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Public Act 91-0055
SB840 Enrolled LRB9105899NTsb
AN ACT relating to school construction projects, amending
named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by changing
Section 19-1 as follows:
(105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
Sec. 19-1. Debt limitations of school districts.
(a) School districts shall not be subject to the
provisions limiting their indebtedness prescribed in "An Act
to limit the indebtedness of counties having a population of
less than 500,000 and townships, school districts and other
municipal corporations having a population of less than
300,000", approved February 15, 1928, as amended.
No school districts maintaining grades K through 8 or 9
through 12 shall become indebted in any manner or for any
purpose to an amount, including existing indebtedness, in the
aggregate exceeding 6.9% on the value of the taxable property
therein to be ascertained by the last assessment for State
and county taxes or, until January 1, 1983, if greater, the
sum that is produced by multiplying the school district's
1978 equalized assessed valuation by the debt limitation
percentage in effect on January 1, 1979, previous to the
incurring of such indebtedness.
No school districts maintaining grades K through 12 shall
become indebted in any manner or for any purpose to an
amount, including existing indebtedness, in the aggregate
exceeding 13.8% on the value of the taxable property therein
to be ascertained by the last assessment for State and county
taxes or, until January 1, 1983, if greater, the sum that is
produced by multiplying the school district's 1978 equalized
assessed valuation by the debt limitation percentage in
effect on January 1, 1979, previous to the incurring of such
indebtedness.
Notwithstanding the provisions of any other law to the
contrary, in any case in which the voters of a school
district have approved a proposition for the issuance of
bonds of such school district at an election held prior to
January 1, 1979, and all of the bonds approved at such
election have not been issued, the debt limitation applicable
to such school district during the calendar year 1979 shall
be computed by multiplying the value of taxable property
therein, including personal property, as ascertained by the
last assessment for State and county taxes, previous to the
incurring of such indebtedness, by the percentage limitation
applicable to such school district under the provisions of
this subsection (a).
(b) Notwithstanding the debt limitation prescribed in
subsection (a) of this Section, additional indebtedness may
be incurred in an amount not to exceed the estimated cost of
acquiring or improving school sites or constructing and
equipping additional building facilities under the following
conditions:
(1) Whenever the enrollment of students for the
next school year is estimated by the board of education
to increase over the actual present enrollment by not
less than 35% or by not less than 200 students or the
actual present enrollment of students has increased over
the previous school year by not less than 35% or by not
less than 200 students and the board of education
determines that additional school sites or building
facilities are required as a result of such increase in
enrollment; and
(2) When the Regional Superintendent of Schools
having jurisdiction over the school district and the
State Superintendent of Education concur in such
enrollment projection or increase and approve the need
for such additional school sites or building facilities
and the estimated cost thereof; and
(3) When the voters in the school district approve
a proposition for the issuance of bonds for the purpose
of acquiring or improving such needed school sites or
constructing and equipping such needed additional
building facilities at an election called and held for
that purpose. Notice of such an election shall state that
the amount of indebtedness proposed to be incurred would
exceed the debt limitation otherwise applicable to the
school district. The ballot for such proposition shall
state what percentage of the equalized assessed valuation
will be outstanding in bonds if the proposed issuance of
bonds is approved by the voters; or
(4) Notwithstanding the provisions of paragraphs
(1) through (3) of this subsection (b), if the school
board determines that additional facilities are needed to
provide a quality educational program and not less than
2/3 of those voting in an election called by the school
board on the question approve the issuance of bonds for
the construction of such facilities, the school district
may issue bonds for this purpose; or
(5) Notwithstanding the provisions of paragraphs
(1) through (3) of this subsection (b), if (i) the school
district has previously availed itself of the provisions
of paragraph (4) of this subsection (b) to enable it to
issue bonds, (ii) the voters of the school district have
not defeated a proposition for the issuance of bonds
since the referendum described in paragraph (4) of this
subsection (b) was held, (iii) the school board
determines that additional facilities are needed to
provide a quality educational program, and (iv) a
majority of those voting in an election called by the
school board on the question approve the issuance of
bonds for the construction of such facilities, the school
district may issue bonds for this purpose.
In no event shall the indebtedness incurred pursuant to
this subsection (b) and the existing indebtedness of the
school district exceed 15% of the value of the taxable
property therein to be ascertained by the last assessment for
State and county taxes, previous to the incurring of such
indebtedness or, until January 1, 1983, if greater, the sum
that is produced by multiplying the school district's 1978
equalized assessed valuation by the debt limitation
percentage in effect on January 1, 1979.
The indebtedness provided for by this subsection (b)
shall be in addition to and in excess of any other debt
limitation.
(c) Notwithstanding the debt limitation prescribed in
subsection (a) of this Section, in any case in which a public
question for the issuance of bonds of a proposed school
district maintaining grades kindergarten through 12 received
at least 60% of the valid ballots cast on the question at an
election held on or prior to November 8, 1994, and in which
the bonds approved at such election have not been issued, the
school district pursuant to the requirements of Section
11A-10 may issue the total amount of bonds approved at such
election for the purpose stated in the question.
(d) Notwithstanding the debt limitation prescribed in
subsection (a) of this Section, a school district that meets
all the criteria set forth in paragraphs (1) and (2) of this
subsection (d) may incur an additional indebtedness in an
amount not to exceed $4,500,000, even though the amount of
the additional indebtedness authorized by this subsection
(d), when incurred and added to the aggregate amount of
indebtedness of the district existing immediately prior to
the district incurring the additional indebtedness authorized
by this subsection (d), causes the aggregate indebtedness of
the district to exceed the debt limitation otherwise
applicable to that district under subsection (a):
(1) The additional indebtedness authorized by this
subsection (d) is incurred by the school district through
the issuance of bonds under and in accordance with
Section 17-2.11a for the purpose of replacing a school
building which, because of mine subsidence damage, has
been closed as provided in paragraph (2) of this
subsection (d) or through the issuance of bonds under and
in accordance with Section 19-3 for the purpose of
increasing the size of, or providing for additional
functions in, such replacement school buildings, or both
such purposes.
(2) The bonds issued by the school district as
provided in paragraph (1) above are issued for the
purposes of construction by the school district of a new
school building pursuant to Section 17-2.11, to replace
an existing school building that, because of mine
subsidence damage, is closed as of the end of the 1992-93
school year pursuant to action of the regional
superintendent of schools of the educational service
region in which the district is located under Section
3-14.22 or are issued for the purpose of increasing the
size of, or providing for additional functions in, the
new school building being constructed to replace a school
building closed as the result of mine subsidence damage,
or both such purposes.
(e) Notwithstanding the debt limitation prescribed in
subsection (a) of this Section, a school district that meets
all the criteria set forth in paragraphs (1) through (5) of
this subsection (e) may, without referendum, incur an
additional indebtedness in an amount not to exceed the lesser
of $5,000,000 or 1.5% of the value of the taxable property
within the district even though the amount of the additional
indebtedness authorized by this subsection (e), when incurred
and added to the aggregate amount of indebtedness of the
district existing immediately prior to the district incurring
that additional indebtedness, causes the aggregate
indebtedness of the district to exceed or increases the
amount by which the aggregate indebtedness of the district
already exceeds the debt limitation otherwise applicable to
that district under subsection (a):
(1) The State Board of Education certifies the
school district under Section 19-1.5 as a financially
distressed district.
(2) The additional indebtedness authorized by this
subsection (e) is incurred by the financially distressed
district during the school year or school years in which
the certification of the district as a financially
distressed district continues in effect through the
issuance of bonds for the lawful school purposes of the
district, pursuant to resolution of the school board and
without referendum, as provided in paragraph (5) of this
subsection.
(3) The aggregate amount of bonds issued by the
financially distressed district during a fiscal year in
which it is authorized to issue bonds under this
subsection does not exceed the amount by which the
aggregate expenditures of the district for operational
purposes during the immediately preceding fiscal year
exceeds the amount appropriated for the operational
purposes of the district in the annual school budget
adopted by the school board of the district for the
fiscal year in which the bonds are issued.
(4) Throughout each fiscal year in which
certification of the district as a financially distressed
district continues in effect, the district maintains in
effect a gross salary expense and gross wage expense
freeze policy under which the district expenditures for
total employee salaries and wages do not exceed such
expenditures for the immediately preceding fiscal year.
Nothing in this paragraph, however, shall be deemed to
impair or to require impairment of the contractual
obligations, including collective bargaining agreements,
of the district or to impair or require the impairment of
the vested rights of any employee of the district under
the terms of any contract or agreement in effect on the
effective date of this amendatory Act of 1994.
(5) Bonds issued by the financially distressed
district under this subsection shall bear interest at a
rate not to exceed the maximum rate authorized by law at
the time of the making of the contract, shall mature
within 40 years from their date of issue, and shall be
signed by the president of the school board and treasurer
of the school district. In order to issue bonds under
this subsection, the school board shall adopt a
resolution fixing the amount of the bonds, the date of
the bonds, the maturities of the bonds, the rates of
interest of the bonds, and their place of payment and
denomination, and shall provide for the levy and
collection of a direct annual tax upon all the taxable
property in the district sufficient to pay the principal
and interest on the bonds to maturity. Upon the filing
in the office of the county clerk of the county in which
the financially distressed district is located of a
certified copy of the resolution, it is the duty of the
county clerk to extend the tax therefor in addition to
and in excess of all other taxes at any time authorized
to be levied by the district. If bond proceeds from the
sale of bonds include a premium or if the proceeds of the
bonds are invested as authorized by law, the school board
shall determine by resolution whether the interest earned
on the investment of bond proceeds or the premium
realized on the sale of the bonds is to be used for any
of the lawful school purposes for which the bonds were
issued or for the payment of the principal indebtedness
and interest on the bonds. The proceeds of the bond sale
shall be deposited in the educational purposes fund of
the district and shall be used to pay operational
expenses of the district. This subsection is cumulative
and constitutes complete authority for the issuance of
bonds as provided in this subsection, notwithstanding any
other law to the contrary.
(f) Notwithstanding the provisions of subsection (a) of
this Section or of any other law, bonds in not to exceed the
aggregate amount of $5,500,000 and issued by a school
district meeting the following criteria shall not be
considered indebtedness for purposes of any statutory
limitation and may be issued in an amount or amounts,
including existing indebtedness, in excess of any heretofore
or hereafter imposed statutory limitation as to indebtedness:
(1) At the time of the sale of such bonds, the
board of education of the district shall have determined
by resolution that the enrollment of students in the
district is projected to increase by not less than 7%
during each of the next succeeding 2 school years.
(2) The board of education shall also determine by
resolution that the improvements to be financed with the
proceeds of the bonds are needed because of the projected
enrollment increases.
(3) The board of education shall also determine by
resolution that the projected increases in enrollment are
the result of improvements made or expected to be made to
passenger rail facilities located in the school district.
(g) Notwithstanding the provisions of subsection (a) of
this Section or any other law, bonds in not to exceed an
aggregate amount of 25% of the equalized assessed value of
the taxable property of a school district and issued by a
school district meeting the criteria in paragraphs (i)
through (iv) of this subsection shall not be considered
indebtedness for purposes of any statutory limitation and may
be issued pursuant to resolution of the school board in an
amount or amounts, including existing indebtedness, in excess
of any statutory limitation of indebtedness heretofore or
hereafter imposed:
(i) The bonds are issued for the purpose of
constructing a new high school building to replace two
adjacent existing buildings which together house a single
high school, each of which is more than 65 years old, and
which together are located on more than 10 acres and less
than 11 acres of property.
(ii) At the time the resolution authorizing the
issuance of the bonds is adopted, the cost of
constructing a new school building to replace the
existing school building is less than 60% of the cost of
repairing the existing school building.
(iii) The sale of the bonds occurs before July 1,
1997.
(iv) The school district issuing the bonds is a
unit school district located in a county of less than
70,000 and more than 50,000 inhabitants, which has an
average daily attendance of less than 1,500 and an
equalized assessed valuation of less than $29,000,000.
(h) Notwithstanding any other provisions of this Section
or the provisions of any other law, until January 1, 1998, a
community unit school district maintaining grades K through
12 may issue bonds up to an amount, including existing
indebtedness, not exceeding 27.6% of the equalized assessed
value of the taxable property in the district, if all of the
following conditions are met:
(i) The school district has an equalized assessed
valuation for calendar year 1995 of less than
$24,000,000;
(ii) The bonds are issued for the capital
improvement, renovation, rehabilitation, or replacement
of existing school buildings of the district, all of
which buildings were originally constructed not less than
40 years ago;
(iii) The voters of the district approve a
proposition for the issuance of the bonds at a referendum
held after March 19, 1996; and
(iv) The bonds are issued pursuant to Sections 19-2
through 19-7 of this Code.
(i) Notwithstanding any other provisions of this Section
or the provisions of any other law, until January 1, 1998, a
community unit school district maintaining grades K through
12 may issue bonds up to an amount, including existing
indebtedness, not exceeding 27% of the equalized assessed
value of the taxable property in the district, if all of the
following conditions are met:
(i) The school district has an equalized assessed
valuation for calendar year 1995 of less than
$44,600,000;
(ii) The bonds are issued for the capital
improvement, renovation, rehabilitation, or replacement
of existing school buildings of the district, all of
which existing buildings were originally constructed not
less than 80 years ago;
(iii) The voters of the district approve a
proposition for the issuance of the bonds at a referendum
held after December 31, 1996; and
(iv) The bonds are issued pursuant to Sections 19-2
through 19-7 of this Code.
(j) Notwithstanding any other provisions of this Section
or the provisions of any other law, until January 1, 1999, a
community unit school district maintaining grades K through
12 may issue bonds up to an amount, including existing
indebtedness, not exceeding 27% of the equalized assessed
value of the taxable property in the district if all of the
following conditions are met:
(i) The school district has an equalized assessed
valuation for calendar year 1995 of less than
$140,000,000 and a best 3 months average daily attendance
for the 1995-96 school year of at least 2,800;
(ii) The bonds are issued to purchase a site and
build and equip a new high school, and the school
district's existing high school was originally
constructed not less than 35 years prior to the sale of
the bonds;
(iii) At the time of the sale of the bonds, the
board of education determines by resolution that a new
high school is needed because of projected enrollment
increases;
(iv) At least 60% of those voting in an election
held after December 31, 1996 approve a proposition for
the issuance of the bonds; and
(v) The bonds are issued pursuant to Sections 19-2
through 19-7 of this Code.
(k) Notwithstanding the debt limitation prescribed in
subsection (a) of this Section, a school district that meets
all the criteria set forth in paragraphs (1) through (4) of
this subsection (k) may issue bonds to incur an additional
indebtedness in an amount not to exceed $4,000,000 even
though the amount of the additional indebtedness authorized
by this subsection (k), when incurred and added to the
aggregate amount of indebtedness of the school district
existing immediately prior to the school district incurring
such additional indebtedness, causes the aggregate
indebtedness of the school district to exceed or increases
the amount by which the aggregate indebtedness of the
district already exceeds the debt limitation otherwise
applicable to that school district under subsection (a):
(1) the school district is located in 2 counties,
and a referendum to authorize the additional indebtedness
was approved by a majority of the voters of the school
district voting on the proposition to authorize that
indebtedness;
(2) the additional indebtedness is for the purpose
of financing a multi-purpose room addition to the
existing high school;
(3) the additional indebtedness, together with the
existing indebtedness of the school district, shall not
exceed 17.4% of the value of the taxable property in the
school district, to be ascertained by the last assessment
for State and county taxes; and
(4) the bonds evidencing the additional
indebtedness are issued, if at all, within 120 days of
the effective date of this amendatory Act of 1998.
(l) Notwithstanding any other provisions of this Section
or the provisions of any other law, until January 1, 2000, a
school district maintaining grades kindergarten through 8 may
issue bonds up to an amount, including existing indebtedness,
not exceeding 15% of the equalized assessed value of the
taxable property in the district if all of the following
conditions are met:
(i) the district has an equalized assessed
valuation for calendar year 1996 of less than
$10,000,000;
(ii) the bonds are issued for capital improvement,
renovation, rehabilitation, or replacement of one or more
school buildings of the district, which buildings were
originally constructed not less than 70 years ago;
(iii) the voters of the district approve a
proposition for the issuance of the bonds at a referendum
held on or after March 17, 1998; and
(iv) the bonds are issued pursuant to Sections 19-2
through 19-7 of this Code.
(m) Notwithstanding any other provisions of this Section
or the provisions of any other law, until January 1, 1999, an
elementary school district maintaining grades K through 8 may
issue bonds up to an amount, excluding existing indebtedness,
not exceeding 18% of the equalized assessed value of the
taxable property in the district, if all of the following
conditions are met:
(i) The school district has an equalized assessed
valuation for calendar year 1995 or less than $7,700,000;
(ii) The school district operates 2 elementary
attendance centers that until 1976 were operated as the
attendance centers of 2 separate and distinct school
districts;
(iii) The bonds are issued for the construction of
a new elementary school building to replace an existing
multi-level elementary school building of the school
district that is not handicapped accessible at all levels
and parts of which were constructed more than 75 years
ago;
(iv) The voters of the school district approve a
proposition for the issuance of the bonds at a referendum
held after July 1, 1998; and
(v) The bonds are issued pursuant to Sections 19-2
through 19-7 of this Code.
(n) Notwithstanding the debt limitation prescribed in
subsection (a) of this Section or any other provisions of
this Section or of any other law, a school district that
meets all of the criteria set forth in paragraphs (i) through
(vi) of this subsection (n) may incur additional indebtedness
by the issuance of bonds in an amount not exceeding the
amount certified by the Capital Development Board to the
school district as provided in paragraph (iii) of this
subsection (n), even though the amount of the additional
indebtedness so authorized, when incurred and added to the
aggregate amount of indebtedness of the district existing
immediately prior to the district incurring the additional
indebtedness authorized by this subsection (n), causes the
aggregate indebtedness of the district to exceed the debt
limitation otherwise applicable by law to that district:
(i) The school district applies to the State Board
of Education for a school construction project grant and
submits a district facilities plan in support of its
application pursuant to Section 5-20 of the School
Construction Law.
(ii) The school district's application and
facilities plan are approved by, and the district
receives a grant entitlement for a school construction
project issued by, the State Board of Education under the
School Construction Law.
(iii) The school district has exhausted its bonding
capacity or the unused bonding capacity of the district
is less than the amount certified by the Capital
Development Board to the district under Section 5-15 of
the School Construction Law as the dollar amount of the
school construction project's cost that the district will
be required to finance with non-grant funds in order to
receive a school construction project grant under the
School Construction Law.
(iv) The bonds are issued for a "school
construction project", as that term is defined in Section
5-5 of the School Construction Law, in an amount that
does not exceed the dollar amount certified, as provided
in paragraph (iii) of this subsection (n), by the Capital
Development Board to the school district under Section
5-15 of the School Construction Law.
(v) The voters of the district approve a
proposition for the issuance of the bonds at a referendum
held after the criteria specified in paragraphs (i) and
(iii) of this subsection (n) are met.
(vi) The bonds are issued pursuant to Sections 19-2
through 19-7 of the School Code.
(Source: P.A. 89-47, eff. 7-1-95; 89-661, eff. 1-1-97;
89-698, eff. 1-14-97; 90-570, eff. 1-28-98; 90-757, eff.
8-14-98.)
Section 10. The School Construction Law is amended by
changing Sections 5-15 and 5-20 as follows:
(105 ILCS 230/5-15)
Sec. 5-15. Grant entitlements. The State Board of
Education is authorized to issue grant entitlements for
school construction projects and debt service and shall
determine the priority order for school construction project
grants to be made by the Capital Development Board. When
issuing a grant entitlement for a school construction
project, the Capital Development Board, as a part of that
entitlement, shall certify to the district receiving the
entitlement the dollar amount of the school construction
project's cost that the district will be required to finance
with non-grant funds in order to qualify to receive a school
construction project grant under this Article from the
Capital Development Board.
(Source: P.A. 90-548, eff. 1-1-98.)
(105 ILCS 230/5-20)
Sec. 5-20. Grant application; district facilities plan.
School districts shall apply to the State Board of Education
for school construction project grants and debt service
grants. Districts filing grant applications shall submit to
the State Board a district facilities plan that shall
include, but not be limited to, an assessment of present and
future district facility needs as required by present and
anticipated educational programming, the availability of
local financial resources including current revenues, fund
balances, and unused bonding capacity, a fiscal plan for
meeting present and anticipated debt service obligations, and
a maintenance plan and schedule that contain necessary
assurances that new, renovated, and existing facilities are
being or will be properly maintained. If a district that
applies for a school construction project grant has no unused
bonding capacity or if its unused bonding capacity may be
less than the portion of the cost of the proposed school
construction project that the district would be required to
finance with non-grant funds, the application and facilities
plan submitted by the district shall set forth the estimated
amount of the project's cost that the district proposes to
finance by the issuance of bonds under subsection (n) of
Section 19-1 of the School Code. The State Board of Education
shall review and approve district facilities plans prior to
issuing grant entitlements. Each district that receives a
grant entitlement shall annually update its district
facilities plan and submit the revised plan to the State
Board for approval.
(Source: P.A. 90-548, eff. 1-1-98.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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