Public Act 90-0812 of the 90th General Assembly
Public Act 90-0812
SB200 Enrolled LRB9001780MWcd
AN ACT concerning notice of bond issues, amending named
Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Local Government Debt Reform Act is
amended by changing Section 15 as follows:
(30 ILCS 350/15) (from Ch. 17, par. 6915)
Sec. 15. Double-barrelled bonds. Whenever revenue bonds
have been authorized to be issued pursuant to applicable law
or whenever there exists for a governmental unit a revenue
source, the procedures set forth in this Section may be used
by a governing body. General obligation bonds may be issued
in lieu of such revenue bonds as authorized, and general
obligation bonds may be issued payable from any revenue
source. Such general obligation bonds may be referred to as
"alternate bonds". Alternate bonds may be issued without any
referendum or backdoor referendum except as provided in this
Section, upon the terms provided in Section 10 of this Act
without reference to other provisions of law, but only upon
the conditions provided in this Section. Alternate bonds
shall not be regarded as or included in any computation of
indebtedness for the purpose of any statutory provision or
limitation except as expressly provided in this Section.
Such conditions are: (a) Alternate bonds shall be issued
for a lawful corporate purpose. If issued in lieu of revenue
bonds, alternate bonds shall be issued for the purposes for
which such revenue bonds shall have been authorized. If
issued payable from a revenue source in the manner
hereinafter provided, which revenue source is limited in its
purposes or applications, then the alternate bonds shall be
issued only for such limited purposes or applications.
Alternate bonds may be issued payable from either enterprise
revenues or revenue sources, or both.
(b) Alternate bonds shall be subject to backdoor
referendum. The provisions of Section 5 of this Act shall
apply to such backdoor referendum, together with the
provisions hereof. The authorizing ordinance shall be
published in a newspaper of general circulation in the
governmental unit. Along with or as part of the authorizing
ordinance, there shall be published a notice of (1) the
specific number of voters required to sign a petition
requesting that the issuance of the alternate bonds be
submitted to referendum, (2) the time when such petition must
be filed, (3) the date of the prospective referendum, and
(4), with respect to authorizing ordinances adopted on or
after January 1, 1991, a statement that identifies any
revenue source that will be used to pay the principal of and
interest on the alternate bonds. The clerk or secretary of
the governmental unit shall make a petition form available to
anyone requesting one. If no petition is filed with the
clerk or secretary within 30 days of publication of the
authorizing ordinance and notice, the alternate bonds shall
be authorized to be issued. But if within this 30 days
period, a petition is filed with such clerk or secretary
signed by electors numbering the greater of (i) 7.5% of the
registered voters in the governmental unit or (ii) 200 of
those registered voters or 15% of those registered voters,
whichever is less, asking that the issuance of such alternate
bonds be submitted to referendum, the clerk or secretary
shall certify such question for submission at an election
held in accordance with the general election law. The
question on the ballot shall include a statement of any
revenue source that will be used to pay the principal of and
interest on the alternate bonds. The alternate bonds shall be
authorized to be issued if a majority of the votes cast on
the question at such election are in favor thereof provided
that notice of the bond referendum, if heretofore or
hereafter held, has been or shall be given in accordance with
the provisions of Section 12-5 of the Election Code, at least
10 and not more than 45 days before the date of the election,
notwithstanding the time for publication otherwise imposed by
Section 12-5. Backdoor referendum proceedings for bonds and
alternate bonds to be issued in lieu of such bonds may be
conducted at the same time.
(c) To the extent payable from enterprise revenues, such
revenues shall have been determined by the governing body to
be sufficient to provide for or pay in each year to final
maturity of such alternate bonds all of the following: (1)
costs of operation and maintenance of the utility or
enterprise, but not including depreciation, (2) debt service
on all outstanding revenue bonds payable from such enterprise
revenues, (3) all amounts required to meet any fund or
account requirements with respect to such outstanding revenue
bonds, (4) other contractual or tort liability obligations,
if any, payable from such enterprise revenues, and (5) in
each year, an amount not less than 1.25 times debt service of
all (i) alternate bonds payable from such enterprise revenues
previously issued and outstanding and (ii) alternate bonds
proposed to be issued. To the extent payable from one or
more revenue sources, such sources shall have been determined
by the governing body to provide in each year, an amount not
less than 1.25 times debt service of all alternate bonds
payable from such revenue sources previously issued and
outstanding and alternate bonds proposed to be issued. The
conditions enumerated in this subsection (c) need not be met
for that amount of debt service provided for by the setting
aside of proceeds of bonds or other moneys at the time of the
delivery of such bonds.
(d) The determination of the sufficiency of enterprise
revenues or a revenue source, as applicable, shall be
supported by reference to the most recent audit of the
governmental unit, which shall be for a fiscal year ending
not earlier than 18 months previous to the time of issuance
of the alternate bonds. If such audit does not adequately
show such enterprise revenues or revenue source, as
applicable, or if such enterprise revenues or revenue source,
as applicable, are shown to be insufficient, then the
determination of sufficiency shall be supported by the report
of an independent accountant or feasibility analyst having a
national reputation for expertise in such matters,
demonstrating the sufficiency of such revenues and
explaining, if appropriate, by what means the revenues will
be greater than as shown in the audit. Whenever such
sufficiency is demonstrated by reference to a schedule of
higher rates or charges for enterprise revenues or a higher
tax imposition for a revenue source, such higher rates,
charges or taxes shall have been properly imposed by an
ordinance adopted prior to the time of delivery of alternate
bonds. The reference to and acceptance of an audit or
report, as the case may be, and the determination of the
governing body as to sufficiency of enterprise revenues or a
revenue source shall be conclusive evidence that the
conditions of this Section have been met and that the
alternate bonds are valid.
(e) The enterprise revenues or revenue source, as
applicable, shall be in fact pledged to the payment of the
alternate bonds; and the governing body shall covenant, to
the extent it is empowered to do so, to provide for, collect
and apply such enterprise revenues or revenue source, as
applicable, to the payment of the alternate bonds and the
provision of not less than an additional .25 times debt
service. The pledge and establishment of rates or charges
for enterprise revenues, or the imposition of taxes in a
given rate or amount, as provided in this Section for
alternate bonds, shall constitute a continuing obligation of
the governmental unit with respect to such establishment or
imposition and a continuing appropriation of the amounts
received. All covenants relating to alternate bonds and the
conditions and obligations imposed by this Section are
enforceable by any bondholder of alternate bonds affected,
any taxpayer of the governmental unit, and the People of the
State of Illinois acting through the Attorney General or any
designee, and in the event that any such action results in an
order finding that the governmental unit has not properly set
rates or charges or imposed taxes to the extent it is
empowered to do so or collected and applied enterprise
revenues or any revenue source, as applicable, as required by
this Act, the plaintiff in any such action shall be awarded
reasonable attorney's fees. The intent is that such
enterprise revenues or revenue source, as applicable, shall
be sufficient and shall be applied to the payment of debt
service on such alternate bonds so that taxes need not be
levied, or if levied need not be extended, for such payment.
Nothing in this Section shall inhibit or restrict the
authority of a governing body to determine the lien priority
of any bonds, including alternate bonds, which may be issued
with respect to any enterprise revenues or revenue source.
In the event that alternate bonds shall have been issued
and taxes, other than a designated revenue source, shall have
been extended pursuant to the general obligation, full faith
and credit promise supporting such alternate bonds, then the
amount of such alternate bonds then outstanding shall be
included in the computation of indebtedness of the
governmental unit for purposes of all statutory provisions or
limitations until such time as an audit of the governmental
unit shall show that the alternate bonds have been paid from
the enterprise revenues or revenue source, as applicable,
pledged thereto for a complete fiscal year.
Alternate bonds may be issued to refund or advance refund
alternate bonds without meeting any of the conditions set
forth in this Section, except that the term of the refunding
bonds shall not be longer than the term of the refunded bonds
and that the debt service payable in any year on the
refunding bonds shall not exceed the debt service payable in
such year on the refunded bonds.
Once issued, alternate bonds shall be and forever remain
until paid or defeased the general obligation of the
governmental unit, for the payment of which its full faith
and credit are pledged, and shall be payable from the levy of
taxes as is provided in this Act for general obligation
bonds.
The changes made by this amendatory Act of 1990 do not
affect the validity of bonds authorized before September 1,
1990.
(Source: P.A. 85-1419; 86-1179.)
Section 10. The Property Tax Code is amended by changing
Sections 18-205 and 18-210 as follows:
(35 ILCS 200/18-205)
Sec. 18-205. Referendum to increase the extension
limitation. A taxing district is limited to an extension
increase of 5% or the percentage increase in the Consumer
Price Index during the 12-month calendar year preceding the
levy year, whichever is less. A taxing district may increase
its extension limitation for a current levy year if that
taxing district holds a referendum before the levy date at
which a majority of voters voting on the issue approves
adoption of a higher extension limitation. Referenda shall
be conducted at a regularly scheduled election in accordance
with the Election Code provided that notice of the
referendum, if heretofore or hereafter held, has been or
shall be given in accordance with the provisions of Section
12-5 of the Election Code, at least 10 and not more than 45
days before the date of the election, notwithstanding the
time for publication otherwise imposed by Section 12-5. The
question shall be presented in substantially the following
manner:
-------------------------------------------------------------
Shall the extension limitation
under the Property Tax Extension
Limitation Law for ... YES
(taxing district name) ... be increased
from ... (the lesser of 5% or the ------------------
increase in the Consumer Price Index over
the prior levy year) ...% to ... (percentage NO
of proposed increase) ...% for the ...
(levy year) ... levy year?
-------------------------------------------------------------
If a majority of voters voting on the issue approves the
adoption of the increase, the increase shall be applicable
for the levy year specified.
(Source: P.A. 87-17; 88-455.)
(35 ILCS 200/18-210)
Sec. 18-210. Establishing a new levy. Except as provided
in Section 18-215, as it relates to a transfer of a service,
before a county clerk may extend taxes for funds subject to
the limitations of this Law, a new taxing district or a
taxing district with an aggregate extension base of zero
shall hold a referendum establishing a maximum aggregate
extension for the levy year. The maximum aggregate extension
is established for the current levy year if a taxing district
has held a referendum before the levy date at which the
majority voting on the issue approves its adoption. The
referendum under this Section may be held at the same time as
the referendum on creating a new taxing district. The
question shall be submitted to the voters at a regularly
scheduled election in accordance with the Election Code
provided that notice of referendum, if heretofore or
hereafter held, has been or shall be given in accordance with
the provisions of Section 12-5 of the Election Code, at least
10 and not more than 45 days before the date of the election,
notwithstanding the time for publication otherwise imposed by
Section 12-5. The question shall be submitted in
substantially the following form manner:
-------------------------------------------------------------
Under the Property Tax Extension
Limitation Law, may an YES
aggregate extension not to exceed ...
(aggregate extension amount) ... ---------------------
be made for the ... (taxing
district name) ... for the NO
... (levy year) ... levy year?
-------------------------------------------------------------
If a majority of voters voting on the increase approves the
adoption of the aggregate extension, the extension shall be
effective for the levy year specified.
(Source: P.A. 87-17; 88-455.)
Section 15. The Illinois Pension Code is amended by
changing Section 3-145 as follows:
(40 ILCS 5/3-145) (from Ch. 108 1/2, par. 3-145)
Sec. 3-145. Referendum in municipalities less than
5,000. This Article shall not be effective in any
municipality having a population of less than 5,000 unless
the proposition to adopt the Article is submitted to and
approved by the voters of the municipality in the manner
herein provided.
Whenever the electors of the municipality, equal in
number to 5% of the number of legal votes cast at the last
preceding general municipal election, petition the city,
village or town clerk to submit the proposition whether that
municipality shall adopt this Article, the officer to whom
the petition is addressed shall certify the proposition to
the proper election officials who shall submit the
proposition in accordance with the general election law at a
regular election in the municipality provided that notice of
the referendum, if heretofore or hereafter held, has been or
shall be given in accordance with the provisions of Section
12-5 of the Election Code, at least 10 and not more than 45
days before the date of the election, notwithstanding the
time for publication otherwise imposed by Section 12-5. If
the proposition is not adopted at that election, it may be
submitted in like manner at any regular election thereafter.
The proposition shall be substantially in the following form:
-------------------------------------------------------------
Shall the city (or village or
incorporated town) of.... adopt YES
Article 3 of the "Illinois Pension -----------------------
Code", pertaining to the creation NO
of a police pension fund?
-------------------------------------------------------------
If a majority of the votes cast on the proposition is for the
proposition, this Article is adopted in that municipality.
(Source: P.A. 83-1440.)
Section 20. The Illinois Municipal Code is amended by
changing Section 8-4-1 as follows:
(65 ILCS 5/8-4-1) (from Ch. 24, par. 8-4-1)
Sec. 8-4-1. No bonds shall be issued by the corporate
authorities of any municipality until the question of
authorizing such bonds has been submitted to the electors of
that municipality provided that notice of the bond
referendum, if heretofore or hereafter held, has been or
shall be given in accordance with the provisions of Section
12-5 of the Election Code, at least 10 and not more than 45
days before the date of the election, notwithstanding the
time for publication otherwise imposed by Section 12-5, and
approved by a majority of the electors voting upon that
question. The clerk shall certify the proposition of the
corporate authorities to the proper election authority who
shall submit the question at an election in accordance with
the general election law, subject to the notice provisions
set forth in this Section.
Notice of any such election shall contain the amount of
the bond issue, purpose for which issued, and maximum rate of
interest.
However, without the submission of the question of
issuing bonds to the electors, the corporate authorities of
any municipality may authorize the issuance of any of the
following bonds:
(1) Bonds to refund any existing bonded indebtedness;
(2) Bonds to fund or refund any existing judgment
indebtedness;
(3) In any municipality of less than 500,000 population,
bonds to anticipate the collection of installments of special
assessments and special taxes against property owned by the
municipality and to anticipate the collection of the amount
apportioned to the municipality as public benefits under
Article 9;
(4) Bonds issued by any municipality under Sections
8-4-15 through 8-4-23, 11-23-1 through 11-23-12, 11-25-1
through 11-26-6, 11-71-1 through 11-71-10, 11-74.4-1 through
11-74.4-11, 11-74.5-1 through 11-74.5-15, 11-94-1 through
11-94-7, 11-102-1 through 11-102-10, 11-103-11 through
11-103-15, 11-118-1 through 11-118-6, 11-119-1 through
11-119-5, 11-129-1 through 11-129-7, 11-133-1 through
11-133-4, 11-139-1 through 11-139-12, 11-141-1 through
11-141-18 of this Code or 10-801 through 10-808 of the
Illinois Highway Code, as amended;
(5) Bonds issued by the board of education of any school
district under the provisions of Sections 34-30 through 34-36
of The School Code, as amended;
(6) Bonds issued by any municipality under the
provisions of Division 6 of this Article 8; and by any
municipality under the provisions of Division 7 of this
Article 8; or under the provisions of Sections 11-121-4 and
11-121-5;
(7) Bonds to pay for the purchase of voting machines by
any municipality that has adopted Article 24 of The Election
Code, approved May 11, 1943, as amended;
(8) Bonds issued by any municipality under Sections 15
and 46 of the "Environmental Protection Act", approved June
29, 1970;
(9) Bonds issued by the corporate authorities of any
municipality under the provisions of Section 8-4-25 of this
Article 8;
(10) Bonds issued under Section 8-4-26 of this Article 8
by any municipality having a board of election commissioners;
(11) Bonds issued under the provisions of "An Act to
provide the manner of levying or imposing taxes for the
provision of special services to areas within the boundaries
of home rule units and nonhome rule municipalities and
counties", approved September 21, 1973;
(12) Bonds issued under Section 8-5-16 of this Code;
(13) Bonds to finance the cost of the acquisition,
construction or improvement of water or wastewater treatment
facilities mandated by an enforceable compliance schedule
developed in connection with the federal Clean Water Act or a
compliance order issued by the United States Environmental
Protection Agency or the Illinois Pollution Control Board;
provided that such bonds are authorized by an ordinance
adopted by a three-fifths majority of the corporate
authorities of the municipality issuing the bonds which
ordinance shall specify that the construction or improvement
of such facilities is necessary to alleviate an emergency
condition in such municipality;
(14) Bonds issued by any municipality pursuant to
Section 11-113.1-1;
(15) Bonds issued under Sections 11-74.6-1 through
11-74.6-45, the Industrial Jobs Recovery Law of this Code.
(Source: P.A. 90-706, eff. 8-7-98.)
Section 25. The Public Library District Act of 1991 is
amended by changing Section 40-15 as follows:
(75 ILCS 16/40-15)
Sec. 40-15. Voter approval of bonds.
(a) Bonds shall not be issued, nor the special tax
imposed, until the proposition to issue the bonds has been
submitted to and approved by a majority of the voters of the
district voting upon the proposition at a regular election
provided that notice of the bond referendum, if heretofore or
hereafter held, has been or shall be given in accordance with
the provisions of Section 12-5 of the Election Code, at least
10 and not more than 45 days before the date of the election,
notwithstanding the time for publication otherwise imposed by
Section 12-5. The board shall by ordinance designate the
election at which the proposition is to be submitted and the
amount of the bonds and their purpose. The board shall
certify the proposition to the proper election authority, who
shall submit the proposition in accordance with the Election
Code, subject to the notice provisions set forth in this
Section.
(b) The proposition to issue bonds shall be in
substantially the following form:
Shall the bonds of (name of public library
district), (location), Illinois, in the amount of
$(amount) be issued for the purpose of (state one or more
purposes authorized in Section 40-5)?
(c) When so authorized, the bonds shall be issued in the
name of the district, signed by the president and secretary,
and countersigned by the treasurer, with the seal of the
district affixed.
(Source: P.A. 87-1277.)
Section 30. The School Code is amended by changing
Section 19-3 as follows:
(105 ILCS 5/19-3) (from Ch. 122, par. 19-3)
Sec. 19-3. Boards of education. Any school district
governed by a board of education and having a population of
not more than 500,000 inhabitants, and not governed by a
special Act may borrow money for the purpose of building,
equipping, altering or repairing school buildings or
purchasing or improving school sites, or acquiring and
equipping playgrounds, recreation grounds, athletic fields,
and other buildings or land used or useful for school
purposes or for the purpose of purchasing a site, with or
without a building or buildings thereon, or for the building
of a house or houses on such site, or for the building of a
house or houses on the school site of the school district,
for residential purposes of the superintendent, principal, or
teachers of the school district, and issue its negotiable
coupon bonds therefor signed by the president and secretary
of the board, in denominations of not less than $100 nor more
than $5,000, payable at such place and at such time or times,
not exceeding 20 years from date of issuance, as the board of
education may prescribe, and bearing interest at a rate not
to exceed the maximum rate authorized by the Bond
Authorization Act, as amended at the time of the making of
the contract, payable annually, semiannually or quarterly,
but no such bonds shall be issued unless the proposition to
issue them is submitted to the voters of the district at a
referendum held at a regularly scheduled election after the
board has certified the proposition to the proper election
authorities in accordance with the general election law, a
majority of all the votes cast on the proposition is in favor
of the proposition, and notice of such bond referendum (if
heretofore or hereafter held at any general election) has
been given either (i) in accordance with the second paragraph
of Section 12-1 of the Election Code irrespective of any
other requirements of the Election Code and irrespective of
whether such notice included any reference to the public
question as it appeared on the ballot, or (ii) for an
election held on or after November 1, 1998, in accordance
with Section 12-5 of the Election Code, or (iii) by
publication of and a true and legible copy of the specimen
ballot label containing the proposition (if heretofore or
hereafter submitted to the voters of the district at any
general election) in the form in which it appeared or will
appear on the official ballot label on the day of the
election has been published at least 5 days before the day
of the election in at least one newspaper published in and
having a general circulation in each county in which the
district is located, irrespective of any other requirements
of Article 12 or Section 24A-18 of the Election Code, nor
shall any residential site be acquired unless such
proposition to acquire a site is submitted to the voters of
the district at a referendum held at a regularly scheduled
election after the board has certified the proposition to the
proper election authorities in accordance with the general
election law and a majority of all the votes cast on the
proposition is in favor of the proposition. Nothing in this
Act or in any other law shall be construed as to require the
notice of the bond referendum to be published over the name
or title of the election authority or the listing of maturity
dates of any bonds either in the notice of bond election or
ballot used in the bond election. Such proposition may be
initiated by resolution of the school board.
With respect to instruments for the payment of money
issued under this Section either before, on, or after the
effective date of this amendatory Act of 1989, it is and
always has been the intention of the General Assembly (i)
that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in
accordance with the Omnibus Bond Acts, regardless of any
provision of this Act that may appear to be or to have been
more restrictive than those Acts, (ii) that the provisions of
this Section are not a limitation on the supplementary
authority granted by the Omnibus Bond Acts, and (iii) that
instruments issued under this Section within the
supplementary authority granted by the Omnibus Bond Acts are
not invalid because of any provision of this Act that may
appear to be or to have been more restrictive than those
Acts.
The proceeds of any bonds issued under authority of this
Section shall be deposited and accounted for separately
within the Site and Construction/Capital Improvements Fund.
(Source: P.A. 89-698, eff. 1-14-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.