AN ACT TO AMEND AN ACT ENTITLED "AN ACT CHANGING THE NAME OF THE `TOWN OF SEAFORD' TO THE `CITY OF SEAFORD' AND ESTABLISHING A CHARTER THEREFOR," BEING CHAPTER 184, VOLUME 43, LAWS OF DELAWARE, AS AMENDED, BY DIRECTING THE CITY COUNCIL TO ESTABLISH AND MAINTAIN RESERVE OR SINKING FUNDS TO BE USED FOR THE REPLACEMENT, ENLARGEMENT, OR IMPROVEMENT OF THE MUNICIPAL LIGHT AND POWER PLANT AND DISTRIBUTION SYSTEM AND DESIGNATING SUCH RESERVES AS TRUST FUNDS FOR THE PURPOSES FOR WHICH THEY WERE SO SET ASIDE.
WHEREAS the Municipal Light and Power Plant of the City of Seaford is in a sound and wholesome financial condition and, by reason thereof, is presently making a substantial profit for the benefit of the City of Seaford; and
WHEREAS, those interested in the welfare of the City of Seaford have observed the example of other municipalities which have failed to accumulate the large reserves of money which are necessary from time to time for the enlargement, rebuilding, and improvement of such facilities, and are desirous of avoiding that same situation at Seaford; NOW, THEREFORE
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (two-thirds of all the members elected to each branch thereof concurring therein):
Section 1. That Section 30, Chapter 184, Volume 43, Laws of Delaware, be, and it is hereby amended, by adding the following at the end thereof:
(a) The City Council of Seaford is hereby enjoined to set aside twenty-five (25%) percent of the gross receipts of the municipal light and power plant as a reserve fund to be held in trust to be used solely for the erection of a new plant or some addition to the existing plant, or for the replacement, expansion, rebuilding, or improvement of the municipal light and power plant at Seaford; provided however, that after the said reserve fund shall have reached the amount or value of Two Hundred Thousand Dollars ($200,000.00) in hand, it will no longer be mandatory to continue to add to the reserve until the reserve again falls below that figure.
(b) The City Council of Seaford is hereby enjoined to set aside ten (10%) percent of the gross receipts of the municipal light and power plant as a reserve fund to be held in trust to be used solely for the expansion, replacement, rebuilding or improvement of the electrical transmission system outside of the plant itself; provided, however, that after the said reserve fund shall have reached the amount or value of One Hundred Thousand Dollars ($100,000.00) in hand, it will no longer be mandatory to continue to add to the reserve until the reserve again falls below that figure.
(e) Whenever from time to time the fund mentioned in paragraph "(a)" shall have reached Two Hundred Thousand Dollars ($200,000.00), or the fund mentioned in paragraph "(b)" shall have reached One Hundred Thousand Dollars ($100,000.00), or both, the City Council of Seaford may use the entire gross income of the municipal light and power plant for such purposes as it shall see fit, but the necessity to accumulate a reserve shall always be upon the city officials so long as either of these reserve funds is below the figure indicated herein.
(d) The City Council of Seaford is hereby authorized to invest and re-invest any sums of money held in either of the reserve funds above indicated from time to time in any investments which are permitted to trustees under the statutes of the State of Delaware or the rules of the Court of Chancery of this State pertaining to trusts.