to the adoption of the ordinance or
14resolution establishing the time and place for the public
15hearing, the municipality shall make available for public
16inspection a redevelopment plan or a report that provides in
17sufficient detail, the basis for the eligibility of the
18redevelopment project area. The report along with the name of a
19person to contact for further information shall be sent to the
20affected taxing district by certified mail within a reasonable
21time following the adoption of the ordinance or resolution
22establishing the time and place for the public hearing.
23    At the public hearing any interested person or affected
24taxing district may file with the municipal clerk written
25objections to the ordinance and may be heard orally on any

 

 

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1issues that are the subject of the hearing. The municipality
2shall hear and determine all alternate proposals or bids for
3any proposed conveyance, lease, mortgage or other disposition
4of land and all protests and objections at the hearing and the
5hearing may be adjourned to another date without further notice
6other than a motion to be entered upon the minutes fixing the
7time and place of the later hearing. At the public hearing or
8at any time prior to the adoption by the municipality of an
9ordinance approving a redevelopment plan, the municipality may
10make changes in the redevelopment plan. Changes which (1) add
11additional parcels of property to the proposed redevelopment
12project area, (2) substantially affect the general land uses
13proposed in the redevelopment plan, or (3) substantially change
14the nature of or extend the life of the redevelopment project
15shall be made only after the municipality gives notice,
16convenes a joint review board, and conducts a public hearing
17pursuant to the procedures set forth in this Section and in
18Section 11-74.6-25. Changes which do not (1) add additional
19parcels of property to the proposed redevelopment project area,
20(2) substantially affect the general land uses proposed in the
21redevelopment plan, or (3) substantially change the nature of
22or extend the life of the redevelopment project may be made
23without further hearing, provided that the municipality shall
24give notice of any such changes by mail to each affected taxing
25district and by publication in a newspaper of general
26circulation within the affected taxing district. Such notice by

 

 

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1mail and by publication shall each occur not later than 10 days
2following the adoption by ordinance of such changes.
3    (b) Before adoption of an ordinance proposing the
4designation of a redevelopment planning area or a redevelopment
5project area, or both, or amending the boundaries of an
6existing redevelopment project area or redevelopment planning
7area, or both, the municipality shall convene a joint review
8board to consider the proposal. The board shall consist of a
9representative selected by each taxing district that has
10authority to levy real property taxes on the property within
11the proposed redevelopment project area and that has at least
125% of its total equalized assessed value located within the
13proposed redevelopment project area, a representative selected
14by the municipality and a public member. The public member and
15the board's chairperson shall be selected by a majority of
16other board members.
17    All board members shall be appointed and the first board
18meeting held within 14 days following the notice by the
19municipality to all the taxing districts as required by
20subsection (c) of Section 11-74.6-25. The notice shall also
21advise the taxing bodies represented on the joint review board
22of the time and place of the first meeting of the board.
23Additional meetings of the board shall be held upon the call of
24any 2 members. The municipality seeking designation of the
25redevelopment project area may provide administrative support
26to the board.

 

 

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1    The board shall review the public record, planning
2documents and proposed ordinances approving the redevelopment
3plan and project to be adopted by the municipality. As part of
4its deliberations, the board may hold additional hearings on
5the proposal. A board's recommendation, if any, shall be a
6written recommendation adopted by a majority vote of the board
7and submitted to the municipality within 30 days after the
8board convenes. A board's recommendation shall be binding upon
9the municipality. Failure of the board to submit its
10recommendation on a timely basis shall not be cause to delay
11the public hearing or the process of establishing or amending
12the redevelopment project area. The board's recommendation on
13the proposal shall be based upon the area satisfying the
14applicable eligibility criteria defined in Section 11-74.6-10
15and whether there is a basis for the municipal findings set
16forth in the redevelopment plan as required by this Act. If the
17board does not file a recommendation it shall be presumed that
18the board has found that the redevelopment project area
19satisfies the eligibility criteria.
20    (c) After a municipality has by ordinance approved a
21redevelopment plan and designated a redevelopment planning
22area or a redevelopment project area, or both, the plan may be
23amended and additional properties may be added to the
24redevelopment project area only as herein provided. Amendments
25which (1) add additional parcels of property to the proposed
26redevelopment project area, (2) substantially affect the

 

 

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1general land uses proposed in the redevelopment plan, (3)
2substantially change the nature of the redevelopment project,
3(4) increase the total estimated redevelopment project costs
4set out in the redevelopment plan by more than 5% after
5adjustment for inflation from the date the plan was adopted, or
6(5) add additional redevelopment project costs to the itemized
7list of redevelopment project costs set out in the
8redevelopment plan shall be made only after the municipality
9gives notice, convenes a joint review board, and conducts a
10public hearing pursuant to the procedures set forth in this
11Section and in Section 11-74.6-25. Changes which do not (1) add
12additional parcels of property to the proposed redevelopment
13project area, (2) substantially affect the general land uses
14proposed in the redevelopment plan, (3) substantially change
15the nature of the redevelopment project, (4) increase the total
16estimated redevelopment project cost set out in the
17redevelopment plan by more than 5% after adjustment for
18inflation from the date the plan was adopted, or (5) add
19additional redevelopment project costs to the itemized list of
20redevelopment project costs set out in the redevelopment plan
21may be made without further hearing, provided that the
22municipality shall give notice of any such changes by mail to
23each affected taxing district and by publication in a newspaper
24of general circulation within the affected taxing district.
25Such notice by mail and by publication shall each occur not
26later than 10 days following the adoption by ordinance of such

 

 

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1changes.
2    (d) After the effective date of this amendatory Act of the
391st General Assembly, a municipality shall submit in an
4electronic format the following information for each
5redevelopment project area (i) to the State Comptroller under
6Section 8-8-3.5 of the Illinois Municipal Code and (ii) to all
7taxing districts overlapping the redevelopment project area no
8later than 180 days after the close of each municipal fiscal
9year or as soon thereafter as the audited financial statements
10become available and, in any case, shall be submitted before
11the annual meeting of the joint review board to each of the
12taxing districts that overlap the redevelopment project area:
13        (1) Any amendments to the redevelopment plan, or the
14    redevelopment project area.
15        (1.5) A list of the redevelopment project areas
16    administered by the municipality and, if applicable, the
17    date each redevelopment project area was designated or
18    terminated by the municipality.
19        (2) Audited financial statements of the special tax
20    allocation fund once a cumulative total of $100,000 of tax
21    increment revenues has been deposited in the fund.
22        (3) Certification of the Chief Executive Officer of the
23    municipality that the municipality has complied with all of
24    the requirements of this Act during the preceding fiscal
25    year.
26        (4) An opinion of legal counsel that the municipality

 

 

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1    is in compliance with this Act.
2        (5) An analysis of the special tax allocation fund
3    which sets forth:
4            (A) the balance in the special tax allocation fund
5        at the beginning of the fiscal year;
6            (B) all amounts deposited in the special tax
7        allocation fund by source;
8            (C) an itemized list of all expenditures from the
9        special tax allocation fund by category of permissible
10        redevelopment project cost; and
11            (D) the balance in the special tax allocation fund
12        at the end of the fiscal year including a breakdown of
13        that balance by source and a breakdown of that balance
14        identifying any portion of the balance that is
15        required, pledged, earmarked, or otherwise designated
16        for payment of or securing of obligations and
17        anticipated redevelopment project costs. Any portion
18        of such ending balance that has not been identified or
19        is not identified as being required, pledged,
20        earmarked, or otherwise designated for payment of or
21        securing of obligations or anticipated redevelopment
22        project costs shall be designated as surplus as set
23        forth in Section 11-74.6-30 hereof.
24        (6) A description of all property purchased by the
25    municipality within the redevelopment project area
26    including:

 

 

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1            (A) Street address.
2            (B) Approximate size or description of property.
3            (C) Purchase price.
4            (D) Seller of property.
5        (7) A statement setting forth all activities
6    undertaken in furtherance of the objectives of the
7    redevelopment plan, including:
8            (A) Any project implemented in the preceding
9        fiscal year.
10            (B) A description of the redevelopment activities
11        undertaken.
12            (C) A description of any agreements entered into by
13        the municipality with regard to the disposition or
14        redevelopment of any property within the redevelopment
15        project area.
16            (D) Additional information on the use of all funds
17        received under this Division and steps taken by the
18        municipality to achieve the objectives of the
19        redevelopment plan.
20            (E) Information regarding contracts that the
21        municipality's tax increment advisors or consultants
22        have entered into with entities or persons that have
23        received, or are receiving, payments financed by tax
24        increment revenues produced by the same redevelopment
25        project area.
26            (F) Any reports submitted to the municipality by

 

 

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1        the joint review board.
2            (G) A review of public and, to the extent possible,
3        private investment actually undertaken to date after
4        the effective date of this amendatory Act of the 91st
5        General Assembly and estimated to be undertaken during
6        the following year. This review shall, on a
7        project-by-project basis, set forth the estimated
8        amounts of public and private investment incurred
9        after the effective date of this amendatory Act of the
10        91st General Assembly and provide the ratio of private
11        investment to public investment to the date of the
12        report and as estimated to the completion of the
13        redevelopment project.
14        (8) With regard to any obligations issued by the
15    municipality:
16            (A) copies of any official statements; and
17            (B) an analysis prepared by financial advisor or
18        underwriter setting forth: (i) nature and term of
19        obligation; and (ii) projected debt service including
20        required reserves and debt coverage.
21        (9) For special tax allocation funds that have received
22    cumulative deposits of incremental tax revenues of
23    $100,000 or more, a certified audit report reviewing
24    compliance with this Act performed by an independent public
25    accountant certified and licensed by the authority of the
26    State of Illinois. The financial portion of the audit must

 

 

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1    be conducted in accordance with Standards for Audits of
2    Governmental Organizations, Programs, Activities, and
3    Functions adopted by the Comptroller General of the United
4    States (1981), as amended, or the standards specified by
5    Section 8-8-5 of the Illinois Municipal Auditing Law of the
6    Illinois Municipal Code. The audit report shall contain a
7    letter from the independent certified public accountant
8    indicating compliance or noncompliance with the
9    requirements of subsection (o) of Section 11-74.6-10.
10        (10) A list of all intergovernmental agreements in
11    effect during the fiscal year to which the municipality is
12    a party and an accounting of any moneys transferred or
13    received by the municipality during that fiscal year
14    pursuant to those intergovernmental agreements.
15    (e) The joint review board shall meet annually 180 days
16after the close of the municipal fiscal year or as soon as the
17redevelopment project audit for that fiscal year becomes
18available to review the effectiveness and status of the
19redevelopment project area up to that date.
20    (f) On and after the effective date of this amendatory Act
21of the 97th General Assembly, the State Comptroller must post
22on the State Comptroller's official website the information
23submitted by a municipality pursuant to subsection (d) of this
24Section. The information must be posted no later than 45 days
25after the State Comptroller receives the information from the
26municipality. The State Comptroller must also post a list of

 

 

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1the municipalities not in compliance with the reporting
2requirements set forth in subsection (d) of this Section.
3(Source: P.A. 91-474, eff. 11-1-99; 91-900, eff. 7-6-00.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    15 ILCS 405/30 new
4    65 ILCS 5/8-8-3from Ch. 24, par. 8-8-3
5    65 ILCS 5/8-8-3.5
6    65 ILCS 5/11-74.6-22