(55 ILCS 90/55) (from Ch. 34, par. 8055)
Sec. 55.
Issuance of obligations for economic development project costs.
(a) Obligations secured by the special tax allocation fund provided for
in Section 50 for the economic development project area may be issued to
provide for the payment of economic development project costs. The
obligations, when issued, shall be retired in the manner provided in the
ordinance authorizing the issuance of the obligations by the receipts of
taxes levied as specified in Section 45 against the taxable property
included in the economic development project area and by other revenue
designated or pledged by the county. A county may in the ordinance pledge
all or any part of the monies in and to be deposited into the special tax
allocation fund created under Section 50 to the payment of the economic
development project costs and obligations. Whenever a county pledges all of
the monies to the credit of a special tax allocation fund to secure
obligations issued or to be issued to pay economic development project
costs, the county may specifically provide that monies remaining to the
credit of the special tax allocation fund after the payment of the
obligations shall be accounted for annually and shall be deemed to be
"surplus" monies, and those "surplus" monies shall be distributed as
provided in this Section. Whenever a county pledges less than all of the
monies to the credit of the special tax allocation fund to secure
obligations issued or to be issued to pay economic development project
costs, the county shall provide that monies to the credit of the special
tax allocation fund and not subject to the pledge or otherwise encumbered
or required for payment of contractual obligations for specific economic
development project costs shall be calculated annually and shall be deemed
to be "surplus" monies, and those "surplus" monies shall be distributed as
provided in this Section. All monies to the credit of the special tax
allocation fund that are deemed to be "surplus" monies shall be distributed
annually within 180 days after the close of the county's fiscal year by
being paid by the county treasurer to the county collector. The county
collector shall thereafter make distribution to the respective taxing
districts in the same manner and proportion as the most recent distribution
by the county collector to those taxing districts of real property taxes
from real property in the economic development project area.
(b) Without limiting the provisions of subsection (a),
the county may, in addition to obligations secured by the special tax
allocation fund, pledge (for a period not greater than the term of the
obligations) towards payment of those obligations any part or any
combination of the following: (i) net revenues of all or part of the
economic development project; (ii) taxes levied and collected on any or all
property in the county including, specifically, taxes levied or imposed by
the county in a special service area under the Special Service Area Tax
Act; (iii) the full faith and credit of the county; (iv) a mortgage on part
or all of the economic development project; or (v) any other taxes or
anticipated receipts that the county may lawfully pledge.
(c) The obligations may be issued in one or more series bearing interest
at a rate or rates the county determines by ordinance. The rate or rates
may be variable or fixed, without regard to any limitations contained in
any law now in effect or hereafter adopted. The obligations shall bear a
date or dates, mature at a time or times not exceeding 20 years from their
respective dates (but in no event exceeding 23 years from the date of
establishment of the economic development project area), be in a
denomination, be in a form (whether coupon, registered, or book-entry),
carry registration, conversion, and exchange privileges, be executed in a
manner, be payable in a medium of payment at a place or places within or
without the State of Illinois, contain covenants, terms, and conditions, be
subject to redemption with or without premium, be subject to defeasance
upon terms, and have rank or priority as the ordinance provides.
Obligations issued under this Act may be sold at public or private sale at
a price determined by the corporate authorities of the county. The
obligations may, but need not, be issued utilizing the provisions of any
one or more of the Omnibus Bond Acts specified in Section 1.33 of the
Statute on Statutes. No referendum approval of the electors shall be
required as a condition to the issuance of obligations under this Act
except as provided in this Section.
(d) If the county authorizes the issuance of obligations under this Act
secured by the full faith and credit of the county or pledges ad valorem
taxes under clause (ii) of subsection (b) of this Section (and the
obligations are other than obligations that may be issued under home rule
powers provided by Article VII, Section 6 of the Illinois Constitution, or
the ad valorem taxes are other than ad valorem taxes that may be pledged
under home rule powers provided by Article VII, Section 6 of the Illinois
Constitution or that are levied in a special service area under the Special
Service Area Tax Act), the ordinance authorizing the issuance of the
obligations or pledging those taxes shall be published within 10 days after
the ordinance has been passed in one or more newspapers having a general
circulation within the county. The publication of the ordinance shall be
accompanied by a notice of (i) the specific number of voters required to
sign a petition requesting the question of the issuance of the obligations
or pledging ad valorem taxes to be submitted to the electors; (ii) the time
in which the petition must be filed; and (iii) the date of the prospective
referendum. The county clerk shall provide a petition form to any
individual requesting one.
(e) If no petition is filed with the clerk of the county
that adopted the ordinance within 21 days after the publication of the
ordinance, the ordinance shall be in effect. If, however, within that
21-day period a petition is filed with the county clerk, signed by electors
numbering not less than 5% of the registered voters in the county, asking
that the question of issuing obligations using the full faith and credit of
the county as security for the cost of paying for economic development
project costs or of pledging ad valorem taxes for the payment of those
obligations, or both, be submitted to the electors of the county, the
county shall not be authorized to issue obligations of the county using the
full faith and credit of the county as security or pledging ad valorem
taxes for the payment of the obligations, or both, until the proposition
has been submitted to and approved by a majority of the voters voting on
the proposition at a regularly scheduled election. The county shall certify
the proposition to the proper election authorities for submission in
accordance with the general election law.
(f) The ordinance authorizing the obligations may provide that the
obligations shall contain a recital that they are issued under this
Act, and that recital shall be conclusive evidence of their validity and of
the regularity of their issuance.
(g) If the county authorizes the issuance of obligations under this Act
secured by the full faith and credit of the county, the ordinance
authorizing the obligations may provide for the levy and collection of a
direct annual tax upon all taxable property within the county sufficient to
pay the principal of and interest on the obligations as it matures. The
levy may be in addition to and exclusive of the maximum of all other taxes
authorized to be levied by the county, but shall be abated to the extent
that monies from other sources are available for payment of the obligations
and the county certifies the amount of those monies available to the county clerk.
(h) A county shall file a certified copy of an ordinance authorizing the
issuance of obligations under this Act with the county clerk. The filing
shall constitute the authority for the extension and collection of the
taxes to be deposited in the special tax allocation fund.
(i) A county may also issue its obligations to refund, in
whole or in part, obligations previously issued by the county under this
Act, whether at or prior to maturity. The last maturity of the refunding
obligations, however, shall not be expressed to mature later than 23 years
from the date of the ordinance approving the economic development project area.
(j) If a county issues obligations under home rule powers or other
legislative authority, the proceeds of which are pledged to pay for
economic development project costs, the county may, if it has followed the
procedures set forth in this Act, retire those obligations from monies in
the special tax allocation fund in amounts and a manner as if those
obligations had been issued under this Act.
(k) No obligations issued under this Act shall be regarded as
an indebtedness of the county issuing the obligations or any other taxing
district for the purpose of any limitation imposed by law.
(l) Obligations issued under this Act shall not be subject to the
Bond Authorization Act.
(Source: P.A. 87-1.)
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