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Illinois Compiled Statutes
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() 65 ILCS 5/Art. 8 Div. 7
(65 ILCS 5/Art. 8 Div. 7 heading)
DIVISION 7.
WORKING CASH FUND IN MUNICIPALITIES OF LESS THAN 500,000
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65 ILCS 5/8-7-1
(65 ILCS 5/8-7-1) (from Ch. 24, par. 8-7-1)
Sec. 8-7-1.
In each municipality with less than 500,000 inhabitants, a fund
to be known as a working cash fund may be created, set apart, maintained,
and administered in the manner prescribed in this Division 7 for the
purpose of enabling the municipality to have in its treasury at all times
sufficient money to meet demands thereon for ordinary and necessary
expenditures for all general and special corporate purposes.
(Source: Laws 1961, p. 576.)
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65 ILCS 5/8-7-2
(65 ILCS 5/8-7-2) (from Ch. 24, par. 8-7-2)
Sec. 8-7-2.
For the purpose of creating such a working cash fund, the
corporate authorities may incur an indebtedness and issue bonds therefor in
an amount or amounts not exceeding in the aggregate $700,000.
These bonds shall bear interest at a rate of not more than
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract,
and shall mature within 20 years from the date thereof. The corporate
authorities may provide that the ordinance authorizing the issue of these
bonds shall be operative and valid without the submission thereof to the
electors of the municipality for approval in accordance with the
requirements of Sections 8-4-1 and 8-4-2 and the requirements of the Bond
Issue Notification Act. The corporate authorities, before
or at the time of issuing these bonds, shall provide for the collection of
a direct annual tax upon all the taxable property in the issuing
municipality, sufficient to pay and discharge the principal thereof at
maturity and to pay the interest thereon as it falls due. The amendatory
Acts of 1971, 1972 and 1973 are not a limit upon any municipality which is
a home rule unit.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of power to issue instruments in accordance with the Omnibus Bond
Acts, regardless of any provision of this Act that may appear to be or to
have been more restrictive than those Acts, (ii) that the provisions of
this Section are not a limitation on the supplementary authority granted by
the Omnibus Bond Acts, and (iii) that instruments issued under this Section
within the supplementary authority granted by the Omnibus Bond Acts are not
invalid because of any provision of this Act that may appear to be or to
have been more restrictive than those Acts.
(Source: P.A. 89-655, eff. 1-1-97.)
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65 ILCS 5/8-7-3
(65 ILCS 5/8-7-3) (from Ch. 24, par. 8-7-3)
Sec. 8-7-3.
For the purpose of providing money for such a working
cash fund, the corporate authorities shall also have power to levy,
annually, upon all the taxable property in the municipality, a tax of
not to exceed .05% upon the value, as equalized or assessed by the
Department of Revenue for the year in which each such
levy is made.
The collection of this tax shall not be anticipated by the issuance
of any warrants drawn against the tax. This tax shall be levied and
collected, except as otherwise provided in this Section, in like manner
as are the general taxes of the collecting municipality. It shall be
known as the working cash fund tax and shall be in addition to the
maximum of all other taxes which that municipality is now, or may be
hereafter, authorized by law to levy upon the taxable property within
the municipality.
This tax may be levied by a separate ordinance on or before the
second Tuesday in September in each year, for the purpose specified in
this Section, without any appropriation thereof being made in the annual
or supplemental appropriation ordinance.
No tax shall be levied under this Section if the municipality has
previously issued the maximum amount of bonds permitted under Section
8-7-2.
The foregoing limitation upon tax rate may be increased or decreased
according to the referendum provisions of the General Revenue Law of
Illinois.
(Source: P.A. 81-1509.)
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65 ILCS 5/8-7-4
(65 ILCS 5/8-7-4) (from Ch. 24, par. 8-7-4)
Sec. 8-7-4.
All money received from the issuance of bonds as
authorized in Section 8-7-2, or from any tax levied pursuant to the
authority granted by Section 8-7-3, shall be set apart in the working
cash fund by the municipal treasurer and shall be used only for the
purposes and in the manner provided in this section. The fund and the
money therein shall not be regarded as current assets available for
appropriation and shall not be appropriated by the corporate authorities
in the annual appropriation ordinance.
The corporate authorities may appropriate moneys to the working cash
fund up to the maximum amount allowable in the fund, and the working cash
fund may receive such appropriations and any other contributions.
In order to provide money with which to meet ordinary and necessary
disbursements for salaries and other general and special corporate purposes,
the fund may be transferred in whole or in part to the general or special
corporate funds of the municipality, and so disbursed therefrom in anticipation
of the collection of any taxes lawfully levied for general or special corporate
purposes or, in anticipation of such taxes, as by law now or hereafter enacted
or amended, imposed by the General Assembly of the State of Illinois to
replace revenue lost by units of local government and school districts as
a result of the abolition of ad valorem personal property taxes, pursuant
to Article IX, Section 5(c) of the Constitution of the State of Illinois.
Money so transferred to the
general or special corporate funds shall be deemed to have been transferred
in anticipation of the collection of that part of the taxes so levied or
to be received which is in excess of the amount required to pay any tax
anticipation warrants, and the interest thereon.
Taxes levied for general or special corporate purposes, when
collected shall be applied first to the payment of tax anticipation
warrants or notes and the interest thereon, and then to the reimbursement of the
working cash fund.
Upon the receipt by the municipal treasurer of any taxes, in
anticipation of the collection of which money in the working cash fund has
been so transferred for disbursement, the fund shall be immediately
reimbursed therefrom until the full amount so transferred has been
retransferred to the fund. Unless the taxes so received and applied to
the reimbursement of the working cash fund, prior to the first day of
the eighth month following the month in which due and unpaid real
property taxes by law begin to bear interest, are sufficient to effect a
complete reimbursement of the fund for any money transferred therefrom
in anticipation of the collection of taxes, the working cash fund shall
be reimbursed for the amount of the deficiency therein from any other
revenues accruing to the general corporate fund, and the corporate
authorities shall provide for the immediate reimbursement of the amount
of such a deficiency in its next annual appropriation ordinance.
Any municipality holding in its working cash fund money not
immediately necessary for the purposes set forth in this Section may, by
ordinance, use such money to invest in its own bonds issued by the
municipality which represent the obligation of such municipality, or,
may use such money to invest in bonds and other interest bearing
obligations of the State of Illinois, or securities authorized for
investment in "An Act relating to certain investments of public funds by
public agencies," approved July 23, 1943, as heretofore or hereafter
amended; provided, however, that no investment authorized by this
Section 8-7-4 shall be made in bonds or interest bearing obligations
which are in default or in bonds or interest bearing obligations for
which accrued interest is due. All money realized by the municipality
from the sale or redemption of the securities authorized for investment
under this Section shall be placed in the working cash fund. Interest on
the investments may also be placed in such fund, or, if so provided in
the ordinance authorizing such investments, may be transferred in whole
or in part to the general or special corporate funds of the
municipality.
(Source: P.A. 85-459.)
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65 ILCS 5/8-7-5
(65 ILCS 5/8-7-5) (from Ch. 24, par. 8-7-5)
Sec. 8-7-5.
Money shall be transferred from the working cash fund to
the general corporate or special funds only upon the authority of the
corporate authorities, who from time to time by a separate ordinance
shall direct the municipal treasurer to make a transfer of such sums as
may be required for the purposes authorized in this Division 7. That
ordinance shall set forth (1) the taxes in anticipation of the
collection of which the transfer is to be made and from which the
working cash fund is to be reimbursed, (2) the entire amount of taxes
extended, or which the corporate authorities estimate will be extended
or received for any particular year in anticipation of the collection
of all or part of which the transfer is to be made, (3) the aggregate
amount of warrants or notes theretofore issued in anticipation of the
collection of these taxes together with the amount of interest which has
accrued, and which, the corporate authorities estimate, will accrue
thereon, (4)
the aggregate amount of receipts from taxes imposed to replace revenue lost
by units of local government and school districts as a result of the abolition
of ad valorem personal property taxes, pursuant to Article IX, Section 5(c)
of the Constitution of the State of Illinois, which the corporate authorities
estimate will be set aside for the payment of the proportionate amount of
debt service and pension or retirement obligations, as required by
Section 12 of "An Act in relation to State Revenue Sharing with local
government
entities", approved July 31, 1969, as amended, and (5)
the aggregate amount of money theretofore transferred
from the working cash fund to such general or special corporate fund in
anticipation of the collection of such taxes. The amount which that
ordinance shall direct the treasurer so to transfer in anticipation of
the collection of taxes levied or to be received for any particular
year, together with the aggregate amount of such tax anticipation
warrants or notes theretofore drawn against such taxes and the amount of
the interest, accrued and estimated to accrue thereon,
the amount estimated to be required to satisfy debt service and pension
or retirement obligations, as set forth in Section 12 of "An Act in relation
to State revenue sharing with local government entities", approved July
31, 1969, as amended,
and the aggregate
amount of such transfers theretofore made in anticipation of the
collection of these taxes, shall not exceed 90% of the actual or
estimated amount of such taxes extended or to be extended or to be
received as set forth in that ordinance.
If money is available in the working cash fund, it shall be
transferred to such general or special corporate fund and disbursed for
the payment of salaries and other corporate expenses so as to avoid,
whenever possible, the issuance of tax anticipation warrants or notes.
(Source: P.A. 81-1506.)
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65 ILCS 5/8-7-6
(65 ILCS 5/8-7-6) (from Ch. 24, par. 8-7-6)
Sec. 8-7-6.
Any person holding an office, trust, or employment under a
municipality with less than 500,000 inhabitants, who is guilty of the
wilful violation of any of the provisions of this Division 7 shall be
guilty of a business offense and shall be fined not exceeding $10,000, and
shall forfeit his right to his office, trust, or employment, and shall be
removed therefrom. Any such person shall be liable for any sum that he
unlawfully diverted from the specified working cash fund, or otherwise
used, and that sum may be recovered by the municipality, or by any taxpayer
in the name and for the benefit of the municipality in a civil action.
Such a taxpayer, however, shall file a bond for all costs
and shall be liable for all costs taxed against the municipality in such a
suit, and judgment shall be rendered accordingly. But nothing in this
section shall bar other remedies.
(Source: P.A. 79-1361.)
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65 ILCS 5/8-7-7
(65 ILCS 5/8-7-7) (from Ch. 24, par. 8-7-7)
Sec. 8-7-7.
Abolishment of working cash fund.
(a) The corporate authority of any municipality may abolish its working cash
fund by resolution and may transfer any balance remaining in the fund,
including any interest that may have accrued, to the general corporate fund at
the end of the fiscal year.
(b) A municipality that has abolished its working cash fund may not
establish another working cash fund under this Division 7 for 4 years
after the date the fund was abolished. Any general obligation bonds that were
previously issued for working cash purposes must be retired before a
municipality may establish another working cash fund.
(Source: P.A. 87-982.)
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