CHAPTER 57
FORMERLY
SENATE BILL NO. 140
AS AMENDED BY SENATE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 128, VOLUME 33, LAWS OF DELAWARE AS AMENDED, ENTITLED "AN ACT TO RE-INCORPORATE THE TOWN OF MIDDLETOWN", TO ELIMINATE PROVISIONS REQUIRING VOTES TO BE WEIGHTED ON THE BASIS OF PROPERTY TAX PAYMENTS IN SPECIAL ELECTIONS APPROVING BORROWINGS, TO ALLOW THE TOWN TO INCUR INDEBTEDNESS IN ANTICIPATION OF TAX COLLECTIONS AND OTHER REVENUES, TO INCREASE THE DEBT LIMIT, AND TO CLARIFY CERTAIN PROVISIONS REGARDING REFINANCING OF INDEBTEDNESS BY THE TOWN.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):
Section 1. . Amend the first paragraph of Section 20 of Chapter 128, Volume 33, Laws of Delaware, the Charter of the Town of Middletown, as amended, by deleting the words 'exceed ten per cent of the then last assessed value of all the real estate in said Town; but before' and by substituting in lieu thereof the words 'exceed fifteen per cent of the then last assessed value of all the real estate in said Town; and provided, however, that if said Town at any time increases its total indebtedness pursuant to this Section, the Town shall forfeit for a period of five years thereafter the power to annex contiguous territory as permitted in Section 1 of this Charter. Before'."
Section 2 Amend the second paragraph of Section 20 of Chapter 128, Volume 33, Laws of Delaware, the Charter of the Town of Middletown, as amended, by deleting the first sentence thereof and by substituting in lieu thereof the following:
"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 one vote. (For purposes of this section, 'entitled to vote' shall include 'registered to vote' if voter registration is required for the annual Town election.)"
Section 3. Amend Section 20 of Chapter 128, Volume 33, Laws of Delaware, the Charter of the Town of Middletown, as amended, by adding a paragraph at the end thereof reading as follows:
"The Mayor and Council shall have the power to borrow money, without approval of the voters and without regard to the other provisions of Section 20 of this Charter, 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. Such notes or evidences of indebtedness and the interest thereon shall be exempt from all taxation by the State of Delaware, its agencies and political subdivisions. Any sum(s) of money borrowed hereby shall be paid from 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 paragraph shall not exceed the maximum permitted under Federal tax law."
Section 4. Amend Section 21 of Chapter 128, Volume 33, Laws of Delaware, the Charter of the Town of Middletown, as amended, by deleting the same in its entirety and substituting a new Section 21 reading as follows:
"Section 21. If the Town shall irrevocably deposit in trust with a Delaware bank, amounts sufficient, together with investment proceeds thereof, to pay principal and interest on indebtedness of the Town when due and upon maturity or earlier redemption, such indebtedness shall not be deemed outstanding for purposes of the debt limitations contained herein. Any bonds that currently or advance refund existing indebtedness shall not require a special election, provided that the refunding results in debt service savings to the Town."