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90_SB1561sam002
LRB9011314NTsbam02
1 AMENDMENT TO SENATE BILL 1561
2 AMENDMENT NO. . Amend Senate Bill 1561, AS AMENDED,
3 in the introductory clause of Section 5, by replacing "and
4 14-15.01" with "14-15.01, and 19-1"; and
5 in Section 5, by inserting immediately below the end of Sec.
6 14-15.01 the following:
7 "(105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
8 Sec. 19-1. Debt limitations of school districts.
9 (a) School districts shall not be subject to the
10 provisions limiting their indebtedness prescribed in "An Act
11 to limit the indebtedness of counties having a population of
12 less than 500,000 and townships, school districts and other
13 municipal corporations having a population of less than
14 300,000", approved February 15, 1928, as amended.
15 No school districts maintaining grades K through 8 or 9
16 through 12 shall become indebted in any manner or for any
17 purpose to an amount, including existing indebtedness, in the
18 aggregate exceeding 6.9% on the value of the taxable property
19 therein to be ascertained by the last assessment for State
20 and county taxes or, until January 1, 1983, if greater, the
21 sum that is produced by multiplying the school district's
22 1978 equalized assessed valuation by the debt limitation
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1 percentage in effect on January 1, 1979, previous to the
2 incurring of such indebtedness.
3 No school districts maintaining grades K through 12 shall
4 become indebted in any manner or for any purpose to an
5 amount, including existing indebtedness, in the aggregate
6 exceeding 13.8% on the value of the taxable property therein
7 to be ascertained by the last assessment for State and county
8 taxes or, until January 1, 1983, if greater, the sum that is
9 produced by multiplying the school district's 1978 equalized
10 assessed valuation by the debt limitation percentage in
11 effect on January 1, 1979, previous to the incurring of such
12 indebtedness.
13 Notwithstanding the provisions of any other law to the
14 contrary, in any case in which the voters of a school
15 district have approved a proposition for the issuance of
16 bonds of such school district at an election held prior to
17 January 1, 1979, and all of the bonds approved at such
18 election have not been issued, the debt limitation applicable
19 to such school district during the calendar year 1979 shall
20 be computed by multiplying the value of taxable property
21 therein, including personal property, as ascertained by the
22 last assessment for State and county taxes, previous to the
23 incurring of such indebtedness, by the percentage limitation
24 applicable to such school district under the provisions of
25 this subsection (a).
26 (b) Notwithstanding the debt limitation prescribed in
27 subsection (a) of this Section, additional indebtedness may
28 be incurred in an amount not to exceed the estimated cost of
29 acquiring or improving school sites or constructing and
30 equipping additional building facilities under the following
31 conditions:
32 (1) Whenever the enrollment of students for the
33 next school year is estimated by the board of education
34 to increase over the actual present enrollment by not
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1 less than 35% or by not less than 200 students or the
2 actual present enrollment of students has increased over
3 the previous school year by not less than 35% or by not
4 less than 200 students and the board of education
5 determines that additional school sites or building
6 facilities are required as a result of such increase in
7 enrollment; and
8 (2) When the Regional Superintendent of Schools
9 having jurisdiction over the school district and the
10 State Superintendent of Education concur in such
11 enrollment projection or increase and approve the need
12 for such additional school sites or building facilities
13 and the estimated cost thereof; and
14 (3) When the voters in the school district approve
15 a proposition for the issuance of bonds for the purpose
16 of acquiring or improving such needed school sites or
17 constructing and equipping such needed additional
18 building facilities at an election called and held for
19 that purpose. Notice of such an election shall state that
20 the amount of indebtedness proposed to be incurred would
21 exceed the debt limitation otherwise applicable to the
22 school district. The ballot for such proposition shall
23 state what percentage of the equalized assessed valuation
24 will be outstanding in bonds if the proposed issuance of
25 bonds is approved by the voters; or
26 (4) Notwithstanding the provisions of paragraphs
27 (1) through (3) of this subsection (b), if the school
28 board determines that additional facilities are needed to
29 provide a quality educational program and not less than
30 2/3 of those voting in an election called by the school
31 board on the question approve the issuance of bonds for
32 the construction of such facilities, the school district
33 may issue bonds for this purpose.
34 In no event shall the indebtedness incurred pursuant to
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1 this subsection (b) and the existing indebtedness of the
2 school district exceed 15% of the value of the taxable
3 property therein to be ascertained by the last assessment for
4 State and county taxes, previous to the incurring of such
5 indebtedness or, until January 1, 1983, if greater, the sum
6 that is produced by multiplying the school district's 1978
7 equalized assessed valuation by the debt limitation
8 percentage in effect on January 1, 1979.
9 The indebtedness provided for by this subsection (b)
10 shall be in addition to and in excess of any other debt
11 limitation.
12 (c) Notwithstanding the debt limitation prescribed in
13 subsection (a) of this Section, in any case in which a public
14 question for the issuance of bonds of a proposed school
15 district maintaining grades kindergarten through 12 received
16 at least 60% of the valid ballots cast on the question at an
17 election held on or prior to November 8, 1994, and in which
18 the bonds approved at such election have not been issued, the
19 school district pursuant to the requirements of Section
20 11A-10 may issue the total amount of bonds approved at such
21 election for the purpose stated in the question.
22 (d) Notwithstanding the debt limitation prescribed in
23 subsection (a) of this Section, a school district that meets
24 all the criteria set forth in paragraphs (1) and (2) of this
25 subsection (d) may incur an additional indebtedness in an
26 amount not to exceed $4,500,000, even though the amount of
27 the additional indebtedness authorized by this subsection
28 (d), when incurred and added to the aggregate amount of
29 indebtedness of the district existing immediately prior to
30 the district incurring the additional indebtedness authorized
31 by this subsection (d), causes the aggregate indebtedness of
32 the district to exceed the debt limitation otherwise
33 applicable to that district under subsection (a):
34 (1) The additional indebtedness authorized by this
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1 subsection (d) is incurred by the school district through
2 the issuance of bonds under and in accordance with
3 Section 17-2.11a for the purpose of replacing a school
4 building which, because of mine subsidence damage, has
5 been closed as provided in paragraph (2) of this
6 subsection (d) or through the issuance of bonds under and
7 in accordance with Section 19-3 for the purpose of
8 increasing the size of, or providing for additional
9 functions in, such replacement school buildings, or both
10 such purposes.
11 (2) The bonds issued by the school district as
12 provided in paragraph (1) above are issued for the
13 purposes of construction by the school district of a new
14 school building pursuant to Section 17-2.11, to replace
15 an existing school building that, because of mine
16 subsidence damage, is closed as of the end of the 1992-93
17 school year pursuant to action of the regional
18 superintendent of schools of the educational service
19 region in which the district is located under Section
20 3-14.22 or are issued for the purpose of increasing the
21 size of, or providing for additional functions in, the
22 new school building being constructed to replace a school
23 building closed as the result of mine subsidence damage,
24 or both such purposes.
25 (e) Notwithstanding the debt limitation prescribed in
26 subsection (a) of this Section, a school district that meets
27 all the criteria set forth in paragraphs (1) through (5) of
28 this subsection (e) may, without referendum, incur an
29 additional indebtedness in an amount not to exceed the lesser
30 of $5,000,000 or 1.5% of the value of the taxable property
31 within the district even though the amount of the additional
32 indebtedness authorized by this subsection (e), when incurred
33 and added to the aggregate amount of indebtedness of the
34 district existing immediately prior to the district incurring
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1 that additional indebtedness, causes the aggregate
2 indebtedness of the district to exceed or increases the
3 amount by which the aggregate indebtedness of the district
4 already exceeds the debt limitation otherwise applicable to
5 that district under subsection (a):
6 (1) The State Board of Education certifies the
7 school district under Section 19-1.5 as a financially
8 distressed district.
9 (2) The additional indebtedness authorized by this
10 subsection (e) is incurred by the financially distressed
11 district during the school year or school years in which
12 the certification of the district as a financially
13 distressed district continues in effect through the
14 issuance of bonds for the lawful school purposes of the
15 district, pursuant to resolution of the school board and
16 without referendum, as provided in paragraph (5) of this
17 subsection.
18 (3) The aggregate amount of bonds issued by the
19 financially distressed district during a fiscal year in
20 which it is authorized to issue bonds under this
21 subsection does not exceed the amount by which the
22 aggregate expenditures of the district for operational
23 purposes during the immediately preceding fiscal year
24 exceeds the amount appropriated for the operational
25 purposes of the district in the annual school budget
26 adopted by the school board of the district for the
27 fiscal year in which the bonds are issued.
28 (4) Throughout each fiscal year in which
29 certification of the district as a financially distressed
30 district continues in effect, the district maintains in
31 effect a gross salary expense and gross wage expense
32 freeze policy under which the district expenditures for
33 total employee salaries and wages do not exceed such
34 expenditures for the immediately preceding fiscal year.
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1 Nothing in this paragraph, however, shall be deemed to
2 impair or to require impairment of the contractual
3 obligations, including collective bargaining agreements,
4 of the district or to impair or require the impairment of
5 the vested rights of any employee of the district under
6 the terms of any contract or agreement in effect on the
7 effective date of this amendatory Act of 1994.
8 (5) Bonds issued by the financially distressed
9 district under this subsection shall bear interest at a
10 rate not to exceed the maximum rate authorized by law at
11 the time of the making of the contract, shall mature
12 within 40 years from their date of issue, and shall be
13 signed by the president of the school board and treasurer
14 of the school district. In order to issue bonds under
15 this subsection, the school board shall adopt a
16 resolution fixing the amount of the bonds, the date of
17 the bonds, the maturities of the bonds, the rates of
18 interest of the bonds, and their place of payment and
19 denomination, and shall provide for the levy and
20 collection of a direct annual tax upon all the taxable
21 property in the district sufficient to pay the principal
22 and interest on the bonds to maturity. Upon the filing
23 in the office of the county clerk of the county in which
24 the financially distressed district is located of a
25 certified copy of the resolution, it is the duty of the
26 county clerk to extend the tax therefor in addition to
27 and in excess of all other taxes at any time authorized
28 to be levied by the district. If bond proceeds from the
29 sale of bonds include a premium or if the proceeds of the
30 bonds are invested as authorized by law, the school board
31 shall determine by resolution whether the interest earned
32 on the investment of bond proceeds or the premium
33 realized on the sale of the bonds is to be used for any
34 of the lawful school purposes for which the bonds were
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1 issued or for the payment of the principal indebtedness
2 and interest on the bonds. The proceeds of the bond sale
3 shall be deposited in the educational purposes fund of
4 the district and shall be used to pay operational
5 expenses of the district. This subsection is cumulative
6 and constitutes complete authority for the issuance of
7 bonds as provided in this subsection, notwithstanding any
8 other law to the contrary.
9 (f) Notwithstanding the provisions of subsection (a) of
10 this Section or of any other law, bonds in not to exceed the
11 aggregate amount of $5,500,000 and issued by a school
12 district meeting the following criteria shall not be
13 considered indebtedness for purposes of any statutory
14 limitation and may be issued in an amount or amounts,
15 including existing indebtedness, in excess of any heretofore
16 or hereafter imposed statutory limitation as to indebtedness:
17 (1) At the time of the sale of such bonds, the
18 board of education of the district shall have determined
19 by resolution that the enrollment of students in the
20 district is projected to increase by not less than 7%
21 during each of the next succeeding 2 school years.
22 (2) The board of education shall also determine by
23 resolution that the improvements to be financed with the
24 proceeds of the bonds are needed because of the projected
25 enrollment increases.
26 (3) The board of education shall also determine by
27 resolution that the projected increases in enrollment are
28 the result of improvements made or expected to be made to
29 passenger rail facilities located in the school district.
30 (g) Notwithstanding the provisions of subsection (a) of
31 this Section or any other law, bonds in not to exceed an
32 aggregate amount of 25% of the equalized assessed value of
33 the taxable property of a school district and issued by a
34 school district meeting the criteria in paragraphs (i)
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1 through (iv) of this subsection shall not be considered
2 indebtedness for purposes of any statutory limitation and may
3 be issued pursuant to resolution of the school board in an
4 amount or amounts, including existing indebtedness, in excess
5 of any statutory limitation of indebtedness heretofore or
6 hereafter imposed:
7 (i) The bonds are issued for the purpose of
8 constructing a new high school building to replace two
9 adjacent existing buildings which together house a single
10 high school, each of which is more than 65 years old, and
11 which together are located on more than 10 acres and less
12 than 11 acres of property.
13 (ii) At the time the resolution authorizing the
14 issuance of the bonds is adopted, the cost of
15 constructing a new school building to replace the
16 existing school building is less than 60% of the cost of
17 repairing the existing school building.
18 (iii) The sale of the bonds occurs before July 1,
19 1997.
20 (iv) The school district issuing the bonds is a
21 unit school district located in a county of less than
22 70,000 and more than 50,000 inhabitants, which has an
23 average daily attendance of less than 1,500 and an
24 equalized assessed valuation of less than $29,000,000.
25 (h) Notwithstanding any other provisions of this Section
26 or the provisions of any other law, until January 1, 1998, a
27 community unit school district maintaining grades K through
28 12 may issue bonds up to an amount, including existing
29 indebtedness, not exceeding 27.6% of the equalized assessed
30 value of the taxable property in the district, if all of the
31 following conditions are met:
32 (i) The school district has an equalized assessed
33 valuation for calendar year 1995 of less than
34 $24,000,000;
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1 (ii) The bonds are issued for the capital
2 improvement, renovation, rehabilitation, or replacement
3 of existing school buildings of the district, all of
4 which buildings were originally constructed not less than
5 40 years ago;
6 (iii) The voters of the district approve a
7 proposition for the issuance of the bonds at a referendum
8 held after March 19, 1996; and
9 (iv) The bonds are issued pursuant to Sections 19-2
10 through 19-7 of this Code.
11 (i) Notwithstanding any other provisions of this Section
12 or the provisions of any other law, until January 1, 1998, a
13 community unit school district maintaining grades K through
14 12 may issue bonds up to an amount, including existing
15 indebtedness, not exceeding 27% of the equalized assessed
16 value of the taxable property in the district, if all of the
17 following conditions are met:
18 (i) The school district has an equalized assessed
19 valuation for calendar year 1995 of less than
20 $44,600,000;
21 (ii) The bonds are issued for the capital
22 improvement, renovation, rehabilitation, or replacement
23 of existing school buildings of the district, all of
24 which existing buildings were originally constructed not
25 less than 80 years ago;
26 (iii) The voters of the district approve a
27 proposition for the issuance of the bonds at a referendum
28 held after December 31, 1996; and
29 (iv) The bonds are issued pursuant to Sections 19-2
30 through 19-7 of this Code.
31 (j) Notwithstanding any other provisions of this Section
32 or the provisions of any other law, until January 1, 1999, a
33 community unit school district maintaining grades K through
34 12 may issue bonds up to an amount, including existing
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1 indebtedness, not exceeding 27% of the equalized assessed
2 value of the taxable property in the district if all of the
3 following conditions are met:
4 (i) The school district has an equalized assessed
5 valuation for calendar year 1995 of less than
6 $140,000,000 and a best 3 months average daily attendance
7 for the 1995-96 school year of at least 2,800;
8 (ii) The bonds are issued to purchase a site and
9 build and equip a new high school, and the school
10 district's existing high school was originally
11 constructed not less than 35 years prior to the sale of
12 the bonds;
13 (iii) At the time of the sale of the bonds, the
14 board of education determines by resolution that a new
15 high school is needed because of projected enrollment
16 increases;
17 (iv) At least 60% of those voting in an election
18 held after December 31, 1996 approve a proposition for
19 the issuance of the bonds; and
20 (v) The bonds are issued pursuant to Sections 19-2
21 through 19-7 of this Code.
22 (k) Notwithstanding any other provisions of this Section
23 or the provisions of any other law, until January 1, 2000, a
24 school district maintaining grades kindergarten through 8 may
25 issue bonds up to an amount, including existing indebtedness,
26 not exceeding 15% of the equalized assessed value of the
27 taxable property in the district if all of the following
28 conditions are met:
29 (i) the district has an equalized assessed
30 valuation for calendar year 1996 of less than
31 $10,000,000;
32 (ii) the bonds are issued for capital improvement,
33 renovation, rehabilitation, or replacement of one or more
34 school buildings of the district, which buildings were
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1 originally constructed not less than 70 years ago;
2 (iii) the voters of the district approve a
3 proposition for the issuance of the bonds at a referendum
4 held on or after March 17, 1998; and
5 (iv) the bonds are issued pursuant to Sections 19-2
6 through 19-7 of this Code.
7 (Source: P.A. 89-47, eff. 7-1-95; 89-661, eff. 1-1-97;
8 89-698, eff. 1-14-97; 90-570, eff. 1-28-98.)".