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


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


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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1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5changing 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. Obligations secured by the special tax
8allocation fund set forth in Section 11-74.4-8 for the
9redevelopment project area may be issued to provide for
10redevelopment project costs. Such obligations, when so issued,
11shall be retired in the manner provided in the ordinance
12authorizing the issuance of such obligations by the receipts
13of taxes levied as specified in Section 11-74.4-9 against the
14taxable property included in the area, by revenues as
15specified by Section 11-74.4-8a and other revenue designated
16by the municipality. A municipality may in the ordinance
17pledge all or any part of the funds in and to be deposited in
18the special tax allocation fund created pursuant to Section
1911-74.4-8 to the payment of the redevelopment project costs
20and obligations. Any pledge of funds in the special tax
21allocation fund shall provide for distribution to the taxing
22districts and to the Illinois Department of Revenue of moneys
23not required, pledged, earmarked, or otherwise designated for

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1payment and securing of the obligations and anticipated
2redevelopment project costs and such excess funds shall be
3calculated annually and deemed to be "surplus" funds. In the
4event a municipality only applies or pledges a portion of the
5funds in the special tax allocation fund for the payment or
6securing of anticipated redevelopment project costs or of
7obligations, any such funds remaining in the special tax
8allocation fund after complying with the requirements of the
9application or pledge, shall also be calculated annually and
10deemed "surplus" funds. All surplus funds in the special tax
11allocation fund shall be distributed as soon as possible after
12they are calculated under this Section annually within 180
13days after the close of the municipality's fiscal year by
14being paid by the municipal treasurer to the County Collector,
15to the Department of Revenue and to the municipality in direct
16proportion to the tax incremental revenue received as a result
17of an increase in the equalized assessed value of property in
18the redevelopment project area, tax incremental revenue
19received from the State and tax incremental revenue received
20from the municipality, but not to exceed as to each such source
21the total incremental revenue received from that source. The
22County Collector shall thereafter make distribution to the
23respective taxing districts in the same manner and proportion
24as the most recent distribution by the county collector to the
25affected districts of real property taxes from real property
26in the redevelopment project area.

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1 Without limiting the foregoing in this Section, the
2municipality may in addition to obligations secured by the
3special tax allocation fund pledge for a period not greater
4than the term of the obligations towards payment of such
5obligations any part or any combination of the following: (a)
6net revenues of all or part of any redevelopment project; (b)
7taxes levied and collected on any or all property in the
8municipality; (c) the full faith and credit of the
9municipality; (d) a mortgage on part or all of the
10redevelopment project; (d-5) repayment of bonds issued
11pursuant to subsection (p-130) of Section 19-1 of the School
12Code; or (e) any other taxes or anticipated receipts that the
13municipality may lawfully pledge.
14 Such obligations may be issued in one or more series
15bearing interest at such rate or rates as the corporate
16authorities of the municipality shall determine by ordinance.
17Such obligations shall bear such date or dates, mature at such
18time or times not exceeding 20 years from their respective
19dates, be in such denomination, carry such registration
20privileges, be executed in such manner, be payable in such
21medium of payment at such place or places, contain such
22covenants, terms and conditions, and be subject to redemption
23as such ordinance shall provide. Obligations issued pursuant
24to this Act may be sold at public or private sale at such price
25as shall be determined by the corporate authorities of the
26municipalities. No referendum approval of the electors shall

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1be required as a condition to the issuance of obligations
2pursuant to this Division except as provided in this Section.
3 In the event the municipality authorizes issuance of
4obligations pursuant to the authority of this Division secured
5by the full faith and credit of the municipality, which
6obligations are other than obligations which may be issued
7under home rule powers provided by Article VII, Section 6 of
8the Illinois Constitution, or pledges taxes pursuant to (b) or
9(c) of the second paragraph of this section, the ordinance
10authorizing the issuance of such obligations or pledging such
11taxes shall be published within 10 days after such ordinance
12has been passed in one or more newspapers, with general
13circulation within such municipality. The publication of the
14ordinance shall be accompanied by a notice of (1) the specific
15number of voters required to sign a petition requesting the
16question of the issuance of such obligations or pledging taxes
17to be submitted to the electors; (2) the time in which such
18petition must be filed; and (3) the date of the prospective
19referendum. The municipal clerk shall provide a petition form
20to any individual requesting one.
21 If no petition is filed with the municipal clerk, as
22hereinafter provided in this Section, within 30 days after the
23publication of the ordinance, the ordinance shall be in
24effect. But, if within that 30 day period a petition is filed
25with the municipal clerk, signed by electors in the
26municipality numbering 10% or more of the number of registered

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1voters in the municipality, asking that the question of
2issuing obligations using full faith and credit of the
3municipality as security for the cost of paying for
4redevelopment project costs, or of pledging taxes for the
5payment of such obligations, or both, be submitted to the
6electors of the municipality, the corporate authorities of the
7municipality shall call a special election in the manner
8provided by law to vote upon that question, or, if a general,
9State or municipal election is to be held within a period of
10not less than 30 or more than 90 days from the date such
11petition is filed, shall submit the question at the next
12general, State or municipal election. If it appears upon the
13canvass of the election by the corporate authorities that a
14majority of electors voting upon the question voted in favor
15thereof, the ordinance shall be in effect, but if a majority of
16the electors voting upon the question are not in favor
17thereof, the ordinance shall not take effect.
18 The ordinance authorizing the obligations may provide that
19the obligations shall contain a recital that they are issued
20pursuant to this Division, which recital shall be conclusive
21evidence of their validity and of the regularity of their
22issuance.
23 In the event the municipality authorizes issuance of
24obligations pursuant to this Section secured by the full faith
25and credit of the municipality, the ordinance authorizing the
26obligations may provide for the levy and collection of a

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1direct annual tax upon all taxable property within the
2municipality sufficient to pay the principal thereof and
3interest thereon as it matures, which levy may be in addition
4to and exclusive of the maximum of all other taxes authorized
5to be levied by the municipality, which levy, however, shall
6be abated to the extent that monies from other sources are
7available for payment of the obligations and the municipality
8certifies the amount of said monies available to the county
9clerk.
10 A certified copy of such ordinance shall be filed with the
11county clerk of each county in which any portion of the
12municipality is situated, and shall constitute the authority
13for the extension and collection of the taxes to be deposited
14in the special tax allocation fund.
15 A municipality may also issue its obligations to refund in
16whole or in part, obligations theretofore issued by such
17municipality under the authority of this Act, whether at or
18prior to maturity, provided however, that the last maturity of
19the refunding obligations may not be later than the dates set
20forth under Section 11-74.4-3.5.
21 In the event a municipality issues obligations under home
22rule powers or other legislative authority the proceeds of
23which are pledged to pay for redevelopment project costs, the
24municipality may, if it has followed the procedures in
25conformance with this division, retire said obligations from
26funds in the special tax allocation fund in amounts and in such

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1manner as if such obligations had been issued pursuant to the
2provisions of this division.
3 All obligations heretofore or hereafter issued pursuant to
4this Act shall not be regarded as indebtedness of the
5municipality issuing such obligations or any other taxing
6district for the purpose of any limitation imposed by law.
7(Source: P.A. 100-531, eff. 9-22-17.)
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