Bill Text: IL SB1304 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that all surplus funds in the special tax allocation fund shall be distributed as soon as possible after they are calculated (rather than distributed annually within 180 days after the close of the municipality's fiscal year).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-15 - Rule 3-9(a) / Re-referred to Assignments [SB1304 Detail]

Download: Illinois-2023-SB1304-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1304 Introduced 2/3/2023, by Sen. Laura M. Murphy SYNOPSIS AS INTRODUCED:
65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7
Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that all surplus funds in the special tax allocation fund shall be distributed as soon as possible after they are calculated (rather than distributed annually within 180 days after the close of the municipality's fiscal year).
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A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Section 11-74.4-7 as follows:
(65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
Sec. 11-74.4-7. Obligations secured by the special tax
allocation fund set forth in Section 11-74.4-8 for the
redevelopment project area may be issued to provide for
redevelopment project costs. Such obligations, when so issued,
shall be retired in the manner provided in the ordinance
authorizing the issuance of such obligations by the receipts
of taxes levied as specified in Section 11-74.4-9 against the
taxable property included in the area, by revenues as
specified by Section 11-74.4-8a and other revenue designated
by the municipality. A municipality may in the ordinance
pledge all or any part of the funds in and to be deposited in
the special tax allocation fund created pursuant to Section
11-74.4-8 to the payment of the redevelopment project costs
and obligations. Any pledge of funds in the special tax
allocation fund shall provide for distribution to the taxing
districts and to the Illinois Department of Revenue of moneys
not required, pledged, earmarked, or otherwise designated for

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payment and securing of the obligations and anticipated
redevelopment project costs and such excess funds shall be
calculated annually and deemed to be "surplus" funds. In the
event a municipality only applies or pledges a portion of the
funds in the special tax allocation fund for the payment or
securing of anticipated redevelopment project costs or of
obligations, any such funds remaining in the special tax
allocation fund after complying with the requirements of the
application or pledge, shall also be calculated annually and
deemed "surplus" funds. All surplus funds in the special tax
allocation fund shall be distributed as soon as possible after
they are calculated under this Section annually within 180
days after the close of the municipality's fiscal year by
being paid by the municipal treasurer to the County Collector,
to the Department of Revenue and to the municipality in direct
proportion to the tax incremental revenue received as a result
of an increase in the equalized assessed value of property in
the redevelopment project area, tax incremental revenue
received from the State and tax incremental revenue received
from the municipality, but not to exceed as to each such source
the total incremental revenue received from that source. The
County Collector shall thereafter make distribution to the
respective taxing districts in the same manner and proportion
as the most recent distribution by the county collector to the
affected districts of real property taxes from real property
in the redevelopment project area.

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Without limiting the foregoing in this Section, the
municipality may in addition to obligations secured by the
special tax allocation fund pledge for a period not greater
than the term of the obligations towards payment of such
obligations any part or any combination of the following: (a)
net revenues of all or part of any redevelopment project; (b)
taxes levied and collected on any or all property in the
municipality; (c) the full faith and credit of the
municipality; (d) a mortgage on part or all of the
redevelopment project; (d-5) repayment of bonds issued
pursuant to subsection (p-130) of Section 19-1 of the School
Code; or (e) any other taxes or anticipated receipts that the
municipality may lawfully pledge.
Such obligations may be issued in one or more series
bearing interest at such rate or rates as the corporate
authorities of the municipality shall determine by ordinance.
Such obligations shall bear such date or dates, mature at such
time or times not exceeding 20 years from their respective
dates, be in such denomination, carry such registration
privileges, be executed in such manner, be payable in such
medium of payment at such place or places, contain such
covenants, terms and conditions, and be subject to redemption
as such ordinance shall provide. Obligations issued pursuant
to this Act may be sold at public or private sale at such price
as shall be determined by the corporate authorities of the
municipalities. No referendum approval of the electors shall

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be required as a condition to the issuance of obligations
pursuant to this Division except as provided in this Section.
In the event the municipality authorizes issuance of
obligations pursuant to the authority of this Division secured
by the full faith and credit of the municipality, which
obligations are other than obligations which may be issued
under home rule powers provided by Article VII, Section 6 of
the Illinois Constitution, or pledges taxes pursuant to (b) or
(c) of the second paragraph of this section, the ordinance
authorizing the issuance of such obligations or pledging such
taxes shall be published within 10 days after such ordinance
has been passed in one or more newspapers, with general
circulation within such municipality. The publication of the
ordinance shall be accompanied by a notice of (1) the specific
number of voters required to sign a petition requesting the
question of the issuance of such obligations or pledging taxes
to be submitted to the electors; (2) the time in which such
petition must be filed; and (3) the date of the prospective
referendum. The municipal clerk shall provide a petition form
to any individual requesting one.
If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 30 days after the
publication of the ordinance, the ordinance shall be in
effect. But, if within that 30 day period a petition is filed
with the municipal clerk, signed by electors in the
municipality numbering 10% or more of the number of registered

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voters in the municipality, asking that the question of
issuing obligations using full faith and credit of the
municipality as security for the cost of paying for
redevelopment project costs, or of pledging taxes for the
payment of such obligations, or both, be submitted to the
electors of the municipality, the corporate authorities of the
municipality shall call a special election in the manner
provided by law to vote upon that question, or, if a general,
State or municipal election is to be held within a period of
not less than 30 or more than 90 days from the date such
petition is filed, shall submit the question at the next
general, State or municipal election. If it appears upon the
canvass of the election by the corporate authorities that a
majority of electors voting upon the question voted in favor
thereof, the ordinance shall be in effect, but if a majority of
the electors voting upon the question are not in favor
thereof, the ordinance shall not take effect.
The ordinance authorizing the obligations may provide that
the obligations shall contain a recital that they are issued
pursuant to this Division, which recital shall be conclusive
evidence of their validity and of the regularity of their
issuance.
In the event the municipality authorizes issuance of
obligations pursuant to this Section secured by the full faith
and credit of the municipality, the ordinance authorizing the
obligations may provide for the levy and collection of a

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direct annual tax upon all taxable property within the
municipality sufficient to pay the principal thereof and
interest thereon as it matures, which levy may be in addition
to and exclusive of the maximum of all other taxes authorized
to be levied by the municipality, which levy, however, shall
be abated to the extent that monies from other sources are
available for payment of the obligations and the municipality
certifies the amount of said monies available to the county
clerk.
A certified copy of such ordinance shall be filed with the
county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the special tax allocation fund.
A municipality may also issue its obligations to refund in
whole or in part, obligations theretofore issued by such
municipality under the authority of this Act, whether at or
prior to maturity, provided however, that the last maturity of
the refunding obligations may not be later than the dates set
forth under Section 11-74.4-3.5.
In the event a municipality issues obligations under home
rule powers or other legislative authority the proceeds of
which are pledged to pay for redevelopment project costs, the
municipality may, if it has followed the procedures in
conformance with this division, retire said obligations from
funds in the special tax allocation fund in amounts and in such

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manner as if such obligations had been issued pursuant to the
provisions of this division.
All obligations heretofore or hereafter issued pursuant to
this Act shall not be regarded as indebtedness of the
municipality issuing such obligations or any other taxing
district for the purpose of any limitation imposed by law.
(Source: P.A. 100-531, eff. 9-22-17.)