Public Act 90-0570 of the 90th General Assembly
Public Act 90-0570
SB569 Enrolled SRS90S0007KSsa
AN ACT to amend the School Code by changing Section 19-1.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by changing
Section 19-1 as follows:
(105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
Sec. 19-1. Debt limitations of school districts.
(a) School districts shall not be subject to the
provisions limiting their indebtedness prescribed in "An Act
to limit the indebtedness of counties having a population of
less than 500,000 and townships, school districts and other
municipal corporations having a population of less than
300,000", approved February 15, 1928, as amended.
No school districts maintaining grades K through 8 or 9
through 12 shall become indebted in any manner or for any
purpose to an amount, including existing indebtedness, in the
aggregate exceeding 6.9% on the value of the taxable property
therein to be ascertained by the last assessment for State
and county taxes or, until January 1, 1983, if greater, the
sum that is produced by multiplying the school district's
1978 equalized assessed valuation by the debt limitation
percentage in effect on January 1, 1979, previous to the
incurring of such indebtedness.
No school districts maintaining grades K through 12 shall
become indebted in any manner or for any purpose to an
amount, including existing indebtedness, in the aggregate
exceeding 13.8% on the value of the taxable property therein
to be ascertained by the last assessment for State and county
taxes or, until January 1, 1983, if greater, the sum that is
produced by multiplying the school district's 1978 equalized
assessed valuation by the debt limitation percentage in
effect on January 1, 1979, previous to the incurring of such
indebtedness.
Notwithstanding the provisions of any other law to the
contrary, in any case in which the voters of a school
district have approved a proposition for the issuance of
bonds of such school district at an election held prior to
January 1, 1979, and all of the bonds approved at such
election have not been issued, the debt limitation applicable
to such school district during the calendar year 1979 shall
be computed by multiplying the value of taxable property
therein, including personal property, as ascertained by the
last assessment for State and county taxes, previous to the
incurring of such indebtedness, by the percentage limitation
applicable to such school district under the provisions of
this subsection (a).
(b) Notwithstanding the debt limitation prescribed in
subsection (a) of this Section, additional indebtedness may
be incurred in an amount not to exceed the estimated cost of
acquiring or improving school sites or constructing and
equipping additional building facilities under the following
conditions:
(1) Whenever the enrollment of students for the
next school year is estimated by the board of education
to increase over the actual present enrollment by not
less than 35% or by not less than 200 students or the
actual present enrollment of students has increased over
the previous school year by not less than 35% or by not
less than 200 students and the board of education
determines that additional school sites or building
facilities are required as a result of such increase in
enrollment; and
(2) When the Regional Superintendent of Schools
having jurisdiction over the school district and the
State Superintendent of Education concur in such
enrollment projection or increase and approve the need
for such additional school sites or building facilities
and the estimated cost thereof; and
(3) When the voters in the school district approve
a proposition for the issuance of bonds for the purpose
of acquiring or improving such needed school sites or
constructing and equipping such needed additional
building facilities at an election called and held for
that purpose. Notice of such an election shall state that
the amount of indebtedness proposed to be incurred would
exceed the debt limitation otherwise applicable to the
school district. The ballot for such proposition shall
state what percentage of the equalized assessed valuation
will be outstanding in bonds if the proposed issuance of
bonds is approved by the voters; or
(4) Notwithstanding the provisions of paragraphs
(1) through (3) of this subsection (b), if the school
board determines that additional facilities are needed to
provide a quality educational program and not less than
2/3 of those voting in an election called by the school
board on the question approve the issuance of bonds for
the construction of such facilities, the school district
may issue bonds for this purpose.
In no event shall the indebtedness incurred pursuant to
this subsection (b) and the existing indebtedness of the
school district exceed 15% of the value of the taxable
property therein to be ascertained by the last assessment for
State and county taxes, previous to the incurring of such
indebtedness or, until January 1, 1983, if greater, the sum
that is produced by multiplying the school district's 1978
equalized assessed valuation by the debt limitation
percentage in effect on January 1, 1979.
The indebtedness provided for by this subsection (b)
shall be in addition to and in excess of any other debt
limitation.
(c) Notwithstanding the debt limitation prescribed in
subsection (a) of this Section, in any case in which a public
question for the issuance of bonds of a proposed school
district maintaining grades kindergarten through 12 received
at least 60% of the valid ballots cast on the question at an
election held on or prior to November 8, 1994, and in which
the bonds approved at such election have not been issued, the
school district pursuant to the requirements of Section
11A-10 may issue the total amount of bonds approved at such
election for the purpose stated in the question.
(d) Notwithstanding the debt limitation prescribed in
subsection (a) of this Section, a school district that meets
all the criteria set forth in paragraphs (1) and (2) of this
subsection (d) may incur an additional indebtedness in an
amount not to exceed $4,500,000, even though the amount of
the additional indebtedness authorized by this subsection
(d), when incurred and added to the aggregate amount of
indebtedness of the district existing immediately prior to
the district incurring the additional indebtedness authorized
by this subsection (d), causes the aggregate indebtedness of
the district to exceed the debt limitation otherwise
applicable to that district under subsection (a):
(1) The additional indebtedness authorized by this
subsection (d) is incurred by the school district through
the issuance of bonds under and in accordance with
Section 17-2.11a for the purpose of replacing a school
building which, because of mine subsidence damage, has
been closed as provided in paragraph (2) of this
subsection (d) or through the issuance of bonds under and
in accordance with Section 19-3 for the purpose of
increasing the size of, or providing for additional
functions in, such replacement school buildings, or both
such purposes.
(2) The bonds issued by the school district as
provided in paragraph (1) above are issued for the
purposes of construction by the school district of a new
school building pursuant to Section 17-2.11, to replace
an existing school building that, because of mine
subsidence damage, is closed as of the end of the 1992-93
school year pursuant to action of the regional
superintendent of schools of the educational service
region in which the district is located under Section
3-14.22 or are issued for the purpose of increasing the
size of, or providing for additional functions in, the
new school building being constructed to replace a school
building closed as the result of mine subsidence damage,
or both such purposes.
(e) Notwithstanding the debt limitation prescribed in
subsection (a) of this Section, a school district that meets
all the criteria set forth in paragraphs (1) through (5) of
this subsection (e) may, without referendum, incur an
additional indebtedness in an amount not to exceed the lesser
of $5,000,000 or 1.5% of the value of the taxable property
within the district even though the amount of the additional
indebtedness authorized by this subsection (e), when incurred
and added to the aggregate amount of indebtedness of the
district existing immediately prior to the district incurring
that additional indebtedness, causes the aggregate
indebtedness of the district to exceed or increases the
amount by which the aggregate indebtedness of the district
already exceeds the debt limitation otherwise applicable to
that district under subsection (a):
(1) The State Board of Education certifies the
school district under Section 19-1.5 as a financially
distressed district.
(2) The additional indebtedness authorized by this
subsection (e) is incurred by the financially distressed
district during the school year or school years in which
the certification of the district as a financially
distressed district continues in effect through the
issuance of bonds for the lawful school purposes of the
district, pursuant to resolution of the school board and
without referendum, as provided in paragraph (5) of this
subsection.
(3) The aggregate amount of bonds issued by the
financially distressed district during a fiscal year in
which it is authorized to issue bonds under this
subsection does not exceed the amount by which the
aggregate expenditures of the district for operational
purposes during the immediately preceding fiscal year
exceeds the amount appropriated for the operational
purposes of the district in the annual school budget
adopted by the school board of the district for the
fiscal year in which the bonds are issued.
(4) Throughout each fiscal year in which
certification of the district as a financially distressed
district continues in effect, the district maintains in
effect a gross salary expense and gross wage expense
freeze policy under which the district expenditures for
total employee salaries and wages do not exceed such
expenditures for the immediately preceding fiscal year.
Nothing in this paragraph, however, shall be deemed to
impair or to require impairment of the contractual
obligations, including collective bargaining agreements,
of the district or to impair or require the impairment of
the vested rights of any employee of the district under
the terms of any contract or agreement in effect on the
effective date of this amendatory Act of 1994.
(5) Bonds issued by the financially distressed
district under this subsection shall bear interest at a
rate not to exceed the maximum rate authorized by law at
the time of the making of the contract, shall mature
within 40 years from their date of issue, and shall be
signed by the president of the school board and treasurer
of the school district. In order to issue bonds under
this subsection, the school board shall adopt a
resolution fixing the amount of the bonds, the date of
the bonds, the maturities of the bonds, the rates of
interest of the bonds, and their place of payment and
denomination, and shall provide for the levy and
collection of a direct annual tax upon all the taxable
property in the district sufficient to pay the principal
and interest on the bonds to maturity. Upon the filing
in the office of the county clerk of the county in which
the financially distressed district is located of a
certified copy of the resolution, it is the duty of the
county clerk to extend the tax therefor in addition to
and in excess of all other taxes at any time authorized
to be levied by the district. If bond proceeds from the
sale of bonds include a premium or if the proceeds of the
bonds are invested as authorized by law, the school board
shall determine by resolution whether the interest earned
on the investment of bond proceeds or the premium
realized on the sale of the bonds is to be used for any
of the lawful school purposes for which the bonds were
issued or for the payment of the principal indebtedness
and interest on the bonds. The proceeds of the bond sale
shall be deposited in the educational purposes fund of
the district and shall be used to pay operational
expenses of the district. This subsection is cumulative
and constitutes complete authority for the issuance of
bonds as provided in this subsection, notwithstanding any
other law to the contrary.
(f) Notwithstanding the provisions of subsection (a) of
this Section or of any other law, bonds in not to exceed the
aggregate amount of $5,500,000 and issued by a school
district meeting the following criteria shall not be
considered indebtedness for purposes of any statutory
limitation and may be issued in an amount or amounts,
including existing indebtedness, in excess of any heretofore
or hereafter imposed statutory limitation as to indebtedness:
(1) At the time of the sale of such bonds, the
board of education of the district shall have determined
by resolution that the enrollment of students in the
district is projected to increase by not less than 7%
during each of the next succeeding 2 school years.
(2) The board of education shall also determine by
resolution that the improvements to be financed with the
proceeds of the bonds are needed because of the projected
enrollment increases.
(3) The board of education shall also determine by
resolution that the projected increases in enrollment are
the result of improvements made or expected to be made to
passenger rail facilities located in the school district.
(g) Notwithstanding the provisions of subsection (a) of
this Section or any other law, bonds in not to exceed an
aggregate amount of 25% of the equalized assessed value of
the taxable property of a school district and issued by a
school district meeting the criteria in paragraphs (i)
through (iv) of this subsection shall not be considered
indebtedness for purposes of any statutory limitation and may
be issued pursuant to resolution of the school board in an
amount or amounts, including existing indebtedness, in excess
of any statutory limitation of indebtedness heretofore or
hereafter imposed:
(i) The bonds are issued for the purpose of
constructing a new high school building to replace two
adjacent existing buildings which together house a single
high school, each of which is more than 65 years old, and
which together are located on more than 10 acres and less
than 11 acres of property.
(ii) At the time the resolution authorizing the
issuance of the bonds is adopted, the cost of
constructing a new school building to replace the
existing school building is less than 60% of the cost of
repairing the existing school building.
(iii) The sale of the bonds occurs before July 1,
1997.
(iv) The school district issuing the bonds is a
unit school district located in a county of less than
70,000 and more than 50,000 inhabitants, which has an
average daily attendance of less than 1,500 and an
equalized assessed valuation of less than $29,000,000.
(h) Notwithstanding any other provisions of this Section
or the provisions of any other law, until January 1, 1998, a
community unit school district maintaining grades K through
12 may issue bonds up to an amount, including existing
indebtedness, not exceeding 27.6% of the equalized assessed
value of the taxable property in the district, if all of the
following conditions are met:
(i) The school district has an equalized assessed
valuation for calendar year 1995 of less than
$24,000,000;
(ii) The bonds are issued for the capital
improvement, renovation, rehabilitation, or replacement
of existing school buildings of the district, all of
which buildings were originally constructed not less than
40 years ago;
(iii) The voters of the district approve a
proposition for the issuance of the bonds at a referendum
held after March 19, 1996; and
(iv) The bonds are issued pursuant to Sections 19-2
through 19-7 of this Code.
(i) Notwithstanding any other provisions of this Section
or the provisions of any other law, until January 1, 1998, a
community unit school district maintaining grades K through
12 may issue bonds up to an amount, including existing
indebtedness, not exceeding 27% of the equalized assessed
value of the taxable property in the district, if all of the
following conditions are met:
(i) The school district has an equalized assessed
valuation for calendar year 1995 of less than
$44,600,000;
(ii) The bonds are issued for the capital
improvement, renovation, rehabilitation, or replacement
of existing school buildings of the district, all of
which existing buildings were originally constructed not
less than 80 years ago;
(iii) The voters of the district approve a
proposition for the issuance of the bonds at a referendum
held after December 31, 1996; and
(iv) The bonds are issued pursuant to Sections 19-2
through 19-7 of this Code.
(j) Notwithstanding any other provisions of this Section
or the provisions of any other law, until January 1, 1999, a
community unit school district maintaining grades K through
12 located in a county of more than 240,000 but less than
260,000 inhabitants may issue bonds up to an amount,
including existing indebtedness, not exceeding 27% of the
equalized assessed value of the taxable property in the
district if all of the following conditions are met:
(i) The school district has an equalized assessed
valuation for calendar year 1995 of less than
$140,000,000 $137,400,000 and a best 3 months average
daily attendance for the 1995-96 1994-95 school year of
at least 2,800, but less than 3,000;
(ii) The bonds are issued to purchase a site and
build and equip a new high school, and the school
district's for the capital improvement, renovation,
rehabilitation, or replacement of existing school
buildings of the district, all of which existing high
school was buildings were originally constructed not less
than 35 80 years prior to the sale of the bonds ago, or
for the construction of new school facilities;
(iii) At the time of the sale of the bonds, the
board of education determines by resolution that a new
high school is needed because of projected enrollment
increases;
(iv iii) At least 60% of those voting in an
election held after December 31, 1996 The voters of the
district approve a proposition for the issuance of the
bonds at a referendum held after December 31, 1996; and
(v iv) The bonds are issued pursuant to Sections
19-2 through 19-7 of this Code.
(Source: P.A. 88-376; 88-641, eff. 9-9-94; 88-686, eff.
1-24-95; 89-47, eff. 7-1-95; 89-661, eff. 1-1-97; 89-698,
eff. 1-14-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.