Cook County, Illinois, has opened the application window for $300 million in loans to help local governments cover cash-flow gaps caused by expected delays in property tax bills. The window will close on Aug. 24.
The Property Tax Bridge Fund (PTBF) Program will provide recipients with the financial collateral needed to ensure essential public services remain available and operational. Entities that may apply typically include municipalities and townships, as well as libraries and school, park and fire protection districts.
All applicants must meet several criteria to be eligible for the program. These requirements include:
- Local taxing jurisdictions (LTJ) must rely on property taxes for 50% or more of their total governmental revenues.
- Disinvested communities that do not meet the first criteria may be given additional consideration based on funding availability and need.
- Only LTJs located within Suburban Cook County may apply.
The program is only intended to provide short-term coverage while the county continues to repair an imperfect property tax system. The county has been working over the last several years to reform advanced tax sales and transition from an antiquated mainframe system to a modern property tax system.
These no-interest loans enable local governing bodies to cover operating expenses in the interim until they receive property tax distributions. The county anticipates a two-month delay for the next round of property tax bills.
The county expanded eligibility for the PTBF Program from the previous year, incorporating more institutions that rely on property tax revenue to access financial assistance. County officials also opened the program earlier this year to give recipients more time to plan, evaluate and prepare applications in anticipation of funding gaps.
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