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92_SB0022ham007 LRB9201505LDpram 1 AMENDMENT TO SENATE BILL 22 2 AMENDMENT NO. . Amend Senate Bill 22 by replacing 3 everything after the enacting clause with the following: 4 "Section 5. The Property Tax Code is amended by changing 5 Section 18-185 and by adding Sections 18-190.5 and 18-201 as 6 follows: 7 (35 ILCS 200/18-185) 8 Sec. 18-185. Short title; definitions. This Division 5 9 may be cited as the Property Tax Extension Limitation Law. 10 As used in this Division 5: 11 "Consumer Price Index" means the Consumer Price Index for 12 All Urban Consumers for all items published by the United 13 States Department of Labor. 14 "Extension limitation" means (a) the lesser of 5% or the 15 percentage increase in the Consumer Price Index during the 16 12-month calendar year preceding the levy year or (b) the 17 rate of increase approved by voters under Section 18-205. 18 "Affected county" means a county of 3,000,000 or more 19 inhabitants or a county contiguous to a county of 3,000,000 20 or more inhabitants. 21 "Taxing district" has the same meaning provided in 22 Section 1-150, except as otherwise provided in this Section. -2- LRB9201505LDpram 1 For the 1991 through 1994 levy years only, "taxing district" 2 includes only each non-home rule taxing district having the 3 majority of its 1990 equalized assessed value within any 4 county or counties contiguous to a county with 3,000,000 or 5 more inhabitants. Beginning with the 1995 levy year, "taxing 6 district" includes only each non-home rule taxing district 7 subject to this Law before the 1995 levy year and each 8 non-home rule taxing district not subject to this Law before 9 the 1995 levy year having the majority of its 1994 equalized 10 assessed value in an affected county or counties. Beginning 11 with the levy year in which this Law becomes applicable to a 12 taxing district as provided in Section 18-213, "taxing 13 district" also includes those taxing districts made subject 14 to this Law as provided in Section 18-213. 15 "Aggregate extension" for taxing districts to which this 16 Law applied before the 1995 levy year means the annual 17 corporate extension for the taxing district and those special 18 purpose extensions that are made annually for the taxing 19 district, excluding special purpose extensions: (a) made for 20 the taxing district to pay interest or principal on general 21 obligation bonds that were approved by referendum; (b) made 22 for any taxing district to pay interest or principal on 23 general obligation bonds issued before October 1, 1991; (c) 24 made for any taxing district to pay interest or principal on 25 bonds issued to refund or continue to refund those bonds 26 issued before October 1, 1991; (d) made for any taxing 27 district to pay interest or principal on bonds issued to 28 refund or continue to refund bonds issued after October 1, 29 1991 that were approved by referendum; (e) made for any 30 taxing district to pay interest or principal on revenue bonds 31 issued before October 1, 1991 for payment of which a property 32 tax levy or the full faith and credit of the unit of local 33 government is pledged; however, a tax for the payment of 34 interest or principal on those bonds shall be made only after -3- LRB9201505LDpram 1 the governing body of the unit of local government finds that 2 all other sources for payment are insufficient to make those 3 payments; (f) made for payments under a building commission 4 lease when the lease payments are for the retirement of bonds 5 issued by the commission before October 1, 1991, to pay for 6 the building project; (g) made for payments due under 7 installment contracts entered into before October 1, 1991; 8 (h) made for payments of principal and interest on bonds 9 issued under the Metropolitan Water Reclamation District Act 10 to finance construction projects initiated before October 1, 11 1991; (i) made for payments of principal and interest on 12 limited bonds, as defined in Section 3 of the Local 13 Government Debt Reform Act, in an amount not to exceed the 14 debt service extension base less the amount in items (b), 15 (c), (e), and (h) of this definition for non-referendum 16 obligations, except obligations initially issued pursuant to 17 referendum; (j) made for payments of principal and interest 18 on bonds issued under Section 15 of the Local Government Debt 19 Reform Act; and (k) made by a school district that 20 participates in the Special Education District of Lake 21 County, created by special education joint agreement under 22 Section 10-22.31 of the School Code, for payment of the 23 school district's share of the amounts required to be 24 contributed by the Special Education District of Lake County 25 to the Illinois Municipal Retirement Fund under Article 7 of 26 the Illinois Pension Code; the amount of any extension under 27 this item (k) shall be certified by the school district to 28 the county clerk. 29 "Aggregate extension" for the taxing districts to which 30 this Law did not apply before the 1995 levy year (except 31 taxing districts subject to this Law in accordance with 32 Section 18-213) means the annual corporate extension for the 33 taxing district and those special purpose extensions that are 34 made annually for the taxing district, excluding special -4- LRB9201505LDpram 1 purpose extensions: (a) made for the taxing district to pay 2 interest or principal on general obligation bonds that were 3 approved by referendum; (b) made for any taxing district to 4 pay interest or principal on general obligation bonds issued 5 before March 1, 1995; (c) made for any taxing district to pay 6 interest or principal on bonds issued to refund or continue 7 to refund those bonds issued before March 1, 1995; (d) made 8 for any taxing district to pay interest or principal on bonds 9 issued to refund or continue to refund bonds issued after 10 March 1, 1995 that were approved by referendum; (e) made for 11 any taxing district to pay interest or principal on revenue 12 bonds issued before March 1, 1995 for payment of which a 13 property tax levy or the full faith and credit of the unit of 14 local government is pledged; however, a tax for the payment 15 of interest or principal on those bonds shall be made only 16 after the governing body of the unit of local government 17 finds that all other sources for payment are insufficient to 18 make those payments; (f) made for payments under a building 19 commission lease when the lease payments are for the 20 retirement of bonds issued by the commission before March 1, 21 1995 to pay for the building project; (g) made for payments 22 due under installment contracts entered into before March 1, 23 1995; (h) made for payments of principal and interest on 24 bonds issued under the Metropolitan Water Reclamation 25 District Act to finance construction projects initiated 26 before October 1, 1991; (i) made for payments of principal 27 and interest on limited bonds, as defined in Section 3 of the 28 Local Government Debt Reform Act, in an amount not to exceed 29 the debt service extension base less the amount in items (b), 30 (c), and (e) of this definition for non-referendum 31 obligations, except obligations initially issued pursuant to 32 referendum and bonds described in subsection (h) of this 33 definition; (j) made for payments of principal and interest 34 on bonds issued under Section 15 of the Local Government Debt -5- LRB9201505LDpram 1 Reform Act; (k) made for payments of principal and interest 2 on bonds authorized by Public Act 88-503 and issued under 3 Section 20a of the Chicago Park District Act for aquarium or 4 museum projects;and(l) made for payments of principal and 5 interest on bonds authorized by Public Act 87-1191 and issued 6 under Section 42 of the Cook County Forest Preserve District 7 Act for zoological park projects; and (m) made pursuant to 8 Section 34-53.5 of the School Code, whether levied annually 9 or not. 10 "Aggregate extension" for all taxing districts to which 11 this Law applies in accordance with Section 18-213, except 12 for those taxing districts subject to paragraph (2) of 13 subsection (e) of Section 18-213, means the annual corporate 14 extension for the taxing district and those special purpose 15 extensions that are made annually for the taxing district, 16 excluding special purpose extensions: (a) made for the taxing 17 district to pay interest or principal on general obligation 18 bonds that were approved by referendum; (b) made for any 19 taxing district to pay interest or principal on general 20 obligation bonds issued before the date on which the 21 referendum making this Law applicable to the taxing district 22 is held; (c) made for any taxing district to pay interest or 23 principal on bonds issued to refund or continue to refund 24 those bonds issued before the date on which the referendum 25 making this Law applicable to the taxing district is held; 26 (d) made for any taxing district to pay interest or principal 27 on bonds issued to refund or continue to refund bonds issued 28 after the date on which the referendum making this Law 29 applicable to the taxing district is held if the bonds were 30 approved by referendum after the date on which the referendum 31 making this Law applicable to the taxing district is held; 32 (e) made for any taxing district to pay interest or principal 33 on revenue bonds issued before the date on which the 34 referendum making this Law applicable to the taxing district -6- LRB9201505LDpram 1 is held for payment of which a property tax levy or the full 2 faith and credit of the unit of local government is pledged; 3 however, a tax for the payment of interest or principal on 4 those bonds shall be made only after the governing body of 5 the unit of local government finds that all other sources for 6 payment are insufficient to make those payments; (f) made for 7 payments under a building commission lease when the lease 8 payments are for the retirement of bonds issued by the 9 commission before the date on which the referendum making 10 this Law applicable to the taxing district is held to pay for 11 the building project; (g) made for payments due under 12 installment contracts entered into before the date on which 13 the referendum making this Law applicable to the taxing 14 district is held; (h) made for payments of principal and 15 interest on limited bonds, as defined in Section 3 of the 16 Local Government Debt Reform Act, in an amount not to exceed 17 the debt service extension base less the amount in items (b), 18 (c), and (e) of this definition for non-referendum 19 obligations, except obligations initially issued pursuant to 20 referendum; (i) made for payments of principal and interest 21 on bonds issued under Section 15 of the Local Government Debt 22 Reform Act; and (j) made for a qualified airport authority to 23 pay interest or principal on general obligation bonds issued 24 for the purpose of paying obligations due under, or financing 25 airport facilities required to be acquired, constructed, 26 installed or equipped pursuant to, contracts entered into 27 before March 1, 1996 (but not including any amendments to 28 such a contract taking effect on or after that date). 29 "Aggregate extension" for all taxing districts to which 30 this Law applies in accordance with paragraph (2) of 31 subsection (e) of Section 18-213 means the annual corporate 32 extension for the taxing district and those special purpose 33 extensions that are made annually for the taxing district, 34 excluding special purpose extensions: (a) made for the taxing -7- LRB9201505LDpram 1 district to pay interest or principal on general obligation 2 bonds that were approved by referendum; (b) made for any 3 taxing district to pay interest or principal on general 4 obligation bonds issued before the effective date of this 5 amendatory Act of 1997; (c) made for any taxing district to 6 pay interest or principal on bonds issued to refund or 7 continue to refund those bonds issued before the effective 8 date of this amendatory Act of 1997; (d) made for any taxing 9 district to pay interest or principal on bonds issued to 10 refund or continue to refund bonds issued after the effective 11 date of this amendatory Act of 1997 if the bonds were 12 approved by referendum after the effective date of this 13 amendatory Act of 1997; (e) made for any taxing district to 14 pay interest or principal on revenue bonds issued before the 15 effective date of this amendatory Act of 1997 for payment of 16 which a property tax levy or the full faith and credit of the 17 unit of local government is pledged; however, a tax for the 18 payment of interest or principal on those bonds shall be made 19 only after the governing body of the unit of local government 20 finds that all other sources for payment are insufficient to 21 make those payments; (f) made for payments under a building 22 commission lease when the lease payments are for the 23 retirement of bonds issued by the commission before the 24 effective date of this amendatory Act of 1997 to pay for the 25 building project; (g) made for payments due under installment 26 contracts entered into before the effective date of this 27 amendatory Act of 1997; (h) made for payments of principal 28 and interest on limited bonds, as defined in Section 3 of the 29 Local Government Debt Reform Act, in an amount not to exceed 30 the debt service extension base less the amount in items (b), 31 (c), and (e) of this definition for non-referendum 32 obligations, except obligations initially issued pursuant to 33 referendum; (i) made for payments of principal and interest 34 on bonds issued under Section 15 of the Local Government Debt -8- LRB9201505LDpram 1 Reform Act; and (j) made for a qualified airport authority to 2 pay interest or principal on general obligation bonds issued 3 for the purpose of paying obligations due under, or financing 4 airport facilities required to be acquired, constructed, 5 installed or equipped pursuant to, contracts entered into 6 before March 1, 1996 (but not including any amendments to 7 such a contract taking effect on or after that date). 8 "Debt service extension base" means an amount equal to 9 that portion of the extension for a taxing district for the 10 1994 levy year, or for those taxing districts subject to this 11 Law in accordance with Section 18-213, except for those 12 subject to paragraph (2) of subsection (e) of Section 18-213, 13 for the levy year in which the referendum making this Law 14 applicable to the taxing district is held, or for those 15 taxing districts subject to this Law in accordance with 16 paragraph (2) of subsection (e) of Section 18-213 for the 17 1996 levy year, constituting an extension for payment of 18 principal and interest on bonds issued by the taxing district 19 without referendum, but not including (i) bonds authorized by 20 Public Act 88-503 and issued under Section 20a of the Chicago 21 Park District Act for aquarium and museum projects; (ii) 22 bonds issued under Section 15 of the Local Government Debt 23 Reform Act;or(iii) refunding obligations issued to refund 24 or to continue to refund obligations initially issued 25 pursuant to referendum; or (iv) bonds issued for fire 26 prevention and safety purposes under Section 17-2.11 of the 27 School Code after the effective date of this amendatory Act 28 of the 92nd General Assembly and bonds issued to refund the 29 fire prevention and safety bonds issued after the effective 30 date of this amendatory Act of the 92nd General Assembly. The 31 debt service extension base may be established or increased 32 as provided under Section 18-212. 33 "Special purpose extensions" include, but are not limited 34 to, extensions for levies made on an annual basis for -9- LRB9201505LDpram 1 unemployment and workers' compensation, self-insurance, 2 contributions to pension plans, and extensions made pursuant 3 to Section 6-601 of the Illinois Highway Code for a road 4 district's permanent road fund whether levied annually or 5 not. The extension for a special service area is not 6 included in the aggregate extension. 7 "Aggregate extension base" means the taxing district's 8 last preceding aggregate extension as adjusted under Sections 9 18-215 through 18-230. 10 "Levy year" has the same meaning as "year" under Section 11 1-155. 12 "New property" means (i) the assessed value, after final 13 board of review or board of appeals action, of new 14 improvements or additions to existing improvements on any 15 parcel of real property that increase the assessed value of 16 that real property during the levy year multiplied by the 17 equalization factor issued by the Department under Section 18 17-30 and (ii) the assessed value, after final board of 19 review or board of appeals action, of real property not 20 exempt from real estate taxation, which real property was 21 exempt from real estate taxation for any portion of the 22 immediately preceding levy year, multiplied by the 23 equalization factor issued by the Department under Section 24 17-30. In addition, the county clerk in a county containing 25 a population of 3,000,000 or more shall include in the 1997 26 recovered tax increment value for any school district, any 27 recovered tax increment value that was applicable to the 1995 28 tax year calculations. 29 "Qualified airport authority" means an airport authority 30 organized under the Airport Authorities Act and located in a 31 county bordering on the State of Wisconsin and having a 32 population in excess of 200,000 and not greater than 500,000. 33 "Recovered tax increment value" means, except as 34 otherwise provided in this paragraph, the amount of the -10- LRB9201505LDpram 1 current year's equalized assessed value, in the first year 2 after a municipality terminates the designation of an area as 3 a redevelopment project area previously established under the 4 Tax Increment Allocation Development Act in the Illinois 5 Municipal Code, previously established under the Industrial 6 Jobs Recovery Law in the Illinois Municipal Code, or 7 previously established under the Economic Development Area 8 Tax Increment Allocation Act, of each taxable lot, block, 9 tract, or parcel of real property in the redevelopment 10 project area over and above the initial equalized assessed 11 value of each property in the redevelopment project area. 12 For the taxes which are extended for the 1997 levy year, the 13 recovered tax increment value for a non-home rule taxing 14 district that first became subject to this Law for the 1995 15 levy year because a majority of its 1994 equalized assessed 16 value was in an affected county or counties shall be 17 increased if a municipality terminated the designation of an 18 area in 1993 as a redevelopment project area previously 19 established under the Tax Increment Allocation Development 20 Act in the Illinois Municipal Code, previously established 21 under the Industrial Jobs Recovery Law in the Illinois 22 Municipal Code, or previously established under the Economic 23 Development Area Tax Increment Allocation Act, by an amount 24 equal to the 1994 equalized assessed value of each taxable 25 lot, block, tract, or parcel of real property in the 26 redevelopment project area over and above the initial 27 equalized assessed value of each property in the 28 redevelopment project area. In the first year after a 29 municipality removes a taxable lot, block, tract, or parcel 30 of real property from a redevelopment project area 31 established under the Tax Increment Allocation Development 32 Act in the Illinois Municipal Code, the Industrial Jobs 33 Recovery Law in the Illinois Municipal Code, or the Economic 34 Development Area Tax Increment Allocation Act, "recovered tax -11- LRB9201505LDpram 1 increment value" means the amount of the current year's 2 equalized assessed value of each taxable lot, block, tract, 3 or parcel of real property removed from the redevelopment 4 project area over and above the initial equalized assessed 5 value of that real property before removal from the 6 redevelopment project area. 7 Except as otherwise provided in this Section, "limiting 8 rate" means a fraction the numerator of which is the last 9 preceding aggregate extension base times an amount equal to 10 one plus the extension limitation defined in this Section and 11 the denominator of which is the current year's equalized 12 assessed value of all real property in the territory under 13 the jurisdiction of the taxing district during the prior levy 14 year. For those taxing districts that reduced their 15 aggregate extension for the last preceding levy year, the 16 highest aggregate extension in any of the last 3 preceding 17 levy years shall be used for the purpose of computing the 18 limiting rate. The denominator shall not include new 19 property. The denominator shall not include the recovered 20 tax increment value. 21 (Source: P.A. 90-485, eff. 1-1-98; 90-511, eff. 8-22-97; 22 90-568, eff. 1-1-99; 90-616, eff. 7-10-98; 90-655, eff. 23 7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.) 24 (35 ILCS 200/18-190.5 new) 25 Sec. 18-190.5. School districts. The requirements of 26 Section 18-190 of this Code for a direct referendum on the 27 imposition of a new or increased tax rate do not apply to tax 28 levies that are not included in the aggregate extension 29 pursuant to clause (m) of Section 18-185 of this Code. 30 (35 ILCS 200/18-201 new) 31 Sec. 18-201. School districts. 32 (a) The aggregate extension for a school district shall -12- LRB9201505LDpram 1 not include any extension (i) made for fire prevention and 2 safety purposes under Section 17-2.11 of the School Code 3 produced by that portion of the rate for that purpose in 4 excess of the district's maximum permissible rate for that 5 purpose immediately prior to the effective date of this 6 amendatory Act of the 92nd General Assembly or (ii) made for 7 payments of principal and interest on fire prevention and 8 safety bonds issued under Section 17-2.11 of the School Code 9 after the effective date of this amendatory Act of the 92nd 10 General Assembly or on bonds issued to refund the fire 11 prevention and safety bonds issued after the effective date 12 of this amendatory Act of the 92nd General Assembly. 13 (b) The requirements of Section 18-190 of this Code for 14 a direct referendum on the imposition of a new or increased 15 tax rate shall not apply to the tax levies that are not 16 included in the aggregate extension pursuant to this Section. 17 (35 ILCS 200/18-200 rep.) 18 Section 10. The Property Tax Code is amended by 19 repealing Section 18-200. 20 Section 15. The School Code is amended by changing 21 Sections 1B-4, 1B-5, 1B-8, 2-3.12, 10-22.14, 17-2.2, 17-2.11, 22 and 19-1 and adding Section 34-53.5 as follows: 23 (105 ILCS 5/1B-4) (from Ch. 122, par. 1B-4) 24 Sec. 1B-4. Establishment of Emergency Financial 25 Assistance and Financial Oversight Panel. When approved by 26 the State Board under this Article there is established a 27 body both corporate and politic to be known as the "(Name of 28 School District) Financial Oversight Panel" which, in such 29 name, shall exercise all authority vested in such Panels by 30 this Article. 31 Upon the affirmative vote of not less than a majority of -13- LRB9201505LDpram 1 its full membership, a local board of education of a school 2 district that has been certified to be in financial 3 difficulty under Section 1A-8 may petition the State Board of 4 Education for emergency financial assistance and the 5 establishment of a Financial Oversight Panel for the district 6 as provided under this Article. In addition, the State 7 Superintendent of Education may petition the State Board of 8 Education for the establishment of a Financial Oversight 9 Panel, with or without emergency financial assistance, for 10 any district that has failed to comply with its financial 11 plan and has had the plan rescinded by the State Board as 12 provided in Section 1A-8. No petition for emergency 13 financial assistance shall be approved by the State Board 14 unless there is also established a Financial Oversight Panel. 15 In determining whether to allow the petition the State 16 Board shall consider the following factors among others that 17 it deems relevant: 18 (a) whether the petition is in the best educational 19 interests of the pupils of the district; 20 (b) whether the petition is in the near and long term 21 best financial interests of the district; 22 (c) whether the district has sufficient pupil enrollment 23 and assessed valuation to provide and maintain recognized 24 schools; 25 (d) whether the petition is in the best interests of the 26 other schools of the area and the educational welfare of all 27 of the pupils therein; and 28 (e) whether the board of education has complied with the 29 requirements of Section 1A-8. 30 The State Board may vote to either grant or deny the 31 petition based upon the recommendation of the State 32 Superintendent of Education and any other testimony or 33 documentary evidence the State Board deems relevant. The 34 decision of the State Board whether to grant or deny the -14- LRB9201505LDpram 1 petition shall be final. If an approved petition requests 2 emergency financial assistance, the school district shall be 3 eligible for emergency State financial assistance, subject to 4 the other provisions of this Article. 5 A Financial Oversight Panel created pursuant to a 6 petition filed by a school district may petition the State 7 Board of Education to be reconstituted as a Panel having the 8 powers, duties, legal status, and privileges of a Panel 9 established by the State Board for a district that has had 10 its financial plan rescinded by the State Board for violating 11 that plan as provided in Section 1A-8. The State Board may 12 grant such petition upon determining that approval of the 13 petition is in the best financial interests of the district. 14 Upon approval of the petition, the Panel shall have the same 15 powers, duties, legal status, and privileges of a Panel 16 established for a district that has had its financial plan 17 rescinded by the State Board for violating that plan as 18 provided in Section 1A-8. The changes made to this Section 19 by this amendatory Act of the 92nd General Assembly apply to 20 all Financial Oversight Panels, whether created before, on, 21 or after the effective date of this amendatory Act. 22 (Source: P.A. 88-618, eff. 9-9-94.) 23 (105 ILCS 5/1B-5) (from Ch. 122, par. 1B-5) 24 Sec. 1B-5. Appointment of Panel; meetings; reports; 25 dissolution of Panel. When a petition establishing a 26 Financial Oversight Panelfor emergency financial assistance27for a school districtis allowed by the State Board under 28 Section 1B-4, the State Superintendent shall within 10 days 29 thereafter appoint 3 members to serve at the State 30 Superintendent's pleasure on a Financial Oversight Panel for 31 the district. The State Superintendent shall designate one 32 of the members of the Panel to serve as its Chairman. In the 33 event of vacancy or resignation the State Superintendent -15- LRB9201505LDpram 1 shall appoint a successor within 10 days of receiving notice 2 thereof. 3 Members of the Panel shall be selected primarily on the 4 basis of their experience and education in financial 5 management, with consideration given to persons knowledgeable 6 in education finance. A member of the Panel may not be a 7 board member or employee of the district for which the Panel 8 is constituted, nor may a member have a direct financial 9 interest in that district. 10 Panel members shall serve without compensation, but may 11 be reimbursed for travel and other necessary expenses 12 incurred in the performance of their official duties by the 13 State Board. The amount reimbursed Panel members for their 14 expenses shall be charged to the school district as part of 15 any emergency financial assistance and incorporated as a part 16 of the terms and conditions for repayment of such assistance 17 or shall be deducted from the district's general State aid as 18 provided in Section 1B-8. 19 The first meeting of the Panel shall be held at the call 20 of the Chairman. The Panel may elect such other officers as 21 it deems appropriate. The Panel shall prescribe the times 22 and places for its meetings and the manner in which regular 23 and special meetings may be called, and shall comply with the 24 Open Meetings Act. 25 Two members of the Panel shall constitute a quorum, and 26 the affirmative vote of 2 members shall be necessary for any 27 decision or action to be taken by the Panel. 28 The Panel and the State Superintendent shall cooperate 29 with each other in the exercise of their respective powers. 30 The Panel shall report not later than September 1 annually to 31 the State Board and the State Superintendent with respect to 32 its activities and the condition of the school district for 33 the previous fiscal year. 34 Any Financial Oversight Panel established under this -16- LRB9201505LDpram 1 Article shall remain in existence for not less than 3 years 2 nor more than 10 years from the date the State Board grants 3 the petition under Section 1B-4. If after 3 years the school 4 district has repaid all of its obligations resulting from 5 emergency State financial assistance provided under this 6 Article and has improved its financial situation, the board 7 of education may, not more frequently than once in any 12 8 month period, petition the State Board to dissolve the 9 Financial Oversight Panel, terminate the oversight 10 responsibility, and remove the district's certification under 11 Section 1A-8 as a district in financial difficulty. In 12 acting on such a petition the State Board shall give 13 additional weight to the recommendations of the State 14 Superintendent and the Financial Oversight Panel. 15 The changes made to this Section by this amendatory Act 16 of the 92nd General Assembly apply to all Financial Oversight 17 Panels, whether created before, on, or after the effective 18 date of this amendatory Act. 19 (Source: P.A. 88-618, eff. 9-9-94.) 20 (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8) 21 Sec. 1B-8. School District Emergency Financial Assistance 22 Fund; loans and grants. There is created in the State 23 Treasury a special fund to be known as the School District 24 Emergency Financial Assistance Fund (the "Fund"). The School 25 District Emergency Financial Assistance Fund shall consist of 26 appropriations, grants from the federal government and 27 donations from any public or private source. Moneys in the 28 Fund may be appropriated only to the State Board for the 29 purposes of this Article. The appropriation may be allocated 30 and expended by the State Board as grants or loans to school 31 districts which are the subject of an approved petition for 32 emergency financial assistance under Section 1B-4. From the 33 amount allocated to each such school district the State Board -17- LRB9201505LDpram 1 shall identify a sum sufficient to cover all approved costs 2 of the Financial Oversight Panel established for the 3 respective school district. If the State Board and State 4 Superintendent of Education have not approved emergency 5 financial assistance in conjunction with the appointment of a 6 Financial Oversight Panel, the Panel's approved costs shall 7 be paid from deductions from the district's general State 8 aid. 9 The Financial Oversight Panel may prepare and file with 10 the State Superintendent a proposal for emergency financial 11 assistance for the school district and for the operations 12 budget of the Panel. No expenditures shall be authorized by 13 the State Superintendent until he has approved the proposal 14 of the Panel, either as submitted or in such lesser amount 15 determined by the State Superintendent. 16 The maximum amount of an emergency financial assistance 17 loan which may be allocated to any school district under this 18 Article, including moneys necessary for the operations of the 19 Panel, shall not exceed $1000 times the number of pupils 20 enrolled in the school district during the school year ending 21 June 30 prior to the date of approval by the State Board of 22 the petition for emergency financial assistance, as certified 23 to the local board and the Panel by the State Superintendent. 24 An emergency financial assistance grant shall not exceed $250 25 times the number of such pupils. A district may receive both 26 a loan and a grant. Any moneys provided to a local board of 27 education as a loan shall not be subject to any limitation on 28 debt established under Article 19 of this Code. 29 The payment of an emergency State financial assistance 30 grant or loan shall be subject to appropriation by the 31 General Assembly. Emergency State financial assistance 32 allocated and paid to a school district under this Article 33 may be applied to any fund or funds from which the local 34 board of education of that district is authorized to make -18- LRB9201505LDpram 1 expenditures by law. 2 Any emergency financial assistance proposed by the 3 Financial Oversight Panel and approved by the State 4 Superintendent may be paid in its entirety during the initial 5 year of the Panel's existence or spread in equal or declining 6 amounts over a period of years not to exceed the period of 7 the Panel's existence. All loan payments made from the 8 School District Emergency Financial Assistance Fund for a 9 school district shall be required to be repaid, with simple 10 interest over the term of the loan at a rate equal to 50% of 11 the discount rate on one-year United States Treasury Bills as 12 determined by the last auction of those one-year bills that 13 precedes the date on which the district's loan is approved by 14 the State Board of Education, not later than the date the 15 Financial Oversight Panel ceases to exist. The Panel shall 16 establish and the State Superintendent shall approve the 17 terms and conditions, including the schedule, of repayments. 18 The schedule shall provide for repayments commencing July 1 19 of each year. Repayment shall be incorporated into the annual 20 budget of the school district and may be made from any fund 21 or funds of the district in which there are moneys available. 22 When moneys are repaid as provided herein they shall not be 23 made available to the local board for further use as 24 emergency financial assistance under this Article at any time 25 thereafter. All repayments required to be made by a school 26 district shall be received by the State Board and deposited 27 in the School District Emergency Financial Assistance Fund. 28 The board of any school district that receives a loan 29 authorized under this Section shall provide for a separate 30 tax for emergency financial assistance repayment purposes. 31 The separate tax levy shall be in an amount sufficient to 32 repay the emergency financial assistance under the terms and 33 conditions set by the Panel and approved by the State 34 Superintendent. Notwithstanding any law to the contrary, the -19- LRB9201505LDpram 1 separate tax levy for emergency financial assistance 2 repayment shall not be subject to referendum approval. 3 The changes made to this Section by this amendatory Act 4 of the 92nd General Assembly apply to all Financial Oversight 5 Panels, whether created before, on, or after the effective 6 date of this amendatory Act. 7In establishing the terms and conditions for the8repayment obligation of the school district the Panel shall9annually determine whether a separate local property tax levy10is required. The board of any school district with a tax11rate for educational purposes for the prior year of less than12120% of the maximum rate for educational purposes authorized13by Section 17-2 shall provide for a separate tax levy for14emergency financial assistance repayment purposes. Such tax15levy shall not be subject to referendum approval. The amount16of the levy shall be equal to the amount necessary to meet17the annual repayment obligations of the district as18established by the Panel, or 20% of the amount levied for19educational purposes for the prior year, whichever is less.20However, no district shall be required to levy the tax if the21district's operating tax rate as determined under Section2218-8 or 18-8.05 exceeds 200% of the district's tax rate for23educational purposes for the prior year.24 (Source: P.A. 90-548, eff. 1-1-98; 90-802, eff. 12-15-98.) 25 (105 ILCS 5/2-3.12) (from Ch. 122, par. 2-3.12) 26 Sec. 2-3.12. School building code. To prepare for school 27 boards with the advice of the Department of Public Health, 28 the Capital Development Board, and the State Fire Marshal a 29 school building code that will conserve the health and safety 30 and general welfare of the pupils and school personnel and 31 others who use public school facilities. 32 The document known as "Efficient and Adequate Standards 33 for the Construction of Schools" applies only to temporary -20- LRB9201505LDpram 1 school facilities, new school buildings, and additions to 2 existing schools whose construction contracts are awarded 3 after July 1, 1965. On or before July 1, 1967, each school 4 board shall have its school district buildings that were 5 constructed prior to January 1, 1955, surveyed by an 6 architect or engineer licensed in the State of Illinois as to 7 minimum standards necessary to conserve the health and safety 8 of the pupils enrolled in the school buildings of the 9 district. Buildings constructed between January 1, 1955 and 10 July 1, 1965, not owned by the State of Illinois, shall be 11 surveyed by an architect or engineer licensed in the State of 12 Illinois beginning 10 years after acceptance of the completed 13 building by the school board. Buildings constructed between 14 January 1, 1955 and July 1, 1955 and previously exempt under 15 the provisions of Section 35-27 shall be surveyed prior to 16 July 1, 1977 by an architect or engineer licensed in the 17 State of Illinois. The architect or engineer, using the 18 document known as "Building Specifications for Health and 19 Safety in Public Schools" as a guide, shall make a report of 20 the findings of the survey to the school board, giving 21 priority in that report to fire safety problems and 22 recommendations thereon if any such problems exist. The 23 school board of each district so surveyed and receiving a 24 report of needed recommendations to be made to improve 25 standards of safety and health of the pupils enrolled has 26 until July 1, 1970, or in case of buildings not owned by the 27 State of Illinois and completed between January 1, 1955 and 28 July 1, 1965 or in the case of buildings previously exempt 29 under the provisions of Section 35-27 has a period of 3 years 30 after the survey is commenced, to effectuate those 31 recommendations, giving first attention to the 32 recommendations in the survey report having priority status, 33 and is authorized to levy the tax provided for in Section 34 17-2.11, according to the provisions of that Section, to make -21- LRB9201505LDpram 1 such improvements. School boards unable to effectuate those 2 recommendations prior to July 1, 1970, on July 1, 1980 in the 3 case of buildings previously exempt under the provisions of 4 Section 35-27, may petition the State Superintendent of 5 Education upon the recommendation of the Regional 6 Superintendent for an extension of time. The extension of 7 time may be granted by the State Superintendent of Education 8 for a period of one year, but may be extended from year to 9 year provided substantial progress, in the opinion of the 10 State Superintendent of Education, is being made toward 11 compliance. 12 Within 2 years after the effective date of this 13 amendatory Act of 1983, and every 10 years thereafter, or at 14 such other times as the State Board of Education deems 15 necessary or the regional superintendent so orders, each 16 school board subject to the provisions of this Section shall 17 again survey its school buildings and effectuate any 18 recommendations in accordance with the procedures set forth 19 herein. An architect or engineer licensed in the State of 20 Illinois is required to conduct the surveys under the 21 provisions of this Section and shall make a report of the 22 findings of the survey titled "safety survey report" to the 23 school board. The school board shall approve the safety 24 survey report, including any recommendations to effectuate 25 compliance with the code, and submit it to the Regional 26 Superintendent. The Regional Superintendent shall render a 27 decision regarding approval or denial and submit the safety 28 survey report to the State Superintendent of Education. The 29 State Superintendent of Education shall approve or deny the 30 report including recommendations to effectuate compliance 31 with the code and, if approved, issue a certificate of 32 approval. Upon receipt of the certificate of approval, the 33 Regional Superintendent shall issue an order to effect any 34 approved recommendations included in the report. Items in -22- LRB9201505LDpram 1 the report shall be prioritized. Urgent items shall be 2 considered as those items related to life safety problems 3 that present an immediate hazard to the safety of students. 4 Required items shall be considered as those items that are 5 necessary for a safe environment but present less of an 6 immediate hazard to the safety of students. Urgent and 7 required items shall be defined in rules adopted by the State 8 Board of Education. Urgent and required items shall reference 9 a specific rule in the code authorized by this Section that 10 is currently being violated or will be violated within the 11 next 12 months if the violation is not remedied. The school 12 board of each district so surveyed and receiving a report of 13 needed recommendations to be made to maintain standards of 14 safety and health of the pupils enrolled shall effectuate the 15 correction of urgent items as soon as achievable to ensure 16 the safety of the students, but in no case more than one year 17 after the date of the State Superintendent of Education's 18 approval of the recommendation. Required items shall be 19 corrected in a timely manner, but in no case more than 3520 years from the date of the State Superintendent of 21 Education's approval of the recommendation. Once each year 22 the school board shall submit a report of progress on 23 completion of any recommendations to effectuate compliance 24 with the code. For each year that the school board does not 25 effectuate any or all approved recommendations, it shall 26 petition the Regional Superintendent and the State 27 Superintendent of Education detailing what work was completed 28 in the previous year and a work plan for completion of the 29 remaining work. If in the judgement of the Regional 30 Superintendent and the State Superintendent of Education 31 substantial progress has been made and just cause has been 32 shown by the school board, the petition for a one year 33 extension of time may be approved. 34 As soon as practicable, but not later than 2 years after -23- LRB9201505LDpram 1 the effective date of this amendatory Act of 1992, the State 2 Board of Education shall combine the document known as 3 "Efficient and Adequate Standards for the Construction of 4 Schools" with the document known as "Building Specifications 5 for Health and Safety in Public Schools" together with any 6 modifications or additions that may be deemed necessary. The 7 combined document shall be known as the "Health/Life Safety 8 Code for Public Schools" and shall be the governing code for 9 all facilities that house public school students or are 10 otherwise used for public school purposes, whether such 11 facilities are permanent or temporary and whether they are 12 owned, leased, rented, or otherwise used by the district. 13 Facilities owned by a school district but that are not used 14 to house public school students or are not used for public 15 school purposes shall be governed by separate provisions 16 within the code authorized by this Section. 17 The 10 year survey cycle specified in this Section shall 18 continue to apply based upon the standards contained in the 19 "Health/Life Safety Code for Public Schools", which shall 20 specify building standards for buildings that are constructed 21 prior to the effective date of this amendatory Act of 1992 22 and for buildings that are constructed after that date. 23 The "Health/Life Safety Code for Public Schools" shall be 24 the governing code for public schools; however, the 25 provisions of this Section shall not preclude inspection of 26 school premises and buildings pursuant to Section 9 of the 27 Fire Investigation Act, provided that the provisions of the 28 "Health/Life Safety Code for Public Schools", or such 29 predecessor document authorized by this Section as may be 30 applicable are used, and provided that those inspections are 31 coordinated with the Regional Superintendent having 32 jurisdiction over the public school facility. Any agency 33 having jurisdiction beyond the scope of the applicable 34 document authorized by this Section may issue a lawful order -24- LRB9201505LDpram 1 to a school board to effectuate recommendations, and the 2 school board receiving the order shall certify to the 3 Regional Superintendent and the State Superintendent of 4 Education when it has complied with the order. 5 The State Board of Education is authorized to adopt any 6 rules that are necessary relating to the administration and 7 enforcement of the provisions of this Section. The code 8 authorized by this Section shall apply only to those school 9 districts having a population of less than 500,000 10 inhabitants. 11 (Source: P.A. 89-397, eff. 8-20-95; 90-811, eff. 1-26-99.) 12 (105 ILCS 5/10-22.14) (from Ch. 122, par. 10-22.14) 13 Sec. 10-22.14. Borrowing money and issuing bonds. To 14 borrow money, and issue bonds for the purposes and in the 15 manner provided by this Act. 16 When bond proceeds from the sale of bonds include a 17 premium, or when the proceeds of bonds issued for thefire18prevention, safety, energy conservation, and school security19 purposesasspecified in Section 17-2.11 are invested as 20 authorized by law, the board shall determine by resolution 21 whether the interest earned on the investment of bond 22 proceeds authorized under Section 17-2.11 or the premium 23 realized in the sale of bonds, as the case may be, is to be 24 used for the purposes for which the bonds were issued or, 25 instead, for payment of the principal indebtedness and 26 interest on those bonds. 27 When bonds, other than bonds issued for thefire28prevention, safety, energy conservation, and school security29 purposesasspecified in Section 17-2.11 are issued by any 30 school district, and the purposes for which the bonds have 31 been issued are accomplished and paid for in full, and there 32 remain funds on hand from the proceeds of the bonds so 33 issued, the board by resolution may transfer those excess -25- LRB9201505LDpram 1 funds to the operations and maintenance fund. 2 When bonds are issued by any school district for thefire3prevention, safety, energy conservation, and school security4 purposesasspecified in Section 17-2.11, and the purposes 5 for which the bonds have been issued are accomplished and 6 paid in full, and there remain funds on hand from the 7 proceeds of the bonds issued, the board by resolution shall 8 use those excess funds (1) for other authorizedfire9prevention, safety, energy conservation, and school security10 purposesasspecified in Section 17-2.11 or (2) for transfer 11 to the Bond and Interest Fund for payment of principal and 12 interest on those bonds. If any transfer is made to the Bond 13 and Interest Fund, the secretary of the school board shall 14 within 30 days notify the county clerk of the amount of that 15 transfer and direct the clerk to abate the taxes to be 16 extended for the purposes of principal and interest payments 17 on the respective bonds issued under Section 17-2.11 by an 18 amount equal to such transfer. 19 (Source: P.A. 86-970; 87-984.) 20 (105 ILCS 5/17-2.2) (from Ch. 122, par. 17-2.2) 21 Sec. 17-2.2. BackdoorBack doorreferendum. Whenever any 22 school district first levies a tax at a rate within the limit 23 prescribed by paragraph (3) of Section 17-2 but in excess of 24 the maximum permissible on July 9, 1957, or within the limit 25 prescribed by paragraph (1) or (2) of Section 17-2 but in 26 excess of the maximum permissible on June 30, 1965,or27 whenever after August 3, 1989 any school district maintaining 28 only grades kindergarten through 8 first levies a tax for 29 transportation purposes for any school year which is within 30 the limit prescribed for that school year by paragraph (5) of 31 Section 17-2 but in excess of the maximum authorized to be 32 levied for such purposes for the 1988-89 school year,or33 whenever after August 3, 1989 any school district first -26- LRB9201505LDpram 1 levies a tax for operations and maintenance purposes for any 2 school year which is within the limit prescribed for that 3 school year by paragraph (3) of Section 17-2 but in excess of 4 the maximum authorized to be levied for such purposes for the 5 immediately preceding school year, or whenever a backdoor 6 referendum is required under Section 17-2.11, the district 7 shall cause to be published a notice of the proposed tax levy 8such resolutionin at least one newspaper of general 9 circulationor more newspapers publishedin the district, 10 within 10 days after such levy is made. The notice 11publication of the resolutionshall includea notice of(1) 12 the specific number of voters required to sign a petition 13 requesting that the question of the adoption of the tax levy 14 be submitted to the voters of the district; (2) the time in 15 which the petition must be filed; and (3) the date of the 16 prospective referendum. The district Secretary shall provide 17 a petition form to any individual requesting one. Any person 18taxpayerin such district may, within 30 days after such levy 19 is made, file with the Secretary of the board of education a 20 petition signed by the voters of the district equal to 10% or 21 more of the registered voters of the district requesting the 22 submission to a referendum of the following proposition: 23 "Shall school district No..... be authorized to levy a 24 tax for (state purposes) (in excess of.... but not to 25 exceed....) or (at a rate not to exceed...%) as authorized in 26 Section....17-2of the School Code?" The secretary of the 27 board of education shall certify the proposition to the 28 proper election authorities for submission to the electorate 29 at a regular scheduled election in accordance with the 30 general election law. 31 If a majority of the voters voting on the proposition 32 vote in favor thereof, such increased tax shall thereafter be 33 authorized; if a majority of the vote is against such 34 proposition, the previous maximum rate authorized, if any, -27- LRB9201505LDpram 1 shall remain in effect until changed by law. 2 (Source: P.A. 86-128; 86-134; 86-1028; 86-1334; 87-767.) 3 (105 ILCS 5/17-2.11) (from Ch. 122, par. 17-2.11) 4 Sec. 17-2.11. School board power to levy a tax or to 5 borrow money and issue bonds for fire prevention, safety, 6 energy conservation, disabled accessibility, school security, 7 and specified repair purposes. Whenever, as a result of any 8 lawful order of any agency, other than a school board, having 9 authority to enforce any school building code applicable to 10 any facility that houses students, or any law or regulation 11 for the protection and safety of the environment, pursuant to 12 the Environmental Protection Act, any school district having 13 a population of less than 500,000 inhabitants is required to 14 alter, repair, or reconstruct any school building or 15 permanent, fixed equipment; or whenever any such district 16 determines that it is necessary for energy conservation 17 purposes that any school building or permanent, fixed 18 equipment should be altered or reconstructed and that such 19 alterations or reconstruction will be made with funds not 20 necessary for the completion of approved and recommended 21 projects contained in any safety survey report or amendments 22 thereto authorized by Section 2-3.12 of this Act; or whenever 23 any such district determines that it is necessary for 24 disabled accessibility purposes and to comply with the school 25 building code that any school building or equipment should be 26 altered or reconstructed and that such alterations or 27 reconstruction will be made with funds not necessary for the 28 completion of approved and recommended projects contained in 29 any safety survey report or amendments thereto authorized 30 under Section 2-3.12 of this Act; or whenever any such 31 district determines that it is necessary for school security 32 purposes and the related protection and safety of pupils and 33 school personnel that any school building or property should -28- LRB9201505LDpram 1 be altered or reconstructed or that security systems and 2 equipment (including but not limited to intercom, early 3 detection and warning, access control and television 4 monitoring systems) should be purchased and installed, and 5 that such alterations, reconstruction or purchase and 6 installation of equipment will be made with funds not 7 necessary for the completion of approved and recommended 8 projects contained in any safety survey report or amendment 9 thereto authorized by Section 2-3.12 of this Act and will 10 deter and prevent unauthorized entry or activities upon 11 school property by unknown or dangerous persons, assure early 12 detection and advance warning of any such actual or attempted 13 unauthorized entry or activities and help assure the 14 continued safety of pupils and school staff if any such 15 unauthorized entry or activity is attempted or occurs; or if 16 a school district does not need funds for other fire 17 prevention and safety projects, including the completion of 18 approved and recommended projects contained in any safety 19 survey report or amendments thereto authorized by Section 20 2-3.12 of this Act, and it is determined after a public 21 hearing (which is preceded by at least one published notice 22 (i) occurring at least 7 days prior to the hearing in a 23 newspaper of general circulation within the school district 24 and (ii) setting forth the time, date, place, and general 25 subject matter of the hearing) that there is a substantial, 26 immediate, and otherwise unavoidable threat to the health, 27 safety, or welfare of pupils due to disrepair of school 28 sidewalks, playgrounds, parking lots, or school bus 29 turnarounds and repairs must be made: then in any such 30 event, such district may, by proper resolution, levy a tax 31 for the purpose of making such alteration, repair, or 32 reconstruction, based on a survey report by an architect or 33 engineer licensed in the State of Illinois, upon all the 34 taxable property of the district at the value as assessed by -29- LRB9201505LDpram 1 the Department of Revenue at a rate not to exceed 0.15% for 2 elementary and high school districts and 0.30% for unit 3 districts.05%per year for a period sufficient to finance 4 such alterations, repairs, or reconstruction, upon the 5 following conditions: 6 (a) When there are not sufficient funds available 7 in either the operations and maintenance fund of the 8 district or the fire prevention and safety fund of the 9 district as determined by the district on the basis of 10 regulations adopted by the State Board of Education to 11 make such alterations, repairs, or reconstruction, or to 12 purchase and install such permanent fixed equipment so 13 ordered or determined as necessary. Appropriate school 14 district records shall be made available to the State 15 Superintendent of Education upon request to confirm such 16 insufficiency. 17 (b) When a certified estimate of an architect or 18 engineer licensed in the State of Illinois stating the 19 estimated amount necessary to make the alterations,or20 repairs, reconstruction or to purchase and install such 21 equipment so ordered has been secured by the district, 22 and the estimate has been approved by the regional 23 superintendent of schools, having jurisdiction of the 24 district, and the State Superintendent of Education. 25 Approval shall not be granted for any work that has 26 already started without the prior express authorization 27 of the State Superintendent of Education. If such 28 estimate is not approved or denied approval by the 29 regional superintendent of schools within 3 months after 30 the date on which it is submitted to him or her, the 31 school board of the district may submit such estimate 32 directly to the State Superintendent of Education for 33 approval or denial. 34 (c) Whenever a school district subject to the -30- LRB9201505LDpram 1 Property Tax Extension Limitation Law first levies the 2 tax at a rate permitted by this amendatory Act of the 3 92nd General Assembly but in excess of its maximum 4 permissible rate for that purpose immediately prior to 5 the effective date of this amendatory Act of the 92nd 6 General Assembly, the rate increase shall be subject to a 7 backdoor referendum using the procedures provided in 8 Section 17-2.2 of this Code, except that the backdoor 9 referendum shall be required if the petition for the 10 backdoor referendum is signed by 5% or more of the 11 registered voters of the district. 12 For purposes of this Section a school district may 13 replace a school building or build additions to replace 14 portions of a building when it is determined that the 15 effectuation of the recommendations for the existing building 16 will cost more than the replacement costs. Such 17 determination shall be based on a comparison of estimated 18 costs made by an architect or engineer licensed in the State 19 of Illinois. The new building or addition shall be 20 equivalent in area (square feet) and comparable in purpose 21 and grades served and may be on the same site or another 22 site. Such replacement may only be done upon order of the 23 regional superintendent of schools and the approval of the 24 State Superintendent of Education. 25 The filing of a certified copy of the resolution levying 26 the tax when accompanied by the certificates of the regional 27 superintendent of schools and State Superintendent of 28 Education shall be the authority of the county clerk to 29 extend such tax. 30 The county clerk of the county in which any school 31 district levying a tax under the authority of this Section is 32 located, in reducing raised levies, shall not consider any 33 such tax as a part of the general levy for school purposes 34 and shall not include the same in the limitation of any other -31- LRB9201505LDpram 1 tax rate which may be extended. 2 Such tax shall be levied and collected in like manner as 3 all other taxes of school districts, subject to the 4 provisions contained in this Section. 5The tax rate limit specified in this Section may be6increased to .10% upon the approval of a proposition to7effect such increase by a majority of the electors voting on8that proposition at a regular scheduled election. Such9proposition may be initiated by resolution of the school10board and shall be certified by the secretary to the proper11election authorities for submission in accordance with the12general election law.13 When taxes are levied by any school district for thefire14prevention, safety, energy conservation, and school security15 purposesasspecified in this Section, and the purposes for 16 which the taxes have been levied are accomplished and paid in 17 full, and there remain funds on hand in the Fire Prevention 18 and Safety Fund from the proceeds of the taxes levied, 19 including interest earnings thereon, the school board by 20 resolution shall use such excess and other board restricted 21 funds excluding bond proceeds and earnings from such proceeds 22 (1) for other authorized fire prevention, safety, energy 23 conservation, and school security purposes or (2) for 24 transfer to the Operations and Maintenance Fund for the 25 purpose of abating an equal amount of operations and 26 maintenance purposes taxes. If any transfer is made to the 27 Operation and Maintenance Fund, the secretary of the school 28 board shall within 30 days notify the county clerk of the 29 amount of that transfer and direct the clerk to abate the 30 taxes to be extended for the purposes of operations and 31 maintenance authorized under Section 17-2 of this Act by an 32 amount equal to such transfer. 33 If the proceeds from the tax levy authorized by this 34 Section are insufficient to complete the work approved under -32- LRB9201505LDpram 1 this Section, the school board is authorized to sell bonds 2 without referendum under the provisions of this Section in an 3 amount that, when added to the proceeds of the tax levy 4 authorized by this Section, will allow completion of the 5 approved work, provided that a district that is subject to 6 the Property Tax Extension Limitation Law shall submit the 7 authorization to a backdoor referendum as provided in this 8 Section. No school district that is subject to the Property 9 Tax Extension Limitation Law may issue bonds under this 10 Section unless it adopts a resolution declaring its intention 11 to issue bonds and directs that notice of this intention be 12 published at least once in a newspaper of general circulation 13 in the district. The notice shall set forth (i) the 14 intention of the district to issue bonds in accordance with 15 this Section, (ii) the time within which a petition may be 16 filed requesting the submission to the voters of the 17 proposition to issue the bonds, (iii) the specific number of 18 voters required to sign the petition, and (iv) the date of 19 the prospective referendum. At the time of publication of 20 the notice and for 30 days thereafter, the secretary of the 21 district shall provide a petition form to any individual 22 requesting one. If within 30 days after the publication a 23 petition is filed with the secretary of the district, signed 24 by the voters of the district equal to 5% or more of the 25 registered voters of the district requesting that the 26 proposition to issue bonds as authorized by this Section be 27 submitted to the voters thereof, then the district shall not 28 be authorized to issue the bonds until the proposition has 29 been certified to the proper election authorities and has 30 been submitted to and approved by a majority of the voters 31 voting on the proposition at a regular scheduled election in 32 accordance with the general election law. If no such 33 petition is filed, or if any and all petitions filed are 34 invalid, the district may issue the bonds. -33- LRB9201505LDpram 1 Such bonds shall bear interest at a rate not to exceed 2 the maximum rate authorized by law at the time of the making 3 of the contract, shall mature within 20 years from date, and 4 shall be signed by the president of the school board and the 5 treasurer of the school district. Such bonds issued after the 6 effective date of this amendatory Act of the 92nd General 7 Assembly and any bonds issued to refund such bonds issued 8 after the effective date of this amendatory Act of the 92nd 9 General Assembly shall not be considered debt for purposes of 10 any statutory debt limitation. 11 In order to authorize and issue such bonds, the school 12 board shall adopt a resolution fixing the amount of bonds, 13 the date thereof, the maturities thereof, rates of interest 14 thereof, place of payment and denomination,which shall be in15denominations of not less than $100 and not more than $5,000,16 and provide for the levy and collection of a direct annual 17 tax upon all the taxable property in the school district 18 sufficient to pay the principal and interest on such bonds to 19 maturity. Upon the filing in the office of the county clerk 20 of the county in which the school district is located of a 21 certified copy of the resolution, it is the duty of the 22 county clerk to extend the tax therefor in addition to and in 23 excess of all other taxes heretofore or hereafter authorized 24 to be levied by such school district. 25 After the time such bonds are issued as provided for by 26 this Section, if additional alterations, repairs, or 27 reconstructions are required to be made because of surveys 28 conducted by an architect or engineer licensed in the State 29 of Illinois, the district may levy a tax at a rate not to 30 exceed the rate permitted by this Section.05% per yearupon 31 all the taxable property of the district or issue additional 32 bonds, whichever action shall be the most feasible. 33 This Section is cumulative and constitutes complete 34 authority for the issuance of bonds as provided in this -34- LRB9201505LDpram 1 Section notwithstanding any other statute or law to the 2 contrary. 3 With respect to instruments for the payment of money 4 issued under this Section either before, on, or after the 5 effective date of Public Act 86-004 (June 6, 1989), it is, 6 and always has been, the intention of the General Assembly 7 (i) that the Omnibus Bond Acts are, and always have been, 8 supplementary grants of power to issue instruments in 9 accordance with the Omnibus Bond Acts, regardless of any 10 provision of this Act that may appear to be or to have been 11 more restrictive than those Acts, (ii) that the provisions of 12 this Section are not a limitation on the supplementary 13 authority granted by the Omnibus Bond Acts, and (iii) that 14 instruments issued under this Section within the 15 supplementary authority granted by the Omnibus Bond Acts are 16 not invalid because of any provision of this Act that may 17 appear to be or to have been more restrictive than those 18 Acts. 19 When the purposes for which the bonds are issued have 20 been accomplished and paid for in full and there remain funds 21 on hand from the proceeds of the bond sale and interest 22 earnings therefrom, the board shall, by resolution, use such 23 excess funds in accordance with the provisions of Section 24 10-22.14 of this Act. 25 Whenever any tax is levied or bonds issued under this 26 Section, thefor fire prevention, safety, energy27conservation, and school security purposes, suchproceeds 28 shall be deposited and accounted for separately within the 29 Fire Prevention and Safety Fund. 30 (Source: P.A. 88-251; 88-508; 88-628, eff. 9-9-94; 88-670, 31 eff. 12-2-94; 89-235, eff. 8-4-95; 89-397, eff. 8-20-95.) 32 (105 ILCS 5/19-1) (from Ch. 122, par. 19-1) 33 Sec. 19-1. Debt limitations of school districts. -35- LRB9201505LDpram 1 (a) School districts shall not be subject to the 2 provisions limiting their indebtedness prescribed in the 3 Local Government Debt Limitation Act"An Act to limit the4indebtedness of counties having a population of less than5500,000 and townships, school districts and other municipal6corporations having a population of less than 300,000",7approved February 15, 1928, as amended. 8 No school districts maintaining grades K through 8 or 9 9 through 12 shall become indebted in any manner or for any 10 purpose to an amount, including existing indebtedness, in the 11 aggregate exceeding 9.0% of6.9% onthe equalized assessed 12 value of the taxable property therein to be ascertained by 13 the last assessment for State and county taxes or, until 14 January 1, 1983, if greater, the sum that is produced by 15 multiplying the school district's 1978 equalized assessed 16 valuation by the debt limitation percentage in effect on 17 January 1, 1979, previous to the incurring of such 18 indebtedness. 19 No school districts maintaining grades K through 12 shall 20 become indebted in any manner or for any purpose to an 21 amount, including existing indebtedness, in the aggregate 22 exceeding 18.0% of13.8% onthe equalized assessed value of 23 the taxable property therein to be ascertained by the last 24 assessment for State and county taxes or, until January 1, 25 1983, if greater, the sum that is produced by multiplying the 26 school district's 1978 equalized assessed valuation by the 27 debt limitation percentage in effect on January 1, 1979, 28 previous to the incurring of such indebtedness. 29 Notwithstanding the provisions of any other law to the 30 contrary, in any case in which the voters of a school 31 district have approved a proposition for the issuance of 32 bonds of such school district at an election held prior to 33 January 1, 1979, and all of the bonds approved at such 34 election have not been issued, the debt limitation applicable -36- LRB9201505LDpram 1 to such school district during the calendar year 1979 shall 2 be computed by multiplying the value of taxable property 3 therein, including personal property, as ascertained by the 4 last assessment for State and county taxes, previous to the 5 incurring of such indebtedness, by the percentage limitation 6 applicable to such school district under the provisions of 7 this subsection (a). 8 (b) Notwithstanding the debt limitation prescribed in 9 subsection (a) of this Section, additional indebtedness may 10 be incurred in an amount not to exceed the estimated cost of 11 acquiring or improving school sites or constructing and 12 equipping additional building facilities under the following 13 conditions: 14 (1) Whenever the enrollment of students for the 15 next school year is estimated by the board of education 16 to increase over the actual present enrollment by not 17 less than 35% or by not less than 200 students or the 18 actual present enrollment of students has increased over 19 the previous school year by not less than 35% or by not 20 less than 200 students and the board of education 21 determines that additional school sites or building 22 facilities are required as a result of such increase in 23 enrollment; and 24 (2) When the Regional Superintendent of Schools 25 having jurisdiction over the school district and the 26 State Superintendent of Education concur in such 27 enrollment projection or increase and approve the need 28 for such additional school sites or building facilities 29 and the estimated cost thereof; and 30 (3) When the voters in the school district approve 31 a proposition for the issuance of bonds for the purpose 32 of acquiring or improving such needed school sites or 33 constructing and equipping such needed additional 34 building facilities at an election called and held for -37- LRB9201505LDpram 1 that purpose. Notice of such an election shall state that 2 the amount of indebtedness proposed to be incurred would 3 exceed the debt limitation otherwise applicable to the 4 school district. The ballot for such proposition shall 5 state what percentage of the equalized assessed valuation 6 will be outstanding in bonds if the proposed issuance of 7 bonds is approved by the voters; or 8 (4) Notwithstanding the provisions of paragraphs 9 (1) through (3) of this subsection (b), if the school 10 board determines that additional facilities are needed to 11 provide a quality educational program and not less than 12 2/3 of those voting in an election called by the school 13 board on the question approve the issuance of bonds for 14 the construction of such facilities, the school district 15 may issue bonds for this purpose; or 16 (5) Notwithstanding the provisions of paragraphs 17 (1) through (3) of this subsection (b), if (i) the school 18 district has previously availed itself of the provisions 19 of paragraph (4) of this subsection (b) to enable it to 20 issue bonds, (ii) the voters of the school district have 21 not defeated a proposition for the issuance of bonds 22 since the referendum described in paragraph (4) of this 23 subsection (b) was held, (iii) the school board 24 determines that additional facilities are needed to 25 provide a quality educational program, and (iv) a 26 majority of those voting in an election called by the 27 school board on the question approve the issuance of 28 bonds for the construction of such facilities, the school 29 district may issue bonds for this purpose. 30 In no event shall the indebtedness incurred pursuant to 31 this subsection (b) and the existing indebtedness of the 32 school district exceed 20%15%of the equalized assessed 33 value of the taxable property therein to be ascertained by 34 the last assessment for State and county taxes, previous to -38- LRB9201505LDpram 1 the incurring of such indebtedness or, until January 1, 1983, 2 if greater, the sum that is produced by multiplying the 3 school district's 1978 equalized assessed valuation by the 4 debt limitation percentage in effect on January 1, 1979. 5 The indebtedness provided for by this subsection (b) 6 shall be in addition to and in excess of any other debt 7 limitation. 8 (c) Notwithstanding the debt limitation prescribed in 9 subsection (a) of this Section, in any case in which a public 10 question for the issuance of bonds of a proposed school 11 district maintaining grades kindergarten through 12 received 12 at least 60% of the valid ballots cast on the question at an 13 election held on or prior to November 8, 1994, and in which 14 the bonds approved at such election have not been issued, the 15 school district pursuant to the requirements of Section 16 11A-10 may issue the total amount of bonds approved at such 17 election for the purpose stated in the question. 18 (d) Notwithstanding the debt limitation prescribed in 19 subsection (a) of this Section, a school district that meets 20 all the criteria set forth in paragraphs (1) and (2) of this 21 subsection (d) may incur an additional indebtedness in an 22 amount not to exceed $4,500,000, even though the amount of 23 the additional indebtedness authorized by this subsection 24 (d), when incurred and added to the aggregate amount of 25 indebtedness of the district existing immediately prior to 26 the district incurring the additional indebtedness authorized 27 by this subsection (d), causes the aggregate indebtedness of 28 the district to exceed the debt limitation otherwise 29 applicable to that district under subsection (a): 30 (1) The additional indebtedness authorized by this 31 subsection (d) is incurred by the school district through 32 the issuance of bonds under and in accordance with 33 Section 17-2.11a for the purpose of replacing a school 34 building which, because of mine subsidence damage, has -39- LRB9201505LDpram 1 been closed as provided in paragraph (2) of this 2 subsection (d) or through the issuance of bonds under and 3 in accordance with Section 19-3 for the purpose of 4 increasing the size of, or providing for additional 5 functions in, such replacement school buildings, or both 6 such purposes. 7 (2) The bonds issued by the school district as 8 provided in paragraph (1) above are issued for the 9 purposes of construction by the school district of a new 10 school building pursuant to Section 17-2.11, to replace 11 an existing school building that, because of mine 12 subsidence damage, is closed as of the end of the 1992-93 13 school year pursuant to action of the regional 14 superintendent of schools of the educational service 15 region in which the district is located under Section 16 3-14.22 or are issued for the purpose of increasing the 17 size of, or providing for additional functions in, the 18 new school building being constructed to replace a school 19 building closed as the result of mine subsidence damage, 20 or both such purposes. 21 (e) Notwithstanding the debt limitation prescribed in 22 subsection (a) of this Section, a school district that meets 23 all the criteria set forth in paragraphs (1) through (5) of 24 this subsection (e) may, without referendum, incur an 25 additional indebtedness in an amount not to exceed the lesser 26 of $5,000,000 or 1.5% of the equalized assessed value of the 27 taxable property within the district even though the amount 28 of the additional indebtedness authorized by this subsection 29 (e), when incurred and added to the aggregate amount of 30 indebtedness of the district existing immediately prior to 31 the district incurring that additional indebtedness, causes 32 the aggregate indebtedness of the district to exceed or 33 increases the amount by which the aggregate indebtedness of 34 the district already exceeds the debt limitation otherwise -40- LRB9201505LDpram 1 applicable to that district under subsection (a): 2 (1) The State Board of Education certifies the 3 school district under Section 19-1.5 as a financially 4 distressed district. 5 (2) The additional indebtedness authorized by this 6 subsection (e) is incurred by the financially distressed 7 district during the school year or school years in which 8 the certification of the district as a financially 9 distressed district continues in effect through the 10 issuance of bonds for the lawful school purposes of the 11 district, pursuant to resolution of the school board and 12 without referendum, as provided in paragraph (5) of this 13 subsection. 14 (3) The aggregate amount of bonds issued by the 15 financially distressed district during a fiscal year in 16 which it is authorized to issue bonds under this 17 subsection does not exceed the amount by which the 18 aggregate expenditures of the district for operational 19 purposes during the immediately preceding fiscal year 20 exceeds the amount appropriated for the operational 21 purposes of the district in the annual school budget 22 adopted by the school board of the district for the 23 fiscal year in which the bonds are issued. 24 (4) Throughout each fiscal year in which 25 certification of the district as a financially distressed 26 district continues in effect, the district maintains in 27 effect a gross salary expense and gross wage expense 28 freeze policy under which the district expenditures for 29 total employee salaries and wages do not exceed such 30 expenditures for the immediately preceding fiscal year. 31 Nothing in this paragraph, however, shall be deemed to 32 impair or to require impairment of the contractual 33 obligations, including collective bargaining agreements, 34 of the district or to impair or require the impairment of -41- LRB9201505LDpram 1 the vested rights of any employee of the district under 2 the terms of any contract or agreement in effect on the 3 effective date of this amendatory Act of 1994. 4 (5) Bonds issued by the financially distressed 5 district under this subsection shall bear interest at a 6 rate not to exceed the maximum rate authorized by law at 7 the time of the making of the contract, shall mature 8 within 40 years from their date of issue, and shall be 9 signed by the president of the school board and treasurer 10 of the school district. In order to issue bonds under 11 this subsection, the school board shall adopt a 12 resolution fixing the amount of the bonds, the date of 13 the bonds, the maturities of the bonds, the rates of 14 interest of the bonds, and their place of payment and 15 denomination, and shall provide for the levy and 16 collection of a direct annual tax upon all the taxable 17 property in the district sufficient to pay the principal 18 and interest on the bonds to maturity. Upon the filing 19 in the office of the county clerk of the county in which 20 the financially distressed district is located of a 21 certified copy of the resolution, it is the duty of the 22 county clerk to extend the tax therefor in addition to 23 and in excess of all other taxes at any time authorized 24 to be levied by the district. If bond proceeds from the 25 sale of bonds include a premium or if the proceeds of the 26 bonds are invested as authorized by law, the school board 27 shall determine by resolution whether the interest earned 28 on the investment of bond proceeds or the premium 29 realized on the sale of the bonds is to be used for any 30 of the lawful school purposes for which the bonds were 31 issued or for the payment of the principal indebtedness 32 and interest on the bonds. The proceeds of the bond sale 33 shall be deposited in the educational purposes fund of 34 the district and shall be used to pay operational -42- LRB9201505LDpram 1 expenses of the district. This subsection is cumulative 2 and constitutes complete authority for the issuance of 3 bonds as provided in this subsection, notwithstanding any 4 other law to the contrary. 5 (f) Notwithstanding the provisions of subsection (a) of 6 this Section or of any other law, bonds in not to exceed the 7 aggregate amount of $5,500,000 and issued by a school 8 district meeting the following criteria shall not be 9 considered indebtedness for purposes of any statutory 10 limitation and may be issued in an amount or amounts, 11 including existing indebtedness, in excess of any heretofore 12 or hereafter imposed statutory limitation as to indebtedness: 13 (1) At the time of the sale of such bonds, the 14 board of education of the district shall have determined 15 by resolution that the enrollment of students in the 16 district is projected to increase by not less than 7% 17 during each of the next succeeding 2 school years. 18 (2) The board of education shall also determine by 19 resolution that the improvements to be financed with the 20 proceeds of the bonds are needed because of the projected 21 enrollment increases. 22 (3) The board of education shall also determine by 23 resolution that the projected increases in enrollment are 24 the result of improvements made or expected to be made to 25 passenger rail facilities located in the school district. 26 (g) Notwithstanding the provisions of subsection (a) of 27 this Section or any other law, bonds in not to exceed an 28 aggregate amount of 25% of the equalized assessed value of 29 the taxable property of a school district and issued by a 30 school district meeting the criteria in paragraphs (i) 31 through (iv) of this subsection shall not be considered 32 indebtedness for purposes of any statutory limitation and may 33 be issued pursuant to resolution of the school board in an 34 amount or amounts, including existing indebtedness, in excess -43- LRB9201505LDpram 1 of any statutory limitation of indebtedness heretofore or 2 hereafter imposed: 3 (i) The bonds are issued for the purpose of 4 constructing a new high school building to replace two 5 adjacent existing buildings which together house a single 6 high school, each of which is more than 65 years old, and 7 which together are located on more than 10 acres and less 8 than 11 acres of property. 9 (ii) At the time the resolution authorizing the 10 issuance of the bonds is adopted, the cost of 11 constructing a new school building to replace the 12 existing school building is less than 60% of the cost of 13 repairing the existing school building. 14 (iii) The sale of the bonds occurs before July 1, 15 1997. 16 (iv) The school district issuing the bonds is a 17 unit school district located in a county of less than 18 70,000 and more than 50,000 inhabitants, which has an 19 average daily attendance of less than 1,500 and an 20 equalized assessed valuation of less than $29,000,000. 21 (h) Notwithstanding any other provisions of this Section 22 or the provisions of any other law, until January 1, 1998, a 23 community unit school district maintaining grades K through 24 12 may issue bonds up to an amount, including existing 25 indebtedness, not exceeding 27.6% of the equalized assessed 26 value of the taxable property in the district, if all of the 27 following conditions are met: 28 (i) The school district has an equalized assessed 29 valuation for calendar year 1995 of less than 30 $24,000,000; 31 (ii) The bonds are issued for the capital 32 improvement, renovation, rehabilitation, or replacement 33 of existing school buildings of the district, all of 34 which buildings were originally constructed not less than -44- LRB9201505LDpram 1 40 years ago; 2 (iii) The voters of the district approve a 3 proposition for the issuance of the bonds at a referendum 4 held after March 19, 1996; and 5 (iv) The bonds are issued pursuant to Sections 19-2 6 through 19-7 of this Code. 7 (i) Notwithstanding any other provisions of this Section 8 or the provisions of any other law, until January 1, 1998, a 9 community unit school district maintaining grades K through 10 12 may issue bonds up to an amount, including existing 11 indebtedness, not exceeding 27% of the equalized assessed 12 value of the taxable property in the district, if all of the 13 following conditions are met: 14 (i) The school district has an equalized assessed 15 valuation for calendar year 1995 of less than 16 $44,600,000; 17 (ii) The bonds are issued for the capital 18 improvement, renovation, rehabilitation, or replacement 19 of existing school buildings of the district, all of 20 which existing buildings were originally constructed not 21 less than 80 years ago; 22 (iii) The voters of the district approve a 23 proposition for the issuance of the bonds at a referendum 24 held after December 31, 1996; and 25 (iv) The bonds are issued pursuant to Sections 19-2 26 through 19-7 of this Code. 27 (j) Notwithstanding any other provisions of this Section 28 or the provisions of any other law, until January 1, 1999, a 29 community unit school district maintaining grades K through 30 12 may issue bonds up to an amount, including existing 31 indebtedness, not exceeding 27% of the equalized assessed 32 value of the taxable property in the district if all of the 33 following conditions are met: 34 (i) The school district has an equalized assessed -45- LRB9201505LDpram 1 valuation for calendar year 1995 of less than 2 $140,000,000 and a best 3 months average daily attendance 3 for the 1995-96 school year of at least 2,800; 4 (ii) The bonds are issued to purchase a site and 5 build and equip a new high school, and the school 6 district's existing high school was originally 7 constructed not less than 35 years prior to the sale of 8 the bonds; 9 (iii) At the time of the sale of the bonds, the 10 board of education determines by resolution that a new 11 high school is needed because of projected enrollment 12 increases; 13 (iv) At least 60% of those voting in an election 14 held after December 31, 1996 approve a proposition for 15 the issuance of the bonds; and 16 (v) The bonds are issued pursuant to Sections 19-2 17 through 19-7 of this Code. 18 (k) Notwithstanding the debt limitation prescribed in 19 subsection (a) of this Section, a school district that meets 20 all the criteria set forth in paragraphs (1) through (4) of 21 this subsection (k) may issue bonds to incur an additional 22 indebtedness in an amount not to exceed $4,000,000 even 23 though the amount of the additional indebtedness authorized 24 by this subsection (k), when incurred and added to the 25 aggregate amount of indebtedness of the school district 26 existing immediately prior to the school district incurring 27 such additional indebtedness, causes the aggregate 28 indebtedness of the school district to exceed or increases 29 the amount by which the aggregate indebtedness of the 30 district already exceeds the debt limitation otherwise 31 applicable to that school district under subsection (a): 32 (1) the school district is located in 2 counties, 33 and a referendum to authorize the additional indebtedness 34 was approved by a majority of the voters of the school -46- LRB9201505LDpram 1 district voting on the proposition to authorize that 2 indebtedness; 3 (2) the additional indebtedness is for the purpose 4 of financing a multi-purpose room addition to the 5 existing high school; 6 (3) the additional indebtedness, together with the 7 existing indebtedness of the school district, shall not 8 exceed 17.4% of the value of the taxable property in the 9 school district, to be ascertained by the last assessment 10 for State and county taxes; and 11 (4) the bonds evidencing the additional 12 indebtedness are issued, if at all, within 120 days of 13 the effective date of this amendatory Act of 1998. 14 (l) Notwithstanding any other provisions of this Section 15 or the provisions of any other law, until January 1, 2000, a 16 school district maintaining grades kindergarten through 8 may 17 issue bonds up to an amount, including existing indebtedness, 18 not exceeding 15% of the equalized assessed value of the 19 taxable property in the district if all of the following 20 conditions are met: 21 (i) the district has an equalized assessed 22 valuation for calendar year 1996 of less than 23 $10,000,000; 24 (ii) the bonds are issued for capital improvement, 25 renovation, rehabilitation, or replacement of one or more 26 school buildings of the district, which buildings were 27 originally constructed not less than 70 years ago; 28 (iii) the voters of the district approve a 29 proposition for the issuance of the bonds at a referendum 30 held on or after March 17, 1998; and 31 (iv) the bonds are issued pursuant to Sections 19-2 32 through 19-7 of this Code. 33 (m) Notwithstanding any other provisions of this Section 34 or the provisions of any other law, until January 1, 1999, an -47- LRB9201505LDpram 1 elementary school district maintaining grades K through 8 may 2 issue bonds up to an amount, excluding existing indebtedness, 3 not exceeding 18% of the equalized assessed value of the 4 taxable property in the district, if all of the following 5 conditions are met: 6 (i) The school district has an equalized assessed 7 valuation for calendar year 1995 or less than $7,700,000; 8 (ii) The school district operates 2 elementary 9 attendance centers that until 1976 were operated as the 10 attendance centers of 2 separate and distinct school 11 districts; 12 (iii) The bonds are issued for the construction of 13 a new elementary school building to replace an existing 14 multi-level elementary school building of the school 15 district that is not handicapped accessible at all levels 16 and parts of which were constructed more than 75 years 17 ago; 18 (iv) The voters of the school district approve a 19 proposition for the issuance of the bonds at a referendum 20 held after July 1, 1998; and 21 (v) The bonds are issued pursuant to Sections 19-2 22 through 19-7 of this Code. 23 (n) Notwithstanding the debt limitation prescribed in 24 subsection (a) of this Section or any other provisions of 25 this Section or of any other law, a school district that 26 meets all of the criteria set forth in paragraphs (i) through 27 (vi) of this subsection (n) may incur additional indebtedness 28 by the issuance of bonds in an amount not exceeding the 29 amount certified by the Capital Development Board to the 30 school district as provided in paragraph (iii) of this 31 subsection (n), even though the amount of the additional 32 indebtedness so authorized, when incurred and added to the 33 aggregate amount of indebtedness of the district existing 34 immediately prior to the district incurring the additional -48- LRB9201505LDpram 1 indebtedness authorized by this subsection (n), causes the 2 aggregate indebtedness of the district to exceed the debt 3 limitation otherwise applicable by law to that district: 4 (i) The school district applies to the State Board 5 of Education for a school construction project grant and 6 submits a district facilities plan in support of its 7 application pursuant to Section 5-20 of the School 8 Construction Law. 9 (ii) The school district's application and 10 facilities plan are approved by, and the district 11 receives a grant entitlement for a school construction 12 project issued by, the State Board of Education under the 13 School Construction Law. 14 (iii) The school district has exhausted its bonding 15 capacity or the unused bonding capacity of the district 16 is less than the amount certified by the Capital 17 Development Board to the district under Section 5-15 of 18 the School Construction Law as the dollar amount of the 19 school construction project's cost that the district will 20 be required to finance with non-grant funds in order to 21 receive a school construction project grant under the 22 School Construction Law. 23 (iv) The bonds are issued for a "school 24 construction project", as that term is defined in Section 25 5-5 of the School Construction Law, in an amount that 26 does not exceed the dollar amount certified, as provided 27 in paragraph (iii) of this subsection (n), by the Capital 28 Development Board to the school district under Section 29 5-15 of the School Construction Law. 30 (v) The voters of the district approve a 31 proposition for the issuance of the bonds at a referendum 32 held after the criteria specified in paragraphs (i) and 33 (iii) of this subsection (n) are met. 34 (vi) The bonds are issued pursuant to Sections 19-2 -49- LRB9201505LDpram 1 through 19-7 of the School Code. 2 (Source: P.A. 90-570, eff. 1-28-98; 90-757, eff. 8-14-98; 3 91-55, eff. 6-30-99.) 4 (105 ILCS 5/34-53.5 new) 5 Sec. 34-53.5. Capital improvement tax levy; purpose; 6 maximum amount. 7 (a) For the purpose of providing a reliable source of 8 revenue for capital improvement purposes, including without 9 limitation (i) the construction and equipping of a new school 10 building or buildings or an addition or additions to an 11 existing school building or buildings, (ii) the purchase of 12 school grounds on which any new school building or an 13 addition to an existing school building is to be constructed 14 or located, (iii) both items (i) and (ii) of this subsection 15 (a), or (iv) the rehabilitation, renovation, and equipping of 16 an existing school building or buildings, the board may levy, 17 upon all taxable property of the school district, in calendar 18 year 2001, a capital improvement tax to produce, when 19 extended, an amount not to exceed the product attained by 20 multiplying (1) the percentage increase, if any, in the 21 Consumer Price Index for All Urban Consumers for all items 22 published by the United States Department of Labor for the 12 23 months ending 2 months prior to the month in which the levy 24 is adopted by (2) $142,500,000. For example, if the 25 percentage increase in the Consumer Price Index is 2.5%, then 26 the computation would be $142,500,000 x 0.025 = $3,562,500. 27 (b) In each calendar year from 2002 through 2030, the 28 board may levy a capital improvement tax to produce, when 29 extended, an amount not to exceed the sum of (1) the maximum 30 amount that could have been levied by the board in the 31 preceding calendar year pursuant to this Section and (2) the 32 product obtained by multiplying (A) the sum of (i) the 33 maximum amount that could have been levied by the board in -50- LRB9201505LDpram 1 the preceding calendar year pursuant to this Section and (ii) 2 $142,500,000 by (B) the percentage increase, if any, in the 3 Consumer Price Index for All Urban Consumers for all items 4 published by the United States Department of Labor for the 12 5 months ending 2 months prior to the month in which the levy 6 is adopted. 7 (c) In calendar year 2031, the board may levy a capital 8 improvement tax to produce, when extended, an amount not to 9 exceed the sum of (1) the maximum amount that could have been 10 levied by the board in calendar year 2030 pursuant to this 11 Section, (2) $142,500,000, and (3) the product obtained by 12 multiplying (A) the sum of (i) the maximum amount that could 13 have been levied by the board in calendar year 2030 pursuant 14 to this Section and (ii) $142,500,000 by (B) the percentage 15 increase, if any, in the Consumer Price Index for All Urban 16 Consumers for all items published by the United States 17 Department of Labor for the 12 months ending 2 months prior 18 to the month in which the levy is adopted. 19 (d) In calendar year 2032 and each calendar year 20 thereafter, the board may levy a capital improvement tax to 21 produce, when extended, an amount not to exceed the sum of 22 (1) the maximum amount that could have been levied by the 23 board in the preceding calendar year pursuant to this Section 24 and (2) the product obtained by multiplying (A) the maximum 25 amount that could have been levied by the board in the 26 preceding calendar year pursuant to this Section by (B) the 27 percentage increase, if any, in the Consumer Price Index for 28 All Urban Consumers for all items published by the United 29 States Department of Labor for the 12 months ending 2 months 30 prior to the month in which the levy is adopted. 31 (e) An initial tax levy made by the board under this 32 Section must have the approval of the Chicago City Council, 33 by resolution, before the levy may be extended. The board 34 shall communicate its adoption of the initial tax levy by -51- LRB9201505LDpram 1 delivering a certified copy of the levy resolution to the 2 Clerk of the City of Chicago. The Chicago City Council shall 3 have 60 days after receipt, by the Clerk of the City of 4 Chicago, of the certified resolution to approve or disapprove 5 the levy. The failure of the Chicago City Council to take 6 action to approve or disapprove the initial tax levy within 7 the 60-day period shall be deemed disapproval of the initial 8 tax levy. Upon the adoption of each subsequent levy by the 9 board under this Section, the board must notify the Chicago 10 City Council that the board has adopted the levy. 11 (f) The board may issue bonds, in accordance with the 12 Local Government Debt Reform Act, including Section 15 of 13 that Act, against any revenues to be collected from the 14 capital improvement tax in any year or years and may pledge, 15 pursuant to Section 13 of the Local Government Debt Reform 16 Act, those revenues as security for the payment of any such 17 bonds. 18 Section 99. Effective date. This Act takes effect upon 19 becoming law.".