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92_HB2472eng HB2472 Engrossed LRB9205962ACcd 1 AN ACT concerning schools. 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. 24 No school districts maintaining grades K through 12 shall 25 become indebted in any manner or for any purpose to an 26 amount, including existing indebtedness, in the aggregate 27 exceeding 13.8% on the value of the taxable property therein 28 to be ascertained by the last assessment for State and county 29 taxes or, until January 1, 1983, if greater, the sum that is 30 produced by multiplying the school district's 1978 equalized 31 assessed valuation by the debt limitation percentage in HB2472 Engrossed -2- LRB9205962ACcd 1 effect on January 1, 1979, previous to the incurring of such 2 indebtedness. 3 Notwithstanding the provisions of any other law to the 4 contrary, in any case in which the voters of a school 5 district have approved a proposition for the issuance of 6 bonds of such school district at an election held prior to 7 January 1, 1979, and all of the bonds approved at such 8 election have not been issued, the debt limitation applicable 9 to such school district during the calendar year 1979 shall 10 be computed by multiplying the value of taxable property 11 therein, including personal property, as ascertained by the 12 last assessment for State and county taxes, previous to the 13 incurring of such indebtedness, by the percentage limitation 14 applicable to such school district under the provisions of 15 this subsection (a). 16 (b) Notwithstanding the debt limitation prescribed in 17 subsection (a) of this Section, additional indebtedness may 18 be incurred in an amount not to exceed the estimated cost of 19 acquiring or improving school sites or constructing and 20 equipping additional building facilities under the following 21 conditions: 22 (1) Whenever the enrollment of students for the 23 next school year is estimated by the board of education 24 to increase over the actual present enrollment by not 25 less than 35% or by not less than 200 students or the 26 actual present enrollment of students has increased over 27 the previous school year by not less than 35% or by not 28 less than 200 students and the board of education 29 determines that additional school sites or building 30 facilities are required as a result of such increase in 31 enrollment; and 32 (2) When the Regional Superintendent of Schools 33 having jurisdiction over the school district and the 34 State Superintendent of Education concur in such HB2472 Engrossed -3- LRB9205962ACcd 1 enrollment projection or increase and approve the need 2 for such additional school sites or building facilities 3 and the estimated cost thereof; and 4 (3) When the voters in the school district approve 5 a proposition for the issuance of bonds for the purpose 6 of acquiring or improving such needed school sites or 7 constructing and equipping such needed additional 8 building facilities at an election called and held for 9 that purpose. Notice of such an election shall state that 10 the amount of indebtedness proposed to be incurred would 11 exceed the debt limitation otherwise applicable to the 12 school district. The ballot for such proposition shall 13 state what percentage of the equalized assessed valuation 14 will be outstanding in bonds if the proposed issuance of 15 bonds is approved by the voters; or 16 (4) Notwithstanding the provisions of paragraphs 17 (1) through (3) of this subsection (b), if the school 18 board determines that additional facilities are needed to 19 provide a quality educational program and not less than 20 2/3 of those voting in an election called by the school 21 board on the question approve the issuance of bonds for 22 the construction of such facilities, the school district 23 may issue bonds for this purpose; or 24 (5) Notwithstanding the provisions of paragraphs 25 (1) through (3) of this subsection (b), if (i) the school 26 district has previously availed itself of the provisions 27 of paragraph (4) of this subsection (b) to enable it to 28 issue bonds, (ii) the voters of the school district have 29 not defeated a proposition for the issuance of bonds 30 since the referendum described in paragraph (4) of this 31 subsection (b) was held, (iii) the school board 32 determines that additional facilities are needed to 33 provide a quality educational program, and (iv) a 34 majority of those voting in an election called by the HB2472 Engrossed -4- LRB9205962ACcd 1 school board on the question approve the issuance of 2 bonds for the construction of such facilities, the school 3 district may issue bonds for this purpose. 4 In no event shall the indebtedness incurred pursuant to 5 this subsection (b) and the existing indebtedness of the 6 school district exceed 15% of the value of the taxable 7 property therein to be ascertained by the last assessment for 8 State and county taxes, previous to the incurring of such 9 indebtedness or, until January 1, 1983, if greater, the sum 10 that is produced by multiplying the school district's 1978 11 equalized assessed valuation by the debt limitation 12 percentage in effect on January 1, 1979. 13 The indebtedness provided for by this subsection (b) 14 shall be in addition to and in excess of any other debt 15 limitation. 16 (c) Notwithstanding the debt limitation prescribed in 17 subsection (a) of this Section, in any case in which a public 18 question for the issuance of bonds of a proposed school 19 district maintaining grades kindergarten through 12 received 20 at least 60% of the valid ballots cast on the question at an 21 election held on or prior to November 8, 1994, and in which 22 the bonds approved at such election have not been issued, the 23 school district pursuant to the requirements of Section 24 11A-10 may issue the total amount of bonds approved at such 25 election for the purpose stated in the question. 26 (d) Notwithstanding the debt limitation prescribed in 27 subsection (a) of this Section, a school district that meets 28 all the criteria set forth in paragraphs (1) and (2) of this 29 subsection (d) may incur an additional indebtedness in an 30 amount not to exceed $4,500,000, even though the amount of 31 the additional indebtedness authorized by this subsection 32 (d), when incurred and added to the aggregate amount of 33 indebtedness of the district existing immediately prior to 34 the district incurring the additional indebtedness authorized HB2472 Engrossed -5- LRB9205962ACcd 1 by this subsection (d), causes the aggregate indebtedness of 2 the district to exceed the debt limitation otherwise 3 applicable to that district under subsection (a): 4 (1) The additional indebtedness authorized by this 5 subsection (d) is incurred by the school district through 6 the issuance of bonds under and in accordance with 7 Section 17-2.11a for the purpose of replacing a school 8 building which, because of mine subsidence damage, has 9 been closed as provided in paragraph (2) of this 10 subsection (d) or through the issuance of bonds under and 11 in accordance with Section 19-3 for the purpose of 12 increasing the size of, or providing for additional 13 functions in, such replacement school buildings, or both 14 such purposes. 15 (2) The bonds issued by the school district as 16 provided in paragraph (1) above are issued for the 17 purposes of construction by the school district of a new 18 school building pursuant to Section 17-2.11, to replace 19 an existing school building that, because of mine 20 subsidence damage, is closed as of the end of the 1992-93 21 school year pursuant to action of the regional 22 superintendent of schools of the educational service 23 region in which the district is located under Section 24 3-14.22 or are issued for the purpose of increasing the 25 size of, or providing for additional functions in, the 26 new school building being constructed to replace a school 27 building closed as the result of mine subsidence damage, 28 or both such purposes. 29 (e) Notwithstanding the debt limitation prescribed in 30 subsection (a) of this Section, a school district that meets 31 all the criteria set forth in paragraphs (1) through (5) of 32 this subsection (e) may, without referendum, incur an 33 additional indebtedness in an amount not to exceed the lesser 34 of $5,000,000 or 1.5% of the value of the taxable property HB2472 Engrossed -6- LRB9205962ACcd 1 within the district even though the amount of the additional 2 indebtedness authorized by this subsection (e), when incurred 3 and added to the aggregate amount of indebtedness of the 4 district existing immediately prior to the district incurring 5 that additional indebtedness, causes the aggregate 6 indebtedness of the district to exceed or increases the 7 amount by which the aggregate indebtedness of the district 8 already exceeds the debt limitation otherwise applicable to 9 that district under subsection (a): 10 (1) The State Board of Education certifies the 11 school district under Section 19-1.5 as a financially 12 distressed district. 13 (2) The additional indebtedness authorized by this 14 subsection (e) is incurred by the financially distressed 15 district during the school year or school years in which 16 the certification of the district as a financially 17 distressed district continues in effect through the 18 issuance of bonds for the lawful school purposes of the 19 district, pursuant to resolution of the school board and 20 without referendum, as provided in paragraph (5) of this 21 subsection. 22 (3) The aggregate amount of bonds issued by the 23 financially distressed district during a fiscal year in 24 which it is authorized to issue bonds under this 25 subsection does not exceed the amount by which the 26 aggregate expenditures of the district for operational 27 purposes during the immediately preceding fiscal year 28 exceeds the amount appropriated for the operational 29 purposes of the district in the annual school budget 30 adopted by the school board of the district for the 31 fiscal year in which the bonds are issued. 32 (4) Throughout each fiscal year in which 33 certification of the district as a financially distressed 34 district continues in effect, the district maintains in HB2472 Engrossed -7- LRB9205962ACcd 1 effect a gross salary expense and gross wage expense 2 freeze policy under which the district expenditures for 3 total employee salaries and wages do not exceed such 4 expenditures for the immediately preceding fiscal year. 5 Nothing in this paragraph, however, shall be deemed to 6 impair or to require impairment of the contractual 7 obligations, including collective bargaining agreements, 8 of the district or to impair or require the impairment of 9 the vested rights of any employee of the district under 10 the terms of any contract or agreement in effect on the 11 effective date of this amendatory Act of 1994. 12 (5) Bonds issued by the financially distressed 13 district under this subsection shall bear interest at a 14 rate not to exceed the maximum rate authorized by law at 15 the time of the making of the contract, shall mature 16 within 40 years from their date of issue, and shall be 17 signed by the president of the school board and treasurer 18 of the school district. In order to issue bonds under 19 this subsection, the school board shall adopt a 20 resolution fixing the amount of the bonds, the date of 21 the bonds, the maturities of the bonds, the rates of 22 interest of the bonds, and their place of payment and 23 denomination, and shall provide for the levy and 24 collection of a direct annual tax upon all the taxable 25 property in the district sufficient to pay the principal 26 and interest on the bonds to maturity. Upon the filing 27 in the office of the county clerk of the county in which 28 the financially distressed district is located of a 29 certified copy of the resolution, it is the duty of the 30 county clerk to extend the tax therefor in addition to 31 and in excess of all other taxes at any time authorized 32 to be levied by the district. If bond proceeds from the 33 sale of bonds include a premium or if the proceeds of the 34 bonds are invested as authorized by law, the school board HB2472 Engrossed -8- LRB9205962ACcd 1 shall determine by resolution whether the interest earned 2 on the investment of bond proceeds or the premium 3 realized on the sale of the bonds is to be used for any 4 of the lawful school purposes for which the bonds were 5 issued or for the payment of the principal indebtedness 6 and interest on the bonds. The proceeds of the bond sale 7 shall be deposited in the educational purposes fund of 8 the district and shall be used to pay operational 9 expenses of the district. This subsection is cumulative 10 and constitutes complete authority for the issuance of 11 bonds as provided in this subsection, notwithstanding any 12 other law to the contrary. 13 (f) Notwithstanding the provisions of subsection (a) of 14 this Section or of any other law, bonds in not to exceed the 15 aggregate amount of $5,500,000 and issued by a school 16 district meeting the following criteria shall not be 17 considered indebtedness for purposes of any statutory 18 limitation and may be issued in an amount or amounts, 19 including existing indebtedness, in excess of any heretofore 20 or hereafter imposed statutory limitation as to indebtedness: 21 (1) At the time of the sale of such bonds, the 22 board of education of the district shall have determined 23 by resolution that the enrollment of students in the 24 district is projected to increase by not less than 7% 25 during each of the next succeeding 2 school years. 26 (2) The board of education shall also determine by 27 resolution that the improvements to be financed with the 28 proceeds of the bonds are needed because of the projected 29 enrollment increases. 30 (3) The board of education shall also determine by 31 resolution that the projected increases in enrollment are 32 the result of improvements made or expected to be made to 33 passenger rail facilities located in the school district. 34 (g) Notwithstanding the provisions of subsection (a) of HB2472 Engrossed -9- LRB9205962ACcd 1 this Section or any other law, bonds in not to exceed an 2 aggregate amount of 25% of the equalized assessed value of 3 the taxable property of a school district and issued by a 4 school district meeting the criteria in paragraphs (i) 5 through (iv) of this subsection shall not be considered 6 indebtedness for purposes of any statutory limitation and may 7 be issued pursuant to resolution of the school board in an 8 amount or amounts, including existing indebtedness, in excess 9 of any statutory limitation of indebtedness heretofore or 10 hereafter imposed: 11 (i) The bonds are issued for the purpose of 12 constructing a new high school building to replace two 13 adjacent existing buildings which together house a single 14 high school, each of which is more than 65 years old, and 15 which together are located on more than 10 acres and less 16 than 11 acres of property. 17 (ii) At the time the resolution authorizing the 18 issuance of the bonds is adopted, the cost of 19 constructing a new school building to replace the 20 existing school building is less than 60% of the cost of 21 repairing the existing school building. 22 (iii) The sale of the bonds occurs before July 1, 23 1997. 24 (iv) The school district issuing the bonds is a 25 unit school district located in a county of less than 26 70,000 and more than 50,000 inhabitants, which has an 27 average daily attendance of less than 1,500 and an 28 equalized assessed valuation of less than $29,000,000. 29 (h) Notwithstanding any other provisions of this Section 30 or the provisions of any other law, until January 1, 1998, a 31 community unit school district maintaining grades K through 32 12 may issue bonds up to an amount, including existing 33 indebtedness, not exceeding 27.6% of the equalized assessed 34 value of the taxable property in the district, if all of the HB2472 Engrossed -10- LRB9205962ACcd 1 following conditions are met: 2 (i) The school district has an equalized assessed 3 valuation for calendar year 1995 of less than 4 $24,000,000; 5 (ii) The bonds are issued for the capital 6 improvement, renovation, rehabilitation, or replacement 7 of existing school buildings of the district, all of 8 which buildings were originally constructed not less than 9 40 years ago; 10 (iii) The voters of the district approve a 11 proposition for the issuance of the bonds at a referendum 12 held after March 19, 1996; and 13 (iv) The bonds are issued pursuant to Sections 19-2 14 through 19-7 of this Code. 15 (i) Notwithstanding any other provisions of this Section 16 or the provisions of any other law, until January 1, 1998, a 17 community unit school district maintaining grades K through 18 12 may issue bonds up to an amount, including existing 19 indebtedness, not exceeding 27% of the equalized assessed 20 value of the taxable property in the district, if all of the 21 following conditions are met: 22 (i) The school district has an equalized assessed 23 valuation for calendar year 1995 of less than 24 $44,600,000; 25 (ii) The bonds are issued for the capital 26 improvement, renovation, rehabilitation, or replacement 27 of existing school buildings of the district, all of 28 which existing buildings were originally constructed not 29 less than 80 years ago; 30 (iii) The voters of the district approve a 31 proposition for the issuance of the bonds at a referendum 32 held after December 31, 1996; and 33 (iv) The bonds are issued pursuant to Sections 19-2 34 through 19-7 of this Code. HB2472 Engrossed -11- LRB9205962ACcd 1 (j) Notwithstanding any other provisions of this Section 2 or the provisions of any other law, until January 1, 1999, a 3 community unit school district maintaining grades K through 4 12 may issue bonds up to an amount, including existing 5 indebtedness, not exceeding 27% of the equalized assessed 6 value of the taxable property in the district if all of the 7 following conditions are met: 8 (i) The school district has an equalized assessed 9 valuation for calendar year 1995 of less than 10 $140,000,000 and a best 3 months average daily attendance 11 for the 1995-96 school year of at least 2,800; 12 (ii) The bonds are issued to purchase a site and 13 build and equip a new high school, and the school 14 district's existing high school was originally 15 constructed not less than 35 years prior to the sale of 16 the bonds; 17 (iii) At the time of the sale of the bonds, the 18 board of education determines by resolution that a new 19 high school is needed because of projected enrollment 20 increases; 21 (iv) At least 60% of those voting in an election 22 held after December 31, 1996 approve a proposition for 23 the issuance of the bonds; and 24 (v) The bonds are issued pursuant to Sections 19-2 25 through 19-7 of this Code. 26 (k) Notwithstanding the debt limitation prescribed in 27 subsection (a) of this Section, a school district that meets 28 all the criteria set forth in paragraphs (1) through (4) of 29 this subsection (k) may issue bonds to incur an additional 30 indebtedness in an amount not to exceed $4,000,000 even 31 though the amount of the additional indebtedness authorized 32 by this subsection (k), when incurred and added to the 33 aggregate amount of indebtedness of the school district 34 existing immediately prior to the school district incurring HB2472 Engrossed -12- LRB9205962ACcd 1 such additional indebtedness, causes the aggregate 2 indebtedness of the school district to exceed or increases 3 the amount by which the aggregate indebtedness of the 4 district already exceeds the debt limitation otherwise 5 applicable to that school district under subsection (a): 6 (1) the school district is located in 2 counties, 7 and a referendum to authorize the additional indebtedness 8 was approved by a majority of the voters of the school 9 district voting on the proposition to authorize that 10 indebtedness; 11 (2) the additional indebtedness is for the purpose 12 of financing a multi-purpose room addition to the 13 existing high school; 14 (3) the additional indebtedness, together with the 15 existing indebtedness of the school district, shall not 16 exceed 17.4% of the value of the taxable property in the 17 school district, to be ascertained by the last assessment 18 for State and county taxes; and 19 (4) the bonds evidencing the additional 20 indebtedness are issued, if at all, within 120 days of 21 the effective date of this amendatory Act of 1998. 22 (l) Notwithstanding any other provisions of this Section 23 or the provisions of any other law, until January 1, 2000, a 24 school district maintaining grades kindergarten through 8 may 25 issue bonds up to an amount, including existing indebtedness, 26 not exceeding 15% of the equalized assessed value of the 27 taxable property in the district if all of the following 28 conditions are met: 29 (i) the district has an equalized assessed 30 valuation for calendar year 1996 of less than 31 $10,000,000; 32 (ii) the bonds are issued for capital improvement, 33 renovation, rehabilitation, or replacement of one or more 34 school buildings of the district, which buildings were HB2472 Engrossed -13- LRB9205962ACcd 1 originally constructed not less than 70 years ago; 2 (iii) the voters of the district approve a 3 proposition for the issuance of the bonds at a referendum 4 held on or after March 17, 1998; and 5 (iv) the bonds are issued pursuant to Sections 19-2 6 through 19-7 of this Code. 7 (m) Notwithstanding any other provisions of this Section 8 or the provisions of any other law, until January 1, 1999, an 9 elementary school district maintaining grades K through 8 may 10 issue bonds up to an amount, excluding existing indebtedness, 11 not exceeding 18% of the equalized assessed value of the 12 taxable property in the district, if all of the following 13 conditions are met: 14 (i) The school district has an equalized assessed 15 valuation for calendar year 1995 or less than $7,700,000; 16 (ii) The school district operates 2 elementary 17 attendance centers that until 1976 were operated as the 18 attendance centers of 2 separate and distinct school 19 districts; 20 (iii) The bonds are issued for the construction of 21 a new elementary school building to replace an existing 22 multi-level elementary school building of the school 23 district that is not handicapped accessible at all levels 24 and parts of which were constructed more than 75 years 25 ago; 26 (iv) The voters of the school district approve a 27 proposition for the issuance of the bonds at a referendum 28 held after July 1, 1998; and 29 (v) The bonds are issued pursuant to Sections 19-2 30 through 19-7 of this Code. 31 (n) Notwithstanding the debt limitation prescribed in 32 subsection (a) of this Section or any other provisions of 33 this Section or of any other law, a school district that 34 meets all of the criteria set forth in paragraphs (i) through HB2472 Engrossed -14- LRB9205962ACcd 1 (vi) of this subsection (n) may incur additional indebtedness 2 by the issuance of bonds in an amount not exceeding the 3 amount certified by the Capital Development Board to the 4 school district as provided in paragraph (iii) of this 5 subsection (n), even though the amount of the additional 6 indebtedness so authorized, when incurred and added to the 7 aggregate amount of indebtedness of the district existing 8 immediately prior to the district incurring the additional 9 indebtedness authorized by this subsection (n), causes the 10 aggregate indebtedness of the district to exceed the debt 11 limitation otherwise applicable by law to that district: 12 (i) The school district applies to the State Board 13 of Education for a school construction project grant and 14 submits a district facilities plan in support of its 15 application pursuant to Section 5-20 of the School 16 Construction Law. 17 (ii) The school district's application and 18 facilities plan are approved by, and the district 19 receives a grant entitlement for a school construction 20 project issued by, the State Board of Education under the 21 School Construction Law. 22 (iii) The school district has exhausted its bonding 23 capacity or the unused bonding capacity of the district 24 is less than the amount certified by the Capital 25 Development Board to the district under Section 5-15 of 26 the School Construction Law as the dollar amount of the 27 school construction project's cost that the district will 28 be required to finance with non-grant funds in order to 29 receive a school construction project grant under the 30 School Construction Law. 31 (iv) The bonds are issued for a "school 32 construction project", as that term is defined in Section 33 5-5 of the School Construction Law, in an amount that 34 does not exceed the dollar amount certified, as provided HB2472 Engrossed -15- LRB9205962ACcd 1 in paragraph (iii) of this subsection (n), by the Capital 2 Development Board to the school district under Section 3 5-15 of the School Construction Law. 4 (v) The voters of the district approve a 5 proposition for the issuance of the bonds at a referendum 6 held after the criteria specified in paragraphs (i) and 7 (ii)(iii)of this subsection (n) are met. 8 (vi) The bonds are issued pursuant to Sections 19-2 9 through 19-7 of the School Code. 10 (Source: P.A. 90-570, eff. 1-28-98; 90-757, eff. 8-14-98; 11 91-55, eff. 6-30-99.) 12 Section 99. Effective date. This Act takes effect upon 13 becoming law.