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92_SB1809
SRS92SB0069NCap
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5 changing Section 11-74.4-7 as follows:
6 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
7 Sec. 11-74.4-7. Issuance of obligations to provide for
8 project costs. Obligations secured by the special tax
9 allocation fund set forth in Section 11-74.4-8 for the
10 redevelopment project area may be issued to provide for
11 redevelopment project costs. Such obligations, when so
12 issued, shall be retired in the manner provided in the
13 ordinance authorizing the issuance of such obligations by the
14 receipts of taxes levied as specified in Section 11-74.4-9
15 against the taxable property included in the area, by
16 revenues as specified by Section 11-74.4-8a and other revenue
17 designated by the municipality. A municipality may in the
18 ordinance pledge all or any part of the funds in and to be
19 deposited in the special tax allocation fund created pursuant
20 to Section 11-74.4-8 to the payment of the redevelopment
21 project costs and obligations. Any pledge of funds in the
22 special tax allocation fund shall provide for distribution to
23 the taxing districts and to the Illinois Department of
24 Revenue of moneys not required, pledged, earmarked, or
25 otherwise designated for payment and securing of the
26 obligations and anticipated redevelopment project costs and
27 such excess funds shall be calculated annually and deemed to
28 be "surplus" funds. In the event a municipality only applies
29 or pledges a portion of the funds in the special tax
30 allocation fund for the payment or securing of anticipated
31 redevelopment project costs or of obligations, any such funds
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1 remaining in the special tax allocation fund after complying
2 with the requirements of the application or pledge, shall
3 also be calculated annually and deemed "surplus" funds. All
4 surplus funds in the special tax allocation fund shall be
5 distributed annually within 180 days after the close of the
6 municipality's fiscal year by being paid by the municipal
7 treasurer to the County Collector, to the Department of
8 Revenue and to the municipality in direct proportion to the
9 tax incremental revenue received as a result of an increase
10 in the equalized assessed value of property in the
11 redevelopment project area, tax incremental revenue received
12 from the State and tax incremental revenue received from the
13 municipality, but not to exceed as to each such source the
14 total incremental revenue received from that source. The
15 County Collector shall thereafter make distribution to the
16 respective taxing districts in the same manner and proportion
17 as the most recent distribution by the county collector to
18 the affected districts of real property taxes from real
19 property in the redevelopment project area.
20 Without limiting the foregoing in this Section, the
21 municipality may in addition to obligations secured by the
22 special tax allocation fund pledge for a period not greater
23 than the term of the obligations towards payment of such
24 obligations any part or any combination of the following: (a)
25 net revenues of all or part of any redevelopment project; (b)
26 taxes levied and collected on any or all property in the
27 municipality; (c) the full faith and credit of the
28 municipality; (d) a mortgage on part or all of the
29 redevelopment project; or (e) any other taxes or anticipated
30 receipts that the municipality may lawfully pledge.
31 Such obligations may be issued in one or more series
32 bearing interest at such rate or rates as the corporate
33 authorities of the municipality shall determine by ordinance.
34 Such obligations shall bear such date or dates, mature at
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1 such time or times not exceeding 20 years from their
2 respective dates, be in such denomination, carry such
3 registration privileges, be executed in such manner, be
4 payable in such medium of payment at such place or places,
5 contain such covenants, terms and conditions, and be subject
6 to redemption as such ordinance shall provide. Obligations
7 issued pursuant to this Act may be sold at public or private
8 sale at such price as shall be determined by the corporate
9 authorities of the municipalities. No referendum approval of
10 the electors shall be required as a condition to the issuance
11 of obligations pursuant to this Division except as provided
12 in this Section.
13 In the event the municipality authorizes issuance of
14 obligations pursuant to the authority of this Division
15 secured by the full faith and credit of the municipality,
16 which obligations are other than obligations which may be
17 issued under home rule powers provided by Article VII,
18 Section 6 of the Illinois Constitution, or pledges taxes
19 pursuant to (b) or (c) of the second paragraph of this
20 section, the ordinance authorizing the issuance of such
21 obligations or pledging such taxes shall be published within
22 10 days after such ordinance has been passed in one or more
23 newspapers, with general circulation within such
24 municipality. The publication of the ordinance shall be
25 accompanied by a notice of (1) the specific number of voters
26 required to sign a petition requesting the question of the
27 issuance of such obligations or pledging taxes to be
28 submitted to the electors; (2) the time in which such
29 petition must be filed; and (3) the date of the prospective
30 referendum. The municipal clerk shall provide a petition
31 form to any individual requesting one.
32 If no petition is filed with the municipal clerk, as
33 hereinafter provided in this Section, within 30 days after
34 the publication of the ordinance, the ordinance shall be in
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1 effect. But, if within that 30 day period a petition is
2 filed with the municipal clerk, signed by electors in the
3 municipality numbering 10% or more of the number of
4 registered voters in the municipality, asking that the
5 question of issuing obligations using full faith and credit
6 of the municipality as security for the cost of paying for
7 redevelopment project costs, or of pledging taxes for the
8 payment of such obligations, or both, be submitted to the
9 electors of the municipality, the corporate authorities of
10 the municipality shall call a special election in the manner
11 provided by law to vote upon that question, or, if a general,
12 State or municipal election is to be held within a period of
13 not less than 30 or more than 90 days from the date such
14 petition is filed, shall submit the question at the next
15 general, State or municipal election. If it appears upon the
16 canvass of the election by the corporate authorities that a
17 majority of electors voting upon the question voted in favor
18 thereof, the ordinance shall be in effect, but if a majority
19 of the electors voting upon the question are not in favor
20 thereof, the ordinance shall not take effect.
21 The ordinance authorizing the obligations may provide
22 that the obligations shall contain a recital that they are
23 issued pursuant to this Division, which recital shall be
24 conclusive evidence of their validity and of the regularity
25 of their issuance.
26 In the event the municipality authorizes issuance of
27 obligations pursuant to this Section secured by the full
28 faith and credit of the municipality, the ordinance
29 authorizing the obligations may provide for the levy and
30 collection of a direct annual tax upon all taxable property
31 within the municipality sufficient to pay the principal
32 thereof and interest thereon as it matures, which levy may be
33 in addition to and exclusive of the maximum of all other
34 taxes authorized to be levied by the municipality, which
-5- SRS92SB0069NCap
1 levy, however, shall be abated to the extent that monies from
2 other sources are available for payment of the obligations
3 and the municipality certifies the amount of said monies
4 available to the county clerk.
5 A certified copy of such ordinance shall be filed with
6 the county clerk of each county in which any portion of the
7 municipality is situated, and shall constitute the authority
8 for the extension and collection of the taxes to be deposited
9 in the special tax allocation fund.
10 A municipality may also issue its obligations to refund
11 in whole or in part, obligations theretofore issued by such
12 municipality under the authority of this Act, whether at or
13 prior to maturity, provided however, that the last maturity
14 of the refunding obligations shall not be expressed to mature
15 later than December 31 of the year in which the payment to
16 the municipal treasurer as provided in subsection (b) of
17 Section 11-74.4-8 of this Act is to be made with respect to
18 ad valorem taxes levied in the twenty-third calendar year
19 after the year in which the ordinance approving the
20 redevelopment project area is adopted if the ordinance was
21 adopted on or after January 15, 1981, and not later than
22 December 31 of the year in which the payment to the municipal
23 treasurer as provided in subsection (b) of Section 11-74.4-8
24 of this Act is to be made with respect to ad valorem taxes
25 levied in the thirty-fifth calendar year after the year in
26 which the ordinance approving the redevelopment project area
27 is adopted (A) if the ordinance was adopted before January
28 15, 1981, or (B) if the ordinance was adopted in December
29 1983, April 1984, July 1985, or December 1989, or (C) if the
30 ordinance was adopted in December, 1987 and the redevelopment
31 project is located within one mile of Midway Airport, or (D)
32 if the ordinance was adopted before January 1, 1987 by a
33 municipality in Mason County, or (E) if the municipality is
34 subject to the Local Government Financial Planning and
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1 Supervision Act or the Financially Distressed City Law, or
2 (F) if the ordinance was adopted in December 1984 by the
3 Village of Rosemont, or (G) if the ordinance was adopted on
4 December 31, 1986 by a municipality located in Clinton County
5 for which at least $250,000 of tax increment bonds were
6 authorized on June 17, 1997, or if the ordinance was adopted
7 on December 31, 1986 by a municipality with a population in
8 1990 of less than 3,600 that is located in a county with a
9 population in 1990 of less than 34,000 and for which at least
10 $250,000 of tax increment bonds were authorized on June 17,
11 1997, or (H) if the ordinance was adopted on October 5, 1982
12 by the City of Kankakee, or (I) if the ordinance was adopted
13 on December 29, 1986 by East St. Louis, or if the ordinance
14 was adopted on November 12, 1991 by the Village of Sauget, or
15 (J) if the ordinance was adopted on February 11, 1985 by the
16 City of Rock Island, or (K) if the ordinance was adopted
17 before December 18, 1986 by the City of Moline, or (L) if the
18 ordinance was adopted in September 1988 by Sauk Village, or
19 (M) if the ordinance was adopted in October 1993 by Sauk
20 Village, or (N) if the ordinance was adopted on December 29,
21 1986 by the City of Galva, or (O) if the ordinance was
22 adopted in March 1991 by the City of Centreville, or (P) (L)
23 if the ordinance was adopted on January 23, 1991 by the City
24 of East St. Louis and, for redevelopment project areas for
25 which bonds were issued before July 29, 1991, in connection
26 with a redevelopment project in the area within the State
27 Sales Tax Boundary and which were extended by municipal
28 ordinance under subsection (n) of Section 11-74.4-3, the last
29 maturity of the refunding obligations shall not be expressed
30 to mature later than the date on which the redevelopment
31 project area is terminated or December 31, 2013, whichever
32 date occurs first.
33 In the event a municipality issues obligations under home
34 rule powers or other legislative authority the proceeds of
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1 which are pledged to pay for redevelopment project costs, the
2 municipality may, if it has followed the procedures in
3 conformance with this division, retire said obligations from
4 funds in the special tax allocation fund in amounts and in
5 such manner as if such obligations had been issued pursuant
6 to the provisions of this division.
7 All obligations heretofore or hereafter issued pursuant
8 to this Act shall not be regarded as indebtedness of the
9 municipality issuing such obligations or any other taxing
10 district for the purpose of any limitation imposed by law.
11 (Source: P.A. 91-261, eff. 7-23-99; 91-477, eff. 8-11-99;
12 91-478, eff. 11-1-99; 91-642, eff. 8-20-99; 91-763, eff.
13 6-9-00; 92-263, eff. 8-7-01; 92-406, eff. 1-1-02; revised
14 10-10-01.)