The conference app can now be downloaded from the iTunes Store.  Just search for "Illinois Library Association" and you will have conference information at the ready on your iPhone or iPad.  The app is also available at ila.boopsie.com. 

This year in the Per Capita grant applications the Illinois State Library listed the various real estate tax sources.  ILA has received several requests for additional information on these sources.  The information below is from the ILA publication Financial Manual for Public Libraries.

            There are a number of real estate tax levies available to public libraries for revenue.  The passage of tax caps has put restrictions on using these tax funds in those counties that have tax caps in place.  Several of these funds can be increased by front door and back door referendum processes.  Some of the tax funds are restricted on the type of expense it may be used for.  Please click here to refer to the Illinois Property Tax Rate and Levy Manual which is updated annually by the Illinois Department of Commerce and Economic Opportunity for detailed fund information.   The library funds are:

                                                Library Types

Tax Fund                                 Municipal                   Township         District

Corporate                                .15%                            .15%                  .15%

Building & Maintenance           .02%                            .02%                  .02%

Audit                                      No Limit*                    .005%*                .005%*

IMRF (pension)                      No Limit*                    No Limit*          No Limit*

Medicare                                No Limit*                    No Limit*          No Limit*

Social Security                       No Limit*                    No Limit*          No Limit*

Insurance                               No Limit*                    No Limit*          No Limit*

Working Cash                          .05%*                        .05%*                .05%*

Building Restorations               .0833%*                   .0833%            .0833%*

Building & Maintenance           .02%*                       .02%*                .0833%*

Special Reserve         Annual Transfer       Annual Transfer  Annual Transfer

* Funds have restriction of application and other conditions. 

General Corporate Fund

            The purpose of this fund is to establish, maintain, and support the library.  The maximum tax rate is .15% but can be increased by referendum to .60%.  This tax must be levied each year and is used to cover most library expenditures such as salaries, material purchases, etc.  Interest may be accumulated.  Unexpended funds can be transferred into the Special Reserve Fund by either an ordinance or resolution.  (75 ILCS 5/3-1, 5/3-4, 5/3-7) 

Building & Maintenance Fund

            The purpose of this fund is to maintain, repair or change the library's physical facilities or equipment, to purchase buildings, sites, furniture or equipment and to construct or rent buildings required for library purposes. The maximum tax rate is .02% but is subject to a backdoor referendum.  This levy can be levied each year.  This fund is used to cover or supplement most of the library's capital improvement needs, custodial and maintenance services, and major equipment needs.  Interest can be accumulated.  Excess funds cannot be transferred to the Special Reserve Fund.  (75 ILCS 5/3-1, 5/3-4)

Audit Fund

            The purpose of this fund is to pay all expenses of the required annual audit.  The maximum rate is unlimited for municipal libraries.  The maximum rate for library districts is .005%.  The tax is optional and the levy is at the discretion of the corporate authorities.  No referendum is required. The monies in this fund cannot be used for any purpose other than the annual audit.  Interest may be earned.  Excess funds cannot be transferred to the Special Reserve Fund.  (65 ILCS 5/8-8-8; 50 ILCS 310/1, 310/9)

IMRF Fund

            The purpose of this fund is to pay the costs of participation in the Illinois Municipal Retirement Fund.  The tax rate may not exceed the amount appropriated for contributions to the IMRF fund.  No referendum is required.  The tax is optional and the levy is at the discretion of the corporate authorities.  The monies of this fund cannot be used for any purpose other than for payment of pension contributions.  Interest may be earned.  Excess funds cannot be transferred to the Special Reserve Fund. (40 ILCS 5/7-171)

Medicare Fund

            The purpose of this fund is to pay the cost of participation in the Federal Medicate Program.  The tax rate may not exceed the amount appropriated for contributions to the Federal Medicate Program.  No Referendum is required.  The tax is optional and the levy is at the discretion of the corporate authorities.  The monies in this fund cannot be used for any purpose other than for payment of Medicare contributions.  Interest may be earned.  Excess funds cannot be transferred to the Special Reserve Fund.  (40 ILSC 5/21-110.1)

Social Security Fund

            The purpose of this fund is to pay the cost for participation in the Federal Social Security Insurance Program.  The tax rate may not exceed the amount appropriated for contributions to the Federal Social Security Insurance Program. No Referendum is required.  The tax is optional and the levy is at the discretion of the corporate authorities.  The monies in this fund cannot be used for any purpose other than for payment of social security payments. .  Interest may be earned.  Excess funds cannot be transferred to the Special Reserve Fund.  (40 ILSC 5/21-110, 5/21-110.1)

Insurance Fund

            The purpose of this fund is to pay the costs of settlements or judgments; the costs to protect the library or its employees against liability, property damage or loss (including self-insurance pools); the principal and interest on bonds; the cost of risk management programs (including the purchase of insurance, consultant fees, attorney fees, or salaries for defending the library); the cost of worker's compensation; and unemployment insurance.  This tax can be used to pay the "errors and omissions" insurance which covers board members and the library director in case of a possible judgment against them.  This tax may be levies at a rate sufficient to pay all tort, insurance costs, etc.  The tax rate is unlimited, but the levy cannot be more than has been appropriated.  No Referendum is required.  The tax is optional and the levy is at the discretion of the corporate authorities.  The monies in this fund cannot be used for any purpose other than for payment of insurance payments and related expenses. Interest may be earned.  Excess funds cannot be transferred to the Special Reserve Fund.  (745 ILCS 10/9-107)

Working Cash Fund

            The purpose of this fund is to allow a library to have cash on hand from fiscal year to the next and to meet the demands for ordinary and necessary expenditures for library purposes. The maximum rate is .05%.  This tax may be levied for only four years, although the years do not have to be consecutive.  The balance in the fund shall not at any time be allowed to exceed .2% if the full cash value of all taxable property within the service area, as equalized or assessed by the Department of Revenue for the year the fund was established or, if established after January 1, 1979, then for the year 1978.  The levy shall be terminated if the balance exceeds .2%, and the excess transferred to the General Library Fund or to the Special Reserve Fund.  Interest may be earned.  Since there may be a lag time between the start of the fiscal year and the first receipt of tax monies, funds may be temporarily transferred into the General Library Fund and disbursed in anticipation of taxes.  The funds are repaid once the General Library Fund receives monies but no interest is charged.  The initial tax is subject to a backdoor referendum.  (75 ILCS 5/3-9); 75 ILCS 16/35-35)

Building Restoration Fund

            The purpose of this fund is for application to building destroyed or seriously impaired by storm, fire or other casualty.  It is not to exceed 10 years.  The maximum rate is .0833%.  It is authorized by referendum. (75 ILCS16/35-30)

Special Reserve Fund

            This is not a tax.  The purpose of this fund is to set apart and provide monies for the library's physical plant needs or for emergency expenditures.  In loose terms, this could be considered the library's savings account.  The Board of Trustees must adopt a plan for the expansion or repair of the building within two years of the adoption of the Special Reserve Fund.  The plan should be reviewed and revised on a regular basis.  This fund is not levied, but consists of annual transfers from the General Library fund form unexpended balances.  The Board of Trustees must annually pass an appropriation ordinance for the accumulation and transfer of any unexpended balances into this fund.  Interest may be accumulated.  (75 ILCS 5/5-8; 75 ILCS 16/40-50)

If you would like to order a copy of the Financial Manual for Illinois Public Libraries, please click here to order the publication.