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| 1 | AN ACT concerning local government.
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| 2 | Be it enacted by the People of the State of Illinois, | ||||||
| 3 | represented in the General Assembly:
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| 4 | Section 5. The School Code is amended by changing Section | ||||||
| 5 | 7-14 as follows:
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| 6 | (105 ILCS 5/7-14) (from Ch. 122, par. 7-14)
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| 7 | Sec. 7-14. Bonded indebtedness-Tax rate.
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| 8 | (a) Except as provided in subsection (b), whenever the | ||||||
| 9 | boundaries of any
school district are changed by the annexation | ||||||
| 10 | or detachment of territory, each
such district as it exists on | ||||||
| 11 | and after such action shall assume the bonded
indebtedness, as | ||||||
| 12 | well as financial obligations to the Capital Development Board
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| 13 | pursuant to Section 35-15 (now repealed) of this
Code, of all | ||||||
| 14 | the territory included
therein after such change. The tax rate | ||||||
| 15 | for bonded indebtedness shall be
determined in the manner | ||||||
| 16 | provided in Section 19-7 of this Act, except the
County Clerk | ||||||
| 17 | shall annually extend taxes against all the taxable property
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| 18 | situated in the county and contained in each such district as | ||||||
| 19 | it exists after
the action. Notwithstanding the provisions of | ||||||
| 20 | this subsection, if the
boundaries of a school district are | ||||||
| 21 | changed by annexation or detachment of
territory after June 30, | ||||||
| 22 | 1987, and prior to September 15, 1987, and if the
school | ||||||
| 23 | district to which territory is being annexed has no outstanding
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| 1 | bonded indebtedness on the date such annexation occurs, then | ||||||
| 2 | the annexing
school district shall not be liable for any bonded | ||||||
| 3 | indebtedness of the
district from which the territory is | ||||||
| 4 | detached, and the school district from
which the territory is | ||||||
| 5 | detached shall remain liable for all of its bonded
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| 6 | indebtedness.
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| 7 | (b) Whenever a school district with bonded indebtedness has | ||||||
| 8 | become dissolved
under this Article and its territory annexed | ||||||
| 9 | to another district, the
annexing district or districts shall | ||||||
| 10 | not, except by action pursuant to
resolution of the school | ||||||
| 11 | board of the annexing district prior to the effective
date of | ||||||
| 12 | the annexation, assume the bonded indebtedness of the dissolved
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| 13 | district; nor, except by action pursuant to resolution of the | ||||||
| 14 | school
board of the dissolving district, shall the territory of | ||||||
| 15 | the dissolved
district assume the bonded indebtedness of the | ||||||
| 16 | annexing district or districts.
If the annexing district or | ||||||
| 17 | districts do not assume the bonded indebtedness of
the | ||||||
| 18 | dissolved district, a tax rate for the bonded indebtedness | ||||||
| 19 | shall be
determined in the manner provided in Section 19-7, and | ||||||
| 20 | the county clerk or
clerks shall annually extend taxes for each | ||||||
| 21 | outstanding bond issue against
all the taxable property that | ||||||
| 22 | was situated within the boundaries of the
district as the | ||||||
| 23 | boundaries existed at the time of the issuance of each bond
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| 24 | issue regardless of whether the property is still contained in | ||||||
| 25 | that same
district at the time of the extension of the taxes by | ||||||
| 26 | the county clerk
or clerks.
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| 1 | (c) Notwithstanding the provisions of Section 19-18 of this | ||||||
| 2 | Code, upon resolution of the school board, the county clerk | ||||||
| 3 | must extend taxes to pay the principal of and interest on any | ||||||
| 4 | bonds issued exclusively to refund any bonded indebtedness of | ||||||
| 5 | the annexing school district against all of the taxable | ||||||
| 6 | property that was situated within the boundaries of the | ||||||
| 7 | annexing district as the boundaries existed at the time of the | ||||||
| 8 | issuance of the bonded indebtedness being refunded and not | ||||||
| 9 | against any of the taxable property in the dissolved school | ||||||
| 10 | district, provided that (i) the net interest rate on the | ||||||
| 11 | refunding bonds may not exceed the net interest rate on the | ||||||
| 12 | refunded bonds, (ii) the final maturity date of the refunding | ||||||
| 13 | bonds may not extend beyond the final maturity date of the | ||||||
| 14 | refunded bonds, and (iii) the tax levy to pay the refunding | ||||||
| 15 | bonds in any levy year may not exceed the tax levy that would | ||||||
| 16 | have been required to pay the refunded bonds for that levy | ||||||
| 17 | year. The provisions of this subsection (c) are applicable to | ||||||
| 18 | school districts that were dissolved and their territory | ||||||
| 19 | annexed to another school district pursuant to a referendum | ||||||
| 20 | held in April of 2003. The provisions of this subsection (c), | ||||||
| 21 | other than this sentence, are inoperative 2 years after the | ||||||
| 22 | effective date of this amendatory Act of the 95th General | ||||||
| 23 | Assembly. | ||||||
| 24 | (Source: P.A. 94-1105, eff. 6-1-07.)
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| 25 | Section 99. Effective date. This Act takes effect upon | ||||||
| 26 | becoming law.
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