SB 3483 — SCH CD-DEBT LIMITATIONS

SB3483 EngrossedEnrolled LRB096 20668 MJR 36385 b AN ACT concerning education.

SB3483 EngrossedEnrolled - 2 - LRB096 20668 MJR 36385 b 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.

Moreover, no partial elementary unit district, as defined in Article 11E of this Code, shall become indebted on account of bonds issued by the district for high school purposes in the aggregate exceeding 6.9% of the value of the taxable property of the entire district, to be ascertained by the last assessment for State and county taxes, nor shall SB3483 EngrossedEnrolled - 3 - LRB096 20668 MJR 36385 b the district become indebted on account of bonds issued by the district for elementary purposes in the aggregate exceeding 6.9% of the value of the taxable property for that portion of the district included in the elementary and high school classification, to be ascertained by the last assessment for State and county taxes.

(1) Whenever the enrollment of students for the next school year is estimated by the board of education to SB3483 EngrossedEnrolled - 4 - LRB096 20668 MJR 36385 b 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;

or (4) Notwithstanding the provisions of paragraphs (1) SB3483 EngrossedEnrolled - 5 - LRB096 20668 MJR 36385 b 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;

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 SB3483 EngrossedEnrolled - 6 - LRB096 20668 MJR 36385 b 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.

(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 SB3483 EngrossedEnrolled - 7 - LRB096 20668 MJR 36385 b district to exceed the debt limitation otherwise applicable to that district under subsection (a):

SB3483 EngrossedEnrolled - 8 - LRB096 20668 MJR 36385 b (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:

Notwithstanding the provisions of subsection (a) of this Section or of any other law, a school district that has availed itself of the provisions of this subsection (f) prior to July 22, 2004 (the effective date of Public Act 93-799) may also issue bonds approved by referendum up to an amount, including SB3483 EngrossedEnrolled - 9 - LRB096 20668 MJR 36385 b existing indebtedness, not exceeding 25% of the equalized assessed value of the taxable property in the district if all of the conditions set forth in items (1), (2), and (3) of this subsection (f) are met.

SB3483 EngrossedEnrolled - 10 - LRB096 20668 MJR 36385 b (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.

(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 SB3483 EngrossedEnrolled - 11 - LRB096 20668 MJR 36385 b 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 SB3483 EngrossedEnrolled - 12 - LRB096 20668 MJR 36385 b 1995-96 school year of at least 2,800;

(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 SB3483 EngrossedEnrolled - 13 - LRB096 20668 MJR 36385 b limitation otherwise applicable to that school district under subsection (a):

SB3483 EngrossedEnrolled - 14 - LRB096 20668 MJR 36385 b (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 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 SB3483 EngrossedEnrolled - 15 - LRB096 20668 MJR 36385 b and parts of which were constructed more than 75 years ago;

SB3483 EngrossedEnrolled - 16 - LRB096 20668 MJR 36385 b (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.

(vi) The bonds are issued pursuant to Sections 19-2 SB3483 EngrossedEnrolled - 17 - LRB096 20668 MJR 36385 b through 19-7 of the School Code.

SB3483 EngrossedEnrolled - 18 - LRB096 20668 MJR 36385 b (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 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:

(p-5) Notwithstanding any other provisions of this Section or the provisions of any other law, bonds issued by a community unit school district maintaining grades K through 12 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 SB3483 EngrossedEnrolled - 19 - LRB096 20668 MJR 36385 b imposed statutory limitation as to indebtedness, if all of the following conditions are met:

(p-10) Notwithstanding any other provisions of this Section or the provisions of any other law, bonds issued by a community consolidated school district maintaining grades K through 8 shall not be considered indebtedness for purposes of any statutory limitation and may be issued in an amount or SB3483 EngrossedEnrolled - 20 - LRB096 20668 MJR 36385 b amounts, including existing indebtedness, in excess of any heretofore or hereafter imposed statutory limitation as to indebtedness, if all of the following conditions are met:

(i) The voters of the district have approved a SB3483 EngrossedEnrolled - 21 - LRB096 20668 MJR 36385 b proposition for the bond issue at the general election held on November 7, 2006.

The debt incurred on any bonds issued under this subsection SB3483 EngrossedEnrolled - 22 - LRB096 20668 MJR 36385 b (p-15) shall not be considered indebtedness for purposes of any statutory debt limitation.

SB3483 EngrossedEnrolled - 23 - LRB096 20668 MJR 36385 b (v) The proceeds of the bonds are used only to accomplish those projects approved by the voters at the primary election held on March 21, 2006.

(iii) The bonds are issued, in one or more bond issues, SB3483 EngrossedEnrolled - 24 - LRB096 20668 MJR 36385 b on or before December 31, 2012, but the aggregate principal amount issued in all such bond issues combined must not exceed $18,500,000.

(iii) The bonds are issued, in one or more bond SB3483 EngrossedEnrolled - 25 - LRB096 20668 MJR 36385 b issuances, on or before December 31, 2012;

(ii) At the time of the sale of the bonds, the school board determines, by resolution, that (A) the improvement of the site of and the building and equipping of a school building are required as a result of a projected increase in the enrollment of students in the district and (B) the repairing and equipping of the Prairie Hill Elementary School building is required because of the age of that SB3483 EngrossedEnrolled - 26 - LRB096 20668 MJR 36385 b school building.

(2) At the time of the sale of the bonds, the school board determines, by resolution, that (i) the building and equipping of a new high school building is required as a result of a projected increase in the enrollment of students in the district and the age and condition of the existing high school building, (ii) the existing high SB3483 EngrossedEnrolled - 27 - LRB096 20668 MJR 36385 b school building will be demolished, and (iii) the sale of bonds is authorized by statute that exempts the debt incurred on the bonds from the district's statutory debt limitation.

(p-50) Notwithstanding the provisions of subsection (a) of this Section or of any other law, bonds issued pursuant to SB3483 EngrossedEnrolled - 28 - LRB096 20668 MJR 36385 b Section 19-3.10 of this Code shall not be considered indebtedness for purposes of any statutory limitation if the bonds are issued in an amount or amounts, including existing indebtedness of the school district, not in excess of 43% of the value of the taxable property in the district to be ascertained by the last assessment for State and county taxes.

(4) The bonds are issued in accordance with this SB3483 EngrossedEnrolled - 29 - LRB096 20668 MJR 36385 b Article.

(B) the building and equipping of a new school building to be attached to and the alteration, repair, and equipping of the remaining portion of the Okawville Junior/Senior High School Building is required because of the age and current condition of that SB3483 EngrossedEnrolled - 30 - LRB096 20668 MJR 36385 b school building;