Board of Education of the City of Chicago Law Department
Joseph T. Moriarty General Counsel
1 North Dearborn Street, Suite 900 Chicago, IL 60602 Telephone: (773) 553-1700 Fax: (773) 553-1701
October 25, 2018
Via Federal Express
Ms. Anna Valencia City Clerk
City of Chicago
121 North LaSalle Street
Chicago, IL 60602
Re: Resolution 18-0725-RS4
Board of Education of the City of Chicago Capital Improvement Tax
Dear Ms. Valencia:
Enclosed herewith please find a letter from the Board of Education of the City of Chicago along with a copy of Resolution 18-0725-RS4 of said Board which extends a capital improvement tax levy. At your earliest convenience please sign the Receipt Acknowledgement set forth on such letter and send a PDF copy to my attention at imurphv(5>cps.edu.
Please call me at 773-553-3428 if you would like to discuss.
Deputy General Counsel
JMMxc
Very truly yours, . ES
Board of Education
CITY OF CHICAGO
FRANK M. CLARK
President
Office of the Board 1 North Dearborn Street, Suite 950, Chicago, Illinois 60602 Telephone (773) 553-1600 Fax (773) 553-3-153
MEMBERS MARK F. FURLONG ALEJANDRA GARZA DR. MAHALIA A. HINES GAIL D. WARD
October 1, 2018
Honorable Anna M. Valencia City Clerk City of Chicago
121 North LaSalle Street, Room 107 Chicago, Illinois 60602
Dear Ms. Valencia,
On August 26, 2015, the Governing Board of the Board of Education of the City of Chicago adopted Board Resolution 15-0826-RS4, Resolution Levying Property Taxes and Authorizing and Directing the Filing of a Controller's Certificate for the Fiscal Year 2015-2016 for School Purposes of The Board of Education of the City of Chicago (the "Board"). Section 2(c) of the 2015 Resolution authorized a Capital Improvement Tax (CIT) Levy for capital improvement purposes in the amount of $45,000,000 as authorized by 105 ILCS 5/34-53.5.
That was the initial CIT tax levy made by the Board and pursuant to 105 ILCS 5/34-53.5, required approval of the City Council ofthe City of Chicago before the levy was extended. The City Council subsequently approved the CIT levy at its meeting on October 21, 2015.
In accordance with the provisions of 105 ILCS 5/34-53.5(e), the Board must notify the Chicago City Council that the Board has adopted the CIT levy in subsequent years. This letter is to notify the Chicago City Council that on July 25, 2018, the Board adopted Board Resolution 18-0725-RS4, Resolution Levying Property Taxes and Authorizing and Directing the Filing of a Controller's Certificate for the Fiscal Year 2018-2019 for Capital Improvement Purposes of The Board of Education of the City of Chicago (the "2018 CIT Resolution").
A certified copy ofthe 2018 CIT Resolution is being delivered to your office with this communication.
Estela Beltran Secretary
Board Resolution 18-0725-RS4 attached
OFFICE OF THE SECRETARY BOARD OF EDUCATION — CITY OF CHICAGO
STATE OF ILLINOIS
County of Cook
, Secretary of the Board of Education of the
City of Chicago, in the County of Cook and State of Illinois, DO HEREBY CERTIFY that the annexed
and foregoing is a true and correct copy of that certain BOARD REPORT 18-0725-RS4
now on file in my office, BOARD REPORT 18-0725-RS4 - RESOLUTION LEVYING PROPERTY TAXES AND
AUTHORIZING AND DIRECTING THE FILING OF A CONTROLLER'S CERTIFICATE FOR THE FISCAL YEAR 2018-2019 FOR CAPITAL IMPROVEMENT PURPOSES OF THE BOARD OF EDUCATION OF THE CITY OF CHICAGO
I DO FURTHER CERTIFY that the said BOARD REPORT 18-0725-RS4 was presented
to and approved by the Board of Education of the City of Chicago at its regular meeting held
on the 25th day of Ju'y , A.D. 20 18 . and deposited
in my office on the 25th day of J"'Y , A.D. 20 18 .
I DO FURTHER CERTIFY that the original, of which the foregoing is a true copy, is entrusted to my care for safekeeping and that I am the lawful keeper of the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the corporate seal ofthe Board of Education ofthe City of
P--S.] Chicago aforesaid at the City, in the County and State aforesaid,
day of September
Secretary
18-0725-RS4
July 25, 2018
RESOLUTION LEVYING PROPERTY TAXES AND AUTHORIZING AND DIRECTING THE FILING OF A CONTROLLER'S CERTIFICATE FOR THE FISCAL YEAR 2018-2019 FOR CAPITAL IMPROVEMENT PURPOSES OF THE BOARD OF EDUCATION OF THE CITY
OF CHICAGO
BE IT RESOLVED BY THE BOARD OF EDUCATION OF THE CITY OF CHICAGO as follows:
Section 1. Findings. The Board of Education of the City of Chicago does hereby find and declare as follows:
The Board adopted on July 25, 2018, its Annual School Budget, which sets forth the appropriations and liabilities of the Board for Fiscal Year 2018-2019, which begins on July 1, 2018 and ends on June 30, 2019;
The Board requires to be levied, and it is necessary for the Board to levy, real estate taxes in the amount of Nine Million, Four Hundred and Fifty Six Thousand and Sixty Seven ($9,456,067) for its 2018-2019 Fiscal Year, as set forth in Section 2 of this Resolution.
Section 2. Levy. Pursuant to the provisions of 105 ILCS 5/34-53.5, there are levied for the
Board's Fiscal Year 2018-2019, upon all taxable property in the City of Chicago, real estate taxes
for the purpose of providing a reliable source of revenue for capital improvement purposes,
including, without limitation, (i) the construct and equipping of new school buildings or additions to
existing school buildings; (ii) the purchase of school grounds on which any new school buildings
or additions to existing school buildings may be constructed or located; and (iii) the rehabilitation,
renovation, and equipping of existing school buildings; $9,456,067
All taxes levied by this Resolution are in addition to any taxes levied for any previous fiscal year or for any lease rentals for the Public Building Commission of Chicago or any Bonds of the Board.
Section 3. Certificate. It is certified that the Board requires the real estate taxes to be levied as provided in Section 2 of this Resolution upon all taxable property in the City of Chicago. The Controller is authorized and directed to file with the County Clerks of the Counties of Cook and DuPage a Controller's Certificate as required by Section 34-54.1 of the School Code, 105 ILCS 5/34-54.1, pertaining to the extension of real estate tax levies in calendar year 2019, substantially in the form as provided in Exhibit A which is attached hereto and made a part of this Resolution.
Section 4. Amendment to Certificate. The Controller's Certificate shall be amended as may be necessary in Ihe opinion of the General Counsel to the Board to conform to subsequent changes in law or interpretation of the law.
Section 5. Effectiveness. This Resolution is effective and in full force immediately upon its adoption.
18-0725-RS4
EXHIBIT A
CERTIFICATE OF THE CONTROLLER OF THE BOARD OF EDUCATION OF THE CITY OF CHICAGO SETTING FORTH SCHOOL TAXES TO BE EXTENDED FOR COLLECTION IN
CALENDAR YEAR 2019
To the County Clerks of Cook and DuPage Counties, Illinois:
On July 25, 2018, the Board adopted Resolutions levying real estate taxes for the Board's 2019 Fiscal Year (the "2018-2019 School Tax Levy Resolution" and the "2018-2019 Capital Improvement Tax Levy Resolution"). Copies of the 2018-2019 School Tax Levy Resolution and the 2018-2019 Capital Improvement Tax Levy Resolution, certified by the Secretary of the Board, are being filed with your office concurrently with this Certificate. (A copy of the 2018-2019 School Tax Levy Resolution and the 2018-2019 Capital Improvement Tax Levy are attached to this Certificate.)
Pursuant to Section 34-54.1 of the School Code, 105 ILCS 5/34-54.1, as authorized and directed by the Board, I, Melihda Gildart, Controller of the Board, certify and direct as follows:
1. You are directed to extend for collection, upon the value of all taxable property within the City of Chicago (the "City"), the boundaries of which are coterminous with the boundaries of the school district governed by the Board, as equalized or assessed by the Illinois Department of Revenue for tax year 2018, the following taxes:'
(a) The following amounts of taxes levied by the 2017-2018 School Tax Levy Resolution for the Board's 2018 Fiscal Year which are required to provide necessary revenue to defray expenditures, charges and liabilities incurred by the Board (but such amounts shall always be subject to the limiting provisions set forth below):
For educational purposes, including without limitation, in addition to general education purposes, including, as authorized before the adoption of Public Act 89-15, constructing, acquiring, leasing (other than from the Public Building Commission of Chicago), operating, maintaining, improving, repairing, and renovating land, buildings, furnishings, and equipment for school houses.and buildings, and related incidental expenses; provision of special education; furnishing free textbooks and instructional aids and school supplies; establishing, equipping, maintaining, and operating supervised playgrounds .under the control ofthe Board, school extracurricular activities, and stadia, social centers and summer swimming pool programs open to the public in connection with any public school; making an employer contribution to the Public School Teachers' Pension and Retirement Fund as required by Section 17-129 ofthe Illinois Pension Code, 40 ILCS 5/17-129; providing an agricultural science school, including site development and improvements, maintenance, repairs, and
supplies; and student transportation expenses $249,499,105
For the purpose of making an employer contribution to the Public School Teachers' Pension and Retirement Fund of Chicago as authorized by P.A. 100-465 and 105 ILCS 5/34-53, as amended effective August 31, 2017, the proceeds to be paid directly to the Public School Teachers' Pension
and Retirement Fund of Chicago as soon as possible after collection $2,395,734|1010|
18-0725-RS4
(b) The following amounts of school taxes levied by the 2018-2019 School Tax Levy Resolution and the 2018-2019 Capital Improvement Tax Levy Resolution for the Board's 2019 Fiscal Year, which are required to provide necessary revenue to defray expenditures, charges and liabilities incurred by the Board (but such amounts shall always be subject to the limiting provisions set forth below):
For educational purposes, including without limitation, in addition to general education purposes, including, as authorized before the adoption of Public Act 89-15, constructing, acquiring, leasing (other than from the Public Building Commission of Chicago), operating, maintaining, improving, repairing, and renovating land, buildings, furnishings, and equipment for school houses and buildings, and related incidental expenses; provision of special education; furnishing free textbooks and instructional aids and school supplies; establishing, equipping, maintaining, and operating supervised playgrounds under the control ofthe Board, school extracurricular activities, and stadia, social centers and summer swimming pool programs open to the public in connection with any public school; making an employer contribution to the Public School Teachers' Pension and Retirement Fund as required by Section 17-129 ofthe Illinois Pension Code, 40 ILCS 5/17-129; < providing an agricultural science school, including site development and improvements, maintenance, repairs, and
supplies; and student transportation expenses $2,461,139,579
For the purpose of paying tort judgments and settlements; paying costs of insurance, individual or joint self-insurance (including reserves thereon), including all operating and administrative costs and expenses directly associated therewith, claims services and risk management directly attributable to loss prevention and loss reduction, legal services directly attributable to the insurance, self-insurance or joint self-insurance program, and educational, inspectional and supervisory services directly relating to loss prevention and loss reduction; discharging obligations under Section 34-18.1 ofthe School Code, 105 ILCS 5/34-18.1; paying the cost of risk management programs; establishing reserves for executed losses for any liability or loss as provided in 745 ILCS 10/9-107; and protection against and reduction of liability or loss as described above under Federal or State statutory or common law, the Workers' Compensation Act, Workers' Occupational
i^Cuju rVuri, oi ii is~r v** i iCi i ipiO Y11 ici ii inbUiclMWC rt^i
For capital improvement purposes as authorized
Under Section 34-53.5(a) of the School Code, 105 ILCS
5/34-53.5, including the construction and equipping of new school
buildings or additions to existing buildings, the purchase of land
for the construction of new school buildings or additions to
existing buildings, the rehabilitation, renovation, and equipping of
of existing school buildings
|1010|
18-0725-RS4
For the purpose of making an employer contribution to the Public
School Teachers' Pension and Retirement Fund of Chicago as authorized
by P.A. 100-465 and 105 ILCS 5/34-53, as amended effective August 31, 2017,
the proceeds to be paid directly to the Public School Teachers' Pension
and Retirement Fund of Chicago as soon as possible after collection $440 949,977
2. The aggregate amount of school real estate taxes which are to be extended for collection in calendar year 2019, as set forth in Section 1 of this Certificate, are as follows (but such amounts shall always be subject to the limiting provisions set forth below):
For Educational Purposes as described in Section 1
of this Certificate $2,710,638,684
For Liability Protection Purposes as described in Section 1
of this Certificate $80,450,540
For Capital Improvement Purposes described in Section 1
of this Certificate $9,456,067
For Teacher Pension Purposes described in Section 1
of this Certificate $443,345,711
The Board has previously enacted, and filed with you, its resolutions levying direct annual taxes to be extended for collection in calendar year 2019 for the purpose of providing revenue for the payment of rent provided for in various leases entered into between the Board and the Public Building Commission of Chicago. You are directed to extend these taxes for collection in calendar year 2019, as provided by those resolutions and by law, except to the extent that the Board files with you an abatement of any or all of those taxes.
The Board has previously enacted, and filed with you, its resolutions levying direct annual taxes to be extended for collection in calendar year 2018 for the purpose of paying principal and interest on the Unlimited Tax General Obligation Bonds (Dedicated Revenue) Series1997A, 1998B-1, 1999A, 2004A, 2005A, 2005B, 2006A, 2006B, 2007B, 2007D, 2008A, 2008B, 2008C, 2009D, 2009EF, 2009G, 2010C, 2010D, 2010F, 2010G, 2011A, 2012A, 2012B,, 2015C, 2015E, 2016A, 2016B, 2017A, 2017B, 2017C, 2017D, 2017E, 2017F, 2017G. 2017H, 2018A, 2018B. You are directed to extend these taxes for collection in calendar year 2018, as provided by those resolutions and by law, except to the extent that the Board files with you an abatement of any or all of those taxes. '
5. Any reduction in extensions required by the Property Tax Extension Limitation Law shall be taken solely from the extension for Educational Purposes, except as subsequently directed by the Controller.
Dated: July 25, 2018
Melinda Gildart
CONTROLLER
BOARD OF EDUCATION OF
THE CITY OF CHICAGO
3