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91_HB2686
LRB9105955NTsb
1 AN ACT relating to school construction projects, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The School Code is amended by changing
6 Section 19-1 as follows:
7 (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
8 Sec. 19-1. Debt limitations of school districts.
9 (a) School districts shall not be subject to the
10 provisions limiting their indebtedness prescribed in "An Act
11 to limit the indebtedness of counties having a population of
12 less than 500,000 and townships, school districts and other
13 municipal corporations having a population of less than
14 300,000", approved February 15, 1928, as amended.
15 No school districts maintaining grades K through 8 or 9
16 through 12 shall become indebted in any manner or for any
17 purpose to an amount, including existing indebtedness, in the
18 aggregate exceeding 6.9% on the value of the taxable property
19 therein to be ascertained by the last assessment for State
20 and county taxes or, until January 1, 1983, if greater, the
21 sum that is produced by multiplying the school district's
22 1978 equalized assessed valuation by the debt limitation
23 percentage in effect on January 1, 1979, previous to the
24 incurring of such indebtedness.
25 No school districts maintaining grades K through 12 shall
26 become indebted in any manner or for any purpose to an
27 amount, including existing indebtedness, in the aggregate
28 exceeding 13.8% on the value of the taxable property therein
29 to be ascertained by the last assessment for State and county
30 taxes or, until January 1, 1983, if greater, the sum that is
31 produced by multiplying the school district's 1978 equalized
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1 assessed valuation by the debt limitation percentage in
2 effect on January 1, 1979, previous to the incurring of such
3 indebtedness.
4 Notwithstanding the provisions of any other law to the
5 contrary, in any case in which the voters of a school
6 district have approved a proposition for the issuance of
7 bonds of such school district at an election held prior to
8 January 1, 1979, and all of the bonds approved at such
9 election have not been issued, the debt limitation applicable
10 to such school district during the calendar year 1979 shall
11 be computed by multiplying the value of taxable property
12 therein, including personal property, as ascertained by the
13 last assessment for State and county taxes, previous to the
14 incurring of such indebtedness, by the percentage limitation
15 applicable to such school district under the provisions of
16 this subsection (a).
17 (b) Notwithstanding the debt limitation prescribed in
18 subsection (a) of this Section, additional indebtedness may
19 be incurred in an amount not to exceed the estimated cost of
20 acquiring or improving school sites or constructing and
21 equipping additional building facilities under the following
22 conditions:
23 (1) Whenever the enrollment of students for the
24 next school year is estimated by the board of education
25 to increase over the actual present enrollment by not
26 less than 35% or by not less than 200 students or the
27 actual present enrollment of students has increased over
28 the previous school year by not less than 35% or by not
29 less than 200 students and the board of education
30 determines that additional school sites or building
31 facilities are required as a result of such increase in
32 enrollment; and
33 (2) When the Regional Superintendent of Schools
34 having jurisdiction over the school district and the
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1 State Superintendent of Education concur in such
2 enrollment projection or increase and approve the need
3 for such additional school sites or building facilities
4 and the estimated cost thereof; and
5 (3) When the voters in the school district approve
6 a proposition for the issuance of bonds for the purpose
7 of acquiring or improving such needed school sites or
8 constructing and equipping such needed additional
9 building facilities at an election called and held for
10 that purpose. Notice of such an election shall state that
11 the amount of indebtedness proposed to be incurred would
12 exceed the debt limitation otherwise applicable to the
13 school district. The ballot for such proposition shall
14 state what percentage of the equalized assessed valuation
15 will be outstanding in bonds if the proposed issuance of
16 bonds is approved by the voters; or
17 (4) Notwithstanding the provisions of paragraphs
18 (1) through (3) of this subsection (b), if the school
19 board determines that additional facilities are needed to
20 provide a quality educational program and not less than
21 2/3 of those voting in an election called by the school
22 board on the question approve the issuance of bonds for
23 the construction of such facilities, the school district
24 may issue bonds for this purpose; or
25 (5) Notwithstanding the provisions of paragraphs
26 (1) through (3) of this subsection (b), if (i) the school
27 district has previously availed itself of the provisions
28 of paragraph (4) of this subsection (b) to enable it to
29 issue bonds, (ii) the voters of the school district have
30 not defeated a proposition for the issuance of bonds
31 since the referendum described in paragraph (4) of this
32 subsection (b) was held, (iii) the school board
33 determines that additional facilities are needed to
34 provide a quality educational program, and (iv) a
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1 majority of those voting in an election called by the
2 school board on the question approve the issuance of
3 bonds for the construction of such facilities, the school
4 district may issue bonds for this purpose.
5 In no event shall the indebtedness incurred pursuant to
6 this subsection (b) and the existing indebtedness of the
7 school district exceed 15% of the value of the taxable
8 property therein to be ascertained by the last assessment for
9 State and county taxes, previous to the incurring of such
10 indebtedness or, until January 1, 1983, if greater, the sum
11 that is produced by multiplying the school district's 1978
12 equalized assessed valuation by the debt limitation
13 percentage in effect on January 1, 1979.
14 The indebtedness provided for by this subsection (b)
15 shall be in addition to and in excess of any other debt
16 limitation.
17 (c) Notwithstanding the debt limitation prescribed in
18 subsection (a) of this Section, in any case in which a public
19 question for the issuance of bonds of a proposed school
20 district maintaining grades kindergarten through 12 received
21 at least 60% of the valid ballots cast on the question at an
22 election held on or prior to November 8, 1994, and in which
23 the bonds approved at such election have not been issued, the
24 school district pursuant to the requirements of Section
25 11A-10 may issue the total amount of bonds approved at such
26 election for the purpose stated in the question.
27 (d) Notwithstanding the debt limitation prescribed in
28 subsection (a) of this Section, a school district that meets
29 all the criteria set forth in paragraphs (1) and (2) of this
30 subsection (d) may incur an additional indebtedness in an
31 amount not to exceed $4,500,000, even though the amount of
32 the additional indebtedness authorized by this subsection
33 (d), when incurred and added to the aggregate amount of
34 indebtedness of the district existing immediately prior to
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1 the district incurring the additional indebtedness authorized
2 by this subsection (d), causes the aggregate indebtedness of
3 the district to exceed the debt limitation otherwise
4 applicable to that district under subsection (a):
5 (1) The additional indebtedness authorized by this
6 subsection (d) is incurred by the school district through
7 the issuance of bonds under and in accordance with
8 Section 17-2.11a for the purpose of replacing a school
9 building which, because of mine subsidence damage, has
10 been closed as provided in paragraph (2) of this
11 subsection (d) or through the issuance of bonds under and
12 in accordance with Section 19-3 for the purpose of
13 increasing the size of, or providing for additional
14 functions in, such replacement school buildings, or both
15 such purposes.
16 (2) The bonds issued by the school district as
17 provided in paragraph (1) above are issued for the
18 purposes of construction by the school district of a new
19 school building pursuant to Section 17-2.11, to replace
20 an existing school building that, because of mine
21 subsidence damage, is closed as of the end of the 1992-93
22 school year pursuant to action of the regional
23 superintendent of schools of the educational service
24 region in which the district is located under Section
25 3-14.22 or are issued for the purpose of increasing the
26 size of, or providing for additional functions in, the
27 new school building being constructed to replace a school
28 building closed as the result of mine subsidence damage,
29 or both such purposes.
30 (e) Notwithstanding the debt limitation prescribed in
31 subsection (a) of this Section, a school district that meets
32 all the criteria set forth in paragraphs (1) through (5) of
33 this subsection (e) may, without referendum, incur an
34 additional indebtedness in an amount not to exceed the lesser
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1 of $5,000,000 or 1.5% of the value of the taxable property
2 within the district even though the amount of the additional
3 indebtedness authorized by this subsection (e), when incurred
4 and added to the aggregate amount of indebtedness of the
5 district existing immediately prior to the district incurring
6 that additional indebtedness, causes the aggregate
7 indebtedness of the district to exceed or increases the
8 amount by which the aggregate indebtedness of the district
9 already exceeds the debt limitation otherwise applicable to
10 that district under subsection (a):
11 (1) The State Board of Education certifies the
12 school district under Section 19-1.5 as a financially
13 distressed district.
14 (2) The additional indebtedness authorized by this
15 subsection (e) is incurred by the financially distressed
16 district during the school year or school years in which
17 the certification of the district as a financially
18 distressed district continues in effect through the
19 issuance of bonds for the lawful school purposes of the
20 district, pursuant to resolution of the school board and
21 without referendum, as provided in paragraph (5) of this
22 subsection.
23 (3) The aggregate amount of bonds issued by the
24 financially distressed district during a fiscal year in
25 which it is authorized to issue bonds under this
26 subsection does not exceed the amount by which the
27 aggregate expenditures of the district for operational
28 purposes during the immediately preceding fiscal year
29 exceeds the amount appropriated for the operational
30 purposes of the district in the annual school budget
31 adopted by the school board of the district for the
32 fiscal year in which the bonds are issued.
33 (4) Throughout each fiscal year in which
34 certification of the district as a financially distressed
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1 district continues in effect, the district maintains in
2 effect a gross salary expense and gross wage expense
3 freeze policy under which the district expenditures for
4 total employee salaries and wages do not exceed such
5 expenditures for the immediately preceding fiscal year.
6 Nothing in this paragraph, however, shall be deemed to
7 impair or to require impairment of the contractual
8 obligations, including collective bargaining agreements,
9 of the district or to impair or require the impairment of
10 the vested rights of any employee of the district under
11 the terms of any contract or agreement in effect on the
12 effective date of this amendatory Act of 1994.
13 (5) Bonds issued by the financially distressed
14 district under this subsection shall bear interest at a
15 rate not to exceed the maximum rate authorized by law at
16 the time of the making of the contract, shall mature
17 within 40 years from their date of issue, and shall be
18 signed by the president of the school board and treasurer
19 of the school district. In order to issue bonds under
20 this subsection, the school board shall adopt a
21 resolution fixing the amount of the bonds, the date of
22 the bonds, the maturities of the bonds, the rates of
23 interest of the bonds, and their place of payment and
24 denomination, and shall provide for the levy and
25 collection of a direct annual tax upon all the taxable
26 property in the district sufficient to pay the principal
27 and interest on the bonds to maturity. Upon the filing
28 in the office of the county clerk of the county in which
29 the financially distressed district is located of a
30 certified copy of the resolution, it is the duty of the
31 county clerk to extend the tax therefor in addition to
32 and in excess of all other taxes at any time authorized
33 to be levied by the district. If bond proceeds from the
34 sale of bonds include a premium or if the proceeds of the
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1 bonds are invested as authorized by law, the school board
2 shall determine by resolution whether the interest earned
3 on the investment of bond proceeds or the premium
4 realized on the sale of the bonds is to be used for any
5 of the lawful school purposes for which the bonds were
6 issued or for the payment of the principal indebtedness
7 and interest on the bonds. The proceeds of the bond sale
8 shall be deposited in the educational purposes fund of
9 the district and shall be used to pay operational
10 expenses of the district. This subsection is cumulative
11 and constitutes complete authority for the issuance of
12 bonds as provided in this subsection, notwithstanding any
13 other law to the contrary.
14 (f) Notwithstanding the provisions of subsection (a) of
15 this Section or of any other law, bonds in not to exceed the
16 aggregate amount of $5,500,000 and issued by a school
17 district meeting the following criteria shall not be
18 considered indebtedness for purposes of any statutory
19 limitation and may be issued in an amount or amounts,
20 including existing indebtedness, in excess of any heretofore
21 or hereafter imposed statutory limitation as to indebtedness:
22 (1) At the time of the sale of such bonds, the
23 board of education of the district shall have determined
24 by resolution that the enrollment of students in the
25 district is projected to increase by not less than 7%
26 during each of the next succeeding 2 school years.
27 (2) The board of education shall also determine by
28 resolution that the improvements to be financed with the
29 proceeds of the bonds are needed because of the projected
30 enrollment increases.
31 (3) The board of education shall also determine by
32 resolution that the projected increases in enrollment are
33 the result of improvements made or expected to be made to
34 passenger rail facilities located in the school district.
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1 (g) Notwithstanding the provisions of subsection (a) of
2 this Section or any other law, bonds in not to exceed an
3 aggregate amount of 25% of the equalized assessed value of
4 the taxable property of a school district and issued by a
5 school district meeting the criteria in paragraphs (i)
6 through (iv) of this subsection shall not be considered
7 indebtedness for purposes of any statutory limitation and may
8 be issued pursuant to resolution of the school board in an
9 amount or amounts, including existing indebtedness, in excess
10 of any statutory limitation of indebtedness heretofore or
11 hereafter imposed:
12 (i) The bonds are issued for the purpose of
13 constructing a new high school building to replace two
14 adjacent existing buildings which together house a single
15 high school, each of which is more than 65 years old, and
16 which together are located on more than 10 acres and less
17 than 11 acres of property.
18 (ii) At the time the resolution authorizing the
19 issuance of the bonds is adopted, the cost of
20 constructing a new school building to replace the
21 existing school building is less than 60% of the cost of
22 repairing the existing school building.
23 (iii) The sale of the bonds occurs before July 1,
24 1997.
25 (iv) The school district issuing the bonds is a
26 unit school district located in a county of less than
27 70,000 and more than 50,000 inhabitants, which has an
28 average daily attendance of less than 1,500 and an
29 equalized assessed valuation of less than $29,000,000.
30 (h) Notwithstanding any other provisions of this Section
31 or the provisions of any other law, until January 1, 1998, a
32 community unit school district maintaining grades K through
33 12 may issue bonds up to an amount, including existing
34 indebtedness, not exceeding 27.6% of the equalized assessed
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1 value of the taxable property in the district, if all of the
2 following conditions are met:
3 (i) The school district has an equalized assessed
4 valuation for calendar year 1995 of less than
5 $24,000,000;
6 (ii) The bonds are issued for the capital
7 improvement, renovation, rehabilitation, or replacement
8 of existing school buildings of the district, all of
9 which buildings were originally constructed not less than
10 40 years ago;
11 (iii) The voters of the district approve a
12 proposition for the issuance of the bonds at a referendum
13 held after March 19, 1996; and
14 (iv) The bonds are issued pursuant to Sections 19-2
15 through 19-7 of this Code.
16 (i) Notwithstanding any other provisions of this Section
17 or the provisions of any other law, until January 1, 1998, a
18 community unit school district maintaining grades K through
19 12 may issue bonds up to an amount, including existing
20 indebtedness, not exceeding 27% of the equalized assessed
21 value of the taxable property in the district, if all of the
22 following conditions are met:
23 (i) The school district has an equalized assessed
24 valuation for calendar year 1995 of less than
25 $44,600,000;
26 (ii) The bonds are issued for the capital
27 improvement, renovation, rehabilitation, or replacement
28 of existing school buildings of the district, all of
29 which existing buildings were originally constructed not
30 less than 80 years ago;
31 (iii) The voters of the district approve a
32 proposition for the issuance of the bonds at a referendum
33 held after December 31, 1996; and
34 (iv) The bonds are issued pursuant to Sections 19-2
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1 through 19-7 of this Code.
2 (j) Notwithstanding any other provisions of this Section
3 or the provisions of any other law, until January 1, 1999, a
4 community unit school district maintaining grades K through
5 12 may issue bonds up to an amount, including existing
6 indebtedness, not exceeding 27% of the equalized assessed
7 value of the taxable property in the district if all of the
8 following conditions are met:
9 (i) The school district has an equalized assessed
10 valuation for calendar year 1995 of less than
11 $140,000,000 and a best 3 months average daily attendance
12 for the 1995-96 school year of at least 2,800;
13 (ii) The bonds are issued to purchase a site and
14 build and equip a new high school, and the school
15 district's existing high school was originally
16 constructed not less than 35 years prior to the sale of
17 the bonds;
18 (iii) At the time of the sale of the bonds, the
19 board of education determines by resolution that a new
20 high school is needed because of projected enrollment
21 increases;
22 (iv) At least 60% of those voting in an election
23 held after December 31, 1996 approve a proposition for
24 the issuance of the bonds; and
25 (v) The bonds are issued pursuant to Sections 19-2
26 through 19-7 of this Code.
27 (k) Notwithstanding the debt limitation prescribed in
28 subsection (a) of this Section, a school district that meets
29 all the criteria set forth in paragraphs (1) through (4) of
30 this subsection (k) may issue bonds to incur an additional
31 indebtedness in an amount not to exceed $4,000,000 even
32 though the amount of the additional indebtedness authorized
33 by this subsection (k), when incurred and added to the
34 aggregate amount of indebtedness of the school district
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1 existing immediately prior to the school district incurring
2 such additional indebtedness, causes the aggregate
3 indebtedness of the school district to exceed or increases
4 the amount by which the aggregate indebtedness of the
5 district already exceeds the debt limitation otherwise
6 applicable to that school district under subsection (a):
7 (1) the school district is located in 2 counties,
8 and a referendum to authorize the additional indebtedness
9 was approved by a majority of the voters of the school
10 district voting on the proposition to authorize that
11 indebtedness;
12 (2) the additional indebtedness is for the purpose
13 of financing a multi-purpose room addition to the
14 existing high school;
15 (3) the additional indebtedness, together with the
16 existing indebtedness of the school district, shall not
17 exceed 17.4% of the value of the taxable property in the
18 school district, to be ascertained by the last assessment
19 for State and county taxes; and
20 (4) the bonds evidencing the additional
21 indebtedness are issued, if at all, within 120 days of
22 the effective date of this amendatory Act of 1998.
23 (l) Notwithstanding any other provisions of this Section
24 or the provisions of any other law, until January 1, 2000, a
25 school district maintaining grades kindergarten through 8 may
26 issue bonds up to an amount, including existing indebtedness,
27 not exceeding 15% of the equalized assessed value of the
28 taxable property in the district if all of the following
29 conditions are met:
30 (i) the district has an equalized assessed
31 valuation for calendar year 1996 of less than
32 $10,000,000;
33 (ii) the bonds are issued for capital improvement,
34 renovation, rehabilitation, or replacement of one or more
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1 school buildings of the district, which buildings were
2 originally constructed not less than 70 years ago;
3 (iii) the voters of the district approve a
4 proposition for the issuance of the bonds at a referendum
5 held on or after March 17, 1998; and
6 (iv) the bonds are issued pursuant to Sections 19-2
7 through 19-7 of this Code.
8 (m) Notwithstanding any other provisions of this Section
9 or the provisions of any other law, until January 1, 1999, an
10 elementary school district maintaining grades K through 8 may
11 issue bonds up to an amount, excluding existing indebtedness,
12 not exceeding 18% of the equalized assessed value of the
13 taxable property in the district, if all of the following
14 conditions are met:
15 (i) The school district has an equalized assessed
16 valuation for calendar year 1995 or less than $7,700,000;
17 (ii) The school district operates 2 elementary
18 attendance centers that until 1976 were operated as the
19 attendance centers of 2 separate and distinct school
20 districts;
21 (iii) The bonds are issued for the construction of
22 a new elementary school building to replace an existing
23 multi-level elementary school building of the school
24 district that is not handicapped accessible at all levels
25 and parts of which were constructed more than 75 years
26 ago;
27 (iv) The voters of the school district approve a
28 proposition for the issuance of the bonds at a referendum
29 held after July 1, 1998; and
30 (v) The bonds are issued pursuant to Sections 19-2
31 through 19-7 of this Code.
32 (n) Notwithstanding the debt limitation prescribed in
33 subsection (a) of this Section or any other provisions of
34 this Section or of any other law, a school district that
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1 meets all of the criteria set forth in paragraphs (i) through
2 (vi) of this subsection (n) may incur additional indebtedness
3 by the issuance of bonds in an amount not exceeding the
4 amount certified by the State Board of Education to the
5 school district as provided in paragraph (iii) of this
6 subsection (n), even though the amount of the additional
7 indebtedness so authorized, when incurred and added to the
8 aggregate amount of indebtedness of the district existing
9 immediately prior to the district incurring the additional
10 indebtedness authorized by this subsection (n), causes the
11 aggregate indebtedness of the district to exceed the debt
12 limitation otherwise applicable by law to that district:
13 (i) The school district applies to the State Board
14 of Education for a school construction project grant and
15 submits a district facilities plan in support of its
16 application pursuant to Section 5-20 of the School
17 Construction Law.
18 (ii) The school district's application and
19 facilities plan are approved by, and the district
20 receives a grant entitlement for a school construction
21 project issued by, the State Board of Education under the
22 School Construction Law.
23 (iii) The school district has exhausted its bonding
24 capacity or the unused bonding capacity of the district
25 is less than the amount certified by the State Board of
26 Education to the district under Section 5-15 of the
27 School Construction Law as the dollar amount of the
28 school construction project's cost that the district will
29 be required to finance with non-grant funds in order to
30 receive a school construction project grant under the
31 School Construction Law.
32 (iv) The bonds are issued for a "school
33 construction project", as that term is defined in Section
34 5-5 of the School Construction Law, in an amount that
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1 does not exceed the dollar amount certified, as provided
2 in paragraph (iii) of this subsection (n), by the State
3 Board of Education to the school district under Section
4 5-15 of the School Construction Law.
5 (v) The voters of the district approve a
6 proposition for the issuance of the bonds at a referendum
7 held after the criteria specified in paragraphs (i) and
8 (iii) of this subsection (n) are met.
9 (vi) The bonds are issued pursuant to Sections 19-2
10 through 19-7 of the School Code.
11 (Source: P.A. 89-47, eff. 7-1-95; 89-661, eff. 1-1-97;
12 89-698, eff. 1-14-97; 90-570, eff. 1-28-98; 90-757, eff.
13 8-14-98.)
14 Section 10. The School Construction Law is amended by
15 changing Sections 5-15 and 5-20 as follows:
16 (105 ILCS 230/5-15)
17 Sec. 5-15. Grant entitlements. The State Board of
18 Education is authorized to issue grant entitlements for
19 school construction projects and debt service and shall
20 determine the priority order for school construction project
21 grants to be made by the Capital Development Board. When
22 issuing a grant entitlement for a school construction
23 project, the State Board of Education, as a part of that
24 entitlement, shall certify to the district receiving the
25 entitlement the dollar amount of the school construction
26 project's cost that the district will be required to finance
27 with non-grant funds in order to qualify to receive a school
28 construction project grant under this Article from the
29 Capital Development Board.
30 (Source: P.A. 90-548, eff. 1-1-98.)
31 (105 ILCS 230/5-20)
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1 Sec. 5-20. Grant application; district facilities plan.
2 School districts shall apply to the State Board of Education
3 for school construction project grants and debt service
4 grants. Districts filing grant applications shall submit to
5 the State Board a district facilities plan that shall
6 include, but not be limited to, an assessment of present and
7 future district facility needs as required by present and
8 anticipated educational programming, the availability of
9 local financial resources including current revenues, fund
10 balances, and unused bonding capacity, a fiscal plan for
11 meeting present and anticipated debt service obligations, and
12 a maintenance plan and schedule that contain necessary
13 assurances that new, renovated, and existing facilities are
14 being or will be properly maintained. If a district that
15 applies for a school construction project grant has no unused
16 bonding capacity or if its unused bonding capacity may be
17 less than the portion of the cost of the proposed school
18 construction project that the district would be required to
19 finance with non-grant funds, the application and facilities
20 plan submitted by the district shall set forth the estimated
21 amount of the project's cost that the district proposes to
22 finance by the issuance of bonds under subsection (n) of
23 Section 19-1 of the School Code. The State Board of Education
24 shall review and approve district facilities plans prior to
25 issuing grant entitlements. Each district that receives a
26 grant entitlement shall annually update its district
27 facilities plan and submit the revised plan to the State
28 Board for approval.
29 (Source: P.A. 90-548, eff. 1-1-98.)
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.