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    SUBCPSTIFGrant Ord

    Uploaded by

    Chicago Alderman Scott Waguespack
    This ordinance proposes establishing a Public Education Revitalization Grant program that would provide funding to the financially distressed Chicago Public School district from surplus tax increment financing (TIF) funds. Key points: - If CPS qualifies as financially distressed, the city must estimate TIF obligations and surplus funds each year and declare surplus funds available. - The city would distribute a grant to CPS equal to 100% of identified surplus TIF funds, to be used only to restore educational services reduced due to budget cuts. - The city would also encourage other taxing districts to make similar grants to CPS from their surplus TIF funds. The goal is to provide a short-term infusion of funding to C

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    SUBCPSTIFGrant Ord

    Uploaded by

    Chicago Alderman Scott Waguespack
    44 views3 pages
    This ordinance proposes establishing a Public Education Revitalization Grant program that would provide funding to the financially distressed Chicago Public School district from surplus tax increment financing (TIF) funds. Key points: - If CPS qualifies as financially distressed, the city must estimate TIF obligations and surplus funds each year and declare surplus funds available. - The city would distribute a grant to CPS equal to 100% of identified surplus TIF funds, to be used only to restore educational services reduced due to budget cuts. - The city would also encourage other taxing districts to make similar grants to CPS from their surplus TIF funds. The goal is to provide a short-term infusion of funding to C

    Original Description:

    Substitute Document for TIF Ordinance Public School Revitalization

    Original Title

    SUBCPSTIFGrantOrd.docx (1)

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    This ordinance proposes establishing a Public Education Revitalization Grant program that would provide funding to the financially distressed Chicago Public School district from surplus tax increment financing (TIF) funds. Key points: - If CPS qualifies as financially distressed, the city must estimate TIF obligations and surplus funds each year and declare surplus funds available. - The city would distribute a grant to CPS equal to 100% of identified surplus TIF funds, to be used only to restore educational services reduced due to budget cuts. - The city would also encourage other taxing districts to make similar grants to CPS from their surplus TIF funds. The goal is to provide a short-term infusion of funding to C

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    44 views3 pages

    SUBCPSTIFGrant Ord

    Uploaded by

    Chicago Alderman Scott Waguespack
    This ordinance proposes establishing a Public Education Revitalization Grant program that would provide funding to the financially distressed Chicago Public School district from surplus tax increment financing (TIF) funds. Key points: - If CPS qualifies as financially distressed, the city must estimate TIF obligations and surplus funds each year and declare surplus funds available. - The city would distribute a grant to CPS equal to 100% of identified surplus TIF funds, to be used only to restore educational services reduced due to budget cuts. - The city would also encourage other taxing districts to make similar grants to CPS from their surplus TIF funds. The goal is to provide a short-term infusion of funding to C

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    of 3

    ChicagoPublicEducationRevitalization

    SubstituteOrdinance

    WHEREAS,taxincrementfinancing(TIF)isatoolintendedbyIllinoisstatelawto
    encourageeconomicdevelopmentbyprovidingpublicsupporttoencourageinvestmentin
    targetedareasthatmeetcertainconditionsofblight,decayorunderperformanceand
    WHEREAS,theChicagoPublicSchoolsadministrationhaveimposeddeep
    andunsustainablecutsinmanyneighborhoodelementaryschoolandhighschoolsin
    consecutivepastyearsand

    WHEREAS,theCityofChicago'sneighborhoodsarewaitingforimprovements
    tobasicinfrastructureafteryearswaitingthroughtheeconomicrecessionand

    WHEREAS,inlightofthecurrenteconomiccircumstances,ashortterminfusionof
    fundsbackintotheschoolsandneighborhoodswilloffsetdrasticcuts,helpingachievethe
    ultimategoalofsupportingstrongschoolsandourneighborhoodsand
    WHEREAS,CookCountyClerkDavidOrrhasreleasedthe2016TIFprojections
    whichshowsthatChicagowillcollectatleast$461millioninTIFrevenueforthe2016
    taxyearwhichisanincreaseinChicago's2016TIFrevenueofalmost$89,000,000
    overtheprioryearand
    WHEREAS,thissurplusincludesmoneysnotrequired,pledged,
    earmarked,orotherwisedesignatedforpaymentandsecuringoftheobligationsand
    anticipatedredevelopmentprojectcostsnowtherefore
    BeItOrdainedbytheCityCounciloftheCityofChicago

    :
    SECTION1.Title2oftheMunicipalCodeofChicagoisherebyamended
    byaddinganewChapter2174asfollows:
    Chapter2174PublicEducationRevitalizationGrant
    2174010Title.
    ThischaptershallbeknownasthePublicEducationRevitalizationGrant.
    2174020Definitions
    Whenanyofthefollowingwordsortermsisusedinthischapter,itshallhavethe
    meaningascribedtoitinthissection:

    (A)
    "FinanciallyDistressedSchoolDistrict"meansapublicschool
    district,whichisexperiencingoneormoreofthefollowing:


    (1)
    Abondratingbelowinvestmentgradehasbeenassignedtooneofthe
    mostrecentfivebondissuesoracreditreviewbyamajorratingagencyhas
    indicatedthatafuturebondissuewouldberatedbelowinvestmentgrade.

    (2)
    Totaloperatingexpensesexceededtotaloperatingrevenuesby5%ormorein
    theschooldistrict'sGeneralOperatingFundinitsmostrecentlycompletedfiscal
    year,asreportedintheComprehensiveAnnualFinancialReport.

    (3)
    Theactuarialfundedratioofitsteacher'spensionfundis75%or
    lessasreportedintheschooldistrict'smostrecentactuarialvaluation
    report.

    (B)
    "DistressedSurplusFunds"meansmoneysinallSpecialTax
    AllocationFundsnotrequired,pledged,earmarked,orotherwisedesignatedfor
    paymentandsecuringofTIFContractualObligations.

    (C)
    "TIFContractualObligations"meansbonds,loans,debentures,notes,
    specialcertificatesorotherevidenceofindebtednessissuedbytheCityofChicagoto
    carryoutaredevelopmentprojectortorefundoutstandingobligationsandpayments
    associatedwitharedevelopmentagreementorotherbindingcontract,whichhasbeen
    approvedbythelocalgoverningbodyofthemunicipality.TIFContractual
    Obligationsdonotincludeanticipatedredevelopmentprojectcosts,multiyearcapital
    plans,orotherpotentialfuturepaymentsnotrequiredtobemadepursuanttoalegally
    bindingwrittendocumentapprovedbythemunicipalgoverningbody.

    (D)
    PublicSchoolRevitalizationGrantmeansagrantequalto100%ofa
    taxingdistrict'sTIFsurplusdistribution,whichataxingdistrictdistributestothe
    ChicagoPublicSchoolDistricttobeusedforannualoperatingexpenses.

    217430Grant

    (A)
    IftheChicagoPublicSchoolDistrictqualifiesasaFinancially
    DistressedSchoolDistrict,asdefinedinthisChapter,asofJanuary1ofeachyear,the
    CityofChicagomustestimatebySeptember1ofthesameyear,thetotalTIF
    ContractualObligationsandtotalDistressedSurplusFundsforthenextcalendaryear.
    ThecalculationsofTIFContractualObligationsandtotalDistressedSurplusFundsmust
    beplacedinaprominentlocationontheCityofChicagowebsiteandincludea
    descriptionofallcalculations,assumptions,andadetailedlistofallTIFContractual
    obligations.

    (B)
    Within60daysofcollectingincrementaltaxes,theCityshalldeclareall
    DistressedSurplusFundsas"surplus"funds,asdefinedintheTaxIncrementAllocation
    RedevelopmentAct,65ILCS5/11.

    (C)
    TheCityofChicagowilldistributeaPublicSchoolRevitalization
    GranttotheChicagoPublicSchoolDistrictnolaterthantheDecember31immediately

    followingtheSeptember1calculationdescribedinthisSection.TheGrantshallbea
    restrictedgranttoChicagoPublicSchoolwhichshallonlybeusedtorestoreeducational
    servicesreducedoreliminatedduetobudgetcutsmadewithintheprevioustwofiscal
    years,orinthecurrentfiscalyear.

    (D)
    Inaddition,theCityofChicagoshallencourageallothertaxing
    districtstomakePublicSchoolRevitalizationGrantstotheChicagoPublicSchool
    District.

    SECTION2.Thisordinanceshalltakeeffectuponpassageandpublication.

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