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91_HB1476eng HB1476 Engrossed 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 HB1476 Engrossed -2- LRB9103826NTsb 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 HB1476 Engrossed -3- LRB9103826NTsb 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 HB1476 Engrossed -4- LRB9103826NTsb 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 HB1476 Engrossed -5- LRB9103826NTsb 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 HB1476 Engrossed -6- LRB9103826NTsb 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 HB1476 Engrossed -7- LRB9103826NTsb 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 HB1476 Engrossed -8- LRB9103826NTsb 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 HB1476 Engrossed -9- LRB9103826NTsb 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 HB1476 Engrossed -10- LRB9103826NTsb 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 HB1476 Engrossed -11- LRB9103826NTsb 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 HB1476 Engrossed -12- LRB9103826NTsb 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 HB1476 Engrossed -13- LRB9103826NTsb 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 HB1476 Engrossed -14- LRB9103826NTsb 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.