Administrative Read Reference

Finances

Glossary

Back door Referendum
A back door referendum requires a library district which enacts a specific type of ordinance to publish notice of the ordinance to the citizens of the district who may then follow certain procedures, such as passing and filing a petition with a specified number of signatures of voters to have the issue placed on the ballot. If no referendum petition with the required number of signatures is filed within a specified period of time, the library has the authority to do the act (e.g., to levy the additional tax or complete the annexation.) If it is filed the Board may rescind the act or put the matter to referendum.

Corporate Taxes
Those monies collected for basic corporate needs and necessities, which can then be spent for any proper library purpose.

Equalized Assessed Valuation
Generally, the equalized rate is 33 1/3 percent of the fair cash market value as appraised, except for farm acreage and buildings, certain pollution equipment, and special tax zones. The General Assembly has defined 33 1/3 percent in terms of assessment-to-sales ratio studies for the three most recent years preceding the assessment date. If the board's assessments are too far above or below, a multiplier is applied to "Equalize" assessments among townships and among counties. This effectuates the constitutional mandate requiring uniformity in levels of taxation. The assessment rate then provides the sum total of value of district property from which the revenue for the district is determined. Farm property is assessed by use of a "productivity index" computed for each Illinois county as a dollar value per acre.

Front door Referendum
A front door referendum requires that the Library ordinance place the action (e.g., a change in tax rate or the addition of a new tax category) to the voters for their approval in the first instance. Without voter approval, the library does not have the authority to do the act.

Fund Accounting
Governmental accounting systems should be organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

Governmental Funds

  1. The General Fund - to account for all financial resources except those required to be accounted for in another fund.
  2. Special Revenue Funds - to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or for major capital projects) that are legally restricted to expenditure for specified purposes.
  3. Capital Projects Funds - to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds, Special Assessment Funds, and Trust Funds).
  4. Debt Service Funds - to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.

Library Funds
75 ILCS 16/35-25 adds specific labels to be used for the annual public library tax (i.e., Library Fund), the working cash fund tax proceeds (i.e., Working Cash Fund) and the annual restora┬Čtion fund tax proceeds (i.e., Restoration Fund). All other tax proceeds are to be kept in special funds as listed above (e.g., Illinois Municipal Retirement Fund (IMRF), Social Security Fund and Audit Fund).

Special Taxes
Those monies collected for particular projects or needs pursuant to special statutory authority, such as to rebuild or restore library buildings, to repay borrowed monies, for IMRF payment, Social Security, and the like.