65 ILCS 5/8-12-16
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 8 - Finance

 (from Ch. 24, par. 8-12-16)Sec. 8-12-16.         The financially distressed city shall develop, adopt  and submit to the Authority, within 30 days after this Division first  becomes applicable to the city as provided in Section 8-12-4, a revised  Budget for 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, thereafter, an annual Budget for each subsequent  fiscal year.  After adoption by the city, the city shall submit each Budget  to the Authority for its approval not later than 60 days prior to the  commencement of the  fiscal year to which the Budget relates.  The  Authority shall approve or reject the Budget not later than 30 days prior  to the commencement of the fiscal year.  No Budget shall have force or  effect without approval of the  Authority.  Each Budget shall be developed,  submitted, approved and monitored in accordance with the following procedures:(1) Each Budget submitted by the financially distressed city shall be  based upon revenue estimates approved or prepared by the Authority, as  provided in paragraph (1) of Section 8-12-15.(2) Each Budget shall contain such information and detail as may  be prescribed by the Authority.  Any deficit for a fiscal year or any  portion of a fiscal year to which any Budget relates shall be included as a  current expense item for the succeeding fiscal year.(3) The Authority shall approve each Budget if, in its judgment,  the Budget is complete with respect to providing a detailed accounting of  revenues and expenditures, is reasonably capable of being achieved, will  meet the requirement set forth in Section 8-12-14, and  will be consistent with the Financial Plan in effect.  Otherwise, the  Authority shall reject the Budget.  The Authority's review of the Budget  shall be in accordance with generally accepted accounting principles and  standards.  No Budget submitted by the financially distressed city shall be  arbitrarily or capriciously rejected by the Authority.  Any rejection by the  Authority of any Budget 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  Budget by the city.(4) The financially distressed city shall report to the Authority at  such times and such manner as the Authority may direct, concerning the  city's compliance with each Budget.  The Authority may review the city's  operations, 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 the Authority deems relevant.  The Authority  may issue recommendations or directives within its powers to the city to  assure compliance with the Budget.  The city shall produce such budgetary  data, financial statements, reports and other information and comply with  such directives.(5) After approval of each Budget, the financially distressed city shall  promptly notify the Authority of any material change in the revenue or  expenditure estimates in the Budget.  The city may submit to the Authority,  or the Authority may require the city to submit, a supplemental Budget  based upon revised revenue or expenditure estimates or for any other good  reason.  The Authority shall approve or reject each supplemental Budget  pursuant to paragraph (3) of this Section.    (Source: P.A. 86-1211.)