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91_HB1476
LRB9103826NTsb
1 AN ACT to amend the School Code by changing Section 19-1.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The School Code is amended by changing
5 Section 19-1 as follows:
6 (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
7 Sec. 19-1. Debt limitations of school districts.
8 (a) School districts shall not be subject to the
9 provisions limiting their indebtedness prescribed in "An Act
10 to limit the indebtedness of counties having a population of
11 less than 500,000 and townships, school districts and other
12 municipal corporations having a population of less than
13 300,000", approved February 15, 1928, as amended.
14 No school districts maintaining grades K through 8 or 9
15 through 12 shall become indebted in any manner or for any
16 purpose to an amount, including existing indebtedness, in the
17 aggregate exceeding 6.9% on the value of the taxable property
18 therein to be ascertained by the last assessment for State
19 and county taxes or, until January 1, 1983, if greater, the
20 sum that is produced by multiplying the school district's
21 1978 equalized assessed valuation by the debt limitation
22 percentage in effect on January 1, 1979, previous to the
23 incurring of such indebtedness. However, if the school
24 district is eligible to receive a grant under the School
25 Construction Law, the debt limit rate of 6.9% may be
26 increased to 8.6% for a school construction project, as
27 defined in the School Construction Law.
28 No school districts maintaining grades K through 12 shall
29 become indebted in any manner or for any purpose to an
30 amount, including existing indebtedness, in the aggregate
31 exceeding 13.8% on the value of the taxable property therein
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1 to be ascertained by the last assessment for State and county
2 taxes or, until January 1, 1983, if greater, the sum that is
3 produced by multiplying the school district's 1978 equalized
4 assessed valuation by the debt limitation percentage in
5 effect on January 1, 1979, previous to the incurring of such
6 indebtedness. However, if the school district is eligible to
7 receive a grant under the School Construction Law, the debt
8 limit rate of 13.8% may be increased to 17.2% for a school
9 construction project, as defined in the School Construction
10 Law.
11 Notwithstanding the provisions of any other law to the
12 contrary, in any case in which the voters of a school
13 district have approved a proposition for the issuance of
14 bonds of such school district at an election held prior to
15 January 1, 1979, and all of the bonds approved at such
16 election have not been issued, the debt limitation applicable
17 to such school district during the calendar year 1979 shall
18 be computed by multiplying the value of taxable property
19 therein, including personal property, as ascertained by the
20 last assessment for State and county taxes, previous to the
21 incurring of such indebtedness, by the percentage limitation
22 applicable to such school district under the provisions of
23 this subsection (a).
24 (b) Notwithstanding the debt limitation prescribed in
25 subsection (a) of this Section, additional indebtedness may
26 be incurred in an amount not to exceed the estimated cost of
27 acquiring or improving school sites or constructing and
28 equipping additional building facilities under the following
29 conditions:
30 (1) Whenever the enrollment of students for the
31 next school year is estimated by the board of education
32 to increase over the actual present enrollment by not
33 less than 35% or by not less than 200 students or the
34 actual present enrollment of students has increased over
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1 the previous school year by not less than 35% or by not
2 less than 200 students and the board of education
3 determines that additional school sites or building
4 facilities are required as a result of such increase in
5 enrollment; and
6 (2) When the Regional Superintendent of Schools
7 having jurisdiction over the school district and the
8 State Superintendent of Education concur in such
9 enrollment projection or increase and approve the need
10 for such additional school sites or building facilities
11 and the estimated cost thereof; and
12 (3) When the voters in the school district approve
13 a proposition for the issuance of bonds for the purpose
14 of acquiring or improving such needed school sites or
15 constructing and equipping such needed additional
16 building facilities at an election called and held for
17 that purpose. Notice of such an election shall state that
18 the amount of indebtedness proposed to be incurred would
19 exceed the debt limitation otherwise applicable to the
20 school district. The ballot for such proposition shall
21 state what percentage of the equalized assessed valuation
22 will be outstanding in bonds if the proposed issuance of
23 bonds is approved by the voters; or
24 (4) Notwithstanding the provisions of paragraphs
25 (1) through (3) of this subsection (b), if the school
26 board determines that additional facilities are needed to
27 provide a quality educational program and not less than
28 2/3 of those voting in an election called by the school
29 board on the question approve the issuance of bonds for
30 the construction of such facilities, the school district
31 may issue bonds for this purpose; or
32 (5) Notwithstanding the provisions of paragraphs
33 (1) through (3) of this subsection (b), if (i) the school
34 district has previously availed itself of the provisions
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1 of paragraph (4) of this subsection (b) to enable it to
2 issue bonds, (ii) the voters of the school district have
3 not defeated a proposition for the issuance of bonds
4 since the referendum described in paragraph (4) of this
5 subsection (b) was held, (iii) the school board
6 determines that additional facilities are needed to
7 provide a quality educational program, and (iv) a
8 majority of those voting in an election called by the
9 school board on the question approve the issuance of
10 bonds for the construction of such facilities, the school
11 district may issue bonds for this purpose.
12 In no event shall the indebtedness incurred pursuant to
13 this subsection (b) and the existing indebtedness of the
14 school district exceed 15% of the value of the taxable
15 property therein to be ascertained by the last assessment for
16 State and county taxes, previous to the incurring of such
17 indebtedness or, until January 1, 1983, if greater, the sum
18 that is produced by multiplying the school district's 1978
19 equalized assessed valuation by the debt limitation
20 percentage in effect on January 1, 1979.
21 The indebtedness provided for by this subsection (b)
22 shall be in addition to and in excess of any other debt
23 limitation.
24 (c) Notwithstanding the debt limitation prescribed in
25 subsection (a) of this Section, in any case in which a public
26 question for the issuance of bonds of a proposed school
27 district maintaining grades kindergarten through 12 received
28 at least 60% of the valid ballots cast on the question at an
29 election held on or prior to November 8, 1994, and in which
30 the bonds approved at such election have not been issued, the
31 school district pursuant to the requirements of Section
32 11A-10 may issue the total amount of bonds approved at such
33 election for the purpose stated in the question.
34 (d) Notwithstanding the debt limitation prescribed in
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1 subsection (a) of this Section, a school district that meets
2 all the criteria set forth in paragraphs (1) and (2) of this
3 subsection (d) may incur an additional indebtedness in an
4 amount not to exceed $4,500,000, even though the amount of
5 the additional indebtedness authorized by this subsection
6 (d), when incurred and added to the aggregate amount of
7 indebtedness of the district existing immediately prior to
8 the district incurring the additional indebtedness authorized
9 by this subsection (d), causes the aggregate indebtedness of
10 the district to exceed the debt limitation otherwise
11 applicable to that district under subsection (a):
12 (1) The additional indebtedness authorized by this
13 subsection (d) is incurred by the school district through
14 the issuance of bonds under and in accordance with
15 Section 17-2.11a for the purpose of replacing a school
16 building which, because of mine subsidence damage, has
17 been closed as provided in paragraph (2) of this
18 subsection (d) or through the issuance of bonds under and
19 in accordance with Section 19-3 for the purpose of
20 increasing the size of, or providing for additional
21 functions in, such replacement school buildings, or both
22 such purposes.
23 (2) The bonds issued by the school district as
24 provided in paragraph (1) above are issued for the
25 purposes of construction by the school district of a new
26 school building pursuant to Section 17-2.11, to replace
27 an existing school building that, because of mine
28 subsidence damage, is closed as of the end of the 1992-93
29 school year pursuant to action of the regional
30 superintendent of schools of the educational service
31 region in which the district is located under Section
32 3-14.22 or are issued for the purpose of increasing the
33 size of, or providing for additional functions in, the
34 new school building being constructed to replace a school
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1 building closed as the result of mine subsidence damage,
2 or both such purposes.
3 (e) Notwithstanding the debt limitation prescribed in
4 subsection (a) of this Section, a school district that meets
5 all the criteria set forth in paragraphs (1) through (5) of
6 this subsection (e) may, without referendum, incur an
7 additional indebtedness in an amount not to exceed the lesser
8 of $5,000,000 or 1.5% of the value of the taxable property
9 within the district even though the amount of the additional
10 indebtedness authorized by this subsection (e), when incurred
11 and added to the aggregate amount of indebtedness of the
12 district existing immediately prior to the district incurring
13 that additional indebtedness, causes the aggregate
14 indebtedness of the district to exceed or increases the
15 amount by which the aggregate indebtedness of the district
16 already exceeds the debt limitation otherwise applicable to
17 that district under subsection (a):
18 (1) The State Board of Education certifies the
19 school district under Section 19-1.5 as a financially
20 distressed district.
21 (2) The additional indebtedness authorized by this
22 subsection (e) is incurred by the financially distressed
23 district during the school year or school years in which
24 the certification of the district as a financially
25 distressed district continues in effect through the
26 issuance of bonds for the lawful school purposes of the
27 district, pursuant to resolution of the school board and
28 without referendum, as provided in paragraph (5) of this
29 subsection.
30 (3) The aggregate amount of bonds issued by the
31 financially distressed district during a fiscal year in
32 which it is authorized to issue bonds under this
33 subsection does not exceed the amount by which the
34 aggregate expenditures of the district for operational
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1 purposes during the immediately preceding fiscal year
2 exceeds the amount appropriated for the operational
3 purposes of the district in the annual school budget
4 adopted by the school board of the district for the
5 fiscal year in which the bonds are issued.
6 (4) Throughout each fiscal year in which
7 certification of the district as a financially distressed
8 district continues in effect, the district maintains in
9 effect a gross salary expense and gross wage expense
10 freeze policy under which the district expenditures for
11 total employee salaries and wages do not exceed such
12 expenditures for the immediately preceding fiscal year.
13 Nothing in this paragraph, however, shall be deemed to
14 impair or to require impairment of the contractual
15 obligations, including collective bargaining agreements,
16 of the district or to impair or require the impairment of
17 the vested rights of any employee of the district under
18 the terms of any contract or agreement in effect on the
19 effective date of this amendatory Act of 1994.
20 (5) Bonds issued by the financially distressed
21 district under this subsection shall bear interest at a
22 rate not to exceed the maximum rate authorized by law at
23 the time of the making of the contract, shall mature
24 within 40 years from their date of issue, and shall be
25 signed by the president of the school board and treasurer
26 of the school district. In order to issue bonds under
27 this subsection, the school board shall adopt a
28 resolution fixing the amount of the bonds, the date of
29 the bonds, the maturities of the bonds, the rates of
30 interest of the bonds, and their place of payment and
31 denomination, and shall provide for the levy and
32 collection of a direct annual tax upon all the taxable
33 property in the district sufficient to pay the principal
34 and interest on the bonds to maturity. Upon the filing
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1 in the office of the county clerk of the county in which
2 the financially distressed district is located of a
3 certified copy of the resolution, it is the duty of the
4 county clerk to extend the tax therefor in addition to
5 and in excess of all other taxes at any time authorized
6 to be levied by the district. If bond proceeds from the
7 sale of bonds include a premium or if the proceeds of the
8 bonds are invested as authorized by law, the school board
9 shall determine by resolution whether the interest earned
10 on the investment of bond proceeds or the premium
11 realized on the sale of the bonds is to be used for any
12 of the lawful school purposes for which the bonds were
13 issued or for the payment of the principal indebtedness
14 and interest on the bonds. The proceeds of the bond sale
15 shall be deposited in the educational purposes fund of
16 the district and shall be used to pay operational
17 expenses of the district. This subsection is cumulative
18 and constitutes complete authority for the issuance of
19 bonds as provided in this subsection, notwithstanding any
20 other law to the contrary.
21 (f) Notwithstanding the provisions of subsection (a) of
22 this Section or of any other law, bonds in not to exceed the
23 aggregate amount of $5,500,000 and issued by a school
24 district meeting the following criteria shall not be
25 considered indebtedness for purposes of any statutory
26 limitation and may be issued in an amount or amounts,
27 including existing indebtedness, in excess of any heretofore
28 or hereafter imposed statutory limitation as to indebtedness:
29 (1) At the time of the sale of such bonds, the
30 board of education of the district shall have determined
31 by resolution that the enrollment of students in the
32 district is projected to increase by not less than 7%
33 during each of the next succeeding 2 school years.
34 (2) The board of education shall also determine by
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1 resolution that the improvements to be financed with the
2 proceeds of the bonds are needed because of the projected
3 enrollment increases.
4 (3) The board of education shall also determine by
5 resolution that the projected increases in enrollment are
6 the result of improvements made or expected to be made to
7 passenger rail facilities located in the school district.
8 (g) Notwithstanding the provisions of subsection (a) of
9 this Section or any other law, bonds in not to exceed an
10 aggregate amount of 25% of the equalized assessed value of
11 the taxable property of a school district and issued by a
12 school district meeting the criteria in paragraphs (i)
13 through (iv) of this subsection shall not be considered
14 indebtedness for purposes of any statutory limitation and may
15 be issued pursuant to resolution of the school board in an
16 amount or amounts, including existing indebtedness, in excess
17 of any statutory limitation of indebtedness heretofore or
18 hereafter imposed:
19 (i) The bonds are issued for the purpose of
20 constructing a new high school building to replace two
21 adjacent existing buildings which together house a single
22 high school, each of which is more than 65 years old, and
23 which together are located on more than 10 acres and less
24 than 11 acres of property.
25 (ii) At the time the resolution authorizing the
26 issuance of the bonds is adopted, the cost of
27 constructing a new school building to replace the
28 existing school building is less than 60% of the cost of
29 repairing the existing school building.
30 (iii) The sale of the bonds occurs before July 1,
31 1997.
32 (iv) The school district issuing the bonds is a
33 unit school district located in a county of less than
34 70,000 and more than 50,000 inhabitants, which has an
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1 average daily attendance of less than 1,500 and an
2 equalized assessed valuation of less than $29,000,000.
3 (h) Notwithstanding any other provisions of this Section
4 or the provisions of any other law, until January 1, 1998, a
5 community unit school district maintaining grades K through
6 12 may issue bonds up to an amount, including existing
7 indebtedness, not exceeding 27.6% of the equalized assessed
8 value of the taxable property in the district, if all of the
9 following conditions are met:
10 (i) The school district has an equalized assessed
11 valuation for calendar year 1995 of less than
12 $24,000,000;
13 (ii) The bonds are issued for the capital
14 improvement, renovation, rehabilitation, or replacement
15 of existing school buildings of the district, all of
16 which buildings were originally constructed not less than
17 40 years ago;
18 (iii) The voters of the district approve a
19 proposition for the issuance of the bonds at a referendum
20 held after March 19, 1996; and
21 (iv) The bonds are issued pursuant to Sections 19-2
22 through 19-7 of this Code.
23 (i) Notwithstanding any other provisions of this Section
24 or the provisions of any other law, until January 1, 1998, a
25 community unit school district maintaining grades K through
26 12 may issue bonds up to an amount, including existing
27 indebtedness, not exceeding 27% of the equalized assessed
28 value of the taxable property in the district, if all of the
29 following conditions are met:
30 (i) The school district has an equalized assessed
31 valuation for calendar year 1995 of less than
32 $44,600,000;
33 (ii) The bonds are issued for the capital
34 improvement, renovation, rehabilitation, or replacement
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1 of existing school buildings of the district, all of
2 which existing buildings were originally constructed not
3 less than 80 years ago;
4 (iii) The voters of the district approve a
5 proposition for the issuance of the bonds at a referendum
6 held after December 31, 1996; and
7 (iv) The bonds are issued pursuant to Sections 19-2
8 through 19-7 of this Code.
9 (j) Notwithstanding any other provisions of this Section
10 or the provisions of any other law, until January 1, 1999, a
11 community unit school district maintaining grades K through
12 12 may issue bonds up to an amount, including existing
13 indebtedness, not exceeding 27% of the equalized assessed
14 value of the taxable property in the district if all of the
15 following conditions are met:
16 (i) The school district has an equalized assessed
17 valuation for calendar year 1995 of less than
18 $140,000,000 and a best 3 months average daily attendance
19 for the 1995-96 school year of at least 2,800;
20 (ii) The bonds are issued to purchase a site and
21 build and equip a new high school, and the school
22 district's existing high school was originally
23 constructed not less than 35 years prior to the sale of
24 the bonds;
25 (iii) At the time of the sale of the bonds, the
26 board of education determines by resolution that a new
27 high school is needed because of projected enrollment
28 increases;
29 (iv) At least 60% of those voting in an election
30 held after December 31, 1996 approve a proposition for
31 the issuance of the bonds; and
32 (v) The bonds are issued pursuant to Sections 19-2
33 through 19-7 of this Code.
34 (k) Notwithstanding the debt limitation prescribed in
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1 subsection (a) of this Section, a school district that meets
2 all the criteria set forth in paragraphs (1) through (4) of
3 this subsection (k) may issue bonds to incur an additional
4 indebtedness in an amount not to exceed $4,000,000 even
5 though the amount of the additional indebtedness authorized
6 by this subsection (k), when incurred and added to the
7 aggregate amount of indebtedness of the school district
8 existing immediately prior to the school district incurring
9 such additional indebtedness, causes the aggregate
10 indebtedness of the school district to exceed or increases
11 the amount by which the aggregate indebtedness of the
12 district already exceeds the debt limitation otherwise
13 applicable to that school district under subsection (a):
14 (1) the school district is located in 2 counties,
15 and a referendum to authorize the additional indebtedness
16 was approved by a majority of the voters of the school
17 district voting on the proposition to authorize that
18 indebtedness;
19 (2) the additional indebtedness is for the purpose
20 of financing a multi-purpose room addition to the
21 existing high school;
22 (3) the additional indebtedness, together with the
23 existing indebtedness of the school district, shall not
24 exceed 17.4% of the value of the taxable property in the
25 school district, to be ascertained by the last assessment
26 for State and county taxes; and
27 (4) the bonds evidencing the additional
28 indebtedness are issued, if at all, within 120 days of
29 the effective date of this amendatory Act of 1998.
30 (l) Notwithstanding any other provisions of this Section
31 or the provisions of any other law, until January 1, 2000, a
32 school district maintaining grades kindergarten through 8 may
33 issue bonds up to an amount, including existing indebtedness,
34 not exceeding 15% of the equalized assessed value of the
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1 taxable property in the district if all of the following
2 conditions are met:
3 (i) the district has an equalized assessed
4 valuation for calendar year 1996 of less than
5 $10,000,000;
6 (ii) the bonds are issued for capital improvement,
7 renovation, rehabilitation, or replacement of one or more
8 school buildings of the district, which buildings were
9 originally constructed not less than 70 years ago;
10 (iii) the voters of the district approve a
11 proposition for the issuance of the bonds at a referendum
12 held on or after March 17, 1998; and
13 (iv) the bonds are issued pursuant to Sections 19-2
14 through 19-7 of this Code.
15 (m) Notwithstanding any other provisions of this Section
16 or the provisions of any other law, until January 1, 1999, an
17 elementary school district maintaining grades K through 8 may
18 issue bonds up to an amount, excluding existing indebtedness,
19 not exceeding 18% of the equalized assessed value of the
20 taxable property in the district, if all of the following
21 conditions are met:
22 (i) The school district has an equalized assessed
23 valuation for calendar year 1995 or less than $7,700,000;
24 (ii) The school district operates 2 elementary
25 attendance centers that until 1976 were operated as the
26 attendance centers of 2 separate and distinct school
27 districts;
28 (iii) The bonds are issued for the construction of
29 a new elementary school building to replace an existing
30 multi-level elementary school building of the school
31 district that is not handicapped accessible at all levels
32 and parts of which were constructed more than 75 years
33 ago;
34 (iv) The voters of the school district approve a
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1 proposition for the issuance of the bonds at a referendum
2 held after July 1, 1998; and
3 (v) The bonds are issued pursuant to Sections 19-2
4 through 19-7 of this Code.
5 (Source: P.A. 89-47, eff. 7-1-95; 89-661, eff. 1-1-97;
6 89-698, eff. 1-14-97; 90-570, eff. 1-28-98; 90-757, eff.
7 8-14-98.)
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.