Sen. Dan Kotowski

Filed: 3/11/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 540

2    AMENDMENT NO. ______. Amend Senate Bill 540 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1Comptroller shall reimburse administrators for their
2reasonable expenses incurred in completing the training
3program subject to moneys appropriated to the Comptroller for
4that purpose.
 
5    Section 10. The Illinois Municipal Code is amended by
6changing Sections 8-8-3, 8-8-3.5, and 11-74.6-22 as follows:
 
7    (65 ILCS 5/8-8-3)  (from Ch. 24, par. 8-8-3)
8    Sec. 8-8-3. Audit requirements.
9    (a) The corporate authorities of each municipality coming
10under the provisions of this Division 8 shall cause an audit of
11the funds and accounts of the municipality to be made by an
12accountant or accountants employed by such municipality or by
13an accountant or accountants retained by the Comptroller, as
14hereinafter provided.
15    (b) The accounts and funds of each municipality having a
16population of 800 or more or having a bonded debt or owning or
17operating any type of public utility shall be audited annually.
18The audit herein required shall include all of the accounts and
19funds of the municipality. Such audit shall be begun as soon as
20possible after the close of the fiscal year, and shall be
21completed and the report submitted within 6 months after the
22close of such fiscal year, unless an extension of time shall be
23granted by the Comptroller in writing. The accountant or
24accountants making the audit shall submit not less than 2

 

 

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1copies of the audit report to the corporate authorities of the
2municipality being audited. Municipalities not operating
3utilities may cause audits of the accounts of municipalities to
4be made more often than herein provided, by an accountant or
5accountants. The audit report of such audit when filed with the
6Comptroller together with an audit report covering the
7remainder of the period for which an audit is required to be
8filed hereunder shall satisfy the requirements of this section.
9    (c) Municipalities of less than 800 population which do not
10own or operate public utilities and do not have bonded debt,
11shall file annually with the Comptroller a financial report
12containing information required by the Comptroller. Such
13annual financial report shall be on forms devised by the
14Comptroller in such manner as to not require professional
15accounting services for its preparation.
16    (d) In addition to any audit report required, all
17municipalities, except municipalities of less than 800
18population which do not own or operate public utilities and do
19not have bonded debt, shall file annually with the Comptroller
20a supplemental report on forms devised and approved by the
21Comptroller.
22    (e) Notwithstanding any provision of law to the contrary,
23if a municipality (i) has a population of less than 200, (ii)
24has bonded debt in the amount of $50,000 or less, and (iii)
25owns or operates a public utility, then the municipality shall
26cause an audit of the funds and accounts of the municipality to

 

 

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1be made by an accountant employed by the municipality or
2retained by the Comptroller for fiscal year 2011 and every
3fourth fiscal year thereafter or until the municipality has a
4population of 200 or more, has bonded debt in excess of
5$50,000, or no longer owns or operates a public utility.
6Nothing in this subsection shall be construed as limiting the
7municipality's duty to file an annual financial report with the
8Comptroller or to comply with the filing requirements
9concerning the county clerk.
10    (f) On and after the effective date of this amendatory Act
11of the 97th General Assembly, the State Comptroller must post
12on the State Comptroller's official website the information
13submitted by a municipality pursuant to subsections (b) and (c)
14of this Section. The information must be posted no later than
1545 days after the State Comptroller receives the information
16from the municipality. The State Comptroller must also post a
17list of municipalities that are not in compliance with the
18reporting requirements set forth in subsections (b) and (c) of
19this Section.
20    (g) The State Comptroller has the authority to grant
21extensions for delinquent audit reports. The Comptroller may
22charge a municipality a fee for a delinquent audit of $5 per
23day for the first 15 days past due, $10 per day for 16 through
2430 days past due, $15 per day for 31 through 45 days past due,
25and $20 per day for the 46th day and every day thereafter.
26(Source: P.A. 96-1309, eff. 7-27-10.)
 

 

 

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1    (65 ILCS 5/8-8-3.5)
2    Sec. 8-8-3.5. Tax Increment Financing Report. The reports
3filed under subsection (d) of Section 11-74.4-5 of the Tax
4Increment Allocation Redevelopment Act and the reports filed
5under subsection (d) of Section 11-74.6-22 of the Industrial
6Jobs Recovery Law in the Illinois Municipal Code must be
7separate from any other annual report filed with the
8Comptroller. The Comptroller must, in cooperation with
9reporting municipalities, create a format for the reporting of
10information described in paragraphs (1.5) and (5) and in
11subparagraph (G) of paragraph (7) of subsection (d) of Section
1211-74.4-5 of the Tax Increment Allocation Redevelopment Act and
13the information described in paragraphs (1.5) and (5) and in
14subparagraph (G) of paragraph (7) of subsection (d) of Section
1511-74.6-22 of the Industrial Jobs Recovery Law that facilitates
16consistent reporting among the reporting municipalities. The
17Comptroller may allow these reports to be filed electronically
18and may display the report, or portions of the report,
19electronically via the Internet. All reports filed under this
20Section must be made available for examination and copying by
21the public at all reasonable times. A Tax Increment Financing
22Report must be filed with the Comptroller within 180 days after
23the close of the municipal fiscal year or as soon thereafter as
24the audit for the redevelopment project area for that fiscal
25year becomes available. If the Tax Increment Finance

 

 

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1administrator provides the Comptroller's office with
2sufficient evidence that the report is in the process of being
3completed by an auditor, the Comptroller may grant an
4extension. If the required report is not filed within the time
5extended by the Comptroller, the Comptroller may charge a
6municipality a fee of $5 per day for the first 15 days past
7due, $10 per day for 16 through 30 days past due, $15 per day
8for 31 through 45 days past due, and $20 per day for the 46th
9day and every day thereafter.
10(Source: P.A. 91-478, eff. 11-1-99; 91-900, eff. 7-6-00.)
 
11    (65 ILCS 5/11-74.6-22)
12    Sec. 11-74.6-22. Adoption of ordinance; requirements;
13changes.
14    (a) Before adoption of an ordinance proposing the
15designation of a redevelopment planning area or a redevelopment
16project area, or both, or approving a redevelopment plan or
17redevelopment project, the municipality or commission
18designated pursuant to subsection (l) of Section 11-74.6-15
19shall fix by ordinance or resolution a time and place for
20public hearing. Prior to the adoption of the ordinance or
21resolution establishing the time and place for the public
22hearing, the municipality shall make available for public
23inspection a redevelopment plan or a report that provides in
24sufficient detail, the basis for the eligibility of the
25redevelopment project area. The report along with the name of a

 

 

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

 

 

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1(2) substantially affect the general land uses proposed in the
2redevelopment plan, or (3) substantially change the nature of
3or extend the life of the redevelopment project may be made
4without further hearing, provided that the municipality shall
5give notice of any such changes by mail to each affected taxing
6district and by publication in a newspaper of general
7circulation within the affected taxing district. Such notice by
8mail and by publication shall each occur not later than 10 days
9following the adoption by ordinance of such changes.
10    (b) Before adoption of an ordinance proposing the
11designation of a redevelopment planning area or a redevelopment
12project area, or both, or amending the boundaries of an
13existing redevelopment project area or redevelopment planning
14area, or both, the municipality shall convene a joint review
15board to consider the proposal. The board shall consist of a
16representative selected by each taxing district that has
17authority to levy real property taxes on the property within
18the proposed redevelopment project area and that has at least
195% of its total equalized assessed value located within the
20proposed redevelopment project area, a representative selected
21by the municipality and a public member. The public member and
22the board's chairperson shall be selected by a majority of
23other board members.
24    All board members shall be appointed and the first board
25meeting held within 14 days following the notice by the
26municipality to all the taxing districts as required by

 

 

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1subsection (c) of Section 11-74.6-25. The notice shall also
2advise the taxing bodies represented on the joint review board
3of the time and place of the first meeting of the board.
4Additional meetings of the board shall be held upon the call of
5any 2 members. The municipality seeking designation of the
6redevelopment project area may provide administrative support
7to the board.
8    The board shall review the public record, planning
9documents and proposed ordinances approving the redevelopment
10plan and project to be adopted by the municipality. As part of
11its deliberations, the board may hold additional hearings on
12the proposal. A board's recommendation, if any, shall be a
13written recommendation adopted by a majority vote of the board
14and submitted to the municipality within 30 days after the
15board convenes. A board's recommendation shall be binding upon
16the municipality. Failure of the board to submit its
17recommendation on a timely basis shall not be cause to delay
18the public hearing or the process of establishing or amending
19the redevelopment project area. The board's recommendation on
20the proposal shall be based upon the area satisfying the
21applicable eligibility criteria defined in Section 11-74.6-10
22and whether there is a basis for the municipal findings set
23forth in the redevelopment plan as required by this Act. If the
24board does not file a recommendation it shall be presumed that
25the board has found that the redevelopment project area
26satisfies the eligibility criteria.

 

 

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1    (c) After a municipality has by ordinance approved a
2redevelopment plan and designated a redevelopment planning
3area or a redevelopment project area, or both, the plan may be
4amended and additional properties may be added to the
5redevelopment project area only as herein provided. Amendments
6which (1) add additional parcels of property to the proposed
7redevelopment project area, (2) substantially affect the
8general land uses proposed in the redevelopment plan, (3)
9substantially change the nature of the redevelopment project,
10(4) increase the total estimated redevelopment project costs
11set out in the redevelopment plan by more than 5% after
12adjustment for inflation from the date the plan was adopted, or
13(5) add additional redevelopment project costs to the itemized
14list of redevelopment project costs set out in the
15redevelopment plan shall be made only after the municipality
16gives notice, convenes a joint review board, and conducts a
17public hearing pursuant to the procedures set forth in this
18Section and in Section 11-74.6-25. Changes which do not (1) add
19additional parcels of property to the proposed redevelopment
20project area, (2) substantially affect the general land uses
21proposed in the redevelopment plan, (3) substantially change
22the nature of the redevelopment project, (4) increase the total
23estimated redevelopment project cost set out in the
24redevelopment plan by more than 5% after adjustment for
25inflation from the date the plan was adopted, or (5) add
26additional redevelopment project costs to the itemized list of

 

 

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1redevelopment project costs set out in the redevelopment plan
2may be made without further hearing, provided that the
3municipality shall give notice of any such changes by mail to
4each affected taxing district and by publication in a newspaper
5of general circulation within the affected taxing district.
6Such notice by mail and by publication shall each occur not
7later than 10 days following the adoption by ordinance of such
8changes.
9    (d) After the effective date of this amendatory Act of the
1091st General Assembly, a municipality shall submit in an
11electronic format the following information for each
12redevelopment project area (i) to the State Comptroller under
13Section 8-8-3.5 of the Illinois Municipal Code and (ii) to all
14taxing districts overlapping the redevelopment project area no
15later than 180 days after the close of each municipal fiscal
16year or as soon thereafter as the audited financial statements
17become available and, in any case, shall be submitted before
18the annual meeting of the joint review board to each of the
19taxing districts that overlap the redevelopment project area:
20        (1) Any amendments to the redevelopment plan, or the
21    redevelopment project area.
22        (1.5) A list of the redevelopment project areas
23    administered by the municipality and, if applicable, the
24    date each redevelopment project area was designated or
25    terminated by the municipality.
26        (2) Audited financial statements of the special tax

 

 

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1    allocation fund once a cumulative total of $100,000 of tax
2    increment revenues has been deposited in the fund.
3        (3) Certification of the Chief Executive Officer of the
4    municipality that the municipality has complied with all of
5    the requirements of this Act during the preceding fiscal
6    year.
7        (4) An opinion of legal counsel that the municipality
8    is in compliance with this Act.
9        (5) An analysis of the special tax allocation fund
10    which sets forth:
11            (A) the balance in the special tax allocation fund
12        at the beginning of the fiscal year;
13            (B) all amounts deposited in the special tax
14        allocation fund by source;
15            (C) an itemized list of all expenditures from the
16        special tax allocation fund by category of permissible
17        redevelopment project cost; and
18            (D) the balance in the special tax allocation fund
19        at the end of the fiscal year including a breakdown of
20        that balance by source and a breakdown of that balance
21        identifying any portion of the balance that is
22        required, pledged, earmarked, or otherwise designated
23        for payment of or securing of obligations and
24        anticipated redevelopment project costs. Any portion
25        of such ending balance that has not been identified or
26        is not identified as being required, pledged,

 

 

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1        earmarked, or otherwise designated for payment of or
2        securing of obligations or anticipated redevelopment
3        project costs shall be designated as surplus as set
4        forth in Section 11-74.6-30 hereof.
5        (6) A description of all property purchased by the
6    municipality within the redevelopment project area
7    including:
8            (A) Street address.
9            (B) Approximate size or description of property.
10            (C) Purchase price.
11            (D) Seller of property.
12        (7) A statement setting forth all activities
13    undertaken in furtherance of the objectives of the
14    redevelopment plan, including:
15            (A) Any project implemented in the preceding
16        fiscal year.
17            (B) A description of the redevelopment activities
18        undertaken.
19            (C) A description of any agreements entered into by
20        the municipality with regard to the disposition or
21        redevelopment of any property within the redevelopment
22        project area.
23            (D) Additional information on the use of all funds
24        received under this Division and steps taken by the
25        municipality to achieve the objectives of the
26        redevelopment plan.

 

 

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1            (E) Information regarding contracts that the
2        municipality's tax increment advisors or consultants
3        have entered into with entities or persons that have
4        received, or are receiving, payments financed by tax
5        increment revenues produced by the same redevelopment
6        project area.
7            (F) Any reports submitted to the municipality by
8        the joint review board.
9            (G) A review of public and, to the extent possible,
10        private investment actually undertaken to date after
11        the effective date of this amendatory Act of the 91st
12        General Assembly and estimated to be undertaken during
13        the following year. This review shall, on a
14        project-by-project basis, set forth the estimated
15        amounts of public and private investment incurred
16        after the effective date of this amendatory Act of the
17        91st General Assembly and provide the ratio of private
18        investment to public investment to the date of the
19        report and as estimated to the completion of the
20        redevelopment project.
21        (8) With regard to any obligations issued by the
22    municipality:
23            (A) copies of any official statements; and
24            (B) an analysis prepared by financial advisor or
25        underwriter setting forth: (i) nature and term of
26        obligation; and (ii) projected debt service including

 

 

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1        required reserves and debt coverage.
2        (9) For special tax allocation funds that have received
3    cumulative deposits of incremental tax revenues of
4    $100,000 or more, a certified audit report reviewing
5    compliance with this Act performed by an independent public
6    accountant certified and licensed by the authority of the
7    State of Illinois. The financial portion of the audit must
8    be conducted in accordance with Standards for Audits of
9    Governmental Organizations, Programs, Activities, and
10    Functions adopted by the Comptroller General of the United
11    States (1981), as amended, or the standards specified by
12    Section 8-8-5 of the Illinois Municipal Auditing Law of the
13    Illinois Municipal Code. The audit report shall contain a
14    letter from the independent certified public accountant
15    indicating compliance or noncompliance with the
16    requirements of subsection (o) of Section 11-74.6-10.
17        (10) A list of all intergovernmental agreements in
18    effect during the fiscal year to which the municipality is
19    a party and an accounting of any moneys transferred or
20    received by the municipality during that fiscal year
21    pursuant to those intergovernmental agreements.
22    (e) The joint review board shall meet annually 180 days
23after the close of the municipal fiscal year or as soon as the
24redevelopment project audit for that fiscal year becomes
25available to review the effectiveness and status of the
26redevelopment project area up to that date.

 

 

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1    (f) On and after the effective date of this amendatory Act
2of the 97th General Assembly, the State Comptroller must post
3on the State Comptroller's official website the information
4submitted by a municipality pursuant to subsection (d) of this
5Section. The information must be posted no later than 45 days
6after the State Comptroller receives the information from the
7municipality. The State Comptroller must also post a list of
8the municipalities not in compliance with the reporting
9requirements set forth in subsection (d) of this Section.
10(Source: P.A. 91-474, eff. 11-1-99; 91-900, eff. 7-6-00.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.".