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92_HB0914
LRB9202962SMdv
1 AN ACT concerning local governments.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Local Government Debt Reform Act is
5 amended by changing Sections 3, 15, and 15.01 as follows:
6 (30 ILCS 350/3) (from Ch. 17, par. 6903)
7 Sec. 3. Definitions. In this Act words or terms shall
8 have the following meanings unless the context or usage
9 clearly indicates that another meaning is intended.
10 (a) "Alternate bonds" means bonds issued in lieu of
11 revenue bonds or payable from a revenue source as provided in
12 Section 15.
13 (b) "Applicable law" means any provision of law,
14 including this Act, authorizing governmental units to issue
15 bonds.
16 (c) "Backdoor referendum" means the submission of a
17 public question to the voters of a governmental unit,
18 initiated by a petition of voters, residents or property
19 owners of such governmental unit, to determine whether an
20 action by the governing body of such governmental unit shall
21 be effective, adopted or rejected.
22 (d) "Bond" means any instrument evidencing the
23 obligation to pay money authorized or issued by or on behalf
24 of a governmental unit under applicable law, including
25 without limitation, bonds, notes, installment or financing
26 contracts, leases, certificates, tax anticipation warrants or
27 notes, vouchers, and any other evidences of indebtedness.
28 (e) "Debt service" on bonds means the amount of
29 principal, interest and premium, if any, when due either at
30 stated maturity or upon mandatory redemption.
31 (f) "Enterprise revenues" means the revenues of a
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1 utility or revenue producing enterprise from which revenue
2 bonds may be payable.
3 (g) "General obligation bonds" means bonds of a
4 governmental unit for the payment of which the governmental
5 unit is empowered to levy ad valorem property taxes upon all
6 taxable property in a governmental unit without limitation as
7 to rate or amount.
8 (h) "Governing body" means the legislative body,
9 council, board, commission, trustees, or any other body, by
10 whatever name it is known, having charge of the corporate
11 affairs of a governmental unit.
12 (i) "Governmental unit" means a county, township,
13 municipality, municipal corporation, unit of local
14 government, school district, special district, public
15 corporation, body corporate and politic, forest preserve
16 district, fire protection district, conservation district,
17 park district, sanitary district, and all other local
18 governmental agencies, including any entity created by
19 intergovernmental agreement among any of the foregoing
20 governmental units, but does not include any office, officer,
21 department, division, bureau, board, commission, university,
22 or similar agency of the State.
23 (j) "Ordinance" means an ordinance duly adopted by a
24 governing body or, if appropriate under applicable law, a
25 resolution so adopted.
26 (k) "Revenue bonds" means any bonds of a governmental
27 unit other than general obligation bonds, but "revenue bonds"
28 does include any debt authorized under Section 11-29.3-1 of
29 the Illinois Municipal Code.
30 (l) "Revenue source" means a source of funds, other than
31 enterprise revenues, received or available to be received by
32 a governmental unit and available for any one or more of its
33 corporate purposes, including any public building commission
34 lease rental base alternate tax levy.
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1 (m) "Limited bonds" means bonds, including public
2 building commission leases, but excluding other leases,
3 notes, installment or financing contracts, certificates, tax
4 anticipation warrants or notes, vouchers, and any other
5 evidences of indebtedness, issued under Section 15.01 of this
6 Act.
7 (n) "Public building commission lease rental base" means
8 that term as defined in the Property Tax Extension Limitation
9 Law.
10 (o) "Public building commission lease rental base
11 alternate tax levy" means a special purpose levy authorized
12 to be levied by a unit of local government for the payment of
13 alternate bonds as a revenue source, which levy may be in an
14 annual amount not in excess of the public building commission
15 lease rental base less the amount of that base levied for the
16 payment of lease rentals under a public building commission
17 lease.
18 (Source: P.A. 89-385, eff. 8-18-95; 89-658, eff. 1-1-97.)
19 (30 ILCS 350/15) (from Ch. 17, par. 6915)
20 Sec. 15. Double-barrelled bonds. Whenever revenue bonds
21 have been authorized to be issued pursuant to applicable law
22 or whenever there exists for a governmental unit a revenue
23 source, the procedures set forth in this Section may be used
24 by a governing body. General obligation bonds may be issued
25 in lieu of such revenue bonds as authorized, and general
26 obligation bonds may be issued payable from any revenue
27 source. Such general obligation bonds may be referred to as
28 "alternate bonds". Alternate bonds may be issued without any
29 referendum or backdoor referendum except as provided in this
30 Section, upon the terms provided in Section 10 of this Act
31 without reference to other provisions of law, but only upon
32 the conditions provided in this Section. Alternate bonds
33 shall not be regarded as or included in any computation of
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1 indebtedness for the purpose of any statutory provision or
2 limitation except as expressly provided in this Section.
3 Such conditions are:
4 (a) Alternate bonds shall be issued for a lawful
5 corporate purpose. If issued in lieu of revenue bonds,
6 alternate bonds shall be issued for the purposes for which
7 such revenue bonds shall have been authorized. If issued
8 payable from a revenue source in the manner hereinafter
9 provided, which revenue source is limited in its purposes or
10 applications, then the alternate bonds shall be issued only
11 for such limited purposes or applications. Alternate bonds
12 may be issued payable from either enterprise revenues or
13 revenue sources, or both. As a revenue source for alternate
14 bonds, any unit of local government having a public building
15 commission lease rental base is hereby authorized to levy a
16 public building commission lease rental base alternate tax
17 levy. Alternate bonds supported by the levy may be issued
18 pursuant to the provisions of this Section for any lawful
19 corporate purpose of the unit of local government.
20 (b) Alternate bonds shall be subject to backdoor
21 referendum. The provisions of Section 5 of this Act shall
22 apply to such backdoor referendum, together with the
23 provisions hereof. The authorizing ordinance shall be
24 published in a newspaper of general circulation in the
25 governmental unit. Along with or as part of the authorizing
26 ordinance, there shall be published a notice of (1) the
27 specific number of voters required to sign a petition
28 requesting that the issuance of the alternate bonds be
29 submitted to referendum, (2) the time when such petition must
30 be filed, (3) the date of the prospective referendum, and
31 (4), with respect to authorizing ordinances adopted on or
32 after January 1, 1991, a statement that identifies any
33 revenue source that will be used to pay the principal of and
34 interest on the alternate bonds. The clerk or secretary of
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1 the governmental unit shall make a petition form available to
2 anyone requesting one. If no petition is filed with the
3 clerk or secretary within 30 days of publication of the
4 authorizing ordinance and notice, the alternate bonds shall
5 be authorized to be issued. But if within this 30 days
6 period, a petition is filed with such clerk or secretary
7 signed by electors numbering the greater of (i) 7.5% of the
8 registered voters in the governmental unit or (ii) 200 of
9 those registered voters or 15% of those registered voters,
10 whichever is less, asking that the issuance of such alternate
11 bonds be submitted to referendum, the clerk or secretary
12 shall certify such question for submission at an election
13 held in accordance with the general election law. The
14 question on the ballot shall include a statement of any
15 revenue source that will be used to pay the principal of and
16 interest on the alternate bonds. The alternate bonds shall be
17 authorized to be issued if a majority of the votes cast on
18 the question at such election are in favor thereof provided
19 that notice of the bond referendum, if held before July 1,
20 1999, has been given in accordance with the provisions of
21 Section 12-5 of the Election Code in effect at the time of
22 the bond referendum, at least 10 and not more than 45 days
23 before the date of the election, notwithstanding the time for
24 publication otherwise imposed by Section 12-5. Notices
25 required in connection with the submission of public
26 questions on or after July 1, 1999 shall be as set forth in
27 Section 12-5 of the Election Code. Backdoor referendum
28 proceedings for bonds and alternate bonds to be issued in
29 lieu of such bonds may be conducted at the same time.
30 (c) To the extent payable from enterprise revenues, such
31 revenues shall have been determined by the governing body to
32 be sufficient to provide for or pay in each year to final
33 maturity of such alternate bonds all of the following: (1)
34 costs of operation and maintenance of the utility or
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1 enterprise, but not including depreciation, (2) debt service
2 on all outstanding revenue bonds payable from such enterprise
3 revenues, (3) all amounts required to meet any fund or
4 account requirements with respect to such outstanding revenue
5 bonds, (4) other contractual or tort liability obligations,
6 if any, payable from such enterprise revenues, and (5) in
7 each year, an amount not less than 1.25 times debt service of
8 all (i) alternate bonds payable from such enterprise revenues
9 previously issued and outstanding and (ii) alternate bonds
10 proposed to be issued. To the extent payable from one or
11 more revenue sources, such sources shall have been determined
12 by the governing body to provide in each year, an amount not
13 less than 1.25 times debt service of all alternate bonds
14 payable from such revenue sources previously issued and
15 outstanding and alternate bonds proposed to be issued. The
16 conditions enumerated in this subsection (c) need not be met
17 for that amount of debt service provided for by the setting
18 aside of proceeds of bonds or other moneys at the time of the
19 delivery of such bonds.
20 (c-1) In the case of alternate bonds issued as variable
21 rate bonds (including refunding bonds), debt service shall be
22 projected based on the rate for the most recent date shown in
23 the 20 G.O. Bond Index of average municipal bond yields as
24 published in the most recent edition of The Bond Buyer
25 published in New York, New York (or any successor publication
26 or index, or if such publication or index is no longer
27 published, then any index of long-term municipal tax-exempt
28 bond yields selected by the governmental unit), as of the
29 date of determination referred to in subsection (c) of this
30 Section. Any interest or fees that may be payable to the
31 provider of a letter of credit, line of credit, surety bond,
32 bond insurance, or other credit enhancement relating to such
33 alternate bonds and any fees that may be payable to any
34 remarketing agent need not be taken into account for purposes
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1 of such projection. If the governmental unit enters into an
2 agreement in connection with such alternate bonds at the time
3 of issuance thereof pursuant to which the governmental unit
4 agrees for a specified period of time to pay an amount
5 calculated at an agreed-upon rate or index based on a
6 notional amount and the other party agrees to pay the
7 governmental unit an amount calculated at an agreed-upon rate
8 or index based on such notional amount, interest shall be
9 projected for such specified period of time on the basis of
10 the agreed-upon rate payable by the governmental unit.
11 (d) The determination of the sufficiency of enterprise
12 revenues or a revenue source, as applicable, shall be
13 supported by reference to the most recent audit of the
14 governmental unit, which shall be for a fiscal year ending
15 not earlier than 18 months previous to the time of issuance
16 of the alternate bonds. If such audit does not adequately
17 show such enterprise revenues or revenue source, as
18 applicable, or if such enterprise revenues or revenue source,
19 as applicable, are shown to be insufficient, then the
20 determination of sufficiency shall be supported by the report
21 of an independent accountant or feasibility analyst, the
22 latter having a national reputation for expertise in such
23 matters, demonstrating the sufficiency of such revenues and
24 explaining, if appropriate, by what means the revenues will
25 be greater than as shown in the audit. Whenever such
26 sufficiency is demonstrated by reference to a schedule of
27 higher rates or charges for enterprise revenues or a higher
28 tax imposition for a revenue source, such higher rates,
29 charges or taxes shall have been properly imposed by an
30 ordinance adopted prior to the time of delivery of alternate
31 bonds. The reference to and acceptance of an audit or
32 report, as the case may be, and the determination of the
33 governing body as to sufficiency of enterprise revenues or a
34 revenue source shall be conclusive evidence that the
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1 conditions of this Section have been met and that the
2 alternate bonds are valid.
3 (e) The enterprise revenues or revenue source, as
4 applicable, shall be in fact pledged to the payment of the
5 alternate bonds; and the governing body shall covenant, to
6 the extent it is empowered to do so, to provide for, collect
7 and apply such enterprise revenues or revenue source, as
8 applicable, to the payment of the alternate bonds and the
9 provision of not less than an additional .25 times debt
10 service. The pledge and establishment of rates or charges
11 for enterprise revenues, or the imposition of taxes in a
12 given rate or amount, as provided in this Section for
13 alternate bonds, shall constitute a continuing obligation of
14 the governmental unit with respect to such establishment or
15 imposition and a continuing appropriation of the amounts
16 received. All covenants relating to alternate bonds and the
17 conditions and obligations imposed by this Section are
18 enforceable by any bondholder of alternate bonds affected,
19 any taxpayer of the governmental unit, and the People of the
20 State of Illinois acting through the Attorney General or any
21 designee, and in the event that any such action results in an
22 order finding that the governmental unit has not properly set
23 rates or charges or imposed taxes to the extent it is
24 empowered to do so or collected and applied enterprise
25 revenues or any revenue source, as applicable, as required by
26 this Act, the plaintiff in any such action shall be awarded
27 reasonable attorney's fees. The intent is that such
28 enterprise revenues or revenue source, as applicable, shall
29 be sufficient and shall be applied to the payment of debt
30 service on such alternate bonds so that taxes need not be
31 levied, or if levied need not be extended, for such payment.
32 Nothing in this Section shall inhibit or restrict the
33 authority of a governing body to determine the lien priority
34 of any bonds, including alternate bonds, which may be issued
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1 with respect to any enterprise revenues or revenue source.
2 In the event that alternate bonds shall have been issued
3 and taxes, other than a designated revenue source, shall have
4 been extended pursuant to the general obligation, full faith
5 and credit promise supporting such alternate bonds, then the
6 amount of such alternate bonds then outstanding shall be
7 included in the computation of indebtedness of the
8 governmental unit for purposes of all statutory provisions or
9 limitations until such time as an audit of the governmental
10 unit shall show that the alternate bonds have been paid from
11 the enterprise revenues or revenue source, as applicable,
12 pledged thereto for a complete fiscal year.
13 Alternate bonds may be issued to refund or advance refund
14 alternate bonds without meeting any of the conditions set
15 forth in this Section, except that the term of the refunding
16 bonds shall not be longer than the term of the refunded bonds
17 and that the debt service payable in any year on the
18 refunding bonds shall not exceed the debt service payable in
19 such year on the refunded bonds.
20 Once issued, alternate bonds shall be and forever remain
21 until paid or defeased the general obligation of the
22 governmental unit, for the payment of which its full faith
23 and credit are pledged, and shall be payable from the levy of
24 taxes as is provided in this Act for general obligation
25 bonds.
26 The changes made by this amendatory Act of 1990 do not
27 affect the validity of bonds authorized before September 1,
28 1990.
29 (Source: P.A. 90-812, eff. 1-26-99; 91-57, eff. 6-30-99;
30 91-493, eff. 8-13-99; 91-868, eff. 6-22-00.)
31 (30 ILCS 350/15.01)
32 Sec. 15.01. Limited bonds. A governmental unit is
33 authorized to issue limited bonds payable from the debt
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1 service extension base or the public building commission
2 lease, or both, as defined in the Property Tax Extension
3 Limitation Law, as provided in this amendatory Act of 1995.
4 Bonds authorized by Public Act 88-503 and issued under
5 Section 20a of the Chicago Park District Act for aquarium or
6 museum projects shall not be issued as limited bonds. A
7 governmental unit issuing limited bonds authorized by this
8 Section shall provide in the bond ordinance that the bonds
9 are issued as limited bonds and are also issued pursuant to
10 applicable law, other than this amendatory Act of 1995,
11 enabling the governmental unit to issue bonds. This
12 amendatory Act of 1995 shall not change the rate, amount,
13 purposes, limitations, source of funds for payment of
14 principal or interest, or method of payment or defeasance of
15 the bonds that a governmental unit may issue under any
16 applicable law; provided, that limited bonds that are
17 otherwise to be issued as general obligation bonds may be
18 payable solely from the debt service extension base or public
19 building commission lease rental base, or both. This
20 amendatory Act of 1995 provides no additional authority to
21 any governmental unit to issue bonds that the governmental
22 unit is not otherwise authorized to issue by a law other than
23 this amendatory Act of 1995.
24 (Source: P.A. 89-385, eff. 8-18-95; 89-449, eff. 6-1-96.)
25 Section 10. The Property Tax Code is amended by changing
26 Section 18-185 as follows:
27 (35 ILCS 200/18-185)
28 Sec. 18-185. Short title; definitions. This Division 5
29 may be cited as the Property Tax Extension Limitation Law.
30 As used in this Division 5:
31 "Consumer Price Index" means the Consumer Price Index for
32 All Urban Consumers for all items published by the United
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1 States Department of Labor.
2 "Extension limitation" means (a) the lesser of 5% or the
3 percentage increase in the Consumer Price Index during the
4 12-month calendar year preceding the levy year or (b) the
5 rate of increase approved by voters under Section 18-205.
6 "Affected county" means a county of 3,000,000 or more
7 inhabitants or a county contiguous to a county of 3,000,000
8 or more inhabitants.
9 "Taxing district" has the same meaning provided in
10 Section 1-150, except as otherwise provided in this Section.
11 For the 1991 through 1994 levy years only, "taxing district"
12 includes only each non-home rule taxing district having the
13 majority of its 1990 equalized assessed value within any
14 county or counties contiguous to a county with 3,000,000 or
15 more inhabitants. Beginning with the 1995 levy year, "taxing
16 district" includes only each non-home rule taxing district
17 subject to this Law before the 1995 levy year and each
18 non-home rule taxing district not subject to this Law before
19 the 1995 levy year having the majority of its 1994 equalized
20 assessed value in an affected county or counties. Beginning
21 with the levy year in which this Law becomes applicable to a
22 taxing district as provided in Section 18-213, "taxing
23 district" also includes those taxing districts made subject
24 to this Law as provided in Section 18-213.
25 "Aggregate extension" for taxing districts to which this
26 Law applied before the 1995 levy year means the annual
27 corporate extension for the taxing district and those special
28 purpose extensions that are made annually for the taxing
29 district, excluding special purpose extensions: (a) made for
30 the taxing district to pay interest or principal on general
31 obligation bonds that were approved by referendum; (b) made
32 for any taxing district to pay interest or principal on
33 general obligation bonds issued before October 1, 1991; (c)
34 made for any taxing district to pay interest or principal on
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1 bonds issued to refund or continue to refund those bonds
2 issued before October 1, 1991; (d) made for any taxing
3 district to pay interest or principal on bonds issued to
4 refund or continue to refund bonds issued after October 1,
5 1991 that were approved by referendum; (e) made for any
6 taxing district to pay interest or principal on revenue bonds
7 issued before October 1, 1991 for payment of which a property
8 tax levy or the full faith and credit of the unit of local
9 government is pledged; however, a tax for the payment of
10 interest or principal on those bonds shall be made only after
11 the governing body of the unit of local government finds that
12 all other sources for payment are insufficient to make those
13 payments; (f) made for payments under a building commission
14 lease when the lease payments are for the retirement of bonds
15 issued by the commission before October 1, 1991, to pay for
16 the building project; (g) made for payments due under
17 installment contracts entered into before October 1, 1991;
18 (h) made for payments of principal and interest on bonds
19 issued under the Metropolitan Water Reclamation District Act
20 to finance construction projects initiated before October 1,
21 1991; (i) made for payments of principal and interest on
22 limited bonds, as defined in Section 3 of the Local
23 Government Debt Reform Act, in an amount not to exceed the
24 debt service extension base less the amount in items (b),
25 (c), (e), and (h) of this definition for non-referendum
26 obligations, except obligations initially issued pursuant to
27 referendum, plus an amount not to exceed the public building
28 commission lease rental base less the amount (deductible only
29 from the public building commission lease rental base and not
30 from the debt service extension base) in item (f) of this
31 definition for lease payments; (j) made for payments of
32 principal and interest on bonds issued under Section 15 of
33 the Local Government Debt Reform Act, including the public
34 building commission lease rental base alternate tax levy
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1 allocable to those payments; and (k) made by a school
2 district that participates in the Special Education District
3 of Lake County, created by special education joint agreement
4 under Section 10-22.31 of the School Code, for payment of the
5 school district's share of the amounts required to be
6 contributed by the Special Education District of Lake County
7 to the Illinois Municipal Retirement Fund under Article 7 of
8 the Illinois Pension Code; the amount of any extension under
9 this item (k) shall be certified by the school district to
10 the county clerk.
11 "Aggregate extension" for the taxing districts to which
12 this Law did not apply before the 1995 levy year (except
13 taxing districts subject to this Law in accordance with
14 Section 18-213) means the annual corporate extension for the
15 taxing district and those special purpose extensions that are
16 made annually for the taxing district, excluding special
17 purpose extensions: (a) made for the taxing district to pay
18 interest or principal on general obligation bonds that were
19 approved by referendum; (b) made for any taxing district to
20 pay interest or principal on general obligation bonds issued
21 before March 1, 1995; (c) made for any taxing district to pay
22 interest or principal on bonds issued to refund or continue
23 to refund those bonds issued before March 1, 1995; (d) made
24 for any taxing district to pay interest or principal on bonds
25 issued to refund or continue to refund bonds issued after
26 March 1, 1995 that were approved by referendum; (e) made for
27 any taxing district to pay interest or principal on revenue
28 bonds issued before March 1, 1995 for payment of which a
29 property tax levy or the full faith and credit of the unit of
30 local government is pledged; however, a tax for the payment
31 of interest or principal on those bonds shall be made only
32 after the governing body of the unit of local government
33 finds that all other sources for payment are insufficient to
34 make those payments; (f) made for payments under a building
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1 commission lease when the lease payments are for the
2 retirement of bonds issued by the commission before March 1,
3 1995 to pay for the building project; (g) made for payments
4 due under installment contracts entered into before March 1,
5 1995; (h) made for payments of principal and interest on
6 bonds issued under the Metropolitan Water Reclamation
7 District Act to finance construction projects initiated
8 before October 1, 1991; (i) made for payments of principal
9 and interest on limited bonds, as defined in Section 3 of the
10 Local Government Debt Reform Act, in an amount not to exceed
11 the debt service extension base less the amount in items (b),
12 (c), and (e) of this definition for non-referendum
13 obligations, except obligations initially issued pursuant to
14 referendum and bonds described in subsection (h) of this
15 definition; (j) made for payments of principal and interest
16 on bonds issued under Section 15 of the Local Government Debt
17 Reform Act; (k) made for payments of principal and interest
18 on bonds authorized by Public Act 88-503 and issued under
19 Section 20a of the Chicago Park District Act for aquarium or
20 museum projects; and (l) made for payments of principal and
21 interest on bonds authorized by Public Act 87-1191 and issued
22 under Section 42 of the Cook County Forest Preserve District
23 Act for zoological park projects.
24 "Aggregate extension" for all taxing districts to which
25 this Law applies in accordance with Section 18-213, except
26 for those taxing districts subject to paragraph (2) of
27 subsection (e) of Section 18-213, means the annual corporate
28 extension for the taxing district and those special purpose
29 extensions that are made annually for the taxing district,
30 excluding special purpose extensions: (a) made for the taxing
31 district to pay interest or principal on general obligation
32 bonds that were approved by referendum; (b) made for any
33 taxing district to pay interest or principal on general
34 obligation bonds issued before the date on which the
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1 referendum making this Law applicable to the taxing district
2 is held; (c) made for any taxing district to pay interest or
3 principal on bonds issued to refund or continue to refund
4 those bonds issued before the date on which the referendum
5 making this Law applicable to the taxing district is held;
6 (d) made for any taxing district to pay interest or principal
7 on bonds issued to refund or continue to refund bonds issued
8 after the date on which the referendum making this Law
9 applicable to the taxing district is held if the bonds were
10 approved by referendum after the date on which the referendum
11 making this Law applicable to the taxing district is held;
12 (e) made for any taxing district to pay interest or principal
13 on revenue bonds issued before the date on which the
14 referendum making this Law applicable to the taxing district
15 is held for payment of which a property tax levy or the full
16 faith and credit of the unit of local government is pledged;
17 however, a tax for the payment of interest or principal on
18 those bonds shall be made only after the governing body of
19 the unit of local government finds that all other sources for
20 payment are insufficient to make those payments; (f) made for
21 payments under a building commission lease when the lease
22 payments are for the retirement of bonds issued by the
23 commission before the date on which the referendum making
24 this Law applicable to the taxing district is held to pay for
25 the building project; (g) made for payments due under
26 installment contracts entered into before the date on which
27 the referendum making this Law applicable to the taxing
28 district is held; (h) made for payments of principal and
29 interest on limited bonds, as defined in Section 3 of the
30 Local Government Debt Reform Act, in an amount not to exceed
31 the debt service extension base less the amount in items (b),
32 (c), and (e) of this definition for non-referendum
33 obligations, except obligations initially issued pursuant to
34 referendum; (i) made for payments of principal and interest
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1 on bonds issued under Section 15 of the Local Government Debt
2 Reform Act; and (j) made for a qualified airport authority to
3 pay interest or principal on general obligation bonds issued
4 for the purpose of paying obligations due under, or financing
5 airport facilities required to be acquired, constructed,
6 installed or equipped pursuant to, contracts entered into
7 before March 1, 1996 (but not including any amendments to
8 such a contract taking effect on or after that date).
9 "Aggregate extension" for all taxing districts to which
10 this Law applies in accordance with paragraph (2) of
11 subsection (e) of Section 18-213 means the annual corporate
12 extension for the taxing district and those special purpose
13 extensions that are made annually for the taxing district,
14 excluding special purpose extensions: (a) made for the taxing
15 district to pay interest or principal on general obligation
16 bonds that were approved by referendum; (b) made for any
17 taxing district to pay interest or principal on general
18 obligation bonds issued before the effective date of this
19 amendatory Act of 1997; (c) made for any taxing district to
20 pay interest or principal on bonds issued to refund or
21 continue to refund those bonds issued before the effective
22 date of this amendatory Act of 1997; (d) made for any taxing
23 district to pay interest or principal on bonds issued to
24 refund or continue to refund bonds issued after the effective
25 date of this amendatory Act of 1997 if the bonds were
26 approved by referendum after the effective date of this
27 amendatory Act of 1997; (e) made for any taxing district to
28 pay interest or principal on revenue bonds issued before the
29 effective date of this amendatory Act of 1997 for payment of
30 which a property tax levy or the full faith and credit of the
31 unit of local government is pledged; however, a tax for the
32 payment of interest or principal on those bonds shall be made
33 only after the governing body of the unit of local government
34 finds that all other sources for payment are insufficient to
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1 make those payments; (f) made for payments under a building
2 commission lease when the lease payments are for the
3 retirement of bonds issued by the commission before the
4 effective date of this amendatory Act of 1997 to pay for the
5 building project; (g) made for payments due under installment
6 contracts entered into before the effective date of this
7 amendatory Act of 1997; (h) made for payments of principal
8 and interest on limited bonds, as defined in Section 3 of the
9 Local Government Debt Reform Act, in an amount not to exceed
10 the debt service extension base less the amount in items (b),
11 (c), and (e) of this definition for non-referendum
12 obligations, except obligations initially issued pursuant to
13 referendum; (i) made for payments of principal and interest
14 on bonds issued under Section 15 of the Local Government Debt
15 Reform Act; and (j) made for a qualified airport authority to
16 pay interest or principal on general obligation bonds issued
17 for the purpose of paying obligations due under, or financing
18 airport facilities required to be acquired, constructed,
19 installed or equipped pursuant to, contracts entered into
20 before March 1, 1996 (but not including any amendments to
21 such a contract taking effect on or after that date).
22 "Debt service extension base" means an amount equal to
23 that portion of the extension for a taxing district for the
24 1994 levy year, or for those taxing districts subject to this
25 Law in accordance with Section 18-213, except for those
26 subject to paragraph (2) of subsection (e) of Section 18-213,
27 for the levy year in which the referendum making this Law
28 applicable to the taxing district is held, or for those
29 taxing districts subject to this Law in accordance with
30 paragraph (2) of subsection (e) of Section 18-213 for the
31 1996 levy year, constituting an extension for payment of
32 principal and interest on bonds issued by the taxing district
33 without referendum, but not including (i) bonds authorized by
34 Public Act 88-503 and issued under Section 20a of the Chicago
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1 Park District Act for aquarium and museum projects; (ii)
2 bonds issued under Section 15 of the Local Government Debt
3 Reform Act; or (iii) refunding obligations issued to refund
4 or to continue to refund obligations initially issued
5 pursuant to referendum. The debt service extension base may
6 be established or increased as provided under Section 18-212.
7 "Special purpose extensions" include, but are not limited
8 to, extensions for levies made on an annual basis for
9 unemployment and workers' compensation, self-insurance,
10 contributions to pension plans, and extensions made pursuant
11 to Section 6-601 of the Illinois Highway Code for a road
12 district's permanent road fund whether levied annually or
13 not. The extension for a special service area is not
14 included in the aggregate extension.
15 "Aggregate extension base" means the taxing district's
16 last preceding aggregate extension as adjusted under Sections
17 18-215 through 18-230.
18 "Levy year" has the same meaning as "year" under Section
19 1-155.
20 "New property" means (i) the assessed value, after final
21 board of review or board of appeals action, of new
22 improvements or additions to existing improvements on any
23 parcel of real property that increase the assessed value of
24 that real property during the levy year multiplied by the
25 equalization factor issued by the Department under Section
26 17-30 and (ii) the assessed value, after final board of
27 review or board of appeals action, of real property not
28 exempt from real estate taxation, which real property was
29 exempt from real estate taxation for any portion of the
30 immediately preceding levy year, multiplied by the
31 equalization factor issued by the Department under Section
32 17-30. In addition, the county clerk in a county containing
33 a population of 3,000,000 or more shall include in the 1997
34 recovered tax increment value for any school district, any
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1 recovered tax increment value that was applicable to the 1995
2 tax year calculations.
3 "Public building commission lease rental base" means an
4 amount equal to that portion of the extension for a taxing
5 district for the 1999 levy year constituting an extension for
6 payment of lease rentals under a public building commission
7 lease allocable to the retirement of bonds issued by the
8 commission.
9 "Qualified airport authority" means an airport authority
10 organized under the Airport Authorities Act and located in a
11 county bordering on the State of Wisconsin and having a
12 population in excess of 200,000 and not greater than 500,000.
13 "Recovered tax increment value" means, except as
14 otherwise provided in this paragraph, the amount of the
15 current year's equalized assessed value, in the first year
16 after a municipality terminates the designation of an area as
17 a redevelopment project area previously established under the
18 Tax Increment Allocation Development Act in the Illinois
19 Municipal Code, previously established under the Industrial
20 Jobs Recovery Law in the Illinois Municipal Code, or
21 previously established under the Economic Development Area
22 Tax Increment Allocation Act, of each taxable lot, block,
23 tract, or parcel of real property in the redevelopment
24 project area over and above the initial equalized assessed
25 value of each property in the redevelopment project area.
26 For the taxes which are extended for the 1997 levy year, the
27 recovered tax increment value for a non-home rule taxing
28 district that first became subject to this Law for the 1995
29 levy year because a majority of its 1994 equalized assessed
30 value was in an affected county or counties shall be
31 increased if a municipality terminated the designation of an
32 area in 1993 as a redevelopment project area previously
33 established under the Tax Increment Allocation Development
34 Act in the Illinois Municipal Code, previously established
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1 under the Industrial Jobs Recovery Law in the Illinois
2 Municipal Code, or previously established under the Economic
3 Development Area Tax Increment Allocation Act, by an amount
4 equal to the 1994 equalized assessed value of each taxable
5 lot, block, tract, or parcel of real property in the
6 redevelopment project area over and above the initial
7 equalized assessed value of each property in the
8 redevelopment project area. In the first year after a
9 municipality removes a taxable lot, block, tract, or parcel
10 of real property from a redevelopment project area
11 established under the Tax Increment Allocation Development
12 Act in the Illinois Municipal Code, the Industrial Jobs
13 Recovery Law in the Illinois Municipal Code, or the Economic
14 Development Area Tax Increment Allocation Act, "recovered tax
15 increment value" means the amount of the current year's
16 equalized assessed value of each taxable lot, block, tract,
17 or parcel of real property removed from the redevelopment
18 project area over and above the initial equalized assessed
19 value of that real property before removal from the
20 redevelopment project area.
21 Except as otherwise provided in this Section, "limiting
22 rate" means a fraction the numerator of which is the last
23 preceding aggregate extension base times an amount equal to
24 one plus the extension limitation defined in this Section and
25 the denominator of which is the current year's equalized
26 assessed value of all real property in the territory under
27 the jurisdiction of the taxing district during the prior levy
28 year. For those taxing districts that reduced their
29 aggregate extension for the last preceding levy year, the
30 highest aggregate extension in any of the last 3 preceding
31 levy years shall be used for the purpose of computing the
32 limiting rate. The denominator shall not include new
33 property. The denominator shall not include the recovered
34 tax increment value.
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1 (Source: P.A. 90-485, eff. 1-1-98; 90-511, eff. 8-22-97;
2 90-568, eff. 1-1-99; 90-616, eff. 7-10-98; 90-655, eff.
3 7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.)
4 Section 15. The Public Building Commission Act is
5 amended by changing Sections 3 and 18 as follows:
6 (50 ILCS 20/3) (from Ch. 85, par. 1033)
7 Sec. 3. The following terms, wherever used, or referred
8 to in this Act, mean unless the context clearly requires a
9 different meaning:
10 (a) "Commission" means a Public Building Commission
11 created pursuant to this Act.
12 (b) "Commissioner" or "Commissioners" means a
13 Commissioner or Commissioners of a Public Building
14 Commission.
15 (c) "County seat" means a city, village or town which is
16 the county seat of a county.
17 (d) "Municipality" means any city, village or
18 incorporated town of the State of Illinois.
19 (e) "Municipal corporation" includes a county, city,
20 village, town, (including a county seat), park district,
21 school district in a county of 3,000,000 or more population,
22 board of education of a school district in a county of
23 3,000,000 or more population, sanitary district, airport
24 authority contiguous with the County Seat as of July 1, 1969
25 and any other municipal body or governmental agency of the
26 State but does not include a school district in a county of
27 less than 3,000,000 population, a board of education of a
28 school district in a county of less than 3,000,000
29 population, or a community college district in a county of
30 less than 3,000,000 population.
31 (f) "Governing body" includes a city council, county
32 board, or any other body or board, by whatever name it may be
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1 known, charged with the governing of a municipal corporation.
2 (g) "Presiding officer" includes the mayor or president
3 of a city, village or town, the presiding officer of a county
4 board, or the presiding officer of any other board or
5 commission, as the case may be.
6 (h) "Oath" means oath or affirmation.
7 (i) "Building" means an improvement to real estate to be
8 made available for use by a municipal corporation for the
9 furnishing of governmental services to its citizens, together
10 with any land or interest in land necessary or useful in
11 connection with the improvement.
12 (j) "Public building commission lease rental base" means
13 that term as defined in the Property Tax Extension Limitation
14 Law.
15 (Source: P.A. 88-304.)
16 (50 ILCS 20/18) (from Ch. 85, par. 1048)
17 Sec. 18. Whenever, and as often as, a municipal
18 corporation having taxing power enters into a lease with a
19 Public Building Commission, the governing body of such
20 municipal corporation shall provide by ordinance or
21 resolution, as the case may be, for the levy and collection
22 of a direct annual tax sufficient to pay the annual rent
23 payable under such lease as and when it becomes due and
24 payable, or, if applicable, in the amount of the public
25 building commission lease rental base levied for the lease. A
26 certified copy of the lease of such municipal corporation and
27 a certified copy of the tax levying ordinance or resolution,
28 as the case may be, of such municipal corporation shall be
29 filed in the office of the county clerk in each county in
30 which any portion of the territory of such municipal
31 corporation is situated, which certified copies shall
32 constitute the authority for the county clerk or clerks, in
33 each case, to extend the taxes annually necessary to pay the
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1 annual rent payable under such lease as and when it becomes
2 due and payable, or, if applicable, in the amount of the
3 public building commission lease rental base levied for the
4 lease. No taxes shall be extended for any lease entered into
5 after the effective date of this amendatory Act of 1993,
6 however, until after a public hearing on the lease. The clerk
7 or secretary of the governing body of the municipal
8 corporation shall cause notice of the time and place of the
9 hearing to be published at least once, at least 15 days
10 before the hearing, in a newspaper published or having
11 general circulation within the municipal corporation. If no
12 such newspaper exists, the clerk or secretary shall cause the
13 notice to be posted, at least 15 days before the hearing, in
14 at least 10 conspicuous places within the municipal
15 corporation. The notice shall be in the following form:
16 NOTICE OF PUBLIC HEARING ON LEASE between (name of the
17 municipal corporation) and (name of the public building
18 commission).
19 A public hearing regarding a lease between (name of the
20 municipal corporation) and (name of the public building
21 commission) will be held by (name of the governing body of
22 the municipal corporation) on (date) at (time) at (location).
23 The largest yearly rental payment set forth in the lease is
24 ($ amount). The maximum length of the lease is (years).
25 The purpose of the lease is (explain in 25 words or
26 less).
27 Dated (insert date). this day of .
28 By Order of (name of the governing body
29 of the Municipal Corporation)
30 /s/............
31 Clerk or Secretary.
32 At the hearing, all persons residing or owning property
33 in the municipal corporation shall have an opportunity to be
34 heard orally, in writing, or both.
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1 Upon the filing of the certified copies of the lease and
2 the tax levying ordinance or resolution in the office of the
3 county clerk or clerks of the proper county or counties, it
4 shall be the duty of such county clerk or clerks to ascertain
5 the rate per cent which, upon the value of all property
6 subject to taxation within the municipal corporation, as that
7 property is assessed or equalized by the Department of
8 Revenue, will produce a net amount of not less than the
9 amount of the annual rent reserved in such lease, or, if
10 applicable, in the amount of the public building commission
11 lease rental base levied for the lease. The county clerk or
12 clerks shall thereupon, and thereafter annually during the
13 term of the lease, extend taxes against all of the taxable
14 property contained in that municipal corporation sufficient
15 to pay the annual rental reserved in such lease, or, if
16 applicable, in the amount of the public building commission
17 lease rental base levied for the lease. Such tax shall be
18 levied and collected in like manner with the other taxes of
19 such municipal corporation and shall be in addition to all
20 other taxes now or hereafter authorized to be levied by that
21 municipal corporation. This tax shall not be included within
22 any statutory limitation of rate or amount for that municipal
23 corporation but shall be excluded therefrom and be in
24 addition thereto and in excess thereof. If this tax is levied
25 after the year 1999, however, as part of a public building
26 commission lease rental base, the tax is subject to
27 limitation as to the amount of the public building commission
28 lease rental base. The fund realized from such tax levy shall
29 be set aside for the payment of the annual rent and shall not
30 be disbursed for any other purpose until the annual rental
31 has been paid in full. This Section shall not be construed
32 to limit the power of the Commission to enter into leases
33 with any municipal corporation whether or not the municipal
34 corporation has the power of taxation. This Section shall not
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1 be construed to require taxes to be levied or extended in
2 excess of the public building commission lease rental base,
3 if applicable.
4 (Source: P.A. 87-1208; 87-1279; revised 1-10-00.)
5 Section 99. Effective date. This Act takes effect upon
6 becoming law.