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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 -2- LRB9202962SMdv 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. -3- LRB9202962SMdv 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 -4- LRB9202962SMdv 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 -5- LRB9202962SMdv 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 -6- LRB9202962SMdv 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 -7- LRB9202962SMdv 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 -8- LRB9202962SMdv 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 -9- LRB9202962SMdv 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 -10- LRB9202962SMdv 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 -11- LRB9202962SMdv 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 -12- LRB9202962SMdv 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 -13- LRB9202962SMdv 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 -14- LRB9202962SMdv 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 -15- LRB9202962SMdv 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 -16- LRB9202962SMdv 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 -17- LRB9202962SMdv 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 -18- LRB9202962SMdv 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 -19- LRB9202962SMdv 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 -20- LRB9202962SMdv 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. -21- LRB9202962SMdv 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 -22- LRB9202962SMdv 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 -23- LRB9202962SMdv 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. -24- LRB9202962SMdv 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 -25- LRB9202962SMdv 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.