Full Text of HB5751 98th General Assembly
HB5751 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5751 Introduced , by Rep. Michael W. Tryon SYNOPSIS AS INTRODUCED: |
| 70 ILCS 3605/34 | from Ch. 111 2/3, par. 334 | 70 ILCS 3615/3A.10 | from Ch. 111 2/3, par. 703A.10 | 70 ILCS 3615/3B.10 | from Ch. 111 2/3, par. 703B.10 | 70 ILCS 3615/4.11 | from Ch. 111 2/3, par. 704.11 |
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Amends the Metropolitan Transit Authority Act and the Regional Transportation Authority Act. Requires that the budget and 2-year financial plan submitted by each Service Board (Chicago Transit Authority, Suburban Bus Board, and Commuter
Rail Board) to the Regional Transportation Authority to include specific line-items for revenues and expenses and be divided into detailed categories established by rule by the Board of the Regional Transportation Authority. Provides that the Board of the Regional Transportation Authority may reduce or veto any item of appropriations in the budget or plan submitted by a Service Board and shall return the item vetoed or reduced with its objections to the Service Board that submitted the budget or plan. Makes similar changes in provisions concerning the approval of a Service Board's revised budget.
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| | 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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Metropolitan Transit Authority Act is | 5 | | amended by changing Sections 28a, 30, and 34 as follows:
| 6 | | (70 ILCS 3605/34) (from Ch. 111 2/3, par. 334)
| 7 | | Sec. 34. Budget and Program. The Authority, subject to the | 8 | | powers of the
Regional Transportation Authority in Section 4.11 | 9 | | of the Regional
Transportation Authority Act, shall control the | 10 | | finances of the Authority. It
shall by ordinance appropriate | 11 | | money to perform the Authority's purposes and
provide for | 12 | | payment of debts and expenses of the Authority. Each year the
| 13 | | Authority shall prepare and publish a comprehensive annual | 14 | | budget and five-year capital program
document, and a financial | 15 | | plan for the 2 years thereafter describing the state
of the | 16 | | Authority and presenting for the forthcoming fiscal year and | 17 | | the two
following years the Authority's plans for such | 18 | | operations and capital
expenditures as it intends to undertake | 19 | | and the means by which it intends to
finance them. The proposed | 20 | | budget,
financial plan, and five-year capital program shall be | 21 | | based on the
Regional Transportation Authority's estimate of | 22 | | funds to be made available to
the Authority by or through the | 23 | | Regional Transportation Authority and shall
conform in all |
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| 1 | | respects to the requirements established by the Regional
| 2 | | Transportation Authority. The proposed budget, financial plan, | 3 | | and five-year capital program shall contain a
statement of the | 4 | | funds estimated to be on hand at the beginning of the fiscal
| 5 | | year, the funds estimated to be received from all sources for | 6 | | such year and the
funds estimated to be on hand at the end of | 7 | | such year. The proposed budget, financial plan, and five-year | 8 | | capital program shall be available at no cost for public | 9 | | inspection at the
Authority's main office and at the Regional | 10 | | Transportation Authority's main
office at least 3 weeks prior | 11 | | to any public hearing. Before the proposed budget,
financial | 12 | | plan, and five-year capital program
are submitted to the | 13 | | Regional Transportation
Authority, the Authority shall hold at | 14 | | least one public hearing thereon in each
of the counties in | 15 | | which the Authority provides service. All Board members of
the | 16 | | Authority shall attend a majority of the public hearings unless | 17 | | reasonable
cause is given for their absence. After the public | 18 | | hearings, the Board of the
Authority shall hold at least one | 19 | | meeting for consideration of the proposed
program and budget | 20 | | with the Cook County Board. After conducting such hearings
and | 21 | | holding such meetings and after making such changes in the | 22 | | proposed budget, financial plan, and five-year capital program | 23 | | as the Board deems appropriate, it shall adopt an annual budget
| 24 | | ordinance at least by November 15th preceding the beginning of | 25 | | each fiscal
year. The budget,
financial plan, and five-year | 26 | | capital program shall then be submitted to
the Regional |
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| 1 | | Transportation Authority as provided in Section 4.11 of the
| 2 | | Regional Transportation Authority Act. | 3 | | In the event that the Board of the
Regional Transportation | 4 | | Authority determines that the budget,
financial plan, and | 5 | | five-year capital program do not meet the standards of said | 6 | | Section 4.11 , the Board of the
Authority shall make such | 7 | | changes as are necessary to meet such requirements
and adopt an | 8 | | amended budget ordinance. The amended budget ordinance shall be
| 9 | | resubmitted to the Regional Transportation Authority pursuant | 10 | | to said Section
4.11. The ordinance shall appropriate such sums | 11 | | of money as are deemed
necessary to defray all necessary | 12 | | expenses and obligations of the Authority,
specifying purposes | 13 | | and the objects or programs for which appropriations are
made | 14 | | and the amount appropriated for each object or program.
| 15 | | Additional appropriations, transfers between items and other | 16 | | changes in
such ordinance which do not alter the basis upon | 17 | | which the balanced budget
determination was made by the | 18 | | Regional Transportation Authority may be made
from time to time | 19 | | by the Board.
| 20 | | The budget shall:
| 21 | | (i) show a balance between (A) anticipated revenues | 22 | | from all sources
including operating subsidies and (B) the | 23 | | costs of providing the services
specified and of funding | 24 | | any operating deficits or encumbrances incurred in
prior | 25 | | periods, including provision for payment when due of | 26 | | principal and
interest on outstanding indebtedness;
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| 1 | | (ii) show cash balances including the proceeds of any | 2 | | anticipated cash
flow borrowing sufficient to pay with | 3 | | reasonable promptness all costs and
expenses as incurred;
| 4 | | (iii) provide for a level of fares or charges and | 5 | | operating or
administrative costs for the public | 6 | | transportation provided by or subject to
the jurisdiction | 7 | | of the Board sufficient to allow the Board to meet its
| 8 | | required system generated revenue recovery ratio as | 9 | | determined in accordance
with subsection (a) of Section | 10 | | 4.11 of the Regional Transportation Authority
Act;
| 11 | | (iv) be based upon and employ assumptions and | 12 | | projections which are
reasonable and prudent;
| 13 | | (v) have been prepared in accordance with sound | 14 | | financial practices as
determined by the Board of the | 15 | | Regional Transportation Authority;
| 16 | | (vi) meet such other financial, budgetary, or fiscal | 17 | | requirements that
the Board of the Regional Transportation | 18 | | Authority may by rule or regulation
establish; and
| 19 | | (vii) be consistent with the goals and objectives | 20 | | adopted by the Regional Transportation Authority in the | 21 | | Strategic Plan ; and .
| 22 | | (viii) include specific line-items for revenues and | 23 | | expenses, and be divided into detailed categories, as | 24 | | determined by rule by the Board of the Regional | 25 | | Transportation Authority. | 26 | | The Board shall establish a fiscal operating year. At least |
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| 1 | | thirty
days prior to the beginning of the first full fiscal | 2 | | year after the
creation of the Authority, and annually | 3 | | thereafter, the Board shall cause
to be prepared a tentative | 4 | | budget which shall include all operation and
maintenance | 5 | | expense for the ensuing fiscal year. The tentative budget shall
| 6 | | be considered by the Board and, subject to any revision and | 7 | | amendments as
may be determined, shall be adopted prior to the | 8 | | first day of the ensuing
fiscal year as the budget for that | 9 | | year. No expenditures for operations and
maintenance in excess | 10 | | of the budget shall be made during any fiscal year
except by | 11 | | the affirmative vote of at least five members of the Board. It
| 12 | | shall not be necessary to include in the annual budget any | 13 | | statement of
necessary expenditures for pensions or retirement | 14 | | annuities, or for
interest or principal payments on bonds or | 15 | | certificates, or for capital
outlays, but it shall be the duty | 16 | | of the Board to make provision for
payment of same from | 17 | | appropriate funds. The Board may not alter its fiscal year
| 18 | | without the prior approval of the Board of the Regional | 19 | | Transportation
Authority.
| 20 | | (Source: P.A. 95-708, eff. 1-18-08.)
| 21 | | Section 10. The Regional Transportation Authority Act is | 22 | | amended by changing Sections 2.04, 3A.10, 3B.10, and 4.11 as | 23 | | follows:
| 24 | | (70 ILCS 3615/3A.10) (from Ch. 111 2/3, par. 703A.10)
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| 1 | | Sec. 3A.10. Budget and Program. The Suburban Bus Board, | 2 | | subject to
the powers of the Authority in Section 4.11, shall | 3 | | control the finances
of the Division. It shall by ordinance | 4 | | appropriate money to perform the
Division's purposes and | 5 | | provide for payment of debts and expenses of the
Division. Each | 6 | | year the Suburban Bus Board shall prepare and publish a | 7 | | comprehensive
annual budget and proposed five-year capital
| 8 | | program document, and a financial plan for the 2 years
| 9 | | thereafter describing the state of the Division and presenting | 10 | | for the forthcoming
fiscal year and the 2 following years the | 11 | | Suburban Bus Board's plans for
such operations and capital | 12 | | expenditures as it intends to undertake and
the means by which | 13 | | it intends to finance them. The proposed budget,
financial | 14 | | plan, and five-year capital program shall be based on the | 15 | | Authority's estimate of funds to be
made available to the | 16 | | Suburban Bus Board by or through the Authority and
shall | 17 | | conform in all respects to the requirements established by the | 18 | | Authority.
The proposed budget, financial plan, and five-year | 19 | | capital program shall contain a statement of the funds | 20 | | estimated
to be on hand at the beginning of the fiscal year, | 21 | | the funds estimated to
be received from all sources for such | 22 | | year and the funds estimated to be
on hand at the end of such | 23 | | year. The fiscal year of the
Division shall be the same as the | 24 | | fiscal year of the Authority. Before
the proposed budget,
| 25 | | financial plan, and five-year capital program
are submitted to | 26 | | the
Authority, the Suburban Bus Board shall hold at least one |
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| 1 | | public hearing
thereon in each of the counties in the | 2 | | metropolitan region in which the
Division provides service. The | 3 | | Suburban Bus Board shall hold at least
one meeting for | 4 | | consideration of the proposed
budget, financial plan, and | 5 | | five-year capital program with the
county board of each of the | 6 | | several counties in the metropolitan region
in which the | 7 | | Division provides service. After conducting such hearings
and | 8 | | holding such meetings and after making such changes in the | 9 | | proposed
budget, financial plan, and five-year capital program | 10 | | as the Suburban Bus Board deems appropriate, it shall
adopt an | 11 | | annual budget ordinance at least by November 15 next preceding
| 12 | | the beginning of each fiscal year. The budget,
financial
plan, | 13 | | and five-year capital program shall then be submitted to the | 14 | | Authority as provided in Section 4.11. In the event
that the | 15 | | Board of the Authority determines that the budget
and financial | 16 | | plan do not meet the standards of Section 4.11, the Suburban
| 17 | | Bus Board shall make such changes as are necessary to meet such | 18 | | requirements
and adopt an amended budget ordinance. The amended | 19 | | budget ordinance shall
be resubmitted to the Authority pursuant | 20 | | to Section 4.11. The ordinance
shall appropriate such sums of | 21 | | money as are deemed necessary to defray
all necessary expenses | 22 | | and obligations of the Division, specifying purposes
and the | 23 | | objects or programs for which appropriations are made and the | 24 | | amount
appropriated for each object or program. Additional | 25 | | appropriations, transfers
between items and other changes in | 26 | | such ordinance which do not alter the
basis upon which the |
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| 1 | | balanced budget determination was made by the Board
of the | 2 | | Authority may be made from time to
time by the Suburban Bus | 3 | | Board.
| 4 | | The budget shall:
| 5 | | (i) show a balance between (A) anticipated revenues | 6 | | from all sources including
operating subsidies and (B) the | 7 | | costs of providing the services specified
and of funding | 8 | | any operating deficits or encumbrances incurred in prior
| 9 | | periods, including provision for payment when due of | 10 | | principal and interest
on outstanding indebtedness;
| 11 | | (ii) show cash balances including the proceeds of any | 12 | | anticipated cash
flow borrowing sufficient to pay with | 13 | | reasonable promptness all costs and
expenses as incurred;
| 14 | | (iii) provide for a level of fares or charges and | 15 | | operating or administrative
costs for the public | 16 | | transportation provided by or subject to the jurisdiction
| 17 | | of the Suburban Bus Board sufficient
to allow the Suburban | 18 | | Bus Board to meet its required system generated revenues
| 19 | | recovery ratio and, beginning with the 2007 fiscal year, | 20 | | its system generated ADA paratransit services revenue | 21 | | recovery ratio;
| 22 | | (iv) be based upon and employ assumptions and | 23 | | projections which are reasonable
and prudent;
| 24 | | (v) have been prepared in accordance with sound | 25 | | financial practices as
determined by the Board of the | 26 | | Authority;
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| 1 | | (vi) meet such other uniform financial, budgetary, or | 2 | | fiscal requirements
that the Board of the Authority may by | 3 | | rule or regulation establish; and
| 4 | | (vii) be consistent with the goals and objectives | 5 | | adopted by the Regional Transportation Authority in the | 6 | | Strategic Plan ; and .
| 7 | | (viii) include specific line-items for revenues and | 8 | | expenses, and be divided into detailed categories, as | 9 | | determined by rule by the Board of the Regional | 10 | | Transportation Authority. | 11 | | (Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08.)
| 12 | | (70 ILCS 3615/3B.10) (from Ch. 111 2/3, par. 703B.10)
| 13 | | Sec. 3B.10. Budget and Program. The Commuter Rail Board, | 14 | | subject to
the powers of the Authority in Section 4.11, shall | 15 | | control the finances
of the Division. It shall by ordinance | 16 | | appropriate money to perform the
Division's purposes and | 17 | | provide for payment of debts and expenses of the
Division. Each | 18 | | year the Commuter Rail Board shall prepare and publish a
| 19 | | comprehensive annual budget and proposed five-year capital
| 20 | | program document, and a financial plan for
the two years | 21 | | thereafter describing the state of the Division and presenting
| 22 | | for the forthcoming fiscal year and the two following years the | 23 | | Commuter
Rail Board's plans for such operations and capital | 24 | | expenditures as the Commuter
Rail Board intends to undertake | 25 | | and the means by which it intends to finance
them. The proposed |
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| 1 | | budget,
financial plan, and five-year capital program shall be | 2 | | based on the Authority's
estimate of funds to be made available | 3 | | to the Commuter Rail Board by or through
the Authority and | 4 | | shall conform in all respects to the requirements established
| 5 | | by the Authority. The proposed budget, financial plan, and | 6 | | five-year capital program shall contain a statement
of the | 7 | | funds estimated to be on hand at the beginning of the fiscal | 8 | | year,
the funds estimated to be received from all sources for | 9 | | such year and the
funds estimated to be on hand at the end of | 10 | | such year.
The fiscal year of the Division shall be the same as | 11 | | the fiscal
year of the Authority. Before the proposed budget,
| 12 | | financial
plan, and five-year capital program are submitted to | 13 | | the Authority, the Commuter Rail Board shall hold
at least one | 14 | | public hearing thereon in each of the counties in the | 15 | | metropolitan
region in which the Division provides service. The | 16 | | Commuter Rail Board
shall hold at least one meeting for | 17 | | consideration of the proposed budget, financial plan, and | 18 | | five-year capital plan with the county board of each of the | 19 | | several counties in the
metropolitan region in which the | 20 | | Division provides service. After conducting
such hearings and | 21 | | holding such meetings and after making such changes in
the | 22 | | proposed budget, financial plan, and five-year capital plan
as | 23 | | the Commuter Rail Board deems appropriate,
the board shall | 24 | | adopt its annual budget ordinance at least by November 15 next
| 25 | | preceding
the beginning of each fiscal year. The budget,
| 26 | | financial
plan, and five-year capital program
shall then be |
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| 1 | | submitted to the Authority as provided in Section 4.11.
In the | 2 | | event that the Board of the Authority determines that the | 3 | | budget
and program, and financial plan do not meet the | 4 | | standards of Section 4.11,
the Commuter Rail Board shall make | 5 | | such changes as are necessary to meet
such requirements and | 6 | | adopt an amended budget ordinance. The amended budget
ordinance | 7 | | shall be resubmitted to the Authority pursuant to Section 4.11. | 8 | | The ordinance
shall appropriate such sums of money as are | 9 | | deemed necessary to defray all
necessary expenses and | 10 | | obligations of the Division, specifying purposes
and the | 11 | | objects or programs for which appropriations are made and the | 12 | | amount
appropriated for each object or program. Additional | 13 | | appropriations, transfers
between items and other changes in | 14 | | such ordinance which do not alter the
basis upon which the | 15 | | balanced budget determination was made by the Board
of the | 16 | | Authority may be made from time to time by the Commuter Rail | 17 | | Board.
| 18 | | The budget shall:
| 19 | | (i) show a balance between (A) anticipated revenues | 20 | | from all sources including
operating subsidies and (B) the | 21 | | costs of providing the services specified
and of funding | 22 | | any operating deficits or encumbrances incurred in prior
| 23 | | periods, including provision for payment when due of | 24 | | principal and interest
on outstanding indebtedness;
| 25 | | (ii) show cash balances including the proceeds of any | 26 | | anticipated cash
flow borrowing sufficient to pay with |
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| 1 | | reasonable promptness all costs
and expenses as incurred;
| 2 | | (iii) provide for a level of fares or charges for the | 3 | | public transportation
provided by or subject to the | 4 | | jurisdiction of such Commuter Rail Board sufficient
to | 5 | | allow the Commuter Rail Board to meet its required system | 6 | | generated
revenue recovery ratio;
| 7 | | (iv) be based upon and employ assumptions and | 8 | | projections which the Board
of the Authority finds to be | 9 | | reasonable and prudent;
| 10 | | (v) have been prepared in accordance with sound | 11 | | financial practices as
determined by the Board of the | 12 | | Authority;
| 13 | | (vi) meet such other uniform financial, budgetary, or | 14 | | fiscal requirements
that the Board of the Authority may by | 15 | | rule or regulation establish; and
| 16 | | (vii) be consistent with the goals and objectives | 17 | | adopted by the Regional Transportation Authority in the | 18 | | Strategic Plan ; and .
| 19 | | (viii) include specific line-items for revenues and | 20 | | expenses, and be divided into detailed categories, as | 21 | | determined by rule by the Board of the Regional | 22 | | Transportation Authority. | 23 | | (Source: P.A. 95-708, eff. 1-18-08.)
| 24 | | (70 ILCS 3615/4.11) (from Ch. 111 2/3, par. 704.11)
| 25 | | Sec. 4.11. Budget Review Powers.
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| 1 | | (a) Based
upon estimates which shall be given to the | 2 | | Authority by the Director of
the
Governor's Office of | 3 | | Management and Budget (formerly
Bureau of the Budget) of the | 4 | | receipts to be received by the
Authority from the taxes imposed
| 5 | | by the Authority and the authorized estimates of amounts
to be | 6 | | available from State and other sources to the Service Boards, | 7 | | and
the times at which such receipts and amounts will be | 8 | | available, the Board
shall, not later than the next preceding | 9 | | September 15th prior to the beginning
of the Authority's next | 10 | | fiscal year,
advise each Service Board of the amounts estimated | 11 | | by the Board to be available
for such Service Board during such | 12 | | fiscal year and the two following fiscal
years and the times at | 13 | | which such amounts will be available. The Board
shall, at the | 14 | | same time, also advise each Service Board of its required
| 15 | | system generated revenues recovery ratio for the next fiscal | 16 | | year which
shall be the percentage of the aggregate costs of | 17 | | providing public
transportation by or under jurisdiction of | 18 | | that Service Board which must be
recovered from system | 19 | | generated revenues. The Board shall, at the same time, consider | 20 | | the written determination of the Executive Director, made | 21 | | pursuant to Section 2.01d, of the costs of ADA paratransit | 22 | | services that are required to be provided under the federal | 23 | | Americans with Disabilities Act of 1990 and its implementing | 24 | | regulations, and shall amend the current year budgets of the | 25 | | Authority and the Service Boards to provide for additional | 26 | | funding for the provision of ADA paratransit services, if |
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| 1 | | needed. The Board shall, at the same time, beginning with the | 2 | | 2007 fiscal year, also advise each Service Board that provides | 3 | | ADA paratransit services of its required system generated ADA | 4 | | paratransit services revenue recovery ratio for the next fiscal | 5 | | year which shall be the percentage of the aggregate costs of | 6 | | providing ADA paratransit services by or under jurisdiction of | 7 | | that Service Board which must be recovered from fares charged | 8 | | for such services, except that such required system generated | 9 | | ADA paratransit services revenue recovery ratio shall not | 10 | | exceed the minimum percentage established pursuant to Section | 11 | | 4.01(b)(ii) of this Act. In determining
a Service Board's | 12 | | system generated revenue recovery ratio, the Board shall
| 13 | | consider the historical system generated revenues recovery | 14 | | ratio for the
services subject to the jurisdiction of that
| 15 | | Service Board. The Board shall not increase a Service Board's | 16 | | system generated
revenues recovery ratio for the next fiscal | 17 | | year over such ratio for the
current fiscal year | 18 | | disproportionately or prejudicially to increases in
such | 19 | | ratios for other Service Boards. The Board may, by ordinance,
| 20 | | provide that (i) the cost of research and development projects | 21 | | in the
fiscal year beginning January 1, 1986 and ending | 22 | | December 31, 1986
conducted pursuant to Section 2.09 of this | 23 | | Act, (ii) the costs for passenger security, and (iii) | 24 | | expenditures of amounts granted to a Service Board from the | 25 | | Innovation, Coordination, and Enhancement Fund for operating | 26 | | purposes may be exempted from the
farebox recovery ratio or the |
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| 1 | | system generated revenues recovery ratio of
the Chicago Transit | 2 | | Authority, the Suburban Bus Board, and the Commuter
Rail Board, | 3 | | or any of them. During fiscal years 2008 through 2012, the | 4 | | Board may also allocate the exemption of $200,000,000 and the | 5 | | reducing amounts of costs provided by this amendatory Act of | 6 | | the 95th General Assembly from the farebox recovery ratio or | 7 | | system generated revenues recovery ratio of each Service Board.
| 8 | | (b)(1) Not later than the next preceding November 15 prior | 9 | | to the
commencement of such fiscal year, each Service Board | 10 | | shall submit to the
Authority its proposed budget for such | 11 | | fiscal year and its proposed
financial plan for the two | 12 | | following fiscal years. Such budget and
financial plan shall | 13 | | (i) be prepared in the format, follow the financial and | 14 | | budgetary practices, and be based on any assumptions and | 15 | | projections required by the Authority and (ii) not project or | 16 | | assume a receipt of revenues from the
Authority in amounts | 17 | | greater than those set forth in the estimates provided
by the | 18 | | Authority pursuant to subsection (a) of this Section.
| 19 | | (2) The Board shall review and approve or disapprove the | 20 | | proposed budget and two-year
financial plan submitted
by each | 21 | | Service Board. The Board shall approve the budget and two-year | 22 | | financial plan of a Service Board if:
| 23 | | (i)
such budget and plan show a balance between (A) | 24 | | anticipated revenues
from all sources including operating | 25 | | subsidies and (B) the costs of providing
the services | 26 | | specified and of funding any operating deficits or |
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| 1 | | encumbrances
incurred in prior periods, including | 2 | | provision for payment when due of
principal and interest on | 3 | | outstanding indebtedness;
| 4 | | (ii)
such budget and plan show cash balances including | 5 | | the proceeds of
any anticipated cash flow borrowing | 6 | | sufficient to pay with reasonable
promptness all costs and | 7 | | expenses as incurred;
| 8 | | (iii)
such budget and plan provide for a level of fares | 9 | | or charges and
operating or administrative costs for the | 10 | | public transportation provided
by or subject to the | 11 | | jurisdiction of such Service Board sufficient to allow
the | 12 | | Service Board to meet its required system generated revenue | 13 | | recovery ratio and, beginning with the 2007 fiscal year, | 14 | | system generated ADA paratransit services revenue recovery | 15 | | ratio;
| 16 | | (iv)
such budget and plan are based upon and employ | 17 | | assumptions and
projections which are reasonable and | 18 | | prudent;
| 19 | | (v)
such budget and plan have been prepared in | 20 | | accordance with sound
financial practices as determined by | 21 | | the Board;
| 22 | | (vi)
such budget and plan meet such other financial, | 23 | | budgetary, or fiscal
requirements that the Board may by | 24 | | rule or regulation establish; and
| 25 | | (vii) such budget and plan are consistent with the | 26 | | goals and objectives adopted by the Authority in the |
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| 1 | | Strategic Plan ; and .
| 2 | | (viii) include specific line-items for revenues and | 3 | | expenses, and be divided into detailed categories, as | 4 | | determined by rule by the Board. | 5 | | (3) (Blank).
| 6 | | (4) For any budget and plan approved under paragraph (2) of | 7 | | this subsection (b), the Board may, by an affirmative vote of | 8 | | 12 of the then Directors, reduce or veto any item of | 9 | | appropriations in the budget or plan and a copy of the veto | 10 | | with the Board's objections shall be delivered to the Service | 11 | | Board that submitted the budget or plan for approval. Portions | 12 | | of the budget or plan not reduced or vetoed shall be considered | 13 | | approved. If, within 30 calendar days after the veto has been | 14 | | delivered the appropriate Service Board, the Board votes to | 15 | | restore an item that has been reduced, the item shall be | 16 | | considered approved in the restored amount. If a reduced item | 17 | | is not restored, then it shall be considered approved in the | 18 | | reduced amount. | 19 | | Unless the Board by an affirmative vote of 12
of the then | 20 | | Directors
determines that the budget and financial plan of a | 21 | | Service Board meets the
criteria specified in clauses (i)
| 22 | | through (vii) of subparagraph (2) of
this paragraph (b), the | 23 | | Board shall withhold from that Service Board 25% of
the cash | 24 | | proceeds of taxes imposed by the Authority under Section 4.03
| 25 | | and Section 4.03.1 and received after February 1 and 25% of the | 26 | | amounts transferred to the Authority from the Public |
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| 1 | | Transportation Fund under Section 4.09(a) (but not including | 2 | | Section 4.09(a)(3)(iv)) after February 1 that the Board has | 3 | | estimated to be available to that Service Board under Section | 4 | | 4.11(a). Such funding shall be released to the Service Board | 5 | | only upon approval of a budget and financial plan under this | 6 | | Section or adoption of a budget and financial plan on behalf of | 7 | | the Service Board by the Authority.
| 8 | | (5) If the Board has not found that the budget and | 9 | | financial plan of a
Service Board meets the criteria specified | 10 | | in clauses (i) through (vii)
of subparagraph (2) of this | 11 | | paragraph (b), the Board, by the affirmative vote of at least | 12 | | 12 of its then Directors, shall
adopt a budget and
financial | 13 | | plan meeting such criteria for that Service Board.
| 14 | | (c)(1) If the Board shall at any time have received a
| 15 | | revised estimate, or revises any estimate the Board has made, | 16 | | pursuant to
this Section of the receipts to be collected by the | 17 | | Authority which, in
the judgment of the Board, requires a | 18 | | change in the estimates on which the
budget of any Service | 19 | | Board is based, the Board shall advise the affected
Service | 20 | | Board of such revised estimates, and such Service Board shall | 21 | | within
30 days after receipt of such advice submit a revised | 22 | | budget incorporating
such revised estimates. If the revised | 23 | | estimates require, in the judgment
of the Board, that the | 24 | | system generated revenues recovery ratio of one or
more Service | 25 | | Boards be revised in order to allow the Authority to meet its
| 26 | | required ratio, the Board shall advise any such Service Board |
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| 1 | | of its revised
ratio and such Service Board shall within 30 | 2 | | days after receipt of such
advice submit a revised budget | 3 | | incorporating such revised estimates or ratio.
| 4 | | (2) Each Service Board shall, within such period after the | 5 | | end of each
fiscal quarter as shall be specified by the Board, | 6 | | report to the Authority
its financial condition and results of | 7 | | operations and the financial condition
and results of | 8 | | operations of the public transportation services subject
to its | 9 | | jurisdiction, as at the end of and for such quarter. If in the | 10 | | judgment
of the Board such condition and results are not | 11 | | substantially in accordance
with such Service Board's budget | 12 | | for such period, the Board shall so advise
such Service Board | 13 | | and such Service Board shall within the period specified
by the | 14 | | Board submit a revised budget incorporating such results.
| 15 | | (2.5) For any revised budget submitted under this | 16 | | subsection (c), the Board may, by a vote of 12 of the then | 17 | | Directors, reduce or veto any item of appropriations in the | 18 | | revised budget and shall return a copy of the item vetoed or | 19 | | reduced with the Board's objections to the Service Board that | 20 | | submitted the revised budget for approval. Portions of the | 21 | | revised budget not reduced or vetoed shall be considered | 22 | | approved. If, within 30 calendar days after the veto has been | 23 | | delivered to the appropriate Service Board, the Board restores | 24 | | an item that has been reduced, the item shall be considered | 25 | | approved in the restored amount. If a reduced item is not | 26 | | restored, then it shall be considered approved in the reduced |
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| 1 | | amount. | 2 | | (3) If the Board shall determine that a revised budget | 3 | | submitted by a
Service Board pursuant to subparagraph (1) or | 4 | | (2) of this paragraph (c)
does not meet the criteria specified | 5 | | in clauses (i)
through (vii) of
subparagraph
(2) of paragraph | 6 | | (b) of this Section, the Board shall withhold from that Service | 7 | | Board 25% of the cash proceeds of taxes imposed by the | 8 | | Authority
under Section 4.03 or 4.03.1 and received by the | 9 | | Authority after February 1 and 25% of the amounts transferred | 10 | | to the Authority from the Public Transportation Fund under | 11 | | Section 4.09(a) (but not including Section 4.09(a)(3)(iv)) | 12 | | after February 1 that the Board has estimated to be available | 13 | | to that Service Board under
Section 4.11(a). If the Service | 14 | | Board submits a revised financial plan and
budget which plan | 15 | | and budget shows that the criteria will be met within
a four | 16 | | quarter period, the Board shall release any such withheld funds | 17 | | to the
Service Board. The Board by the affirmative vote of at | 18 | | least 12
of its then Directors may
require a Service Board to | 19 | | submit a revised financial plan and budget which
shows that the | 20 | | criteria will be met in a time period less than four quarters.
| 21 | | (d) All budgets and financial plans, financial statements, | 22 | | audits and
other information presented to the Authority | 23 | | pursuant to this Section or
which may be required by the Board | 24 | | to permit it to monitor compliance with
the provisions of this | 25 | | Section shall be prepared and presented in such
manner and | 26 | | frequency and in such detail as shall have been prescribed by
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| 1 | | the Board, shall be prepared on both an accrual and cash flow | 2 | | basis as
specified by the Board, shall present such information | 3 | | as the Authority shall prescribe that fairly presents the | 4 | | condition of any pension plan or trust for health care benefits | 5 | | with respect to retirees established by the Service Board and | 6 | | describes the plans of the Service Board to meet the | 7 | | requirements of Sections 4.02a and 4.02b, and shall identify | 8 | | and describe the assumptions and
projections employed in the | 9 | | preparation
thereof to the extent required by the Board. If the | 10 | | Executive Director certifies that a Service Board has not | 11 | | presented its budget and two-year financial plan in conformity | 12 | | with the rules adopted by the Authority under the provisions of | 13 | | Section 4.01(f) and this subsection (d), and such certification | 14 | | is accepted by the affirmative vote of at least 12 of the then | 15 | | Directors of the Authority, the Authority shall not distribute | 16 | | to that Service Board any funds for operating purposes in | 17 | | excess of the amounts distributed for such purposes to the | 18 | | Service Board in the previous fiscal year. Except when the | 19 | | Board adopts
a budget and a financial plan for a Service Board | 20 | | under paragraph (b)(5),
a Service Board shall provide for such | 21 | | levels of transportation services
and fares or charges therefor | 22 | | as it deems appropriate and necessary in the
preparation of a | 23 | | budget and financial plan meeting the criteria set forth
in | 24 | | clauses (i)
through (vii) of subparagraph (2) of paragraph (b) | 25 | | of this
Section. The Authority
shall have access to and the | 26 | | right to examine and copy
all books, documents, papers, |
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| 1 | | records, or other source data of a Service
Board relevant to | 2 | | any information submitted pursuant to this Section.
| 3 | | (e) Whenever this Section requires the Board to make | 4 | | determinations with
respect to estimates, budgets or financial | 5 | | plans, or rules or regulations
with respect thereto such | 6 | | determinations shall be made upon the affirmative
vote of at | 7 | | least 12
of the then Directors and shall be incorporated in a
| 8 | | written report of the Board and such report shall be submitted | 9 | | within 10
days after such determinations are made to
the | 10 | | Governor, the Mayor of Chicago (if such determinations relate | 11 | | to the
Chicago Transit Authority), and the Auditor General of | 12 | | Illinois.
| 13 | | (Source: P.A. 97-399, eff. 8-16-11.)
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