CHAPTER 592
FORMERLY
HOUSE BILL NO. 672
AN ACT TO AMEND CHAPTER 166, VOLUME 37, LAWS OF DELAWARE, AS AMENDED, ENTITLED "AN ACT TO REINCORPORATE THE TOWN OF SELBYVILLE-, TO PROVIDE FURTHER FOR THE SUPPLYING OF WATER, TO PROVIDE LIMITATIONS ON TAXES, TO PROVIDE FOR USE OF TOWN MONIES, TO PROVIDE FOR LONG-TERM BORROWING AND PROCEDURES THEREFOR AND TO REPEAL ANY ACT TO THE EXTENT ITS PROVISIONS ARE INCONSISTENT WITI I THIS AMENDMENT.
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 Section 4, Subsection 12, Chapter 166, Volume 37 Laws of Delaware as amended, by striking said paragraph in its entirety and substituting in lieu thereof the following:
"12. To provide an ample supply of potable water for the Town and its inhabitants and to this end to acquire, lease, erect, construct, maintain, operate, extend, enlarge. renew. replace, control and dispose of wells, reservoirs, pumps, machines, water treatment facilities, stations. tanks, standpipes, water mains, fire hydrants, and all other equipment, property or rights used in or about the collection, storage, purification, conveyance, or distribution or sale of water; to regulate and prescribe for what public or private purposes the water furnished by the "town may be used, the manner of its use, the amounts to be paid by the users thereof, the means whereby such amounts shall be collected and the lines or penalties, or both, lin any wilful or negligent injury, or damage to or interference with the water system or the equipment of the Town; to furnish or refuse to furnish water from the Town system to places and properties outside the Town limits; and to contract for and purchase water and distribute the same to users within or without the fawn with the same full powers as though such water had been initially reduced to usefulness by the municipality itself"
SECTION 2. Amend Section 8, Chapter 166, Volume 37 Laws of Delaware as .intended, by striking in the first sentence the clause "provided that the amount to he raised shall not in any year be more than Five Hundred Thousand Dollars ($500.000.00)" and substituting in lieu thereof the following:
"provided that the amount of real property taxes to he raised shall in no year exceed three percent (3%) of the total appraised valuation on i.111 taxable real estate (and improvements thereon) in the town
SECTION 3. Amend Section Q. Chapter 166, Volume 37, Laws of Delaware as amended, by striking said section in its entirety and by substituting in lieu thereof the following:
"Section 9. the Mayor and Council of the Town of Selbyville shall have full power and authority to use the money in the treasury of the said Town, or any portion thereof; from time to time, tiff the improvement, benefit, protection, ornamentation and best interest in said Town, as the Mayor and Council may deem proper, and to use town money to accomplish and carry into effect all acts and things which it has power to do by virtue of the Laws of Delaware, this Act and all lawful ordinances and resolutions of the Mayor and Council. Oil or before the 20th day of February of each year a financial statement showing in detail the receipts and expenditures of the 'town for the year then closing, shall be made in public in a newspaper circulated in the Town of Selbyville. or posted in some public and conspicuous place in said Town.
SECTION 4. Amend Chapter 166, Volume 37. Laws of Delaware as amended. by adding a new Section thereto as follows:
"Section 19. Long-Term Borrowing: Voter Approval Required
19.1 Long-Term Borrowing; Approval Required. In addition to other borrowing powers granted to the Town under this Charter or by special act, the Mayor and Council shall have authority to borrow money for any proper municipal purpose through the issuance of bonds or certificates of indebtedness to secure the repayment thereof, on the full faith and credit of the Mown, or such other security or securities as the Mayor and Council shall elect, for the payment of principal thereof and interest due thereon,
19.2 By way of illustration and not in limitation,
"any proper municipal purpose" includes. but is not limited to:
(A) refunding any or all outstanding bonds or other indebtedness of the Town at the maturity thereof or in accordance with any callable feature or provision contained therein.
(B) erecting. extending. enlarging. maintaining, or repairing any plant, building, machinery. or equipment for the manufacture. supplying. or distribution of gas. water. electricity. sewerage, or drainage system. or any of them. and the condemning or purchasing of any lands, casements. and right-of-ways which may be required therefore.
(C) constructing. paving, laying out. widening. extending. Repairing and maintaining streets. lanes. alleys and ways, and the paving. constructing. laying-out. widening extending. repairing. and maintaining or curbing and gutters. including storm sewers, along the same. and the condemning or purchasing of lands. easements or rights of oily s which may be required therefor.
(D) constructing. paving laying out. widening. extending. repairing and maintaining boardwalks. piers. Jetties. bulkheads. sidewalks. cross walks. or embankments. or any of them. and the condemning or purchasing of any lands. casements, or rights of way which may be required therefor.
(E) defraying the costs to the Town of any other municipal improvement provided for or authorized or implied by the provisions of this Charter.
(F) paying all expenses deemed necessary by the Mayor and Council for the issuance of said bonds or certificates of indebtedness. including bond discount and legal expenses of hand counsel.
19.3
Exempt From Taxation. All bonds or other kinds or forms of certificate or certificates of indebtedness issued by the Town pursuant to the provisions of this section. and the interest thereon. shall be exempt front all State. County. or Municipal taxes.
19.4 Limit of Aggregate Long-Term Indebtedness. In no event shall the indebtedness of the Mayor and Council of the Town of Selbyville, authorized by this Section. at any one time exceed, in the aggregate. twenty-five percent 125"/0 of the appraised valuation of all real property within the corporate limits of the Iowa- of Selbyville and subject to assessment for the purpose of levying the annual town taxes as provided in this Charter.
19.5 Procedure: Notice Hearing,. Election. In order to proceed under the power granted in this section, the Mayor and Council shall authorize such borrowing in the following manner:
(A) The Mayor and Council by resolution shall give notice to the residents and property owners of the town that the Mayor and Council propose to borrow a sum of money, not to exceed a stated amount, for a stated municipal purpose. The resolution shall state the amount of money desired to be borrowed (which may be stated as a "not to exceed" amount). the purpose for which it is desired, the manner of securing same, and such other facts relating to the loan which are deemed pertinent by the Mayor and Council and in their possession at the time of the passage of the Resolution: and they shall f u a time. date and place for it hearing on the said resolution.
(B)(1) Notice of the time, date, and place of the hearing on the resolution authorizing said loan shall he published in two newspapers of general circulation in the Town not less than 15 days, nor more than 6(1 days, prior to the date set for the public hearing. Such notice shall he in bold print or bordered in black so as to call attention thereto. In addition to the time, date, and place of the public hearing such notices shall contain the same information as required under Subsection 19.5( A) above.
(2) In addition to publication as herein provided, the Mayor and Council shall, not less than 15 days nor more than 00 days prior to the date set for the hearing, cause a public notice containing the information required above to he posted in at least live public places in the Town. In the event the publications and/or postings do not appear on the same date, the date of the last publication or posting shall control.
(C) If. at any time following the public hearing, the Mayor and Council determines to proceed with the proposed borrowing. it shall pass a second resolution ordering a special election to be held, upon not less than 15 nor more than 00 days public notice, for the purpose of toting for or against the proposed burrow mg the passage of the second Resolution shall ipso lack be considered a determination M the Mayor and Council to proceed with the matter in issue: pro Sided, however. that the Mayor and Council may, at any time subsequent thereto, and based upon a significant change in the relevant circumstances, act by resolution to cancel the Special Election and abandon the proposed borrowing.
(d)(1) The notice of the time and place or holding the said Special Election shall he printed in two newspapers of general circulation in the limn. not less than 15 days nor more than 00 days prior to the date set for the Special lection In addition to the tone. date and place of the election. such notice shall contain the same information as required under Section 19.5(A). Such notice shall lie in bold print or bordered in black so as to call attention thereto
(2) In addition to such publication as herein provided, the Mayor and Council shall, not less than 15 days nor more than 60 days before the date set for the election. cause public notice, containing the information set out in subsection (D)(1) above (using date of "posting" for date of "publication"), to be posted in at least 5 public places in the Town. In the event the publications and/or postings do not appear oil the Sallie date. the elate of the last publication or posting shall control
(E) At such special election. any person who is entitled to vote in the annual tote n election. if it were held on that dm. shall he entitled to one vote. for purpose's of this section. "entitled to vote" shall include. "registered to vote" if voter registration is required for the annual town election.)
Any Special Election held pursuant to the provisions of this section shall be conducted by voting machines, electronic voting systems, or printed ballots as permitted by law which shall have the following designation:
[ ] For the proposed borrowing.
[ ] Against the proposed borrowing.
The voter shall be instructed to mark the box for which he casts his vote. The Mayor of the Town of Selbyville, by and with the advice and consent of the majority of the Mayor and Council shall appoint three (3) persons to act as a Board of Special Election. The polling places shall be opened for a minimum of six hours as specified by resolution of the Mayor and Council. Persons in the polling place a the time appointed for closing of the polls shall be entitled to vote.
(F) The Board of Special Election shall be the sole and final judges of the legality of the votes offered at such special election. It shall keep a true and accurate list of all persons voting. It shall count the votes for and against the proposed borrowing and shall announce the result thereof. The Board of Special Election shall make a certificate under their hands of the number of votes cast for and against the proposed borrowing and the number of void votes and shall deliver the same to the Mayor and Council which said certificate shall be retained by the Mayor and Council with the other papers of the Town.
(G) If a majority of the votes cast at such special election shall be in favor of such borrowing. the Mayor and Council shall proceed with the issuance of the said bonds or certificates of indebtedness; provided, however, that the Mayor and Council may, at any time prior to entering into a binding agreement for the public or private sale of such bond(s) or evidences(s) of indebtedness, abandon the proposed borrowing.
(A) The form of the bonds or certificated of indebtedness and the thereunto attached coupons, 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 after said Special Election.
(B) In anticipation of the issuance of said bonds at any time after a special election resulting in a vote in favor of the bond issue, the Mayor and Council may issue and sell bonds anticipatory notes of the Mayor and Council at either public or private sale for not less than par and accrued interest. Said notes may be renewed from time to time by the issuance of and sale of new notes. Said notes shall bear interest at a rate determined by the Mayor and Council to be fair and reasonable. All such notes shall mature and be paid not later than two (2) years from the date of issuance. The total amount of said notes outstanding at any one time shall not exceed the amount for which a special election resulted in a favorable vote. Said notes shall be redeemed at par and accrued interest prior to their maturity if the Mayor and Council of the Town of Selbyville shall have reserved the right to do so by an express provision in the note or notes. The principal and any interest due on said notes may be paid from the proceeds of the sale of the bonds authorized by this section. Both interest on and principal of any bond 'anticipatory notes shall not be subject to taxation by the State of Delaware or any political subdivision thereof.
19.7 Public or Private Sale. The bonds may he sold at either public or private
sale. lithe bonds shall be offered for public sale, they shall be sold to the best and most responsible bidder(s) therefore after advertisement in a manner to be prescribed by the Mayor and Council for at least one (1) month before offering the same for sale.
19.8 Provision for Payment: Special Tax. Sinking Fund. The Mayor and
Council shall provide for the payment of interest on the principal of the said bonds or certificates of indebtedness at the maturity thereof. The said Mayor and Council is authorized and empowered, at its discretion, to levy a special tax upon all the real estate within the Town or only upon such real estate as is directly benefited by the improvements paid for by the proceeds of such borrowing to pay interest on said bonds and/or principal; and at their discretion, to establish a sinking fund adequate to the redemption, at or before maturity, of all bonds or certificates of indebtedness which may be issued under the provisions of this Section; provided that the amount to be raised under any special tax for this purpose shall not in any one year exceed a sum equal to five per centum of the total bonded indebtedness. The special tax provided for in this Section shall be collected from the owners of real estate in the same manner as the other taxes levied by the said Mayor and Council are collected. Said Mayor and Council may also appropriate and set aside for such sinking fund so much of the general funds of said town as they may from time to time think advisable. The sinking fund provided for by this Section shall be deposited in federally insured deposits in a bank, trust company, or other banking institution until such time as it may be needed for the redemption of the bonds.
19.9 Full Faith and Credit Unless Otherwise Stated. Unless any such bond(s)
or certificate(s) of indebtedness shall provide otherwise, the full faith and credit of the Mayor and Council of the Town of Selbyville shall be deemed to be pledged for the due payment of the bonds and the interest thereon issued under the provisions of this section when the same shall have been properly executed and delivered for value notwithstanding any other provision of this Charter.
19.20 Statute of Limitations 60 days. No action contesting any proceedings conducted, or action taken, by the Mayor and Council hereunder regarding the authorization of any bonds or certificates of indebtedness issued under this Section shall be brought after the expiration of sixty days from the publication of a notice in at least two newspapers, one of which shall be of general circulation in the 'Town of Selbyville and one of which shall be of general circulation in the State of Delaware, which notice shall announce the following information:
(A) That the Mayor and Council has determined to borrow a certain
sum of money and to issue bonds or certificates of indebtedness therefor.
(B) That the proposed has been approved by a majority of those casting votes at a special election in the Town called for the purpose of voting for or against the borrowing.
(A) The amount of money to be borrowed.
(C) The purpose for which it is to be borrowed.
(D) That any person desiring to challenge the authorization of such
bond(s) or certificate(s) of indebtedness must bring his or her action within 60 days lion: the date of publication of such notice or forever be barred from doing so.
(E) Such notice shall be in bold print or bordered in black in such
manner as to call attention thereto. In addition to publication as herein provided, the Mayor and Council shall cause a public notice, containing the information set out in subsections (A) through (E) above (using date of "posting" for date of "publication") to be posted in a least 5 public places in the Town. In the event the publications and/or postings do not appear on the same date, the date of the last publication or posting shall control."
SECTION 5. Any Act inconsistent with the provisions hereof is repealed to the extent of such inconsistency; and any bonds of the Mayor and Council of the Town of Selbyville outstanding shall remain in good standing notwithstanding this Amendment.