Administrative Read Reference

Finances

Borrowing Devices

Anticipation of Revenue Notes

Purpose: To provide finances to pay obligations whether general expenses or otherwise, whether due or to accrue within the fiscal year.

Limitations: Must state the purpose of the note, the estimated revenues, and the aggregate appropriations for such purpose. The notes are due on a date certain not more than 12 months from date of issue. A copy of the resolution must be filed with the county treasurer.

Citation of Authority: 50 ILCS 425/1 et seq.

Specific Restrictions: Whatever the purchaser of the notes requires, which is typically certified copies of the budget and appropriation ordinance, certified copies of the tax levy, truth in taxation affidavit, county clerk's Equalized Assessed Valuation Certificate and the opinion letter of the library attorney or bond counsel, a certified copy of the note ordinance and the note.

Bonds

Purpose: To assist libraries to build on a new site, repair, remodel, or improve an existing library building, or build an addition, and purchase necessary equipment, books, or films.

Limitations: The board must hold a public meeting to discuss the financing of the proposed project and notice of this meeting must be published. The library district may not issue bonds or levy a special tax unless the bonds and the tax have been approved by the voters of the district at a general or special election. The maximum term of the bond cannot exceed 20 years and the interest rate may not be greater than permitted by statute.

Citation of Authority: 75 ILCS 16/40-10 et seq.; 75 ILCS 5/5-1 et seq.; 75 ILCS 35/1.

Specific Restrictions: The bond ordinance must make provisions for a special annual tax on all taxable property within the district which is sufficient to pay the principal and interest on the bonds as they mature.

Local Library Act: Library materials purchased within 5 years from the date the building is purchased or is constructed may be acquired through the bond funds. However, if the corporate authority approves of the project, but not the bond issue, the cost may be absorbed in the annual appropriation and tax levy [75 ILCS 5/5-1 et seq.].

Borrowing of Money (Supported by Special Tax)

Purpose: To provide and secure the necessary money to do any and all things libraries are authorized to do.

Limitations: The amount cannot exceed 75% of the value of purchase or construction. The voters must approve the decision to borrow monies and the subsequent special tax needed to repay the loan. This tax shall not exceed .0833% of the value of all taxable property and shall be in addition to the otherwise authorized taxes. The tax must end when the loan is repaid.

Citation of Authority: 75 ILCS 16/40-20 et seq.; 75 ILCS 5/5-6.

Specific Restrictions: Whatever the creditor may place on the library, which typically includes certified copies of the borrowing ordinance, certified copies of the referendum canvas, county clerk's Equalized Assessed Valuation Certificate, and the opinion letter of the library bond counsel or library attorney.

Township Libraries: Money may be borrowed only for the purpose to erect, repair or improve library buildings or purchasing sites for library buildings [75 ILCS 35/1].

Full Faith and Credit Tax Anticipation Notes

Purpose: To provide a means for library districts to finance anticipated cash-flow deficits.

Limitations: No note shall be issued during any fiscal year in which tax anticipation warrants remain outstanding. The notes shall mature on a date certain within two years from the date issued. The amount of the note may not exceed 85% of the taxes levied for a specific fund.

Citation of Authority: 50 ILCS 420/4.

Specific Restrictions: Whatever the purchaser may place on the library, which typically includes certified copies of the budget and appropriation ordinance, certified copies of the tax levy, truth in taxation affidavit, county clerk's Equalized Assessed Valuation Certificate and the opinion letter of the library bond counsel or library attorney, a certified copy of the note ordinance, and the note.

Tax Anticipation Warrants

Purpose: To defray necessary library expenses when both general and working cash funds are depleted.

Limitations: The anticipation warrants cannot exceed 85% of the total amount of tax so levied and must be repaid from the first taxes received. The warrants bear an interest rate not exceeding that established by statute.

Citation of Authority: 75 ILCS 16/30-105; 50 ILCS 430/2.

Specific Restrictions: Whatever the bank/buyer requires, which typically includes certified copies of the budget, and appropriation ordinance, certified copies of the tax levy, truth in taxation affidavit, county clerk's Equalized Assessed Valuation Certificate and the opinion letter of the library bond counsel or library attorney, a certified copy of the warrant ordinance, and the warrant.