HB2572 98TH GENERAL ASSEMBLY

LRB098 07271 OMW 37334 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2572

Introduced , by Rep. Thaddeus Jones

SYNOPSIS AS INTRODUCED:

New Act

Creates the Local Government Stabilization Authority Act. Authorizes the corporate authorities of a county, municipality, or township to create, by ordinance, a Local Government Stabilization Authority that shall use available funds to facilitate the return of vacant, abandoned, and tax-delinquent properties to productive use, combatting community deterioration and creating economic growth. Provides definitions. Sets forth procedure regarding the creation of the Authority and funding sources. Further provides for the following: (1) the Authority's tax-exempt status; (2) the appointment of the Board of Directors and Chairperson, their terms of office, their removal, and vacancies; (3) the responsibilities and powers of the Board of Directors; and (4) an Executive Director to administer the Authority on a day-to-day basis. Sets forth the powers of the Authority to implement the purpose of the Act, including the authority to borrow money, enter into partnerships and joint ventures, and contract for goods and services. Permits the Authority to acquire, hold, manage, and dispose of real property. Requires the Authority to prepare an annual budget and provide annual financial statements and reports to the corporate authorities. Permits the corporate authorities to dissolve the Authority and provides requirements regarding the Authority's debts, liabilities, and obligations. Effective immediately.

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Local Government Stabilization Authority.

Section 5. Purpose. The purpose of this Act is to create a Local Government Stabilization Authority that shall use available resources to facilitate the return of vacant, abandoned, and tax-delinquent properties to productive use thereby combating community deterioration, creating economic growth, and stabilizing the housing and job market.

The Authority will acquire, hold, and transfer interest in real property throughout the township, municipality, or county, as applicable, as approved by the Board of Directors for the following purposes, in a way that is consistent with the goals and priorities established by this Act:

(a) to promote redevelopment and reuse of vacant, abandoned, and tax-delinquent properties; and

(b) to support targeted efforts to stabilize neighborhoods;

(c) to stimulate residential, commercial and industrial development; and

(d) to repair and renovate the homes of senior citizens that have deteriorated over time.

Section 10. Definitions. The following words and terms shall have the meanings set forth in this Section, except where otherwise specifically indicated:

"Authority" means the Local Government Stabilization Authority;

"Board of Directors" means the Board of Directors of the Local Government Stabilization Authority;

"Chairperson" means the chairperson of the Local Government Stabilization Authority Board;

"Corporate authorities" means the board of trustees of a township, the board of trustees of a county, or the city council of a municipality, as applicable, with a population of at least 5,000 persons;

"Director" means the Executive Director of the Local Government Stabilization Authority;

"Fiscal Year" means the fiscal year of the Local Government Stabilization Authority, which shall begin on December 1st of each year and end on the following November 30th;

"Member" means a member of the Board of Directors.

"Person" means any individual, corporation, limited liability corporation, organization, government, governmental subdivision or agency, business trust, estate, trust, partnership, association and any other legal entity.

"Real Property" means all land and the buildings thereon, all things permanently attached to land or to the buildings thereon, and any interest existing in, issuing out of, or dependent upon land or the buildings thereon.

Section 15. Creation; funding; assets.

(a) The corporate authorities may, by ordinance, establish the Local Government Stabilization Authority to be an agency of the township, municipality, or county, as applicable. All personnel, facilities, equipment and supplies within the Authority shall be governed by a Board of Directors as provided herein. The Board of Directors shall be accountable to the corporate authorities.

(b) The Local Government Stabilization Authority shall receive funding from the reserves of the school districts within the area governed by the corporate authorities enacting the ordinance. The Authority shall also apply for federal stabilization funding.

(c) Title to Local Government Stabilization Authority Assets. Except as otherwise provided in this Act, the corporate authorities shall hold title to all Real Property controlled by the Authority.

Section 20. Tax-exempt Status. The activities of the Authority pursuant to this Act are governmental functions carried out by an instrumentality or political subdivision of the State as described in Section 115 of Title 26 of the United States Internal Revenue Code, or any corresponding provisions of any future tax code. The activities of the Authority shall be construed as governmental functions carried out by a political subdivision of this State, exempt to the extent provided under Illinois law from taxation by this State, including, but not limited to, ad valorem property tax exemption pursuant to the Property Tax Code.

Section 25. Authority Board of Directors; appointment. The Authority shall be governed by a Board of Directors that shall be appointed by the President or Chairman of the corporate authority, subject to approval by the corporate authority, within 45 days of the adoption of an ordinance pursuant to subsection (a) of Section 15 of this Act. The Board of Directors shall be residents of the township, municipality, or county, as applicable. The Board of Directors shall consist of 12 members.

Candidates for the Board of Directors appointed by the corporate authorities shall be selected from the following categories:

(a) One corporate authority board member to serve as an Ex-Officio Member with voting rights. The Ex-Officio Member shall serve as a liaison between the corporate authority and the Board of Directors;

(b) Three representatives recommended by the mayor, president, or manager, as applicable.

(c) One representative from the local economic development community;

(d) One representative from a community development finance institution;

(e) One representative from the banking community;

(f) One representative from a local or state Realtor Association;

(g) One representative from the non-profit development community;

(h) One representative from the commercial or industrial development community;

(i) One representative from the open space community; and

(j) One representative from a township, municipal, or county community organization.

Section 30. Term of office. Except as otherwise provided in this Section, the members of the Board of Directors appointed under Section 25 shall be appointed for a term of 3 years.

(a) Ex-Officio Member. The ex-officio member shall serve as the ex-officio member for the length of the board member's term on the board of the corporate authority.

(b) The Remaining Members. The remaining 12 members of the Board of Directors shall serve terms as follows:

(1) For the initial Members:

(a) Three of the Members, subject to the approval of the corporate authorities, shall serve a term that expires on January, 1, 2015.

(b) Three of the Members, subject to the approval of the corporate authority, shall serve a term that expires on January, 1, 2016.

(c) Three of the Members, subject to the approval of the corporate authorities, shall serve a term that expires on January, 1, 2017.

(d) Three of the Members, subject to the approval of the corporate authorities, shall serve a term that expires on January 1, 2018.

(2) Thereafter, the Members, other than the ex-officio member appointed, shall serve a term of 3 years.

(a) Each Member, whether initial or subsequent, shall serve until a successor is appointed.

(b) Any Member who is appointed to fill a vacancy, other than a vacancy caused by the expiration of the predecessor's term, shall serve until the expiration of his or her predecessor's term.

(3) Other than the Ex-Officio Commissioner, a Member may not serve more than 2 consecutive full terms.

Section 35. Chairperson; members of the Board of Directors.

(a) The Board of Directors shall select the initial Chairperson of the Board from among the initial members. The Chairperson shall serve one 2-year term as Chairperson and, thereafter, the Board of Directors shall annually elect a Chairperson from among the members.

(1) The Chairperson shall preside at meetings of the Board of Directors and is entitled to vote on all matters before the Board of Directors.

(2) A Member may be elected to serve successive terms as Chairperson.

(b) The Board of Directors may appoint, from its Members, a Member to serve as the Local Government Stabilization Authority secretary and appoint additional officers from its Members as it may deem appropriate.

Section 40. Removal. A Member may be removed by the corporate authorities prior to the expiration of the Member's term of appointment for good cause. Good cause includes inefficiency, neglect of duty, malfeasance, or any cause which renders the member unfit for the position or unable to perform the duties of the position. The corporate authorities shall provide written notice to that Member and the Chairperson of the Board of the removal of that Member from the Board of Directors. The notice shall state the specific grounds which constitute cause for removal. The Member, in receipt of such notice, may request to appear before the corporate authorities and present reasons in support of his or her retention. Thereafter, the corporate authorities shall vote upon whether there are sufficient grounds to remove that Member from office. The chairperson of the corporate authorities shall notify the Member of the final action of the corporate authorities.

Section 45. Vacancies. Any vacancy on the Board of Directors caused by death, resignation, disqualification, or removal shall be filled by the corporate authorities as soon as practicable, but not to exceed 60 days following the occurrence of the vacancy. The vacancy shall be filled for the remainder of the unexpired term in the same manner as the original appointment. Expired terms shall be filled by the corporate authorities within 60 days after the term's expiration in the same manner as the original appointment.

Section 50. Meetings. The Board of Directors shall conduct its first meeting no later than 60 days after the appointment of the Board of Directors. The place, date, and time of the Local Government Stabilization Authority meetings shall be determined at the discretion of the Board of Directors. All meetings of the Board of Directors shall comply with the Illinois Open Meetings Act.

Section 55. Bylaws; policies; procedures. The Board of Directors shall adopt bylaws, procedures and policies consistent with the provisions of this Act within 120 days after the first meeting of the Board of Directors.

Section 60. Quorum and voting. A quorum shall be necessary for the transaction of any business by the Board of Directors. A majority of the Members of the Board of Directors shall constitute a quorum. The Board of Directors shall act by a majority vote of the Members at a meeting at which a quorum is present, except as otherwise provided in this Act. Presence for both quorum and voting at a Local Government Stabilization Authority meeting shall be articulated by the Board of Directors in its bylaws or procedures in a manner consistent with the Open Meetings Act.

Section 65. Records of meetings. Minutes of all meetings of the Board of Directors and its Committees shall be made and maintained as required by the Open Meetings Act.

Section 70. Board of Directors; responsibilities. The Board of Directors shall:

(a) ensure that all personnel matters are conducted free from any political interference and in accordance with the provisions of the Supplemental Relief Order and Consent Decree established in the federal civil litigation filed in the Northern District of Illinois under Case No. 69 C 2145 and titled Shakman, et al. v. Democratic Organization, et al. and all applicable laws;

(b) ensure that all operations, including contractual matters, are conducted free from any political interference; and

(c) ensure efficiency in service delivery and sound fiscal management of all aspects of the Local Government Stabilization Authority including the collection of all revenues from all sources.

Section 75. Board of Directors; actions. The Board of Directors shall do all of the following that is consistent with Illinois law:

(a) adopt, amend or repeal rules and policies and procedures governing the Board of Directors and its actions and meetings, and adopt, amend or repeal policies and procedures to implement day-to-day operation of the Local Government Stabilization Authority, including policies governing any staff of the Local Government Stabilization Authority;

(b) elect additional officers, including, but not limited to, initial officers who shall be elected at the first meeting of the Board of Directors, in accordance with the bylaws;

(c) provide for a system of accounting;

(d) adopt or amend the Authority's budget to submit annually to the corporate authorities for approval and adoption in a time frame mandated by the corporate authorities;

(e) adopt, amend, or repeal policies and procedures for contracting and procurement which must be consistent with the provisions set forth in the local Code;

(f) commission, collect, and receive data from public, private, professional, and volunteer sources to compile an inventory an analysis of desirable properties for acquisition;

(g) establish banking arrangements for the Authority pursuant to Section 160 of this Act;

(h) organize and reorganize the executive, administrative, clerical, and other departments of the Authority and fix the duties, powers, and compensation of all employees, agents and consultants of the Authority.

Section 80. Fiduciary duty. The Members of the Board of Directors are under a fiduciary duty to conduct the activities and affairs of the Authority in the best interests of the residents of the county, township, or municipality, as applicable, including the safekeeping and use of all Local Government Stabilization Authority monies and assets. The members of the Board of Directors shall discharge their duties in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances.

Section 85. Compensation. The Members of the Board of Directors shall receive no compensation for the performance of their duties. A Member may engage in private or public employment, or in a profession or business, except to the extent prohibited by Illinois law or local ordinance. The Authority may reimburse members of the Board of Directors for actual and necessary expenses incurred in the discharge of their official duties, as provided by the Board of Directors.

Section 90. Executive Director. The Board of Directors shall be authorized to retain the professional services of an individual to perform the duties of an Executive Director on a contractual basis with the advice and consent of the corporate authorities. The Executive Director shall not be an employee of the Authority or of the county, municipality, or township. The Director shall administer the Authority in accordance with the operating budget approved by the corporate authorities, general policy guidelines established by the Board of Directors, other applicable governmental procedures and policies, and this Act.

The Director shall be responsible for the day-to-day operations of the Authority, the control, management, and oversight of the Authority's functions, and supervision of all of the Authority's contractual agreements. All terms and conditions of the Director's service shall be specified in a written contract between the Director and the Board of Directors. The Director may be removed by the corporate authorities or the Board of Directors for good cause, prior to the expiration of the Director's contract. Good cause includes inefficiency, neglect of duty, malfeasance, or any cause which renders the Director unfit or unable to perform the scope of work. The Board of Directors may delegate to the Director any powers or duties it considers proper, under such terms, conditions and to the extent that the Board of Directors may specify.

Section 95. Staffing services. The Board of Directors may approve contracts for staffing as requested by the Executive Director that are deemed necessary to carry out the duties and responsibilities of the Authority and in accordance with the policies and procedures established by the Board. Such staff shall be retained pursuant to contracts entered into in accordance with the procurement rules established by the Board.

Section 100. Ethics. The Board of Directors shall be subject to the all State of Illinois ethics laws.

Section 105. Indemnification.

(a) The county, municipality, or township, as applicable, shall defend and indemnify the Authority and the Members Board of Directors with respect to all claims or judgments arising out of their activities as Members with respect to all negligence claims, and claims or judgments arising out of the Authority's activities performed on behalf of the county, municipality, or township.

(b) The county, municipality, or township shall not be obligated to indemnify the Authority or Member for:

(1) Punitive damages or liability arising out of conduct which is based upon willful or wanton conduct.

(2) Conduct which is outside of the scope of the Authority's authority.

(3) Any settlement or judgment in which the county, municipality, or township did not participate.

(4) The defense of any criminal or disciplinary proceeding.

Section 110. General powers. The Authority has the power to do all things necessary or convenient to implement the purposes, objectives, and provisions of this Act including, but not limited to, the following:

(a) to adopt, amend, and repeal bylaws for the regulation of its affairs and the conduct of its business;

(b) to acquire by purchase, donation, or other transfers and to hold, lease, manage, and dispose of Real Property of every kind and character, or any interest therein, in furtherance of the public purposes of the Authority;

(c) to discharge and extinguish Real Property taxes owed to the county, township, municipality, or to a Party, pursuant to an Agreement with such Party, that encumber Real Property owned by the these entities through the Authority, as permitted by the Property Tax Code or other applicable law;

(d) to pay any tax or special assessment due on Real Property acquired or owned by the Authority;

(e) to acquire, accept, or retain equitable interests, security interests, or other interests in any Real Property or other fixtures by loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, pledge, conveyance, contract, lien, or other consensual transfer in order to secure the repayment of any moneys loaned or credit extended by the Authority;

(f) to borrow money from private lenders, from cities or counties, from the State or from federal government funds, subject to the approval of the corporate authorities, to further or carry out the Authority's public purpose by executing leases, trust indentures, trust agreements, agreements for the sale notes, loan agreements, mortgages, deeds to secure debt, trust deeds, security agreements, assignments, and such other agreements or instruments as may be necessary or desirable, in the judgment of the Authority, to evidence and to provide security for such borrowing.

(g) to apply directly or indirectly to any federal, state, county, or municipal government or agency or to any other source, whether public or private, for loans, grants, gifts, guarantees, labor, or other aid or financial assistance in furtherance of the Authority's public purpose and to accept and use the same upon such terms and conditions as are prescribed by such federal, state, county, or municipal government or agency or other source;

(h) to enter into agreements with the federal government or any agency thereof to use the facilities or services of the federal government or any agency thereof in order to further or carry out the public purposes of the Authority;

(i) to extend credit or make loans to any Person, subject to limitations established by the corporate authorities, for the costs of any Authority projects, or any part of the costs of any Authority projects which credit or loans may be evidenced or secured by loan agreements, notes, mortgages, deeds to secure debt, trust deeds, security agreements, assignments, or such other instruments, or by rentals, revenues, fees, or charges, upon such terms and conditions as the Authority shall determine to be reasonable in connection with such extension of credit or loans, including provision for the establishment and maintenance of reserve funds, and, in the exercise of powers granted by the corporate authorities through this Act in connection with any Authority projects, the Authority shall have the right and power to require the inclusion in any such loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, or other instrument such provisions or requirements, including but not limited to: guarantee any obligations, insurance, construction, use, operation, maintenance, and financing and such other terms and conditions, as the Authority may deem necessary or desirable;

(j) as security for repayment of any note, or other obligations of the Authority, to pledge, mortgage, convey, assign, hypothecate, or otherwise encumber any property of the Authority, including, but not limited to, Real Property, fixtures, and revenues or other funds, and to execute any lease, trust indenture, trust agreement, agreement for the sale of the Authority's notes, or other obligations, loan agreement, mortgage, deed to secure debt, trust deed, security agreement, assignment, or other agreement or instrument as may be necessary or desirable, in the judgment of the Authority, to secure any such notes, or other obligations, which instruments or agreements may provide for foreclosure or forced sale of any Real Property of the Authority upon default in any obligation of the Authority, either in payment of principal, premium, if any, or interest or in the performance of any term or condition contained in any such agreement or instrument;

(k) to receive and administer gifts, grants, and bequests of money and Real Property consistent with the purpose of the Authority;

(l) to use any Real Property or fixtures or any interest therein or to rent, license or lease such Real Property to or from others or make contracts with respect to the use thereof, or to sell, lease, exchange, transfer, assign, pledge, or otherwise dispose of or grant options for any such Real Property in any manner as it deems to be in the best interests of the Authority and the public purpose thereof;

(m) to procure insurance or guarantees from the State Legislature or federal government of the payments of any debts or parts thereof incurred by the Authority, and to pay premiums in connection therewith;

(n) to procure, if required, insurance against losses in connection with the Real Property, assets, or activities of the Authority;

(o) to enter into contracts and other instruments necessary, incidental, or convenient to the performance of its duties and the exercise of its powers, including, but not limited to, an Agreement with a Party for the joint exercise of powers. An Agreement with a Party may include contracts for the performance of services by a Party on behalf of the Local Government Stabilization Authority or by the Authority on behalf of a Party;

(p) to enter into partnerships, joint ventures, and other collaborative relationships with municipalities and other public and private entities for the ownership, management, development, and disposition of Real Property;

(q) to enter into contracts and other instruments necessary, incidental, or convenient to the performance of its duties and the exercise of its powers, including, but not limited to, agreements with a Party regarding the disposition of Authority properties located within their boundaries;

(r) to finance, by loan, grant, lease, or otherwise, refinance, construct, erect, assemble, purchase, acquire, own, repair, remodel, rehabilitate, modify, maintain, extend, improve, install, sell, equip, expand, add to, operate, or manage Real Property or rights or interests in Real Property, and to pay the costs of any such project from the proceeds of revenue bonds, loans by persons, corporations, partnerships, whether limited or general, or other entities, all of which the Authority is authorized to receive, accept, and use;

(s) to fix, charge, and collect rents, fees, licenses and charges for the use of Real Property of the Authority and for services provided by the Local Government Stabilization Authority;

(t) to grant or acquire a license, easement, lease (as lessor or lessee), or option with respect to Real Property of the Authority;

(u) to enter into contracts with nonprofit community land trusts, including, but not limited to, long-term lease contracts;

(v) to contract for goods and services and engage personnel as necessary, to be paid from the funds of the Authority. The Board shall determine the qualifications, duties, and compensation of those it contracts with and employs;

(w) to organize and reorganize the executive, administrative, clerical, and other departments of the Local Government Stabilization Authority and to fix the duties, powers, and compensation of all employees, agents, and consultants of the Authority;

(x) to remediate environmental contamination on any Real Property held by the Authority;

(y) to acquire, hold and manage property pursuant to this Act;

(z) to dispose of property pursuant to this Act; and

(aa) to do all other things necessary or convenient to achieve the objectives and purposes of the Authority or other laws that relate to the purposes and responsibilities of the Authority.

Section 115. No waiver of governmental immunity.Nothing in this Act is intended, nor shall be construed, as a waiver by the county, township, or municipality enacting an ordinance that creates a Local Government Stabilization Authority under this Act of any governmental immunity provided under any applicable law.

Section 120. Non-discrimination. The Authority shall comply with all applicable laws prohibiting discrimination.

Section 125. Acquisition of real property.

(a) The Authority may acquire real property or rights or interests in real property by gift, bequest, transfer, exchange, foreclosure, purchase, purchase contracts, lease purchase agreements, installment sales contracts, land contracts, tax sale, scavenger sale or otherwise, on terms and conditions and in a manner the Authority considers proper.

(b) The Authority may acquire any property conveyed to it by this State, a foreclosing governmental unit, a unit of local government, an intergovernmental entity created under the laws of this State, or any other public or private person, including, but not limited to, property without clear title.

(c) All deeds, mortgages, contracts, leases, purchases, or other agreements regarding property of the Authority, including agreements to acquire or dispose of real property, shall be approved by and executed by the Authority, in the name of the county, municipality, or township.

(d) The Authority shall have the right to purchase properties, in the name of the county, municipality, or township, at tax sales conducted in accordance with the Property Tax Code. The Authority may tender a bid at a tax sale that is a credit bid, consisting of the obligation of the Authority to satisfy the component parts of the bid by payments to the respective political subdivisions.

(e) The Authority shall have the right to make offers to purchase properties that are subject to a listing agreement; said offer or purchase of a property by the Authority that is subject to a listing agreement shall not extinguish any legal rights existing under the listing agreement.

Section 130. Holding and managing property. The Authority may control, manage, maintain, operate, repair, lease as lessor, license, secure, prevent the waste or deterioration of, demolish, and take all other actions necessary to preserve the value of the Real Property it controls on behalf of the county, township, or municipality. The Authority shall maintain all such Real Property held by the Local Government Stabilization Authority in accordance with applicable laws and codes. Such Real Property shall be inventoried and classified by the Authority according to suitability for use. The inventory shall be maintained as a public record and shall be filed electronically and in the principal office of the Authority.

Section 135. Property disposition. On terms and conditions, and in a manner and for an amount of consideration that the Authority considers proper, fair, and reasonable, including for no monetary consideration if appropriate, the Authority may convey, sell, transfer, exchange, lease as lessor, or otherwise dispose of Real Property or rights or interests in Real Property that the Authority controls and the county, township, or municipality holds a legal interest to any public or private Person. The transfer and use of property under this section and the exercise by the Authority of powers and duties under this Act shall be considered a necessary public purpose and for the benefit of the public.

Section 140. Criteria for conveyance. Real Property shall be conveyed by the Authority in accordance with this Act and according to criteria determined in the discretion of the Board and contained in the policies and procedures adopted by the Board. The Board may adopt policies and procedures that set forth priorities for a transferee's use of Real Property conveyed by the Authority, including, but not limited to, affordable housing.

Section 145. Transactions. Transactions shall be structured in a manner that permits the Authority to enforce contractual agreements, real covenants, and the provisions of any subordinate financing held by the Authority pertaining to development and use of the Real Property.

Section 150. Disposition of proceeds. Any proceeds from the sale or transfer of Real Property by the Authority shall be retained, expended, or transferred by the Authority as determined by the Board in the best interests of the Authority and in accordance with applicable laws and Agreements.

Section 155. Intergovernmental agreements.

(a) The Board of Directors may negotiate and propose Agreements necessary, incidental, or convenient to the performance of its duties and the exercise of its powers with any unit of local government subject to the approval of the corporate authorities. An Agreement may include, but is not be limited to, contracts for the joint exercise of powers, contracts for the ownership, management, development, and disposition of Real Property, or contracts for the performance of services by a local unit of government on behalf of the Local Government Stabilization Authority or by the Local Government Stabilization Authority on behalf of a local unit of government.

(b) The parties to the intergovernmental agreements shall agree that no party to an intergovernmental agreement shall be responsible, in whole or in part, for the acts of the employees, agents, and servants of any other party, whether acting separately or in conjunction with the implementation of an Agreement. The parties shall only be bound and obligated under an Agreement as expressly agreed to by each party.

(c) All agreements shall in all respects be interpreted, enforced, and governed under the laws of the State of Illinois without regard to the doctrines of conflict of laws. The language of all parts of an Agreement shall in all cases be construed as a whole according to its plain and fair meaning, and not construed strictly for or against any Party.

Section 160. Records. The Authority shall keep and maintain at the principal office of the Authority all documents and records of the Authority. The records of the Authority, which shall be available to the public, shall include, but not be limited to, a copy of this Act, a copy of the ordinance creating the Authority, the Authority's bylaws, and any agreements, along with any amendments thereto. The records and documents shall be maintained and shall be delivered to any successor entity.

Section 165. Financial statements and reports. The Authority shall cause to be prepared, at the Authority's expense, audited financial statements, including a balance sheet, statement of revenue and expense, statement of cash flows, and changes in fund balance, on an annual basis. This financial statements shall be prepared in accordance with generally accepted accounting principles and accompanied by a written opinion of an independent certified public accounting firm.

Section 170. Annual budget.

(a) The Authority shall prepare an annual budget in a manner and under a time frame mandated by the corporate authorities.

(b) The obligations and expenditures of the Board of Directors shall conform to the any applicable local appropriation ordinance, provided that the corporate authorities retain the authority to impose additional limitations. Any commitment, contract or other obligation entered into by the Board in derogation of this Section shall be voidable by the corporate authorities.

Section 175. Deposits and investments. The Authority shall deposit funds of the Authority in a special fund to be held by the Treasurer of the county, municipality, or township, to be designated as the "Local Government Stabilization Authority Fund" and to be expended exclusively for the operation of the Authority.

Section 180. Disbursements. Expenditures of funds from the Local Government Stabilization Authority Fund shall be in accordance with guidelines established by the Board of Directors.

Section 185. Performance objectives. Each Fiscal Year, the Director, or other individual designated by the Board of Directors, shall prepare, for review and approval by the Board of Directors, objectives for the Authority's performance.

Section 190. Annual report.

(a) The Board of Directors shall submit to the corporate authorities, within 6 months after the end of each Fiscal Year, a report that shall set forth a complete and detailed operating and financial statement of the Authority during such Fiscal Year.

(b) Included in the report shall be any recommendations for additional legislation or other action which may be necessary to carry out the mission, purpose and intent of the Authority.

Section 195. Management of funds. The Director, or other individual designated by the Board of Directors, shall be authorized to make deposits and withdraw funds from the Local Government Stabilization Authority Fund for the management of sales proceeds, revenue, and other Authority funds as authorized by the Board of Directors. Standard accounting procedures shall be used in the management of accounts and approved by the corporate authorities.

Section 200. Authorized expenditures. The Authority shall in its sole discretion and within its budget, expend such funds as necessary to carry out the powers, duties, functions, and responsibilities of a Local Government Stabilization Authority under this Act.

Section 205. Dissolution of assets. Upon determining that the purposes of the Authority have been completed and that there is no longer a need for the Authority's continued existence, the corporate authorities may repeal the enacting ordinance and dissolve the Authority, provided, however, that the effective date of any such repeal shall provide sufficient time for the Authority to carry out the provisions set forth in Section 190.

As soon as possible after notice of the repeal of this Act or the repeal of a local enacting ordinance, the Authority shall finish its affairs as follows:

(a) all of the Authority's debts, liabilities, and obligations to its creditors and all expenses incurred in connection with the termination of the Authority and distribution of its assets shall be paid first; and

(b) the remaining Real Property and personal property owned by the Authority, if any, shall be distributed to any successor entity, subject to approval by the corporate authorities. In the event that no successor entity exists, the remaining Real Property and personal property, and other assets of the Authority, shall become assets of the corporate authorities, unless provided otherwise in any applicable agreements.

Section 210. Interpretation. All powers granted to the Local Government Stabilization Authority under this Act shall be interpreted broadly to effectuate the intent and purposes of this Act and not to serve as a limitation of powers.

Section 215. Severability. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion thereof, shall not affect the validity of the remaining provisions of this Act.

Section 999. Effective date. This Act takes effect upon becoming law.