(A) Applicability and purpose. This section shall apply only if the village is a home rule unit. If the village is not a home rule unit, this section shall not apply. The purpose of this section is to restrict the village's authority to levy property taxes and issue bonds payable from the village's general property tax levy. As set forth in this section, the village is limited in the amount of property taxes it may increase its levy over the prior year to the lesser of 5% or the Consumer Price Index. However, the village reserves the right in this section, as set forth below, to base future property tax levies on the maximum amount it could have levied in each year, regardless of whether or not the village actually levied that maximum amount.
(B) Definitions. For purposes of this section, the following words and phrases have the following meanings:
(1) AGGREGATE LEVY. The annual levy of property taxes by the village for all purposes, with the exception of:
(a) Amounts levied for the specific purposes of special service areas and special assessments;
(b) Amounts levied for payments of debt service prior to the effective date of this section; and
(c) Other amounts excluded from the aggregate levy under the PTELL or other state statute.
(2) BONDS. Any instrument evidencing the obligation to pay money authorized or issued by or on behalf of the village under applicable law, including without limitation, bonds, notes, installment or financing contracts, certificates, tax anticipation warrants or notes, vouchers, and any other evidences of indebtedness.
(3) CONSUMER PRICE INDEX. The Consumer Price Index for all urban consumers (CPI-U) for the Midwest Region for all items, published by the United States Department of Labor.
(4) LEVY CAP. The amount of the aggregate levy for the year preceding the effective date of this section, increased each year thereafter by: (i) the lesser of 5% or the percentage increase in the annualized Consumer Price Index from December of two years prior to the current levy year to December of one year prior to the current year levy year, and (ii) "new property" and "recovered tax increment value," as both are defined in the PTELL.
(5) PTELL. The Illinois Property Tax Extension Limitation Law, as amended from time to time.
(C) Tax cap. The village shall not certify to the Cook County Clerk or to the Kane County Clerk an aggregate levy in one year that exceeds the levy cap. Nothing in this section shall be construed to impair any contract executed, or obligation incurred, prior to the effective date of this section.
(D) Limitations on new bonds. After the effective date of this section, the village shall not issue bonds that are payable from the village's general property tax levy in an amount greater than the limit in Section 8-5-1 of the Illinois Municipal Code, ILCS Ch. 65, Act 5, § 8-5-1, as amended from time to time. The limitations herein do not apply to bonds that are payable from incremental property taxes, special service area levies, special assessment levies, or any other revenue source, except for the village's general property tax levy.
(Ord. 18-01, passed 2-5-2018)