(65 ILCS 110/55)
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 municipality. A
municipality may in the ordinance pledge all or any part of the moneys 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 municipality pledges all of
the moneys to the credit of a special tax allocation fund to secure obligations
issued or to be issued to pay economic development project costs, the
municipality may specifically provide that moneys 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" moneys, and those
"surplus" moneys shall be distributed as provided in this Section. Whenever a
municipality pledges less than all of the moneys to the credit of the special
tax allocation fund to secure obligations issued or to be issued to pay
economic development project costs, the municipality shall provide that moneys
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" moneys, and those
"surplus" moneys shall be distributed as provided in this Section. All moneys
to the credit of the special tax allocation fund that are deemed to be
"surplus" moneys shall be distributed annually within 180 days after the close
of the municipality's fiscal year by being paid by the municipal treasurer to
the county collector. The county collector shall 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 municipality 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 municipality including,
specifically, taxes levied or imposed by the municipality in a special service
area under the Special Service Area Tax Act; (iii) the full faith and credit of
the municipality; (iv) a mortgage on part or all of the economic development
project; or (v) any other taxes or anticipated receipts that the municipality
may lawfully pledge.
(c) The obligations may be issued in one or more series bearing interest at
rates the municipality determines by ordinance. The rates may
be variable or fixed, without regard to any limitations contained in any law
now in effect or later adopted. The obligations shall bear dates,
mature at a time or times not exceeding 20 years from their respective dates
(but not 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
municipality. The obligations may 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 municipality authorizes the issuance of obligations under this
Act secured by the full faith and credit of the municipality 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
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 municipality. 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
municipal clerk shall provide a petition form to any individual requesting
one.
(e) If no petition is filed with the clerk of the municipality 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 municipal clerk, signed by electors numbering not less than
5% of the registered voters in the municipality, asking that the question of
issuing obligations using the full faith and credit of the municipality 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 municipality, the municipality shall not be
authorized to issue obligations of the municipality using the full faith and
credit of the municipality 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 municipality 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 municipality authorizes the issuance of obligations under this
Act secured by the full faith and credit of the municipality, the ordinance
authorizing the obligations may provide for the levy and collection of a direct
annual tax upon all taxable property within the municipality 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 municipality, but shall be abated to the extent that moneys
from other sources are available for payment of the obligations and the
municipality certifies the amount of those moneys available to the county
clerk.
(h) A municipality shall file a certified copy of an ordinance authorizing
the issuance of obligations under this Act with the municipal 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 municipality may also issue its obligations to refund, in whole or in
part, obligations previously issued by the municipality 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 areas.
(j) If a municipality issues obligations under home rule powers or other
legislative authority, the proceeds of which are pledged to pay for economic
development project costs, the municipality may, if it has followed the
procedures set forth in this Act, retire those obligations from moneys 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 municipality 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. 89-176, eff. 1-1-96.)
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