BORROWING PROVISIONS FOR ILLINOIS SCHOOL DISTRICTS

General Provisions

• The debt limit for elementary and high school districts is 6.9% of the equalized assessed valuation (EAV) of the school district, and for unit school districts is 13.8% of the equalized assessed valuation of the district.
  
• The following do not count against the school district's debt limit: General Obligation Bonds (Alternate Revenue Source), Tax Anticipation Warrants, General Obligation Warrants (except for refunding obligation issued pursuant to the Debt Reform Act), State Aid Anticipation Certificates, Personal Property Replacement Tax Notes and Revenue Anticipation Notes.
  
  
• The following do count against the district's debt limit: General Obligation Bonds, Installment Contract Certificates, Leases, Judgments and Teachers Orders.

Bond Issue Notification Act (BINA)

• BINA requires school boards proposing to sell non-referendum general obligation bonds or limited bonds (other than refunding bonds) to hold at least one public hearing concerning the districts intent to sell the bonds.
  
  
• The secretary of the school board must publish notice of the hearing at least once in a newspaper of circulation in the district not less than 7 and nor more than 30 days before the date of hearing and must post notice of the hearing at the principal office of the school board at least 48 hours before the hearing.
  
• At the hearing, the school board must explain the reasons for the proposed bond issue and permit persons to present written or oral testimony.
• The school board must then wait at least 7 days folling the hearing before adopting the resolution providing for the sale of bonds.