Delaware General Assembly

CHAPTER 10

FORMERLY

SENATE BILL NO. 4

SECTION 1: Amend Section 19 of Chapter 128, Volume 33, Laws of Delaware, the Charter of the town of Middletown, as amended, by striking said section in its entirety and substituting in lieu thereof the following:

“The Mayor and Council of Middletown may borrow upon the full faith and credit of said Town, a sum or sums not to exceed Four Million Dollars ($4,000,000.00) in principal amount outstanding at any one time, for general municipal purposes, pursuant to a resolution, passed by a majority of all council, and give its obligation therefore, subject to the fifteen percent (15%) borrowing limitation set forth in Section 20. All obligations or bonds authorized by this Act shall be signed by the Mayor and countersigned by Treasurer, and sealed with the corporate seal. The form of the bonds or certificates of indebtedness authorized under this section, if any, the time or times of payment, the interest rate, the classes, the series, the maturity, the registration, any callable or redeemable feature, the denomination, the name thereof and any other relative or appurtenant matter pertaining thereto shall all be determined by the Mayor and Council of Middletown. Any such bonds may be sold at a public or private sale as determined by the Mayor and Council of Middletown. All bonds or other kinds or forms of certificates of indebtedness issued by the Mayor and Council of Middletown pursuant to the provisions of this Section, and the interest thereon, shall be exempt from taxation from the State of Delaware or any political subdivision thereof.”

SECTION 2: Amend Section 20 of Chapter 128, Volume 33, Laws of Delaware, the Charter of the Town of Middletown, as amended, by striking said section in its entirety and substituting in lieu thereof the following:

“(a) The Mayor and Council of Middletown may borrow money for municipal purposes of any character whatsoever, upon the full faith and credit of said Town, and issue bonds including the payment of the same; but in no case shall the total indebtedness of every kind, including amounts borrowed pursuant to Section 19, exceed fifteen percent (15%) of the then last assessed value of all real estate in said Town. Before borrowing any sums (other than sums borrowed pursuant to Section 19 or Section 20 (b) hereof, the Mayor and Council of Middletown shall submit to the qualified voters of said Town the question of borrowing such sum or sums of money, and the same shall be approved by a majority of the votes cast at a special election to be held for that purpose. Notice of such special election stating the amount proposed to be borrowed (which may be stated as a not to exceed amount), and, when borrowed, what the aggregate of all the municipal indebtedness will be, and the purpose to which the loan will be applied, shall be posted in five of the most public places in said Town, and published in one local newspaper of general circulation, at least every twenty (20) days next before the day of said special election.

(b) At such special election, any person who is entitled to vote in the annual Town election, if it were held on that day, shall be entitled to vote. (For purposes of this Section, ‘entitled to vote’ shall include ‘registered to vote’ if voter registration is required for the annual Town election). The said election shall be by ballot or voting machine, if required by State law, and under like provisions and by like officers as herein provided for holding general municipal elections. The ballots shall be printed “For Bond Issue Only’ or ‘Against the Bond issue’ (or if for multiple projects, ‘For’ or ‘Against’ a Bond Issue in an aggregated stated principal amount for a stated project. If a majority of the votes cast be ‘For the Bond Issue’ (or if multiple projects, ‘For’ a bond issue in the aggregate principal amount for a listed project), then the Mayor and Council shall have the authority to borrow the sum or sums of money and issue the bonds therefore, pledging the full faith and credit of said Town. The Mayor and Council shall have the power to borrow money, without the approval of voters and without regard to other provisions of this Section (including, without limitation, the 15% limitation set for the above) such sum or sums not exceeding in the aggregate one-third of the total amount of the Town’s revenues for the immediately preceding fiscal year, from real property and utility fixture taxes, license fees, and fees for municipal services, for general purposes when, in the opinion of the majority of the Council elected, the needs of the town require it. Any borrowings under this paragraph shall, by their terms, be repayable in full within thirteen (13) months of the date of each such borrowing. Any sum or sums so borrowed shall be secured by a promissory note or notes or other evidence of indebtedness of the Town duly authorized by resolution of the Council and signed by the Mayor and attested by the Secretary of the Council with the Town seal affixed. Any sum(s) or money borrowed hereby shall be paid from the receipt of moneys deposited into the general fund or enterprise funds of the Town. The aggregate amount of outstanding principal from any such borrowing or borrowings under this subparagraph shall not exceed the maximum permitted under Federal tax law.

(c) Any bonds, notes or evidences of indebtedness issued pursuant to this Section and the interest thereon shall be exempt from all taxation by the State of Delaware, its agencies and political subdivisions. The form of the bonds or certificates of indebtedness authorized under this Section, if any, the time or times of payment, the interest rate, the classes, the series, the maturity, the registration, any callable or redeemable feature, the denomination, the name thereof, and any other relative or appurtenant matter pertaining thereto shall all be determined by the Mayor and Council of the Town of Middletown, by resolution. Any such bonds, notes or evidences of indebtedness may be sold in a public or private sale as determined by the Mayor and Council.”