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| Public Act 096-0912 |
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AN ACT concerning education.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Public Community College Act is amended by | ||||
changing Section 3-33.2 and by adding Section 3-33.7 as | ||||
follows:
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(110 ILCS 805/3-33.2) (from Ch. 122, par. 103-33.2)
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Sec. 3-33.2. Bonds for working cash fund. | ||||
(a) Except as provided in subsection (b) of this Section, | ||||
in In order to create, maintain
or increase such a working
cash | ||||
fund for the purposes mentioned in Section 3-33.1, the board | ||||
may incur an
indebtedness for such
purpose and issue bonds | ||||
therefor from time to time, in an amount or amounts
not | ||||
exceeding in the aggregate at any one time outstanding 75% of | ||||
the taxes
permitted to be levied for educational purposes and | ||||
for operations and
maintenance of facilities purposes for the | ||||
then current year to be
determined by multiplying the aggregate | ||||
of the authorized maximum
educational tax rate and the maximum | ||||
operations and maintenance tax rate
applicable to such district | ||||
by the last assessed valuation as determined at
the time of the | ||||
issue of those bonds plus 75% of the last known entitlement
of | ||||
such district to taxes as by law now or hereafter enacted or | ||||
amended,
imposed by the General Assembly of the State of | ||||
Illinois to replace revenue
lost by units of local government | ||
and school districts as a result of the
abolition of ad valorem | ||
personal property taxes, pursuant to Article IX,
Section 5(c) | ||
of the Constitution of the State of Illinois. | ||
(b) For a period of 3 years after the effective date of | ||
this amendatory Act of the 96th General Assembly, in order to | ||
create, maintain,
or increase such a working
cash fund for the | ||
purposes mentioned in Section 3-33.1, the board may incur an
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indebtedness for such
purpose and issue bonds therefor from | ||
time to time, in an amount or amounts
not exceeding in the | ||
aggregate at any one time outstanding 150% of the taxes
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permitted to be levied for educational purposes and for | ||
operations and
maintenance of facilities purposes for the then | ||
current year to be
determined by multiplying the aggregate of | ||
the authorized maximum
educational tax rate and the maximum | ||
operations and maintenance tax rate
applicable to such district | ||
by the last assessed valuation as determined at
the time of the | ||
issue of those bonds plus 150% of the last known entitlement
of | ||
such district to taxes as by law now or hereafter enacted or | ||
amended,
imposed by the General Assembly of the State of | ||
Illinois to replace revenue
lost by units of local government | ||
and school districts as a result of the
abolition of ad valorem | ||
personal property taxes, pursuant to Article IX,
Section 5(c) | ||
of the Constitution of the State of Illinois. | ||
(c) The bonds may be
issued without submitting the question | ||
of issuance thereof to the voters of
the community college | ||
district for approval. Any bonds issued under this
Section | ||
shall bear interest at a rate of not more
the maximum rate | ||
authorized by the Bond Authorization Act, as amended at the
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time of the making of the contract, and
shall mature within 20 | ||
years from the date of issue. Subject to the
foregoing | ||
limitations as to amount, the bonds may be
issued in an amount | ||
including existing indebtedness which will exceed any
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statutory debt limitation.
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(d) 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
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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.
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(Source: P.A. 89-281, eff. 8-10-95.)
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(110 ILCS 805/3-33.7 new) | ||
Sec. 3-33.7. Establishment of lines of credit. The board | ||
may establish a line of credit with a bank or other financial | ||
institution in an amount not to exceed the following: | ||
(1) if anticipating State revenues due in the current | ||
fiscal year, 85% of the amount or amounts of the revenues | ||
due in the current fiscal year, as certified by the | ||
President/CEO of the State Board or other official in a | ||
position to provide assurances as to the amounts; and | ||
(2) if anticipating State revenues expected to be due | ||
in the next subsequent fiscal year, 50% of the amount or | ||
amounts of the revenues due in the current fiscal year, as | ||
certified by the President/CEO of the State Board or other | ||
official in a position to provide assurances as to the | ||
amounts. | ||
All moneys so borrowed shall be repaid exclusively from the | ||
anticipated revenues within 60 days after the revenues have | ||
been received. Borrowing authorized under subdivisions (1) and | ||
(2) of this Section shall bear interest at a rate not to exceed | ||
the maximum rate authorized by the Bond Authorization Act, from | ||
the date of issuance until paid. | ||
Prior to establishing a line of credit under this Section, | ||
the board shall authorize, by resolution, the line of credit. | ||
The resolution shall set forth facts demonstrating the need for | ||
the line of credit, state the amount to be borrowed, establish | ||
a maximum interest rate limit not to exceed that set forth in | ||
this Section, and provide a date by which the borrowed funds | ||
must be repaid. The resolution shall direct the relevant | ||
officials to make arrangements to set apart and hold the | ||
revenue, as received, that will be used to repay the borrowing. | ||
In addition, the resolution may authorize the relevant | ||
officials to make partial repayments of the borrowing as the | ||
revenues become available and may contain any other terms, | ||
restrictions, or limitations not inconsistent with the | ||
provisions of this Section.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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