65 ILCS 5/8-12-15
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 8 - Finance

 (from Ch. 24, par. 8-12-15)Sec. 8-12-15.         The financially distressed city shall develop, adopt and  submit to the Authority, within 45 days after this Division first becomes  applicable to the city as provided in Section 8-12-4, for approval by the  Authority, an initial Financial Plan with respect to the remaining portion  of what is the city's current fiscal year at the time this Division first  becomes applicable to the city as provided in Section 8-12-4 and for the 2  succeeding fiscal years. The city shall develop and adopt subsequent  Financial Plans annually and during interim periods as directed by the  Authority.  Interim updates shall be directed only when the Authority in  its discretion determines that a change in circumstances warrants such an  update.  The Authority shall require that each Financial Plan cover a  period of at least 3 fiscal years. After adoption by the city, the city  shall submit each plan to the Authority for its approval not later than 60  days prior to the commencement of the first fiscal year to which the  Financial Plan relates.  The Authority shall approve or reject the  Financial Plan not later than 30 days prior to the commencement of the  fiscal year.  No Financial Plan shall have force or effect without approval  of the Authority.  Each Financial Plan shall be developed, submitted,  approved and monitored in accordance with the following procedures:(1) The financially distressed city shall determine and submit to the  Authority, at a time and in a manner prescribed by the Authority, estimates  of revenues available to the city during the period for which the Financial  Plan is to be in effect.  The Authority shall approve, reject or amend the  revenue estimates.  In the event the city fails, for any reason, to submit  to the Authority estimates of revenue as required by this paragraph, the  Authority may prepare such estimates.  The Financial  Plan submitted by the city shall be based upon revenue estimates  approved or prepared by the Authority.  As soon as practicable following  the establishment of the Authority, the corporate authorities of the city  shall, at the request of the Chairperson of the Authority, make available  to such Chairperson copies of the audited financial statements and of  the books and records of account of the city for the preceding 3 fiscal  years of the city.(2) Each Financial Plan for each fiscal year or part thereof to which  it relates, shall contain: (i) a description of revenues and  expenditures, provision for debt service, cash resources and uses, and  capital improvements, each in such manner and detail as the Authority  shall prescribe; (ii) a description of the means by which the Budget  will be brought into balance in accordance with Section 8-12-14;  and (iii) such other financial matters that the  Authority, in its  discretion, requires.  The Authority may prescribe any reasonable  time, standards, procedures or forms for preparation and submission of  the Financial Plan.(3) The Authority shall approve the initial and each subsequent  Financial Plan if, in its judgement, the plan is complete, is  reasonably capable of being achieved, and meets the requirement set  forth in Section 8-12-14.  Otherwise, the Authority shall  reject the Financial Plan.  The Authority's review of the Financial Plan  shall be in accordance with generally accepted accounting principles and  standards.  No Financial Plan submitted by the financially distressed city  shall be arbitrarily or capriciously rejected by the Authority.  Any  rejection by the Authority of any Financial Plan submitted by the city  shall be in writing and shall state the reasons for the rejection.  In the  event of rejection, the Authority may prescribe a procedure and standards  for revision of the Financial Plan by the financially distressed city.(4) The financially distressed city shall report to the Authority, at  such times and in such manner as the Authority may direct, concerning the  city's compliance with each Financial Plan.  The Authority may review the  city's operation, obtain budgetary data and financial statements, require  the city to produce reports, and have access to any other information in  the possession of the city that it deems relevant to the Financial Plan and  the city's compliance with that Plan.  The Authority may issue  recommendations or directives within its powers to the city to assure  compliance with the Financial Plan. The city shall produce such budgetary  data, financial statements, reports and other information and comply with  such directives.(5) After approval of each Financial Plan, the financially distressed  city shall regularly reexamine the revenue and expenditure estimates on  which it was based and revise them as necessary.  The city shall promptly  notify the Authority of any material change in the revenue or expenditure  estimates in the Financial Plan.  The city may submit to the  Authority, or the Authority may require the city to submit, modified  Financial Plans based upon revised revenue   or expenditure estimates  or for any other good reason.  The Authority shall approve or reject  each modified Financial Plan pursuant to paragraph (3) of this  Section.    (Source: P.A. 86-1211.)