(65 ILCS 5/8-12-16) (from Ch. 24, par. 8-12-16)
Sec. 8-12-16.
The financially distressed city shall develop, adopt
and submit to the Authority, within 30 days after this Division first
becomes applicable to the city as provided in Section 8-12-4, a revised
Budget for the remaining portion of what is the city's current fiscal year
at the time this Division first becomes applicable to the city as provided
in Section 8-12-4 and, thereafter, an annual Budget for each subsequent
fiscal year. After adoption by the city, the city shall submit each Budget
to the Authority for its approval not later than 60 days prior to the
commencement of the fiscal year to which the Budget relates. The
Authority shall approve or reject the Budget not later than 30 days prior
to the commencement of the fiscal year. No Budget shall have force or
effect without approval of the Authority. Each Budget shall be developed,
submitted, approved and monitored in accordance with the following procedures:
(1) Each Budget submitted by the financially distressed city shall be
based upon revenue estimates approved or prepared by the Authority, as
provided in paragraph (1) of Section 8-12-15.
(2) Each Budget shall contain such information and detail as may
be prescribed by the Authority. Any deficit for a fiscal year or any
portion of a fiscal year to which any Budget relates shall be included as a
current expense item for the succeeding fiscal year.
(3) The Authority shall approve each Budget if, in its judgment,
the Budget is complete with respect to providing a detailed accounting of
revenues and expenditures, is reasonably capable of being achieved, will
meet the requirement set forth in Section 8-12-14, and
will be consistent with the Financial Plan in effect. Otherwise, the
Authority shall reject the Budget. The Authority's review of the Budget
shall be in accordance with generally accepted accounting principles and
standards. No Budget submitted by the financially distressed city shall be
arbitrarily or capriciously rejected by the Authority. Any rejection by the
Authority of any Budget submitted by the city shall be in writing and shall
state the reasons for the rejection. In the event of rejection, the
Authority may prescribe a procedure and standards for revision of the
Budget by the city.
(4) The financially distressed city shall report to the Authority at
such times and such manner as the Authority may direct, concerning the
city's compliance with each Budget. The Authority may review the city's
operations, obtain budgetary data and financial statements, require the
city to produce reports, and have access to any other information in the
possession of the city that the Authority deems relevant. The Authority
may issue recommendations or directives within its powers to the city to
assure compliance with the Budget. The city shall produce such budgetary
data, financial statements, reports and other information and comply with
such directives.
(5) After approval of each Budget, the financially distressed city shall
promptly notify the Authority of any material change in the revenue or
expenditure estimates in the Budget. The city may submit to the Authority,
or the Authority may require the city to submit, a supplemental Budget
based upon revised revenue or expenditure estimates or for any other good
reason. The Authority shall approve or reject each supplemental Budget
pursuant to paragraph (3) of this Section.
(Source: P.A. 86-1211.)
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