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| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1208 Introduced 2/8/2011, by Rep. Maria Antonia Berrios SYNOPSIS AS INTRODUCED:
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| 65 ILCS 5/11-74.4-7 | from Ch. 24, par. 11-74.4-7 |
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Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that all accumulated tax incremental revenues not specifically appropriated for defined costs for projects within a redevelopment project area by the end of a municipality's fiscal year shall be deemed "surplus" funds. Provides that all surplus funds in the special tax allocation
fund shall be distributed annually within 60 (instead of 180) days after the close of the
municipality's fiscal year. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
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| 1 | | AN ACT concerning local government.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Municipal Code is amended by |
| 5 | | changing Section 11-74.4-7 as follows:
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| 6 | | (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
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| 7 | | Sec. 11-74.4-7. Obligations secured by the special tax |
| 8 | | allocation fund
set forth in Section 11-74.4-8 for the |
| 9 | | redevelopment project area may be
issued to provide for |
| 10 | | redevelopment project costs. Such obligations, when
so issued, |
| 11 | | shall be retired in the manner provided in the ordinance
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| 12 | | authorizing the issuance of such obligations by the receipts of |
| 13 | | taxes
levied as specified in Section 11-74.4-9 against the |
| 14 | | taxable property
included in the area, by revenues as specified |
| 15 | | by Section 11-74.4-8a and
other revenue designated by the |
| 16 | | municipality. A municipality may in the
ordinance pledge all or |
| 17 | | any part of the funds in and to be deposited in the
special tax |
| 18 | | allocation fund created pursuant to Section 11-74.4-8 to the
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| 19 | | payment of the redevelopment project costs and obligations. Any |
| 20 | | pledge of
funds in the special tax allocation fund shall |
| 21 | | provide for distribution to
the taxing districts and to the |
| 22 | | Illinois Department of Revenue of moneys
not required, pledged, |
| 23 | | earmarked, or otherwise designated for payment and
securing of |
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| 1 | | the obligations and anticipated redevelopment project costs |
| 2 | | and
such excess funds shall be calculated annually and deemed |
| 3 | | to be "surplus"
funds. In the event a municipality only applies |
| 4 | | or pledges a portion of the
funds in the special tax allocation |
| 5 | | fund for the payment or securing of
anticipated redevelopment |
| 6 | | project costs or of obligations, any such funds
remaining in |
| 7 | | the special tax allocation fund after complying with the
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| 8 | | requirements of the application or pledge, shall also be |
| 9 | | calculated annually
and deemed "surplus" funds. |
| 10 | | Notwithstanding the foregoing, after the effective date of this |
| 11 | | amendatory Act of the 97th General Assembly, all accumulated |
| 12 | | tax incremental revenues not specifically appropriated for |
| 13 | | defined costs for projects within a redevelopment project area |
| 14 | | by the end of a municipality's fiscal year shall also be deemed |
| 15 | | "surplus" funds. All surplus funds in the special tax |
| 16 | | allocation
fund shall be distributed annually within 60 180 |
| 17 | | days after the close of the
municipality's fiscal year by being |
| 18 | | paid by the
municipal treasurer to the County Collector, to the |
| 19 | | Department of Revenue
and to the municipality in direct |
| 20 | | proportion to the tax incremental revenue
received as a result |
| 21 | | of an increase in the equalized assessed value of
property in |
| 22 | | the redevelopment project area, tax incremental revenue
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| 23 | | received from the State and tax incremental revenue received |
| 24 | | from the
municipality, but not to exceed as to each such source |
| 25 | | the total
incremental revenue received from that source. The |
| 26 | | County Collector shall
thereafter make distribution to the |
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| 1 | | respective taxing districts in the same
manner and proportion |
| 2 | | as the most recent distribution by the county
collector to the |
| 3 | | affected districts of real property taxes from real
property in |
| 4 | | the redevelopment project area.
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| 5 | | Without limiting the foregoing in this Section, the |
| 6 | | municipality may in
addition to obligations secured by the |
| 7 | | special tax allocation fund pledge
for a period not greater |
| 8 | | than the term of the obligations towards payment
of such |
| 9 | | obligations any part or any combination of the following: (a) |
| 10 | | net
revenues of all or part of any redevelopment project; (b) |
| 11 | | taxes levied and
collected on any or all property in the |
| 12 | | municipality; (c) the full faith
and credit of the |
| 13 | | municipality; (d) a mortgage on part or all of the
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| 14 | | redevelopment project; or (e) any other taxes or anticipated |
| 15 | | receipts that
the municipality may lawfully pledge.
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| 16 | | Such obligations may be issued in one or more series |
| 17 | | bearing interest at
such rate or rates as the corporate |
| 18 | | authorities of the municipality shall
determine by ordinance. |
| 19 | | Such obligations shall bear such date or dates,
mature at such |
| 20 | | time or times not exceeding 20 years from their respective
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| 21 | | dates, be in such denomination, carry such registration |
| 22 | | privileges, be executed
in such manner, be payable in such |
| 23 | | medium of payment at such place or places,
contain such |
| 24 | | covenants, terms and conditions, and be subject to redemption
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| 25 | | as such ordinance shall provide. Obligations issued pursuant to |
| 26 | | this Act
may be sold at public or private sale at such price as |
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| 1 | | shall be determined
by the corporate authorities of the |
| 2 | | municipalities. No referendum approval
of the electors shall be |
| 3 | | required as a condition to the issuance of obligations
pursuant |
| 4 | | to this Division except as provided in this Section.
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| 5 | | In the event the municipality authorizes issuance of |
| 6 | | obligations pursuant
to the authority of this Division secured |
| 7 | | by the full faith and credit of
the municipality, which |
| 8 | | obligations are other than obligations which may
be issued |
| 9 | | under home rule powers provided by Article VII, Section 6 of |
| 10 | | the
Illinois Constitution, or pledges taxes pursuant to (b) or |
| 11 | | (c) of the second
paragraph of this section, the ordinance |
| 12 | | authorizing the issuance of such
obligations or pledging such |
| 13 | | taxes shall be published within 10 days after
such ordinance |
| 14 | | has been passed in one or more newspapers, with general
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| 15 | | circulation within such municipality. The publication of the |
| 16 | | ordinance
shall be accompanied by a notice of (1) the specific |
| 17 | | number of voters
required to sign a petition requesting the |
| 18 | | question of the issuance of such
obligations or pledging taxes |
| 19 | | to be submitted to the electors; (2) the time
in which such |
| 20 | | petition must be filed; and (3) the date of the prospective
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| 21 | | referendum. The municipal clerk shall provide a petition form |
| 22 | | to any
individual requesting one.
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| 23 | | If no petition is filed with the municipal clerk, as |
| 24 | | hereinafter provided
in this Section, within 30 days after the |
| 25 | | publication of the ordinance,
the ordinance shall be in effect. |
| 26 | | But, if within that 30 day period a petition
is filed with the |
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| 1 | | municipal clerk, signed by electors in the
municipality |
| 2 | | numbering 10% or more of the number of registered voters in the
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| 3 | | municipality, asking that the question of issuing
obligations |
| 4 | | using full faith and credit of the municipality as security
for |
| 5 | | the cost of paying for redevelopment project costs, or of |
| 6 | | pledging taxes
for the payment of such obligations, or both, be |
| 7 | | submitted to the electors
of the municipality, the corporate |
| 8 | | authorities of the municipality shall
call a special election |
| 9 | | in the manner provided by law to vote upon that
question, or, |
| 10 | | if a general, State or municipal election is to be held within
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| 11 | | a period of not less than 30 or more than 90 days from the date |
| 12 | | such petition
is filed, shall submit the question at the next |
| 13 | | general, State or municipal
election. If it appears upon the |
| 14 | | canvass of the election by the corporate
authorities that a |
| 15 | | majority of electors voting upon the question voted in
favor |
| 16 | | thereof, the ordinance shall be in effect, but if a majority of |
| 17 | | the
electors voting upon the question are not in favor thereof, |
| 18 | | the ordinance
shall not take effect.
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| 19 | | The ordinance authorizing the obligations may provide that |
| 20 | | the obligations
shall contain a recital that they are issued |
| 21 | | pursuant to this Division,
which recital shall be conclusive |
| 22 | | evidence of their validity and of the
regularity of their |
| 23 | | issuance.
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| 24 | | In the event the municipality authorizes issuance of |
| 25 | | obligations pursuant
to this Section secured by the full faith |
| 26 | | and credit of the municipality,
the ordinance authorizing the |
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| 1 | | obligations may provide for the levy and
collection of a direct |
| 2 | | annual tax upon all taxable property within the
municipality |
| 3 | | sufficient to pay the principal thereof and interest thereon
as |
| 4 | | it matures, which levy may be in addition to and exclusive of |
| 5 | | the
maximum of all other taxes authorized to be levied by the |
| 6 | | municipality,
which levy, however, shall be abated to the |
| 7 | | extent that monies from other
sources are available for payment |
| 8 | | of the obligations and the municipality
certifies the amount of |
| 9 | | said monies available to the county clerk.
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| 10 | | A certified copy of such ordinance shall be filed with the |
| 11 | | county clerk
of each county in which any portion of the |
| 12 | | municipality is situated, and
shall constitute the authority |
| 13 | | for the extension and collection of the taxes
to be deposited |
| 14 | | in the special tax allocation fund.
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| 15 | | A municipality may also issue its obligations to refund in |
| 16 | | whole or in
part, obligations theretofore issued by such |
| 17 | | municipality under the authority
of this Act, whether at or |
| 18 | | prior to maturity, provided however, that the
last maturity of |
| 19 | | the refunding obligations may not be later than the dates set |
| 20 | | forth under Section 11-74.4-3.5.
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| 21 | | In the event a municipality issues obligations under home |
| 22 | | rule powers or
other legislative authority the proceeds of |
| 23 | | which are pledged to pay
for redevelopment project costs, the |
| 24 | | municipality may, if it has followed
the procedures in |
| 25 | | conformance with this division, retire said obligations
from |
| 26 | | funds in the special tax allocation fund in amounts and in such |
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| 1 | | manner
as if such obligations had been issued pursuant to the |
| 2 | | provisions of this
division.
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| 3 | | All obligations heretofore or hereafter issued pursuant to |
| 4 | | this Act shall
not be regarded as indebtedness of the |
| 5 | | municipality issuing such obligations
or any other taxing |
| 6 | | district for the purpose of any limitation imposed by law.
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| 7 | | (Source: P.A. 95-15, eff. 7-16-07; 95-164, eff. 1-1-08; 95-331, |
| 8 | | eff. 8-21-07; 95-346, eff. 8-21-07; 95-459, eff. 8-27-07; |
| 9 | | 95-653, eff. 1-1-08; 95-662, eff. 10-11-07; 95-683, eff. |
| 10 | | 10-19-07; 95-709, eff. 1-29-08; 95-876, eff. 8-21-08; 95-932, |
| 11 | | eff. 8-26-08; 95-964, eff. 9-23-08; 95-977, eff. 9-22-08; |
| 12 | | 95-1028, eff. 8-25-09 (see Section 5 of P.A. 96-717 for the |
| 13 | | effective date of changes made by P.A. 95-1028); 96-328, eff. |
| 14 | | 8-11-09; 96-1000, eff. 7-2-10.)
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| 15 | | Section 99. Effective date. This Act takes effect upon |
| 16 | | becoming law.
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