First American Bank Corp. v. Henry
239 Ill. 2d 511
| Ill. | 2011Background
- IMRF is a statewide pension fund for local governments that requires each municipality to raise revenue for its contributions.
- The Forest Preserve District of Du Page County received IMRF contribution rate notices in 1999 and 2000, planning funding for the following year.
- In November 1999 the District levied taxes including IMRF contributions; in June 2000 it adopted an appropriation for IMRF contributions referencing the prior levy.
- First American Bank and others objected in 2000 to the District’s authority to levy for IMRF before an appropriation had been made.
- The District intervened and sought summary judgment, arguing section 7-171 and Downstate Forest Preserve Act sections 13.1, 13.3 authorize levy before appropriation.
- The trial court and appellate court rejected the plaintiffs’ position; the Illinois Supreme Court supreme held that levying before appropriation was authorized.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does 7-171(b)(1) require appropriation before levy? | Henry et al. advocate that 'amount appropriated' means past appropriations only. | First American argues the phrase limits levies to past appropriations, prohibiting pre-appropriation levies. | No; context permits levy before appropriation under the act. |
| Does 7-171(e) require levy and collection 'in like manner' with general taxes to permit pre-appropriation levy? | Levy and collection must mirror general taxes, implying timing limits tied to appropriation. | District may levy IMRF tax the same way as general taxes; timing can precede appropriation. | Yes; IMRF levy may precede appropriation when governed by related statutes. |
| How do the Downstate Forest Preserve District Act provisions (13.1, 13.3) govern timing of levy and appropriation? | Levy should logically follow appropriation per general budgeting practice. | Act permits levy of general taxes for the next fiscal year and does not require prior appropriation for IMRF; appropriation may follow or come after levy. | Act permits levy before appropriation for IMRF; district acted within authority. |
| What is the proper interpretation of section 7-171 when read as a whole? | Plain-language 'amount appropriated' unambiguously caps levies and implies timing. | Whole statute shows flexibility; levy timing tied to forest preserve act provisions and IMRF statute. | Whole statute supports levy before appropriation; legislative intent permits timing flexibility. |
Key Cases Cited
- People ex rel. Krapf v. Hayes, 13 Ill. 2d 143 (Illinois Supreme Court, 1958) (statutory framework for IMRF-like obligations and authority to levy)
- Jarmuth, 398 Ill. 66 (Illinois Supreme Court, 1947) (tax levied to support a fund must be levied in the manner general taxes are levied)
- Kelly v. Baltimore & Ohio R.R. Co., 376 Ill. 393 (Illinois Supreme Court, 1941) (levy of a tax authorized by vote extended to be levied in like manner with general taxes)
- In re Application of the County Collector of Du Page County for Judgment for Taxes for the Year 1993, 187 Ill.2d 326 (Illinois Supreme Court, 1999) (illustrates budgeting and levy timing considerations for special districts)
- People ex rel. Rockwell v. Chicago, Burlington & Quincy R.R. Co., 386 Ill. 114 (Illinois Supreme Court, 1944) (budgeting power and timing reserved to General Assembly)
- Acme Markets, Inc. v. Callanan, 236 Ill.2d 29 (Illinois Supreme Court, 2010) (statutory construction approach; plain language governs when unambiguous)