65 ILCS 5/8-12-17
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 8 - Finance

 (from Ch. 24, par. 8-12-17)Sec. 8-12-17.         (a) No contract or other obligation shall be entered into  by the financially distressed city unless it is consistent with the  Financial Plan and Budget in effect.  No multi-year employment contract or  collective bargaining agreement authorized or entered into by the city in  accordance with applicable statutes and ordinances shall, with respect to  any terms and provisions thereof which are operative after expiration of  the first year of any such contract or agreement, be deemed inconsistent  with a Financial Plan and Budget at any time in effect; provided, however,  that any terms and provisions of a contract or agreement which would  increase expenditures for salaries, benefits or other forms of compensation  after the expiration of the first year of such contract or agreement shall  be contingent upon the attainment of sufficient available revenues,  considering all necessary expenditures, to support such increases.(b) The Authority may adopt, and from time to time amend,  regulations identifying categories and types of contracts and other  obligations that shall be subject to approval by the  Authority and  the procedure for submitting contracts for approval.  Each contract or  other  obligation that is entered into by the financially distressed city  and that requires approval by the Authority shall contain a provision  stating (i) that it shall not become legally binding on the city unless and  until it has received the approval of the Authority, and (ii) that the  Authority shall approve the contract if, in the Authority's judgment, the  information required to be submitted is complete with respect to the  contract or other obligation being an authorized expenditure within the  Financial Plan and Budget and the contract or other obligation is  consistent with the Financial Plan and Budget in effect. No contract or  other obligation that requires the approval of the Authority shall be  legally binding on the city unless and until it has received the approval  of the Authority. Subject to the foregoing, the prior approval of the  Authority is not required in order for the city to enter into a contract.(c) The Authority  shall approve the contract or obligation if, in  its judgement, the information required to be submitted is complete  and the contract or other obligation is consistent with the Budget and  Financial Plan in effect.  Otherwise, the Authority shall reject the  contract or other obligation; provided, however, that any multi-year  employment contract or collective bargaining agreement authorized or  entered into by the city in accordance with applicable statutes and  ordinances shall be approved by the Authority if, in its judgement, the  terms and provisions operative during the first year of such contract  or agreement are consistent with the Budget and Financial Plan in  effect for that period, subject to the limitation that any terms and  provisions of any such contract or agreement which would increase  expenditures for salaries, benefits or other forms of compensation after  the expiration of the first year of the contract or agreement shall be  contingent upon the attainment of sufficient available revenues,  considering all necessary expenditures, to support such increases.    (Source: P.A. 86-1211.)