Full Text of SB2572 97th General Assembly
SB2572 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB2572 Introduced 1/11/2012, by Sen. Susan Garrett SYNOPSIS AS INTRODUCED: |
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Amends the Metropolitan Transit Authority Act. Provides that if the Board of the
Regional Transportation Authority determines that the budget,
financial plan, and five-year capital program do not match the Regional Transportation Authority's five-year capital program prioritization list, then the Board of the Metropolitan Transit
Authority shall make the changes necessary to meet those requirements. Makes other changes. Amends the Regional Transportation Authority Act. Requires that the Service Boards submit certain reports quarterly (now, annually). Sets forth guidelines concerning a Service Board's strategic plan. Provides that the Regional Transportation Authority may withhold capital project funding or any discretionary funding if a Service Board's strategic plan is excessively inconsistent with the Authority's strategic plan. Provides that the Regional Transportation Authority shall prioritize capital projects based on certain criteria, and that projects listed on the aggregated and prioritized list are the only projects eligible for capital funding, except in the case of an emergency declared by the Governor or the Board. Provides that if the Commuter Rail Board's and the Suburban Bus Board's budget and financial plan do not match the Regional Transportation Authority's five-year capital program prioritization list, then the Commuter Rail Board or Suburban Bus Board, as applicable, shall make the changes necessary to meet those requirements. Sets forth requirements concerning Service Boards' financial reports and budget proposals. Provides that if the Regional Transportation Authority finds that a Service Board violated certain requirements, then the Authority shall withhold specified funding. Sets forth procedures that a Service Board must take to reestablish the funding. Makes other changes.
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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 Section 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. In the event that the | 3 | | Board of the
Regional Transportation Authority determines that | 4 | | the budget,
financial plan, and five-year capital program do | 5 | | not meet the standards of said Section 4.11 or match the | 6 | | Regional Transportation Authority's five-year capital program | 7 | | prioritization list set forth in Section 2.01b of the Regional | 8 | | Transportation Authority Act , the Board of the
Authority shall | 9 | | make such changes as are necessary to meet such requirements
| 10 | | and adopt an amended budget ordinance. The amended budget | 11 | | ordinance shall be
resubmitted to the Regional Transportation | 12 | | Authority pursuant to said Section
4.11. The ordinance shall | 13 | | appropriate such sums of money as are deemed
necessary to | 14 | | defray all necessary expenses and obligations of the Authority,
| 15 | | specifying purposes and the objects or programs for which | 16 | | appropriations are
made and the amount appropriated for each | 17 | | object or program.
Additional appropriations, transfers | 18 | | between items and other changes in
such ordinance which do not | 19 | | alter the basis upon which the balanced budget
determination | 20 | | was made by the Regional Transportation Authority may be made
| 21 | | from time to time by the Board.
| 22 | | The budget shall:
| 23 | | (i) show a balance between (A) anticipated revenues | 24 | | from all sources
including operating subsidies and (B) the | 25 | | costs of providing the services
specified and of funding | 26 | | any operating deficits or encumbrances incurred in
prior |
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| 1 | | periods, including provision for payment when due of | 2 | | principal and
interest on outstanding indebtedness;
| 3 | | (ii) show cash balances including the proceeds of any | 4 | | anticipated cash
flow borrowing sufficient to pay with | 5 | | reasonable promptness all costs and
expenses as incurred;
| 6 | | (iii) provide for a level of fares or charges and | 7 | | operating or
administrative costs for the public | 8 | | transportation provided by or subject to
the jurisdiction | 9 | | of the Board sufficient to allow the Board to meet its
| 10 | | required system generated revenue recovery ratio as | 11 | | determined in accordance
with subsection (a) of Section | 12 | | 4.11 of the Regional Transportation Authority
Act;
| 13 | | (iv) be based upon and employ assumptions and | 14 | | projections which are
reasonable and prudent;
| 15 | | (v) have been prepared in accordance with sound | 16 | | financial practices as
determined by the Board of the | 17 | | Regional Transportation Authority;
| 18 | | (vi) meet such other financial, budgetary, or fiscal | 19 | | requirements that
the Board of the Regional Transportation | 20 | | Authority may by rule or regulation
establish; and
| 21 | | (vii) be consistent with the goals and objectives | 22 | | adopted by the Regional Transportation Authority in the | 23 | | Strategic Plan set forth in Section 2.01a of the Regional | 24 | | Transportation Authority Act .
| 25 | | The Board shall establish a fiscal operating year. At least | 26 | | thirty
days prior to the beginning of the first full fiscal |
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| 1 | | year after the
creation of the Authority, and annually | 2 | | thereafter, the Board shall cause
to be prepared a tentative | 3 | | budget which shall include all operation and
maintenance | 4 | | expense for the ensuing fiscal year. The tentative budget shall
| 5 | | be considered by the Board and, subject to any revision and | 6 | | amendments as
may be determined, shall be adopted prior to the | 7 | | first day of the ensuing
fiscal year as the budget for that | 8 | | year. No expenditures for operations and
maintenance in excess | 9 | | of the budget shall be made during any fiscal year
except by | 10 | | the affirmative vote of at least five members of the Board. It
| 11 | | shall not be necessary to include in the annual budget any | 12 | | statement of
necessary expenditures for pensions or retirement | 13 | | annuities, or for
interest or principal payments on bonds or | 14 | | certificates, or for capital
outlays, but it shall be the duty | 15 | | of the Board to make provision for
payment of same from | 16 | | appropriate funds. The Board may not alter its fiscal year
| 17 | | without the prior approval of the Board of the Regional | 18 | | Transportation
Authority.
| 19 | | (Source: P.A. 95-708, eff. 1-18-08.)
| 20 | | Section 10. The Regional Transportation Authority Act is | 21 | | amended by changing Sections 2.01a, 2.01b, 3A.10, 3B.10, 4.01, | 22 | | and 4.11 as follows: | 23 | | (70 ILCS 3615/2.01a) | 24 | | Sec. 2.01a. Strategic Plan. |
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| 1 | | (a) By the affirmative vote of at least 12 of its then | 2 | | Directors, the Authority shall adopt a Strategic Plan, no less | 3 | | than every 5 years, after consultation with the Service Boards | 4 | | and after holding a minimum of 3 public hearings in Cook County | 5 | | and one public hearing in each of the other counties in the | 6 | | region. The Executive Director of the Authority shall review | 7 | | the Strategic Plan on an ongoing basis and make recommendations | 8 | | to the Board of the Authority with respect to any update or | 9 | | amendment of the Strategic Plan. The Strategic Plan shall | 10 | | describe the specific actions to be taken by the Authority and | 11 | | the Service Boards to provide adequate, efficient, and | 12 | | coordinated public transportation. | 13 | | (b) The Strategic Plan shall identify goals and objectives | 14 | | with respect to:
| 15 | | (i) increasing ridership and passenger miles on public | 16 | | transportation funded by the Authority;
| 17 | | (ii) coordination of public transportation services | 18 | | and the investment in public transportation facilities to | 19 | | enhance the integration of public transportation | 20 | | throughout the metropolitan region;
| 21 | | (iii) coordination of fare and transfer policies to | 22 | | promote transfers by riders among Service Boards, | 23 | | transportation agencies, and public transportation modes, | 24 | | which may include goals and objectives for development of a | 25 | | universal fare instrument that riders may use | 26 | | interchangeably on all public transportation funded by the |
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| 1 | | Authority, and methods to be used to allocate revenues from | 2 | | transfers;
| 3 | | (iv) improvements in public transportation facilities | 4 | | to bring those facilities into a state of good repair, | 5 | | enhancements that attract ridership and improve customer | 6 | | service, and expansions needed to serve areas with | 7 | | sufficient demand for public transportation;
| 8 | | (v) access for transit-dependent populations, | 9 | | including access by low-income communities to places of | 10 | | employment, utilizing analyses provided by the Chicago | 11 | | Metropolitan Agency for Planning regarding employment and | 12 | | transportation availability, and giving consideration to | 13 | | the location of employment centers in each county and the | 14 | | availability of public transportation at off-peak hours | 15 | | and on weekends;
| 16 | | (vi) the financial viability of the public | 17 | | transportation system, including both operating and | 18 | | capital programs;
| 19 | | (vii) limiting road congestion within the metropolitan | 20 | | region and enhancing transit options to improve mobility; | 21 | | and
| 22 | | (viii) such other goals and objectives that advance the | 23 | | policy of the State to provide adequate, efficient, and | 24 | | coordinated public transportation in the metropolitan | 25 | | region.
| 26 | | (c) The Strategic Plan shall establish the process and |
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| 1 | | criteria by which proposals for capital improvements by a | 2 | | Service Board or a transportation agency will be evaluated and | 3 | | prioritized pursuant to Section 2.01b of this Act by the | 4 | | Authority for inclusion in the Five-Year Capital Program, which | 5 | | may include criteria for:
| 6 | | (i) allocating funds among maintenance, enhancement, | 7 | | and expansion improvements;
| 8 | | (ii) projects to be funded from the Innovation, | 9 | | Coordination, and Enhancement Fund;
| 10 | | (iii) projects intended to improve or enhance | 11 | | ridership or customer service;
| 12 | | (iv) design and location of station or transit | 13 | | improvements intended to promote transfers, increase | 14 | | ridership, and support transit-oriented land development;
| 15 | | (v) assessing the impact of projects on the ability to | 16 | | operate and maintain the existing transit system; and
| 17 | | (vi) other criteria that advance the goals and | 18 | | objectives of the Strategic Plan.
| 19 | | (d) The Strategic Plan shall establish performance | 20 | | standards and measurements regarding the adequacy, efficiency, | 21 | | and coordination of public transportation services in the | 22 | | region and the implementation of the goals and objectives in | 23 | | the Strategic Plan. At a minimum, such standards and measures | 24 | | shall include customer-related performance data measured by | 25 | | line, route, or sub-region, as determined by the Authority, on | 26 | | the following:
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| 1 | | (i) travel times and on-time performance;
| 2 | | (ii) ridership data;
| 3 | | (iii) equipment failure rates;
| 4 | | (iv) employee and customer safety; and
| 5 | | (v) customer satisfaction.
| 6 | | The Service Boards and transportation agencies that | 7 | | receive funding from the Authority or Service Boards shall | 8 | | prepare, publish, and submit to the Authority such reports with | 9 | | regard to these standards and measurements in the frequency and | 10 | | form required by the Authority; however, the frequency of such | 11 | | reporting shall be quarterly and due on March 1st, June 1st, | 12 | | September 1st, and December 1st no less than annual . The | 13 | | Service Boards shall publish such reports on their respective | 14 | | websites. The Authority shall compile and publish such reports | 15 | | on its website. Such performance standards and measures shall | 16 | | not be used as the basis for disciplinary action against any | 17 | | employee of the Authority or Service Boards, except to the | 18 | | extent the employment and disciplinary practices of the | 19 | | Authority or Service Board provide for such action.
| 20 | | (d-5) It is the responsibility of the Service Boards to | 21 | | work in good faith with the Authority to submit strategic plans | 22 | | that conform to and are consistent with the Authority's | 23 | | strategic plan. The Authority may withhold capital project | 24 | | funding pursuant to Section 4.11 of this Act or any | 25 | | discretionary funding if a Service Board's strategic plan is | 26 | | excessively inconsistent with the Authority's strategic plan. |
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| 1 | | (e) The Strategic Plan shall identify innovations to | 2 | | improve the delivery of public transportation and the | 3 | | construction of public transportation facilities.
| 4 | | (f) The Strategic Plan shall describe the expected | 5 | | financial condition of public transportation in the | 6 | | metropolitan region prospectively over a 10-year period, which | 7 | | may include information about the cash position and all known | 8 | | obligations of the Authority and the Service Boards including | 9 | | operating expenditures, debt service, contributions for | 10 | | payment of pension and other post-employment benefits, the | 11 | | expected revenues from fares, tax receipts, grants from the | 12 | | federal, State, and local governments for operating and capital | 13 | | purposes and issuance of debt, the availability of working | 14 | | capital, and the resources needed to achieve the goals and | 15 | | objectives described in the Strategic Plan.
| 16 | | (g) In developing the Strategic Plan, the Authority shall | 17 | | rely on such demographic and other data, forecasts, and | 18 | | assumptions developed by the Chicago Metropolitan Agency for | 19 | | Planning with respect to the patterns of population density and | 20 | | growth, projected commercial and residential development, and | 21 | | environmental factors, within the metropolitan region and in | 22 | | areas outside the metropolitan region that may impact public | 23 | | transportation utilization in the metropolitan region. Before | 24 | | adopting or amending any Strategic Plan, the Authority shall | 25 | | consult with the Chicago Metropolitan Agency for Planning | 26 | | regarding the consistency of the Strategic Plan with the |
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| 1 | | Regional Comprehensive Plan adopted pursuant to the Regional | 2 | | Planning Act.
| 3 | | (h) The Authority may adopt, by the affirmative vote of at | 4 | | least 12 of its then Directors, sub-regional or corridor plans | 5 | | for specific geographic areas of the metropolitan region in | 6 | | order to improve the adequacy, efficiency, and coordination of | 7 | | existing, or the delivery of new, public transportation. Such | 8 | | plans may also address areas outside the metropolitan region | 9 | | that may impact public transportation utilization in the | 10 | | metropolitan region. In preparing a sub-regional or corridor | 11 | | plan, the Authority may identify changes in operating practices | 12 | | or capital investment in the sub-region or corridor that could | 13 | | increase ridership, reduce costs, improve coordination, or | 14 | | enhance transit-oriented development. The Authority shall | 15 | | consult with any affected Service Boards in the preparation of | 16 | | any sub-regional or corridor plans.
| 17 | | (i) If the Authority determines, by the affirmative vote of | 18 | | at least 12 of its then Directors, that, with respect to any | 19 | | proposed new public transportation service or facility, (i) | 20 | | multiple Service Boards or transportation agencies are | 21 | | potential service providers and (ii) the public transportation | 22 | | facilities to be constructed or purchased to provide that | 23 | | service have an expected construction cost of more than | 24 | | $25,000,000, the Authority shall have sole responsibility for | 25 | | conducting any alternatives analysis and preliminary | 26 | | environmental assessment required by federal or State law. |
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| 1 | | Nothing in this subparagraph (i) shall prohibit a Service Board | 2 | | from undertaking alternatives analysis and preliminary | 3 | | environmental assessment for any public transportation service | 4 | | or facility identified in items (i) and (ii) above that is | 5 | | included in the Five-Year Capital Program as of the effective | 6 | | date of this amendatory Act of the 95th General Assembly; | 7 | | however, any expenditure related to any such public | 8 | | transportation service or facility must be included in a | 9 | | Five-Year Capital Program under the requirements of Sections | 10 | | 2.01b and 4.02 of this Act.
| 11 | | (Source: P.A. 95-708, eff. 1-18-08.) | 12 | | (70 ILCS 3615/2.01b)
| 13 | | Sec. 2.01b. The Five-Year Capital Program. By the | 14 | | affirmative vote of at least 12 of its then Directors, the | 15 | | Authority, after consultation with the Service Boards and after | 16 | | holding a minimum of 3 public hearings in Cook County and one | 17 | | public hearing in each of the other counties in the | 18 | | metropolitan region, shall each year adopt a Five-Year Capital | 19 | | Program that shall include each capital improvement to be | 20 | | undertaken by or on behalf of a Service Board provided that the | 21 | | Authority finds that the improvement meets any criteria for | 22 | | capital improvements contained in the Strategic Plan, is not | 23 | | inconsistent with any sub-regional or corridor plan adopted by | 24 | | the Authority, and can be funded within amounts available with | 25 | | respect to the capital and operating costs of such improvement. |
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| 1 | | In reviewing proposals for improvements to be included in a | 2 | | Five-Year Capital Program, the Authority may give priority to | 3 | | improvements that are intended to bring public transportation | 4 | | facilities into a state of good repair. The Five-Year Capital | 5 | | Program shall also identify capital improvements to be | 6 | | undertaken by a Service Board, a transportation agency, or a | 7 | | unit of local government and funded by the Authority from | 8 | | amounts in the Innovation, Coordination, and Enhancement Fund, | 9 | | provided that no improvement that is included in the Five-Year | 10 | | Capital Program as of the effective date of this amendatory Act | 11 | | of the 95th General Assembly may receive funding from the | 12 | | Innovation, Coordination, and Enhancement Fund. Before | 13 | | adopting a Five-Year Capital Program, the Authority shall : | 14 | | (1) consult with the Chicago Metropolitan Agency for | 15 | | Planning regarding the consistency of the Five-Year | 16 | | Capital Program with the Regional Comprehensive Plan | 17 | | adopted pursuant to the Regional Planning Act ; and .
| 18 | | (2) produce a list of capital projects submitted by the | 19 | | Service Boards aggregated and prioritized by the Authority | 20 | | based on criteria listed in this Section. | 21 | | Each Service Board shall provide the Authority with a | 22 | | quarterly report submitted on March 1st, June 1st, September | 23 | | 1st, and December 1st detailing progress on the projects. | 24 | | Projects listed on the aggregated and prioritized list shall be | 25 | | the only projects eligible for capital improvement funding and | 26 | | exceptions shall only be granted in cases of emergency, as |
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| 1 | | declared by the Governor or an affirmative vote by the Board. | 2 | | (Source: P.A. 95-708, eff. 1-18-08.)
| 3 | | (70 ILCS 3615/3A.10) (from Ch. 111 2/3, par. 703A.10)
| 4 | | Sec. 3A.10. Budget and Program. The Suburban Bus Board, | 5 | | subject to
the powers of the Authority in Section 4.11, shall | 6 | | control the finances
of the Division. It shall by ordinance | 7 | | appropriate money to perform the
Division's purposes and | 8 | | provide for payment of debts and expenses of the
Division. Each | 9 | | year the Suburban Bus Board shall prepare and publish a | 10 | | comprehensive
annual budget and proposed five-year capital
| 11 | | program document, and a financial plan for the 2 years
| 12 | | thereafter describing the state of the Division and presenting | 13 | | for the forthcoming
fiscal year and the 2 following years the | 14 | | Suburban Bus Board's plans for
such operations and capital | 15 | | expenditures as it intends to undertake and
the means by which | 16 | | it intends to finance them. The proposed budget,
financial | 17 | | plan, and five-year capital program shall be based on the | 18 | | Authority's estimate of funds to be
made available to the | 19 | | Suburban Bus Board by or through the Authority and
shall | 20 | | conform in all respects to the requirements established by the | 21 | | Authority.
The proposed budget, financial plan, and five-year | 22 | | capital program shall contain a statement of the funds | 23 | | estimated
to be on hand at the beginning of the fiscal year, | 24 | | the funds estimated to
be received from all sources for such | 25 | | year and the funds estimated to be
on hand at the end of such |
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| 1 | | year. The fiscal year of the
Division shall be the same as the | 2 | | fiscal year of the Authority. Before
the proposed budget,
| 3 | | financial plan, and five-year capital program
are submitted to | 4 | | the
Authority, the Suburban Bus Board shall hold at least one | 5 | | public hearing
thereon in each of the counties in the | 6 | | metropolitan region in which the
Division provides service. The | 7 | | Suburban Bus Board shall hold at least
one meeting for | 8 | | consideration of the proposed
budget, financial plan, and | 9 | | five-year capital program with the
county board of each of the | 10 | | several counties in the metropolitan region
in which the | 11 | | Division provides service. After conducting such hearings
and | 12 | | holding such meetings and after making such changes in the | 13 | | proposed
budget, financial plan, and five-year capital program | 14 | | as the Suburban Bus Board deems appropriate, it shall
adopt an | 15 | | annual budget ordinance at least by November 15 next preceding
| 16 | | the beginning of each fiscal year. The budget,
financial
plan, | 17 | | and five-year capital program shall then be submitted to the | 18 | | Authority as provided in Section 4.11. In the event
that the | 19 | | Board of the Authority determines that the budget
and financial | 20 | | plan do not meet the standards of Section 4.11 or match the | 21 | | Authority's five-year capital program prioritization list of | 22 | | Section 2.01b of this Act , the Suburban
Bus Board shall make | 23 | | such changes as are necessary to meet such requirements
and | 24 | | adopt an amended budget ordinance. The amended budget ordinance | 25 | | shall
be resubmitted to the Authority pursuant to Section 4.11. | 26 | | The ordinance
shall appropriate such sums of money as are |
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| 1 | | deemed necessary to defray
all necessary expenses and | 2 | | obligations of the Division, specifying purposes
and the | 3 | | objects or programs for which appropriations are made and the | 4 | | amount
appropriated for each object or program. Additional | 5 | | appropriations, transfers
between items and other changes in | 6 | | such ordinance which do not alter the
basis upon which the | 7 | | balanced budget determination was made by the Board
of the | 8 | | Authority may be made from time to
time by the Suburban Bus | 9 | | Board.
| 10 | | The budget shall:
| 11 | | (i) show a balance between (A) anticipated revenues | 12 | | from all sources including
operating subsidies and (B) the | 13 | | costs of providing the services specified
and of funding | 14 | | any operating deficits or encumbrances incurred in prior
| 15 | | periods, including provision for payment when due of | 16 | | principal and interest
on outstanding indebtedness;
| 17 | | (ii) show cash balances including the proceeds of any | 18 | | anticipated cash
flow borrowing sufficient to pay with | 19 | | reasonable promptness all costs and
expenses as incurred;
| 20 | | (iii) provide for a level of fares or charges and | 21 | | operating or administrative
costs for the public | 22 | | transportation provided by or subject to the jurisdiction
| 23 | | of the Suburban Bus Board sufficient
to allow the Suburban | 24 | | Bus Board to meet its required system generated revenues
| 25 | | recovery ratio and, beginning with the 2007 fiscal year, | 26 | | its system generated ADA paratransit services revenue |
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| 1 | | recovery ratio;
| 2 | | (iv) be based upon and employ assumptions and | 3 | | projections which are reasonable
and prudent;
| 4 | | (v) have been prepared in accordance with sound | 5 | | financial practices as
determined by the Board of the | 6 | | Authority;
| 7 | | (vi) meet such other uniform financial, budgetary, or | 8 | | fiscal requirements
that the Board of the Authority may by | 9 | | rule or regulation establish; and
| 10 | | (vii) be consistent with the goals and objectives | 11 | | adopted by the Regional Transportation Authority in the | 12 | | Strategic Plan of Section 2.01a of this Act .
| 13 | | (Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08.)
| 14 | | (70 ILCS 3615/3B.10) (from Ch. 111 2/3, par. 703B.10)
| 15 | | Sec. 3B.10. Budget and Program. The Commuter Rail Board, | 16 | | subject to
the powers of the Authority in Section 4.11, shall | 17 | | control the finances
of the Division. It shall by ordinance | 18 | | appropriate money to perform the
Division's purposes and | 19 | | provide for payment of debts and expenses of the
Division. Each | 20 | | year the Commuter Rail Board shall prepare and publish a
| 21 | | comprehensive annual budget and proposed five-year capital
| 22 | | program document, and a financial plan for
the two years | 23 | | thereafter describing the state of the Division and presenting
| 24 | | for the forthcoming fiscal year and the two following years the | 25 | | Commuter
Rail Board's plans for such operations and capital |
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| 1 | | expenditures as the Commuter
Rail Board intends to undertake | 2 | | and the means by which it intends to finance
them. The proposed | 3 | | budget,
financial plan, and five-year capital program shall be | 4 | | based on the Authority's
estimate of funds to be made available | 5 | | to the Commuter Rail Board by or through
the Authority and | 6 | | shall conform in all respects to the requirements established
| 7 | | by the Authority. The proposed budget, financial plan, and | 8 | | five-year capital program shall contain a statement
of the | 9 | | funds estimated to be on hand at the beginning of the fiscal | 10 | | year,
the funds estimated to be received from all sources for | 11 | | such year and the
funds estimated to be on hand at the end of | 12 | | such year.
The fiscal year of the Division shall be the same as | 13 | | the fiscal
year of the Authority. Before the proposed budget,
| 14 | | financial
plan, and five-year capital program are submitted to | 15 | | the Authority, the Commuter Rail Board shall hold
at least one | 16 | | public hearing thereon in each of the counties in the | 17 | | metropolitan
region in which the Division provides service. The | 18 | | Commuter Rail Board
shall hold at least one meeting for | 19 | | consideration of the proposed budget, financial plan, and | 20 | | five-year capital plan with the county board of each of the | 21 | | several counties in the
metropolitan region in which the | 22 | | Division provides service. After conducting
such hearings and | 23 | | holding such meetings and after making such changes in
the | 24 | | proposed budget, financial plan, and five-year capital plan
as | 25 | | the Commuter Rail Board deems appropriate,
the board shall | 26 | | adopt its annual budget ordinance at least by November 15 next
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| 1 | | preceding
the beginning of each fiscal year. The budget,
| 2 | | financial
plan, and five-year capital program
shall then be | 3 | | submitted to the Authority as provided in Section 4.11.
In the | 4 | | event that the Board of the Authority determines that the | 5 | | budget
and program, and financial plan do not meet the | 6 | | standards of Section 4.11 or match the Authority's five-year | 7 | | capital program prioritization list of Section 2.01b of this | 8 | | Act ,
the Commuter Rail Board shall make such changes as are | 9 | | necessary to meet
such requirements and adopt an amended budget | 10 | | ordinance. The amended budget
ordinance shall be resubmitted to | 11 | | the Authority pursuant to Section 4.11. The ordinance
shall | 12 | | appropriate such sums of money as are deemed necessary to | 13 | | defray all
necessary expenses and obligations of the Division, | 14 | | specifying purposes
and the objects or programs for which | 15 | | appropriations are made and the amount
appropriated for each | 16 | | object or program. Additional appropriations, transfers
| 17 | | between items and other changes in such ordinance which do not | 18 | | alter the
basis upon which the balanced budget determination | 19 | | was made by the Board
of the Authority may be made from time to | 20 | | time by the Commuter Rail Board.
| 21 | | The budget shall:
| 22 | | (i) show a balance between (A) anticipated revenues | 23 | | from all sources including
operating subsidies and (B) the | 24 | | costs of providing the services specified
and of funding | 25 | | any operating deficits or encumbrances incurred in prior
| 26 | | periods, including provision for payment when due of |
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| 1 | | principal and interest
on outstanding indebtedness;
| 2 | | (ii) show cash balances including the proceeds of any | 3 | | anticipated cash
flow borrowing sufficient to pay with | 4 | | reasonable promptness all costs
and expenses as incurred;
| 5 | | (iii) provide for a level of fares or charges for the | 6 | | public transportation
provided by or subject to the | 7 | | jurisdiction of such Commuter Rail Board sufficient
to | 8 | | allow the Commuter Rail Board to meet its required system | 9 | | generated
revenue recovery ratio;
| 10 | | (iv) be based upon and employ assumptions and | 11 | | projections which the Board
of the Authority finds to be | 12 | | reasonable and prudent;
| 13 | | (v) have been prepared in accordance with sound | 14 | | financial practices as
determined by the Board of the | 15 | | Authority;
| 16 | | (vi) meet such other uniform financial, budgetary, or | 17 | | fiscal requirements
that the Board of the Authority may by | 18 | | 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 of Section 2.01a of this Act .
| 22 | | (Source: P.A. 95-708, eff. 1-18-08.)
| 23 | | (70 ILCS 3615/4.01) (from Ch. 111 2/3, par. 704.01)
| 24 | | Sec. 4.01. Budget and Program.
| 25 | | (a) The Board shall control the finances
of the Authority. |
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| 1 | | It shall by ordinance adopted by the affirmative vote of at | 2 | | least 12 of its then Directors (i) appropriate money to perform | 3 | | the
Authority's purposes and provide for payment of debts and | 4 | | expenses of
the Authority, (ii) take action with respect to the | 5 | | budget and two-year financial plan of each Service Board, as | 6 | | provided in Section 4.11, and (iii) adopt an Annual Budget and | 7 | | Two-Year Financial Plan for the Authority that includes the | 8 | | annual budget and two-year financial plan of each Service Board | 9 | | that has been approved by the Authority. The Annual Budget and | 10 | | Two-Year Financial Plan
shall contain a statement
of the funds | 11 | | estimated to be on hand for the Authority and each Service | 12 | | Board at the beginning of the fiscal
year, the funds estimated | 13 | | to be received from all sources for such year, the estimated | 14 | | expenses and obligations of the Authority and each Service | 15 | | Board for all purposes, including expenses for contributions to | 16 | | be made with respect to pension and other employee benefits,
| 17 | | and the funds estimated to be on hand at the end of such year. | 18 | | The fiscal year of the Authority and each Service Board shall
| 19 | | begin on January 1st and end on the succeeding December 31st.
| 20 | | By July 1st of each year the Director of the
Illinois
| 21 | | Governor's Office of Management and Budget (formerly Bureau of | 22 | | the
Budget) shall submit
to the Authority an estimate of | 23 | | revenues for the next fiscal year of the Authority to be
| 24 | | collected from the taxes imposed by the Authority and the | 25 | | amounts to be
available in the Public Transportation Fund and | 26 | | the Regional Transportation
Authority Occupation and Use Tax |
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| 1 | | Replacement Fund and the amounts otherwise to be appropriated | 2 | | by the State to the Authority for its purposes. The Authority | 3 | | shall file a copy of its Annual Budget and Two-Year Financial | 4 | | Plan with
the
General Assembly and the Governor after its | 5 | | adoption. Before the proposed Annual Budget and Two-Year | 6 | | Financial Plan
is adopted, the Authority
shall hold at least | 7 | | one public hearing thereon
in the metropolitan region, and | 8 | | shall meet
with the county board or its designee of
each of the | 9 | | several counties in the metropolitan region. After conducting
| 10 | | such hearings and holding such meetings and after making such | 11 | | changes
in the proposed Annual Budget and Two-Year Financial | 12 | | Plan
as the Board deems appropriate, the
Board shall adopt its | 13 | | annual appropriation and Annual Budget and Two-Year Financial | 14 | | Plan
ordinance. The ordinance may be adopted
only upon the | 15 | | affirmative votes of 12
of its then Directors. The
ordinance | 16 | | shall appropriate such sums of money as are deemed necessary
to | 17 | | defray all necessary expenses and obligations of the Authority,
| 18 | | specifying purposes and the objects or programs for which | 19 | | appropriations
are made and the amount appropriated for each | 20 | | object or program.
Additional appropriations, transfers | 21 | | between items and other changes in
such ordinance may be made | 22 | | from time to time by the Board upon the
affirmative votes of 12
| 23 | | of its then Directors.
| 24 | | (b) The Annual Budget and Two-Year Financial Plan
shall | 25 | | show a balance between anticipated revenues from
all sources | 26 | | and anticipated expenses including funding of operating |
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| 1 | | deficits
or the discharge of encumbrances incurred in prior | 2 | | periods and payment of
principal and interest when due, and | 3 | | shall show cash balances sufficient
to pay with reasonable | 4 | | promptness all obligations and expenses as incurred.
| 5 | | The Annual Budget and Two-Year Financial Plan
must show: | 6 | |
(i) that the level of fares
and charges for mass | 7 | | transportation provided by, or under grant or purchase
of | 8 | | service contracts of, the Service Boards is sufficient to | 9 | | cause the
aggregate of all projected fare revenues from | 10 | | such fares and charges received
in each fiscal year to | 11 | | equal at least 50% of the aggregate costs of providing
such | 12 | | public transportation in such fiscal year. "Fare revenues" | 13 | | include
the proceeds of all fares and charges for services | 14 | | provided, contributions
received in connection with public | 15 | | transportation from units of local
government other than | 16 | | the Authority, except for contributions received by the | 17 | | Chicago Transit Authority from a real estate transfer tax | 18 | | imposed under subsection (i) of Section 8-3-19 of the | 19 | | Illinois Municipal Code, and from the State pursuant to | 20 | | subsection
(i) of Section 2705-305 of the Department of | 21 | | Transportation Law (20 ILCS
2705/2705-305), and all other | 22 | | operating revenues properly included consistent
with | 23 | | generally accepted accounting principles but do not | 24 | | include: the proceeds
of any borrowings, and, beginning | 25 | | with the 2007 fiscal year, all revenues and receipts, | 26 | | including but not limited to fares and grants received from |
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| 1 | | the federal, State or any unit of local government or other | 2 | | entity, derived from providing ADA paratransit service | 3 | | pursuant to Section 2.30 of the Regional Transportation | 4 | | Authority Act. "Costs" include all items properly included | 5 | | as operating
costs consistent with generally accepted | 6 | | accounting principles, including
administrative costs, but | 7 | | do not include: depreciation; payment of principal
and | 8 | | interest on bonds, notes or
other evidences of obligation | 9 | | for borrowed money issued by the Authority;
payments with | 10 | | respect to public transportation facilities made pursuant
| 11 | | to subsection (b) of Section 2.20 of this Act; any payments | 12 | | with respect
to rate protection contracts, credit | 13 | | enhancements or liquidity agreements
made under Section | 14 | | 4.14; any other cost to which it
is reasonably expected | 15 | | that a cash expenditure
will not be made; costs for | 16 | | passenger
security including grants, contracts, personnel, | 17 | | equipment and
administrative expenses, except in the case | 18 | | of the Chicago Transit
Authority, in which case the term | 19 | | does not include costs spent annually by
that entity for | 20 | | protection against crime as required by Section 27a of the
| 21 | | Metropolitan Transit Authority Act; the payment by the | 22 | | Chicago Transit Authority of Debt Service, as defined in | 23 | | Section 12c of the Metropolitan Transit Authority Act, on | 24 | | bonds or notes issued pursuant to that Section; the payment | 25 | | by the Commuter Rail Division of debt service on bonds | 26 | | issued pursuant to Section 3B.09; expenses incurred by the |
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| 1 | | Suburban Bus Division for the cost of new public | 2 | | transportation services funded from grants pursuant to | 3 | | Section 2.01e of this amendatory Act of the 95th General | 4 | | Assembly for a period of 2 years from the date of | 5 | | initiation of each such service; costs as exempted by the | 6 | | Board for
projects pursuant to Section 2.09 of this Act; | 7 | | or, beginning with the 2007 fiscal year, expenses related | 8 | | to providing ADA paratransit service pursuant to Section | 9 | | 2.30 of the Regional Transportation Authority Act; and in | 10 | | fiscal years 2008 through 2012 inclusive, costs in the | 11 | | amount of $200,000,000 in fiscal year 2008, reducing by | 12 | | $40,000,000 in each fiscal year thereafter until this | 13 | | exemption is eliminated; and | 14 | | (ii) that the level of fares charged for ADA | 15 | | paratransit services is sufficient to cause the aggregate | 16 | | of all projected revenues from such fares charged and | 17 | | received in each fiscal year to equal at least 10% of the | 18 | | aggregate costs of providing such ADA paratransit | 19 | | services. For purposes of this Act, the percentages in this | 20 | | subsection (b)(ii) shall be referred to as the "system | 21 | | generated ADA paratransit services revenue recovery | 22 | | ratio". For purposes of the system generated ADA | 23 | | paratransit services revenue recovery ratio, "costs" shall | 24 | | include all items properly included as operating costs | 25 | | consistent with generally accepted accounting principles. | 26 | | However, the Board may exclude from costs an amount that |
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| 1 | | does not exceed the allowable "capital costs of | 2 | | contracting" for ADA paratransit services pursuant to the | 3 | | Federal Transit Administration guidelines for the | 4 | | Urbanized Area Formula Program.
| 5 | | (c) The actual administrative expenses of the Authority for | 6 | | the fiscal
year commencing January 1, 1985 may not exceed | 7 | | $5,000,000.
The actual administrative expenses of the | 8 | | Authority for the fiscal year
commencing January 1, 1986, and | 9 | | for each fiscal year thereafter shall not
exceed the maximum | 10 | | administrative expenses for the previous fiscal year plus
5%. | 11 | | "Administrative
expenses" are defined for purposes of this | 12 | | Section as all expenses except:
(1) capital expenses and | 13 | | purchases of the Authority on behalf of the Service
Boards; (2) | 14 | | payments to Service Boards; and (3) payment of principal
and | 15 | | interest on bonds, notes or other evidence of obligation for | 16 | | borrowed
money issued by the Authority; (4) costs for passenger | 17 | | security including
grants, contracts, personnel, equipment and | 18 | | administrative expenses; (5)
payments with respect to public | 19 | | transportation facilities made pursuant to
subsection (b) of | 20 | | Section 2.20 of this Act; and (6) any payments with
respect to | 21 | | rate protection contracts, credit enhancements or liquidity
| 22 | | agreements made pursuant to Section 4.14.
| 23 | | (d) This subsection applies only until the Department | 24 | | begins administering and enforcing an increased tax under | 25 | | Section 4.03(m) as authorized by this amendatory Act of the | 26 | | 95th General Assembly. After withholding 15% of the proceeds of |
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| 1 | | any tax imposed by the
Authority and 15% of money received by | 2 | | the Authority from the Regional
Transportation Authority | 3 | | Occupation and Use Tax Replacement Fund,
the Board shall | 4 | | allocate the proceeds and money remaining to the Service
Boards | 5 | | as follows: (1) an amount equal to 85% of the proceeds of those
| 6 | | taxes collected within the City of Chicago and 85% of the money | 7 | | received by
the Authority on account of transfers to the | 8 | | Regional Transportation
Authority Occupation and Use Tax | 9 | | Replacement Fund from the County and Mass
Transit District Fund | 10 | | attributable to retail sales within the City of
Chicago shall | 11 | | be allocated to the Chicago Transit
Authority; (2) an amount | 12 | | equal to 85% of the proceeds of those taxes
collected within | 13 | | Cook County outside the City of Chicago and 85% of the
money | 14 | | received by the Authority on account of transfers to the | 15 | | Regional
Transportation Authority Occupation and Use Tax | 16 | | Replacement Fund from the
County and Mass Transit District Fund | 17 | | attributable to retail sales within
Cook County outside of the | 18 | | city of Chicago shall be allocated
30% to the Chicago Transit | 19 | | Authority, 55% to the Commuter Rail Board and
15% to the | 20 | | Suburban Bus Board; and (3) an amount equal to 85% of the
| 21 | | proceeds of the taxes collected within the Counties of DuPage, | 22 | | Kane, Lake,
McHenry and Will shall be allocated 70% to the | 23 | | Commuter Rail Board and 30%
to the Suburban Bus Board.
| 24 | | (e) This subsection applies only until the Department | 25 | | begins administering and enforcing an increased tax under | 26 | | Section 4.03(m) as authorized by this amendatory Act of the |
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| 1 | | 95th General Assembly. Moneys received by the Authority on | 2 | | account of transfers to the
Regional Transportation Authority | 3 | | Occupation and Use Tax Replacement Fund
from the State and | 4 | | Local Sales Tax Reform Fund shall be
allocated among the | 5 | | Authority and the Service Boards as follows: 15% of
such moneys | 6 | | shall be retained by the Authority and the remaining 85%
shall | 7 | | be transferred to the Service Boards as soon as may be
| 8 | | practicable after the Authority receives payment. Moneys which | 9 | | are
distributable to the Service Boards pursuant to the | 10 | | preceding sentence
shall be allocated among the Service Boards | 11 | | on the basis of each Service
Board's distribution ratio. The | 12 | | term "distribution ratio" means,
for purposes of this | 13 | | subsection (e) of this Section 4.01, the ratio of
the total | 14 | | amount distributed to a Service Board pursuant to subsection | 15 | | (d)
of Section 4.01 for the immediately preceding calendar year | 16 | | to the total
amount distributed to all of the Service Boards | 17 | | pursuant to subsection (d)
of Section 4.01 for the immediately | 18 | | preceding calendar year.
| 19 | | (f) To carry out its duties and responsibilities under this | 20 | | Act,
the Board shall employ staff which shall: (1) propose for | 21 | | adoption by the Board of the Authority rules for the Service | 22 | | Boards that establish (i) forms and schedules to be used and | 23 | | information required to be provided with respect to a five-year | 24 | | capital program, annual budgets, and two-year financial plans | 25 | | and regular reporting of actual results against adopted budgets | 26 | | and financial plans, (ii) financial practices to be followed in |
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| 1 | | the budgeting and expenditure of public funds, (iii) | 2 | | assumptions and projections that must be followed in preparing | 3 | | and submitting its annual budget and two-year financial plan or | 4 | | a five-year capital program; (2) evaluate for
the Board public | 5 | | transportation programs operated or proposed by
the Service | 6 | | Boards and
transportation agencies in terms of the goals and | 7 | | objectives set out in the Strategic Plan; (3)
keep the Board | 8 | | and the public informed of the extent to which the Service | 9 | | Boards and transportation agencies are meeting the goals and | 10 | | objectives adopted by the Authority in the Strategic Plan; and | 11 | | (4) assess the efficiency or adequacy of public transportation | 12 | | services provided by a Service Board and make recommendations | 13 | | for change in that service
to the end that the moneys
available | 14 | | to the Authority may be
expended in the most economical manner | 15 | | possible with the least possible
duplication. | 16 | | (g) All
Service Boards, transportation agencies, | 17 | | comprehensive planning agencies, including the Chicago | 18 | | Metropolitan Agency for Planning, or
transportation planning | 19 | | agencies in the metropolitan region shall
furnish to the | 20 | | Authority
such information pertaining to public
transportation | 21 | | or relevant for plans therefor as it may from time to time
| 22 | | require. The Executive Director, or his or her designee, shall, | 23 | | for the purpose of
securing any such information necessary or | 24 | | appropriate to carry out any of the powers and responsibilities | 25 | | of the Authority under this Act, have access to, and the right | 26 | | to examine, all
books, documents, papers or records of a |
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| 1 | | Service Board or any transportation
agency receiving funds from | 2 | | the Authority
or Service Board, and such Service Board or | 3 | | transportation agency shall comply with any request by the | 4 | | Executive Director, or his or her designee, within 30 days or | 5 | | an extended time provided by the Executive Director.
| 6 | | (h) No Service Board shall undertake any capital | 7 | | improvement which is not identified in the Five-Year Capital | 8 | | Program or as otherwise prescribed in Section 2.01b of this | 9 | | Act .
| 10 | | (i) No later than January 1, 2013, the Service Boards shall | 11 | | implement software that allows the Authority to access and | 12 | | review all real-time information related to financial | 13 | | reporting. | 14 | | (j) The Authority shall prepare and present reports to the | 15 | | Service Boards on a quarterly basis. These reports shall | 16 | | include the Authority's assessment of the overall financial | 17 | | issues of the Authority, as well as those unique to the Service | 18 | | Board. The reports shall also include the results of any | 19 | | audits, evaluations, reviews, or studies performed by the | 20 | | Authority for the Authority or another individual agency. | 21 | | (k) Service Boards shall each provide to the Authority an | 22 | | annual budget at least 45 business days before the budget is | 23 | | presented to the Service Board for a vote of adoption. After | 24 | | reviewing a Service Board's proposed budget, the Authority | 25 | | shall present and make recommendations to the respective | 26 | | Service Board concerning the proposed budget no later than 15 |
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| 1 | | days before that Service Board votes for budget adoption. | 2 | | (Source: P.A. 94-370, eff. 7-29-05; 95-708, eff. 1-18-08; | 3 | | 95-906, eff. 8-26-08.)
| 4 | | (70 ILCS 3615/4.11) (from Ch. 111 2/3, par. 704.11)
| 5 | | Sec. 4.11. Budget Review Powers.
| 6 | | (a) Based
upon estimates which shall be given to the | 7 | | Authority by the Director of
the
Governor's Office of | 8 | | Management and Budget (formerly
Bureau of the Budget) of the | 9 | | receipts to be received by the
Authority from the taxes imposed
| 10 | | by the Authority and the authorized estimates of amounts
to be | 11 | | available from State and other sources to the Service Boards, | 12 | | and
the times at which such receipts and amounts will be | 13 | | available, the Board
shall, not later than the next preceding | 14 | | September 15th prior to the beginning
of the Authority's next | 15 | | fiscal year,
advise each Service Board of the amounts estimated | 16 | | by the Board to be available
for such Service Board during such | 17 | | fiscal year and the two following fiscal
years and the times at | 18 | | which such amounts will be available. The Board
shall, at the | 19 | | same time, also advise each Service Board of its required
| 20 | | system generated revenues recovery ratio for the next fiscal | 21 | | year which
shall be the percentage of the aggregate costs of | 22 | | providing public
transportation by or under jurisdiction of | 23 | | that Service Board which must be
recovered from system | 24 | | generated revenues. The Board shall, at the same time, consider | 25 | | the written determination of the Executive Director, made |
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| 1 | | pursuant to Section 2.01d, of the costs of ADA paratransit | 2 | | services that are required to be provided under the federal | 3 | | Americans with Disabilities Act of 1990 and its implementing | 4 | | regulations, and shall amend the current year budgets of the | 5 | | Authority and the Service Boards to provide for additional | 6 | | funding for the provision of ADA paratransit services, if | 7 | | needed. The Board shall, at the same time, beginning with the | 8 | | 2007 fiscal year, also advise each Service Board that provides | 9 | | ADA paratransit services of its required system generated ADA | 10 | | paratransit services revenue recovery ratio for the next fiscal | 11 | | year which shall be the percentage of the aggregate costs of | 12 | | providing ADA paratransit services by or under jurisdiction of | 13 | | that Service Board which must be recovered from fares charged | 14 | | for such services, except that such required system generated | 15 | | ADA paratransit services revenue recovery ratio shall not | 16 | | exceed the minimum percentage established pursuant to Section | 17 | | 4.01(b)(ii) of this Act. In determining
a Service Board's | 18 | | system generated revenue recovery ratio, the Board shall
| 19 | | consider the historical system generated revenues recovery | 20 | | ratio for the
services subject to the jurisdiction of that
| 21 | | Service Board. The Board shall not increase a Service Board's | 22 | | system generated
revenues recovery ratio for the next fiscal | 23 | | year over such ratio for the
current fiscal year | 24 | | disproportionately or prejudicially to increases in
such | 25 | | ratios for other Service Boards. The Board may, by ordinance,
| 26 | | provide that (i) the cost of research and development projects |
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| 1 | | in the
fiscal year beginning January 1, 1986 and ending | 2 | | December 31, 1986
conducted pursuant to Section 2.09 of this | 3 | | Act, (ii) the costs for passenger security, and (iii) | 4 | | expenditures of amounts granted to a Service Board from the | 5 | | Innovation, Coordination, and Enhancement Fund for operating | 6 | | purposes may be exempted from the
farebox recovery ratio or the | 7 | | system generated revenues recovery ratio of
the Chicago Transit | 8 | | Authority, the Suburban Bus Board, and the Commuter
Rail Board, | 9 | | or any of them. During fiscal years 2008 through 2012, the | 10 | | Board may also allocate the exemption of $200,000,000 and the | 11 | | reducing amounts of costs provided by this amendatory Act of | 12 | | the 95th General Assembly from the farebox recovery ratio or | 13 | | system generated revenues recovery ratio of each Service Board.
| 14 | | (b)(1) Not later than the next preceding November 15 prior | 15 | | to the
commencement of such fiscal year, each Service Board | 16 | | shall submit to the
Authority its proposed budget for such | 17 | | fiscal year and its proposed
financial plan for the two | 18 | | following fiscal years. Such budget and
financial plan shall | 19 | | (i) be prepared in the format, follow the financial and | 20 | | budgetary practices, and be based on any assumptions and | 21 | | projections required by the Authority and (ii) not project or | 22 | | assume a receipt of revenues from the
Authority in amounts | 23 | | greater than those set forth in the estimates provided
by the | 24 | | Authority pursuant to subsection (a) of this Section.
| 25 | | (2) The Board shall review the proposed budget and two-year
| 26 | | financial plan submitted
by each Service Board. The Board shall |
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| 1 | | approve the budget and two-year financial plan of a Service | 2 | | Board if:
| 3 | | (i)
such budget and plan show a balance between (A) | 4 | | anticipated revenues
from all sources including operating | 5 | | subsidies and (B) the costs of providing
the services | 6 | | specified and of funding any operating deficits or | 7 | | encumbrances
incurred in prior periods, including | 8 | | provision for payment when due of
principal and interest on | 9 | | outstanding indebtedness;
| 10 | | (ii)
such budget and plan show cash balances including | 11 | | the proceeds of
any anticipated cash flow borrowing | 12 | | sufficient to pay with reasonable
promptness all costs and | 13 | | expenses as incurred;
| 14 | | (iii)
such budget and plan provide for a level of fares | 15 | | or charges and
operating or administrative costs for the | 16 | | public transportation provided
by or subject to the | 17 | | jurisdiction of such Service Board sufficient to allow
the | 18 | | Service Board to meet its required system generated revenue | 19 | | recovery ratio and, beginning with the 2007 fiscal year, | 20 | | system generated ADA paratransit services revenue recovery | 21 | | ratio;
| 22 | | (iv)
such budget and plan are based upon and employ | 23 | | assumptions and
projections which are reasonable and | 24 | | prudent;
| 25 | | (v)
such budget and plan have been prepared in | 26 | | accordance with sound
financial practices as determined by |
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| 1 | | the Board;
| 2 | | (vi)
such budget and plan meet such other financial, | 3 | | budgetary, or fiscal
requirements that the Board may by | 4 | | rule or regulation establish; and
| 5 | | (vii) such budget and plan are consistent with the | 6 | | goals and objectives adopted by the Authority in the | 7 | | Strategic Plan.
| 8 | | (3) (Blank).
| 9 | | (4) Unless the Board by an affirmative vote of 12
of the | 10 | | then Directors
determines that the budget and financial plan of | 11 | | a Service Board meets the
criteria specified in clauses (i)
| 12 | | through (vii) of subparagraph (2) of
this paragraph (b), the | 13 | | Board shall withhold from that Service Board 25% of
the cash | 14 | | proceeds of taxes imposed by the Authority under Section 4.03
| 15 | | and Section 4.03.1 and received after February 1 and 25% of the | 16 | | amounts transferred to the Authority from the Public | 17 | | Transportation Fund under Section 4.09(a) (but not including | 18 | | Section 4.09(a)(3)(iv)) after February 1 that the Board has | 19 | | estimated to be available to that Service Board under Section | 20 | | 4.11(a). Such funding shall be released to the Service Board | 21 | | only upon approval of a budget and financial plan under this | 22 | | Section or adoption of a budget and financial plan on behalf of | 23 | | the Service Board by the Authority.
| 24 | | (5) If the Board has not found that the budget and | 25 | | financial plan of a
Service Board meets the criteria specified | 26 | | in clauses (i) through (vii)
of subparagraph (2) of this |
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| 1 | | paragraph (b), the Board, by the affirmative vote of at least | 2 | | 12 of its then Directors, shall
adopt a budget and
financial | 3 | | plan meeting such criteria for that Service Board.
| 4 | | (c)(1) If the Board shall at any time have received a
| 5 | | revised estimate, or revises any estimate the Board has made, | 6 | | pursuant to
this Section of the receipts to be collected by the | 7 | | Authority which, in
the judgment of the Board, requires a | 8 | | change in the estimates on which the
budget of any Service | 9 | | Board is based, the Board shall advise the affected
Service | 10 | | Board of such revised estimates, and such Service Board shall | 11 | | within
30 days after receipt of such advice submit a revised | 12 | | budget incorporating
such revised estimates. If the revised | 13 | | estimates require, in the judgment
of the Board, that the | 14 | | system generated revenues recovery ratio of one or
more Service | 15 | | Boards be revised in order to allow the Authority to meet its
| 16 | | required ratio, the Board shall advise any such Service Board | 17 | | of its revised
ratio and such Service Board shall within 30 | 18 | | days after receipt of such
advice submit a revised budget | 19 | | incorporating such revised estimates or ratio.
| 20 | | (2) Each Service Board shall, within such period after the | 21 | | end of each
fiscal quarter as shall be specified by the Board, | 22 | | report to the Authority
its financial condition and results of | 23 | | operations and the financial condition
and results of | 24 | | operations of the public transportation services subject
to its | 25 | | jurisdiction, as at the end of and for such quarter. If in the | 26 | | judgment
of the Board such condition and results are not |
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| 1 | | substantially in accordance
with such Service Board's budget | 2 | | for such period, the Board shall so advise
such Service Board | 3 | | and such Service Board shall within the period specified
by the | 4 | | Board submit a revised budget incorporating such results.
| 5 | | (3) If the Board shall determine that a revised budget | 6 | | submitted by a
Service Board pursuant to subparagraph (1) or | 7 | | (2) of this paragraph (c)
does not meet the criteria specified | 8 | | in clauses (i)
through (vii) of
subparagraph
(2) of paragraph | 9 | | (b) of this Section, the Board shall withhold from that Service | 10 | | Board 25% of the cash proceeds of taxes imposed by the | 11 | | Authority
under Section 4.03 or 4.03.1 and received by the | 12 | | Authority after February 1 and 25% of the amounts transferred | 13 | | to the Authority from the Public Transportation Fund under | 14 | | Section 4.09(a) (but not including Section 4.09(a)(3)(iv)) | 15 | | after February 1 that the Board has estimated to be available | 16 | | to that Service Board under
Section 4.11(a). If the Service | 17 | | Board submits a revised financial plan and
budget which plan | 18 | | and budget shows that the criteria will be met within
a four | 19 | | quarter period, the Board shall release any such withheld funds | 20 | | to the
Service Board. The Board by the affirmative vote of at | 21 | | least 12
of its then Directors may
require a Service Board to | 22 | | submit a revised financial plan and budget which
shows that the | 23 | | criteria will be met in a time period less than four quarters.
| 24 | | (d) All budgets and financial plans, financial statements, | 25 | | audits and
other information presented to the Authority | 26 | | pursuant to this Section or
which may be required by the Board |
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| 1 | | to permit it to monitor compliance with
the provisions of this | 2 | | Section shall be prepared and presented in such
manner and | 3 | | frequency and in such detail as shall have been prescribed by
| 4 | | the Board, shall be prepared on both an accrual and cash flow | 5 | | basis as
specified by the Board, shall present such information | 6 | | as the Authority shall prescribe that fairly presents the | 7 | | condition of any pension plan or trust for health care benefits | 8 | | with respect to retirees established by the Service Board and | 9 | | describes the plans of the Service Board to meet the | 10 | | requirements of Sections 4.02a and 4.02b, and shall identify | 11 | | and describe the assumptions and
projections employed in the | 12 | | preparation
thereof to the extent required by the Board. If the | 13 | | Executive Director certifies that a Service Board has not | 14 | | presented its budget and two-year financial plan in conformity | 15 | | with the rules adopted by the Authority under the provisions of | 16 | | Section 4.01(f) and this subsection (d), and such certification | 17 | | is accepted by the affirmative vote of at least 12 of the then | 18 | | Directors of the Authority, the Authority shall not distribute | 19 | | to that Service Board any funds for operating purposes in | 20 | | excess of the amounts distributed for such purposes to the | 21 | | Service Board in the previous fiscal year. Except when the | 22 | | Board adopts
a budget and a financial plan for a Service Board | 23 | | under paragraph (b)(5),
a Service Board shall provide for such | 24 | | levels of transportation services
and fares or charges therefor | 25 | | as it deems appropriate and necessary in the
preparation of a | 26 | | budget and financial plan meeting the criteria set forth
in |
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| 1 | | clauses (i)
through (vii) of subparagraph (2) of paragraph (b) | 2 | | of this
Section. The Authority
shall have access to and the | 3 | | right to examine and copy
all books, documents, papers, | 4 | | records, or other source data of a Service
Board relevant to | 5 | | any information submitted pursuant to this Section.
| 6 | | (e) Whenever this Section requires the Board to make | 7 | | determinations with
respect to estimates, budgets or financial | 8 | | plans, or rules or regulations
with respect thereto such | 9 | | determinations shall be made upon the affirmative
vote of at | 10 | | least 12
of the then Directors and shall be incorporated in a
| 11 | | written report of the Board and such report shall be submitted | 12 | | within 10
days after such determinations are made to
the | 13 | | Governor, the Mayor of Chicago (if such determinations relate | 14 | | to the
Chicago Transit Authority), and the Auditor General of | 15 | | Illinois.
| 16 | | (f) If the Authority discovers a violation of items (1) and | 17 | | (2) in Section 2.01b of this Act, then the Board shall withhold | 18 | | from that Service Board 25% of the cash proceeds of taxes | 19 | | imposed by the Authority under Sections 4.03 or 4.03.1 and | 20 | | received by the Authority and 25% of the amounts transferred to | 21 | | the Authority from the Public Transportation Fund under | 22 | | subsection (a) of Section 4.09, but not including the amounts | 23 | | described in paragraph (iv) of item (3) of subsection (a) of | 24 | | Section 4.09, that the Board has estimated to be available to | 25 | | that Service Board under subsection (a) of Section 4.11. To | 26 | | resume this funding, at least 3 current members of the |
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| 1 | | violating Service Board shall testify in front of the | 2 | | Authority's finance committee or successor thereof. This | 3 | | hearing shall be held no later than 10 days after the claim of | 4 | | the offense. The hearing shall allow the Service Board a chance | 5 | | to discuss the violation. No more than 10 business days after | 6 | | the hearing, the Authority's finance committee or successor | 7 | | thereof shall take this matter before the Board to determine | 8 | | whether to continue sanctioning the Service Board as outlined | 9 | | in this subsection. | 10 | | (Source: P.A. 97-399, eff. 8-16-11.)
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 70 ILCS 3605/34 | from Ch. 111 2/3, par. 334 | | 4 | | 70 ILCS 3615/2.01a | | | 5 | | 70 ILCS 3615/2.01b | | | 6 | | 70 ILCS 3615/3A.10 | from Ch. 111 2/3, par. 703A.10 | | 7 | | 70 ILCS 3615/3B.10 | from Ch. 111 2/3, par. 703B.10 | | 8 | | 70 ILCS 3615/4.01 | from Ch. 111 2/3, par. 704.01 | | 9 | | 70 ILCS 3615/4.11 | from Ch. 111 2/3, par. 704.11 |
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