(40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
Sec. 8-173. Financing; tax levy.
(a) Except as provided in subsection (f) of this Section, the city council
of the city shall levy a tax annually upon all taxable property in the city at
a rate that will produce a sum which, when added to the amounts deducted from
the salaries of the employees or otherwise contributed by them and the
amounts deposited under subsection (f), will be sufficient for the
requirements of this Article, but which when extended will produce an amount
not to exceed the greater of the following: (a) the sum obtained by the levy
of a tax of .1093% of the value, as equalized or assessed by the Department
of Revenue, of all taxable property within such city, or (b) the sum of
$12,000,000.
However any city in which a Fund has been established and in operation
under this Article for more than 3 years prior to 1970 shall
levy for the year 1970 a tax at a rate on the dollar of assessed
valuation of all taxable property that will produce, when extended, an
amount not to exceed 1.2 times the total amount of contributions made by
employees to the Fund for annuity purposes in the calendar year 1968,
and, for the year 1971 and 1972 such levy that will produce, when
extended, an amount not to exceed 1.3 times the total amount of
contributions made by employees to the Fund for annuity
purposes in the calendar years 1969 and 1970, respectively; and for the
year 1973 an amount not to exceed 1.365 times such total amount of
contributions made by employees for annuity purposes in the calendar
year 1971; and for the year 1974 an amount not to exceed 1.430 times
such total amount of contributions made by employees for annuity
purposes in the calendar year 1972; and for the year 1975 an amount not
to exceed 1.495 times such total amount of contributions made by
employees for annuity purposes in the calendar year 1973; and for the year 1976
an amount not to exceed 1.560 times such total amount of contributions made by
employees for annuity purposes in the calendar year 1974; and for the year 1977
an amount not to exceed 1.625 times such total amount of contributions made by
employees for annuity purposes in the calendar year 1975; and for the year 1978
and each year thereafter through levy year 2016, such levy as will produce, when
extended, an amount not to exceed the total amount of
contributions made by or on behalf of employees to the Fund for annuity
purposes in the calendar year 2 years prior to the year for which the annual
applicable tax is levied, multiplied by 1.690 for the years 1978 through 1998
and by 1.250 for the year 1999 and for each year thereafter through levy year 2016. Beginning in levy year 2017, and in each year thereafter, the levy shall not exceed the amount of the city's total required contribution to the Fund for the next payment year, as determined under subsection (a-5). For the purposes of this Section, the payment year is the year immediately following the levy year.
The tax shall be levied and collected in like manner with the general
taxes of the city, and shall be exclusive of and in addition to the
amount of tax the city is now or may hereafter be authorized to levy for
general purposes under any laws which may limit the amount of tax which
the city may levy for general purposes. The county clerk of the county
in which the city is located, in reducing tax levies under the
provisions of any Act concerning the levy and extension of taxes, shall
not consider the tax herein provided for as a part of the general tax
levy for city purposes, and shall not include the same within any
limitation of the percent of the assessed valuation upon which taxes are
required to be extended for such city.
Revenues derived from such tax shall be paid to the city treasurer of
the city as collected and held by the city treasurer for the benefit of the fund.
If the payments on account of taxes are insufficient during any year
to meet the requirements of this Article, the city may issue tax
anticipation warrants against the current tax levy.
The city may continue to use other lawfully available funds in lieu of all or part of the levy, as provided under subsection (f) of this Section. (a-5) (1) Beginning in payment year 2018, the city's required annual contribution to the Fund for payment years 2018 through 2022 shall be: for 2018, $266,000,000; for 2019, $344,000,000; for 2020, $421,000,000; for 2021, $499,000,000; and for 2022, $576,000,000. (2) For payment years 2023 through 2058, the city's required annual contribution to the Fund shall be the amount determined by the Fund to be equal to the sum of (i) the city's portion of the projected normal cost for that fiscal year, plus (ii) an amount determined on a level percentage of applicable employee payroll basis (reflecting any limits on individual participants' pay that apply for benefit and contribution purposes under this plan) that is sufficient to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of 2058. (3) For payment years after 2058, the city's required annual contribution to
the Fund shall be equal to the amount, if any, needed to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund as of the end of the year. In making the determinations under paragraphs (2) and (3) of this subsection, the actuarial calculations shall be determined under the entry age normal actuarial cost method, and any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following the fiscal year. To the extent that the city's contribution for any of the payment years referenced in this subsection is made with property taxes, those property taxes shall be levied, collected, and paid to the Fund in a like manner with the general taxes of the city. (a-10) If the city fails to transmit to the Fund contributions required of it under this Article by December 31 of the year in which such contributions are due, the Fund may, after giving notice to the city, certify to the State Comptroller the amounts of the delinquent payments, and the Comptroller must, beginning in payment year 2018, deduct and deposit into the Fund the certified amounts or a portion of those amounts from the following proportions of grants of State funds to the city: (1) in payment year 2018, one-third of the total |
The State Comptroller may not deduct from any grants of State funds to the city more than the amount of delinquent payments certified to the State Comptroller by the Fund.
(b) On or before July 1, 2017, and each July 1 thereafter, the board shall certify to the
city council the annual amounts required under this Article, for which the tax herein
provided shall be levied for the following year. The board shall compute
the amounts necessary to be credited to the reserves established and
maintained as herein provided, and shall make an annual determination of
the amount of the required city contributions, and certify the results
thereof to the city council.
(c) In respect to employees of the city who are transferred to the
employment of a park district by virtue of the "Exchange of Functions
Act of 1957", the corporate authorities of the park district shall
annually levy a tax upon all the taxable property in the park district
at such rate per cent of the value of such property, as equalized or
assessed by the Department of Revenue, as shall be
sufficient, when added to the amounts deducted from their salaries and
otherwise contributed by them to provide the benefits to which they and
their dependents and beneficiaries are entitled under this Article. The city
shall not levy a tax hereunder in respect to such employees.
The tax so levied by the park district shall be in addition to and
exclusive of all other taxes authorized to be levied by the park
district for corporate, annuity fund, or other purposes. The county
clerk of the county in which the park district is located, in reducing
any tax levied under the provisions of any act concerning the levy and
extension of taxes shall not consider such tax as part of the general
tax levy for park purposes, and shall not include the same in any
limitation of the per cent of the assessed valuation upon which taxes
are required to be extended for the park district. The proceeds of the
tax levied by the park district, upon receipt by the district, shall be
immediately paid over to the city treasurer of the city for the uses and
purposes of the fund.
The various sums to be contributed by the city and park district and
allocated for the purposes of this Article, and any interest to be
contributed by the city, shall be derived from the revenue from the taxes
authorized in this Section or otherwise as expressly provided
in this Section.
If it is not possible or practicable for the city to make
contributions for age and service annuity and widow's annuity at the
same time that employee contributions are made for such
purposes, such city contributions shall be construed to be due and
payable as of the end of the fiscal year for which the tax is levied and
shall accrue thereafter with interest at the effective rate until paid.
(d) With respect to employees whose wages are funded as participants
under the Comprehensive Employment and Training Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. 93-567, 88 Stat. 1845), hereinafter
referred to as CETA, subsequent to October 1, 1978, and in instances
where the board has elected to establish a manpower program reserve, the
board shall compute the amounts necessary to be credited to the manpower
program reserves established and maintained as herein provided, and
shall make a periodic determination of the amount of required
contributions from the City to the reserve to be reimbursed by the
federal government in accordance with rules and regulations established
by the Secretary of the United States Department of Labor or his
designee, and certify the results thereof to the City Council. Any such
amounts shall become a credit to the City and will be used to reduce the
amount which the City would otherwise contribute during succeeding years
for all employees.
(e) In lieu of establishing a manpower program reserve with respect
to employees whose wages are funded as participants under the
Comprehensive Employment and Training Act of 1973, as authorized by
subsection (d), the board may elect to establish a special municipality
contribution rate for all such employees. If this option is elected, the
City shall contribute to the Fund from federal funds provided under the
Comprehensive Employment and Training Act program at the special rate so
established and such contributions shall become a credit to the City and
be used to reduce the amount which the City would otherwise contribute
during succeeding years for all employees.
(f) In lieu of levying all or a portion of the tax required under this
Section in any year, the city may deposit with the city treasurer for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied under this Section
for that year, is not less than the amount of the city contributions for that
year as certified by the board to the city council. The deposit may be derived
from any source legally available for that purpose, including, but not limited
to, the proceeds of city borrowings. The making of a deposit shall satisfy
fully the requirements of this Section for that year to the extent of the
amounts so deposited. Amounts deposited under this subsection may be used by
the fund for any of the purposes for which the proceeds of the tax levied by
the city under this Section may be used, including the payment of any amount
that is otherwise required by this Article to be paid from the proceeds of that
tax.
(Source: P.A. 100-23, eff. 7-6-17.)
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