Types of Bonds: Life Safety Bonds

January 7, 2015 by Enzo Incandela, Associate | James M. Snyder, Partner
Types of Bonds: Life Safety Bonds

There are a number of different forms of bonds/debt that a school district may issue to meet its financing needs.

Life Safety Bonds. School districts can issue life safety bonds in order to alter, reconstruct and repair school buildings and permanent, fixed equipment and purchase and install equipment purchased for purposes of meeting requirements that are set forth in the building code promulgated by the State Board of Education of the State of Illinois for existing facilities that house students. In accordance with statutory procedures an architect or engineer conducts a survey of a school districts buildings and issues findings of such survey in a “safety survey report.” The school board approves the safety survey report and submits it to the regional superintendent. The regional superintendent approves (or denies) the safety survey report and submits it to the state superintendent. The state superintendent approves (or denies) the report and issues a certificate of approval. Once approved, the regional superintendent issues an order to begin the project. Assuming the school district follows the procedures discussed above, life safety bonds are not subject to direct or backdoor referendum and are secured by an ad valorem tax on all the taxable property within the school district without limitation as to rate or amount, unless the school district is subject to the Limitation Law (discussed herein), in which case the ad valorem taxing power of the school district would still apply, however the amount of the levy would be limited by the school district’s extension base.
 


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