SB 852 — EDUCATION-TECH

SB0852 EngrossedEnrolled LRB094 04501 NHT 34530 b AN ACT concerning education.

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 SB0852 EngrossedEnrolled - 2 - LRB094 04501 NHT 34530 b January 1, 1979, previous to the incurring of such indebtedness.

and (3) When the voters in the school district approve a SB0852 EngrossedEnrolled - 3 - LRB094 04501 NHT 34530 b 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.

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 SB0852 EngrossedEnrolled - 4 - LRB094 04501 NHT 34530 b 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.

(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 SB0852 EngrossedEnrolled - 5 - LRB094 04501 NHT 34530 b 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 additional indebtedness authorized by this SB0852 EngrossedEnrolled - 6 - LRB094 04501 NHT 34530 b 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.

(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 SB0852 EngrossedEnrolled - 7 - LRB094 04501 NHT 34530 b 40 years from their date of issue, and shall be signed by the president of the school board and treasurer of the school district.

(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 SB0852 EngrossedEnrolled - 8 - LRB094 04501 NHT 34530 b indebtedness, in excess of any heretofore or hereafter imposed statutory limitation as to indebtedness:

(i) The bonds are issued for the purpose of SB0852 EngrossedEnrolled - 9 - LRB094 04501 NHT 34530 b 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.

(i) Notwithstanding any other provisions of this Section or the provisions of any other law, until January 1, 1998, a SB0852 EngrossedEnrolled - 10 - LRB094 04501 NHT 34530 b 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:

SB0852 EngrossedEnrolled - 11 - LRB094 04501 NHT 34530 b (iv) At least 60% of those voting in an election held after December 31, 1996 approve a proposition for the issuance of the bonds;

(l) Notwithstanding any other provisions of this Section or the provisions of any other law, until January 1, 2000, a SB0852 EngrossedEnrolled - 12 - LRB094 04501 NHT 34530 b 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:

(iv) The voters of the school district approve a proposition for the issuance of the bonds at a referendum SB0852 EngrossedEnrolled - 13 - LRB094 04501 NHT 34530 b held after July 1, 1998;

(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 SB0852 EngrossedEnrolled - 14 - LRB094 04501 NHT 34530 b School Construction Law.

(iv) at least 57% of those voting in a general election held prior to January 1, 2003 approved a proposition for SB0852 EngrossedEnrolled - 15 - LRB094 04501 NHT 34530 b the issuance of the bonds;

(ii) At least 2 school buildings that were constructed 40 or more years prior to the issuance of the bonds will be SB0852 EngrossedEnrolled - 16 - LRB094 04501 NHT 34530 b demolished and will be replaced by new buildings or additions to one or more existing buildings.

No school districts maintaining grades K through 12 shall SB0852 EngrossedEnrolled - 17 - LRB094 04501 NHT 34530 b 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.

and SB0852 EngrossedEnrolled - 18 - LRB094 04501 NHT 34530 b (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;

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 SB0852 EngrossedEnrolled - 19 - LRB094 04501 NHT 34530 b 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.

(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 SB0852 EngrossedEnrolled - 20 - LRB094 04501 NHT 34530 b that district under subsection (a):

(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 SB0852 EngrossedEnrolled - 21 - LRB094 04501 NHT 34530 b is projected to increase by not less than 7% during each of the next succeeding 2 school years.

(ii) At the time the resolution authorizing the SB0852 EngrossedEnrolled - 22 - LRB094 04501 NHT 34530 b 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.

(i) The school district has an equalized assessed SB0852 EngrossedEnrolled - 23 - LRB094 04501 NHT 34530 b valuation for calendar year 1995 of less than $44,600,000;

(k) Notwithstanding the debt limitation prescribed in SB0852 EngrossedEnrolled - 24 - LRB094 04501 NHT 34530 b 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):

(i) the district has an equalized assessed valuation SB0852 EngrossedEnrolled - 25 - LRB094 04501 NHT 34530 b for calendar year 1996 of less than $10,000,000;

(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 SB0852 EngrossedEnrolled - 26 - LRB094 04501 NHT 34530 b 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:

(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 SB0852 EngrossedEnrolled - 27 - LRB094 04501 NHT 34530 b the school district under Section 5-15 of the School Construction Law.

(p) Notwithstanding any other provisions of this Section or the provisions of any other law, a community unit school district maintaining grades K through 12 may issue bonds up to SB0852 EngrossedEnrolled - 28 - LRB094 04501 NHT 34530 b an amount, including indebtedness, not exceeding 27% of the equalized assessed value of the taxable property in the district if all of the following conditions are met:

(iv) At the time of the sale of the bonds, the school SB0852 EngrossedEnrolled - 29 - LRB094 04501 NHT 34530 b board determines by resolution that the new buildings or building additions are needed because of an increase in enrollment projected by the school board.