2023 Illinois Compiled Statutes › Chapter 105 - SCHOOLS › 105 ILCS 5/ - School Code. › Article 20 - Working Cash Fund

(105 ILCS 5/Art. 20 heading)
ARTICLE 20.  
		WORKING CASH FUND
(105 ILCS 5/20-1) (from Ch. 122, par. 20-1)
Sec. 20-1. Authority to create working cash fund. In each school district,
whether organized under general law or special charter, having a population
of less than 500,000 inhabitants, a fund to be known as a "Working Cash
Fund" may be created and maintained consistent with the limitations of this Article, for the purpose of enabling the district to have in its
treasury at all times sufficient money to meet demands thereon for expenditures for corporate purposes.
(Source: P.A. 98-756, eff. 7-16-14.)
(105 ILCS 5/20-2)
 (from Ch. 122, par. 20-2)
Sec. 20-2. Indebtedness and bonds. For the purpose of creating, re-creating, or increasing a working
cash fund, the school board of any such district may incur an indebtedness and
issue bonds as evidence thereof in an amount or amounts not exceeding in the
aggregate 85% of the taxes permitted to be levied for educational purposes for
the then current year to be determined by multiplying the maximum educational
tax rate or rates
applicable to such school district by the last assessed valuation or assessed valuations as
determined at the time of the issue of said bonds, plus 85% of the last known
entitlement of such district to taxes as by law now or hereafter enacted or
amended, imposed by the General Assembly of the State of Illinois to replace
revenue lost by units of local government and school districts as a result of
the abolition of ad valorem personal property taxes, pursuant to Article IX,
Section 5, paragraph (c) of the Constitution of the State of Illinois, plus 85% of the most recent amount of  funding received by the school district under Section 18-8.15. The
bonds shall bear interest at not more than the maximum rate authorized by law and shall mature within 20 years from
the date thereof. Subject to the foregoing limitations as to amount, the bonds
may be issued in an amount including existing indebtedness which will not
exceed the constitutional limitation as to debt, notwithstanding any statutory
debt limitation to the contrary. The school
board shall before or at the time
of issuing the bonds provide for the collection of a direct annual tax upon all
the taxable property within the district sufficient to pay the principal
thereof at maturity and to pay the interest thereon as it falls due, which tax
shall be in addition to the maximum amount of all other taxes, either
educational; transportation; operations and maintenance; or fire prevention and
safety fund taxes, now or hereafter authorized and in addition to any
limitations upon the levy of taxes as provided by Sections 17-2 through 17-9.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Act that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the supplementary
authority granted by the Omnibus Bond Acts, and (iii) that instruments
issued under this Section within the supplementary authority granted by the
Omnibus Bond Acts are not invalid because of any provision of this Act that
may appear to be or to have been more restrictive than those Acts.
(Source: P.A. 101-416, eff. 8-16-19.)
(105 ILCS 5/20-3)
 (from Ch. 122, par. 20-3)
Sec. 20-3. Tax levy. For the purpose of providing moneys for a
working cash fund, the school board of any such school district may also
levy annually upon all the taxable property of their district a tax,
known as the "working cash fund tax," not to exceed 0.05% of
value, as
equalized or assessed by the Department of Revenue;
provided that no such tax shall be levied if bonds are issued in
amount or amounts equal in the aggregate to the limitation set forth in
Section 20-2 for the creation, re-creation, or increase of a working cash fund.  The collection of the tax
shall not be anticipated by the issuance of any warrants drawn against
it. The tax shall be levied and collected, except as otherwise provided
in this Section, in like manner as the general taxes of the district,
and shall be in addition to the maximum of all other taxes, either
educational; transportation; operations and maintenance; or fire
prevention and safety fund taxes, now or hereafter to be levied for school
purposes. It may be levied by separate resolution by the last Tuesday in
December in each year or it may be included in the certificate of tax levy
filed under Section 17-11.
(Source: P.A. 96-1277, eff. 7-26-10.)
(105 ILCS 5/20-4) (from Ch. 122, par. 20-4)
Sec. 20-4. Use and reimbursement of fund. This Section shall not
apply in any school district which does not operate a working cash fund.
Moneys derived from the issuance of bonds as authorized by Section
20-2, or from any tax levied pursuant to Section 20-3, shall be used
only for the purposes and in the manner provided in this Article. Moneys in
the fund shall not be regarded as current assets available for school
purposes.  The school board may appropriate moneys to the working cash
fund up to the maximum amount allowable in the fund, and the working cash
fund may receive such appropriations and any other contributions.  Moneys
in the fund may be used by the school board for any and all school purposes and may be
transferred in whole or in part to the general funds or both of the
school district and disbursed therefrom in anticipation of the collection of
taxes lawfully levied for any or all purposes, in anticipation of such taxes
as by law now or hereafter enacted or amended are imposed by the General
Assembly of the State of Illinois to replace revenue lost by units of local
government and school districts as a result of the abolition of ad valorem
personal property taxes, pursuant to Article IX, Section 5(c) of the
Constitution of the State of Illinois, or in anticipation of funding received by the school district under Section 18-8.15.  Moneys so transferred to any other fund
shall be deemed to be transferred in anticipation of the collection of that
part of the taxes so levied or to be received which is in excess of the amount
thereof required to pay any warrants or notes and the interest thereon
theretofore and thereafter issued in anticipation of the collection thereof and
such taxes when collected shall be applied to the payment of any such warrants
and the interest thereon, the amount estimated to be required to satisfy debt
service and pension or retirement obligations, as set forth in Section 12 of
the State Revenue Sharing Act and then to the reimbursement of such working
cash fund as hereinafter provided.
Upon receipt by the school district of any taxes or State funding in anticipation of
the collection whereof moneys of the working cash fund have been so
transferred for disbursement, the fund shall immediately be reimbursed
therefrom until the full amount so transferred has been retransferred to
the fund. Unless the taxes so received and applied to the reimbursement
of the working cash fund prior to the first day of the eighth month
following the month in which due and unpaid real property taxes begin to
bear interest are sufficient to effect a complete reimbursement of such
fund for any moneys transferred therefrom in anticipation of the
collection of such taxes, the working cash fund shall be reimbursed for
the amount of the deficiency therein from any other revenues accruing to
the educational fund, and the school board shall make provisions for the
immediate reimbursement of the amount of any such deficiency in its next
annual tax levy.
(Source: P.A. 101-416, eff. 8-16-19.)
(105 ILCS 5/20-5)
 (from Ch. 122, par. 20-5)
Sec. 20-5. Transfer to other fund. This Section shall not apply in any
school district which does not operate a working cash fund.
Moneys in the working cash fund shall be transferred from the working cash fund to
another fund of the district only upon the authority of the school board which
shall from time to time by separate resolution direct the school treasurer to
make transfers of such sums as may be required for the purposes herein
authorized.
The resolution shall set forth (a) the taxes and State funding in anticipation of which
such transfer is to be made and from which the working cash fund is to
be reimbursed; (b) the entire amount of taxes extended, or which the school
board estimates will be extended or received, for any year in anticipation of
the collection of all or part of which such transfer is to be made; (c) the
aggregate amount of warrants or notes theretofore issued in anticipation of the
collection of such taxes together with the amount of interest accrued and which
the school board estimates will accrue thereon; (d) the aggregate amount of
receipts from taxes imposed to replace revenue lost by units of local
government and school districts as a result of the abolition of ad valorem
personal property taxes, pursuant to Article IX, Section 5(c) of the
Constitution of the State of Illinois, which the corporate authorities estimate
will be set aside for the payment of the proportionate amount of debt service
and pension or retirement obligations, as required by Section 12 of the State
Revenue Sharing Act; (e) the aggregate amount of money theretofore
transferred from the working cash fund to the other fund in anticipation of the
collection of such taxes and State funding; and (f) the aggregate amount of  funding received by the school district under Section 18-8.15. The amount which any such resolution shall direct the
treasurer so to transfer, in anticipation of the collection of taxes levied or
to be received for any year, together with the aggregate amount of such
anticipation tax warrants or notes theretofore drawn against such taxes and the
amount of interest accrued and estimated to accrue thereon and the aggregate
amount of such transfers to be made in anticipation of the collection of such
taxes and the amount estimated to be required to satisfy debt service and
pension or retirement obligations, as set forth in Section 12 of the State
Revenue Sharing Act, shall not exceed 85% of the actual or estimated amount of
such taxes extended or to be extended or to be received as set forth in such
resolution. At any time moneys are
available in the working cash fund they
shall be transferred to such other funds of the district and used for any and all school purposes so as to avoid, whenever possible, the
issuance of anticipation tax warrants or notes.
Moneys earned as interest from the investment of the working cash fund, or
any portion thereof, may be transferred from the working cash fund to another
fund of the district that is most in need of the interest without any requirement of repayment to the working cash
fund, upon the authority of the school board by separate resolution directing
the school treasurer to make such transfer and stating the purpose in accordance with subsection (c) of Section 9 of the Local Government Debt Reform Act.
(Source: P.A. 101-416, eff. 8-16-19.)
(105 ILCS 5/20-6) (from Ch. 122, par. 20-6)
Sec. 20-6. 
		Willful violation of law. 
		Any member of the school board of any school district to which this
Article is applicable, or any other person holding any office, trust, or
employment under such school district who wilfully violates any of the
provisions of this Article shall be guilty of a business offense and
fined not exceeding $10,000, and shall forfeit his right to his office,
trust or employment and shall be removed therefrom. Any such member or
other person shall be liable for any sum that may be unlawfully diverted
from the working cash fund or otherwise used, to be recovered by such
school district or by any taxpayer in the name and for the benefit of
such school district in an appropriate civil action; provided that the
taxpayer shall file a bond for all costs and be liable for all costs
taxed against the school district in such suit, and judgment shall be
rendered accordingly. Nothing herein shall bar any other remedies.
(Source: P.A. 79-1366.)
(105 ILCS 5/20-7) (from Ch. 122, par. 20-7)
Sec. 20-7. Resolution for issuance of bonds - Submission to voters - Ballot. No school district may issue bonds under this Article unless it adopts a
resolution declaring its intention to issue bonds for the purpose therein
provided and directs that notice of such intention be published at least
once in a newspaper published and having a general circulation
in the district, if there be one, but if there is no newspaper published
in such district then by publishing such notice in a newspaper having a
general circulation in the district.  The notice shall set forth (1)
the intention of the district to issue bonds in accordance with this
Article; (2) the time within which a petition may be filed requesting
the submission of the proposition to issue the bonds; (3) the specific
number of voters required to sign the petition; and (4) the date of
the prospective referendum. At the time of publication of the notice and
for 30 days thereafter, the recording officer of the district shall provide
a petition form to any individual requesting one. If within 30 days after
the publication a petition is filed with the recording officer of the
district, signed by the voters of the district equal to 10% or more of the
registered voters of the district requesting that the proposition to issue
bonds as authorized by this Article be submitted to the voters thereof,
then the district shall not be authorized to issue such bonds until the
proposition has been certified to the proper election authorities and has
been submitted to and approved by a majority of the voters voting on the
proposition at a regular scheduled election in accordance with the general
election law. If no such petition is so filed, or if any and all petitions
filed are invalid, the district may issue the bonds. In addition to the
requirements of the general election law the notice of the election shall
set forth the intention of the district to issue bonds under this Article.
The proposition shall be in substantially the
following form:
OFFICIAL BALLOT
--------------------------------------------------------------
Shall the Board of ....
of School District number ....          YES
County, Illinois, be authorized
to issue bonds for a working       ---------------------------
cash fund as provided for
by Article 20 of the                    NO
School Code?
--------------------------------------------------------------
(Source: P.A. 96-1277, eff. 7-26-10.)
(105 ILCS 5/20-8) (from Ch. 122, par. 20-8)
Sec. 20-8. Abolishment of working cash fund. Any school district may abolish
its working cash fund, upon the adoption of a resolution so providing, and
direct the transfer of any balance in such fund to the educational fund at the
close of the then current school year. Any outstanding loans to other funds of the district 
shall be paid or become payable to the educational fund at the close of the
then current school year. Thereafter, all outstanding taxes of such school
district levied pursuant to Section 20-3 shall be collected and paid into the
educational fund.
Any balance in any working cash fund that is created in any school
district on or after the effective date of this amendatory Act of 1991
(including all outstanding loans from any such working cash fund to other funds of the district and all outstanding taxes levied by the district
under Section 20-3 to provide moneys for any such working cash fund) may, when
such working cash fund is abolished, be used and applied for the purpose of
reducing, by the balance in that working cash fund at the close of the school
year in which the fund so created is abolished, the amount of the taxes that
the school board of the school district otherwise would be authorized or
required to levy for educational purposes for the immediately succeeding school
year.
Any obligation incurred by any school district pursuant to Section 20-2
shall be discharged as therein provided.
(Source: P.A. 96-1277, eff. 7-26-10.)
(105 ILCS 5/20-9) (from Ch. 122, par. 20-9)
Sec. 20-9. 
A school district which has
abolished or abated its working cash fund has the authority to again create a working
cash fund at any time in the manner provided in this Article.
(Source: P.A. 96-1277, eff. 7-26-10.)
(105 ILCS 5/20-10)
Sec. 20-10. Abatement of working cash fund. Any school district may abate its working cash fund at any time, upon the adoption of a resolution so providing, and direct the transfer at any time of moneys in that fund to any fund or funds of the district most in need of the money, provided that the district maintains an amount to the credit of the working cash fund, including taxes levied pursuant to Section 20-3 and not yet collected and amounts transferred pursuant to Section 20-4 and to be reimbursed to the working cash fund, at least equal to 0.05% of the then current value, as equalized or assessed by the Department of Revenue, of the taxable property in the district.  If necessary to effectuate the abatement, any outstanding loans to other funds of the district may be paid or become payable to the fund or funds to which the abatement is made.  Any abatement of a school district's working cash fund prior to the effective date of this amendatory Act of the 96th General Assembly that would have complied with the provisions of this Section is hereby validated.
(Source: P.A. 96-1277, eff. 7-26-10.)