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92_SB0598eng SB598 Engrossed LRB9207661MWmg 1 AN ACT concerning library districts. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Public Library District Act of 1991 is 5 amended by changing Section 15-85 as follows: 6 (75 ILCS 16/15-85) 7 Sec. 15-85. Automatic disconnection from district. 8 (a) Any territory within a public library district that 9 is or has been annexed to a municipality (where that 10 municipality maintains a public library) is, by operation of 11 law, disconnected from the public library district as of the 12 January first next after the territory is annexed. 13 (b) A disconnection by operation of law under this 14 Section does not occur if, within 60 days after the 15 annexation, the public library district files with the 16 appropriate circuit court a petition alleging that the 17 disconnection will cause the territory remaining in the 18 district to be noncontiguous or that the loss of assessed 19 valuation by reason of the disconnection will impair the 20 ability of the district to render fully adequate library 21 service to the territory remaining in the district. 22 (c) When a petition is filed under subsection (b), the 23 court shall set it for hearing. At the hearing, the district 24 has the burden of proving the truth of the allegations in its 25 petition. In determining whether to grant the petition, the 26 court may consider at least the following factors: 27 (i) whether disconnection will cause the territory 28 remaining in the district to be noncontiguous; 29 (ii) whether the loss of assessed valuation by 30 reason of the disconnection will impair the ability of 31 the district to render fully adequate library service to SB598 Engrossed -2- LRB9207661MWmg 1 the territory remaining in the district; 2 (iii) the convenience of the residents of the 3 annexed territory and whether a plan exists enabling the 4 residents of the annexed territory to use either the 5 public library district facilities or the library 6 facilities of the city, village, or incorporated town to 7 which the territory has been annexed; and 8 (iv) whether the city, village, or incorporated 9 town has annexed any other territory within the district 10 within the preceding 2 years and the cumulative effect of 11 those annexations on the financial viability of the 12 district. 13 The Court may consider comments by the Illinois State 14 Library, the annexing municipality and its public library, 15 and the library system or systems to which the affected 16 libraries belong. This does not create a right of 17 intervention in these parties. 18 (d) After the hearing, the Court may grant the relief it 19 deems appropriate, including, but not limited to, any of the 20 following: (i) denial of the disconnection; (ii) 21 disconnection of the territory from the public library 22 district; (iii) disconnection of the territory from the 23 public library district in parts over a specific period of 24 time not to exceed 5 years; (iv) court approval of a 25 voluntary agreement between the parties that provides for the 26 sharing of real estate tax revenues from the annexed 27 territory for a limited period of time not to exceed 5 years 28 unless extended by mutual agreement of the parties; or (v) 29 submission of the question of disconnection of the territory 30 to the electors of the annexed territory at a referendum to 31 be held at the next general election in accordance with the 32 general election law. The proposition at such a referendum 33 shall be in substantially the following form: 34 Shall (describe annexed territory) be disconnected SB598 Engrossed -3- LRB9207661MWmg 1 from (name of public library district)? 2 If a referendum is held, the result of the election shall 3 be entered of record in the Court. If a majority of votes 4 cast upon the question in the annexed territory are for 5 disconnection of the annexed territory from the public 6 library district, the territory shall be disconnected from 7 the public library district. 8 (e) If there are any general obligation bonds of the 9 public library district outstanding and unpaid at the time 10 the territory is disconnected from the public library 11 district by operation of this Section, the disconnected 12 territory shall remain liable for its proportionate share of 13 that bonded indebtedness, and the public library district may 14 continue to levy and extend taxes upon the taxable property 15 in the territory for the purpose of amortizing the bonds 16 until sufficient funds to retire the bonds have been 17 collected. 18 (f) The county clerk must extend taxes to pay the 19 principal of and interest on any general obligation bonds 20 issued to refund any bond described in subsection (e), as 21 provided in the bond ordinances on file in the office of the 22 county clerk, against all taxable property in the district, 23 including taxable property that was in the district on the 24 date that the bonds being refunded were issued; provided, 25 however, that (i) the net interest rate on the refunding 26 bonds may not exceed the net interest rate on the refunded 27 bonds, (ii) the final maturity date of the refunding bonds 28 may not extend beyond the final maturity date of the refunded 29 bonds, and (iii) the debt service payable on the refunding 30 bonds in any year may not exceed the debt service that would 31 have been payable on the refunded bonds in that year. This 32 subsection is inoperative after June 30, 2002. 33 (Source: P.A. 87-1277.) SB598 Engrossed -4- LRB9207661MWmg 1 Section 99. Effective date. This Act takes effect upon 2 becoming law.