AN ACT TO LEGALIZE AND VALIDATE THE ACTS DONE AND PROCEEDINGS TAKEN BY THE MAYOR AND COUNCIL OF THE TOWN OF MILTON AUTHORIZING THE ISSUANCE OF $444,000 OF BONDS OF SAID TOWN TO FINANCE THE COST OF IMPROVING AND ENLARGING THE SEWAGE DISPOSAL SYSTEM OF SAID TOWN AND TO AUTHORIZE THE ISSUANCE OF SAID BONDS AND THE PLEDGING OF REVENUES DERIVED FROM SEWER SERVICE CHARGES AND TAXES AND ASSESSMENTS TO SECURE THEIR PAYMENT.
WHEREAS, at a special election held in the Town of Milton on June 21, 1958, pursuant to Section 50 of Chapter 194 of Volume 45 of the Laws of Delaware, a majority of the votes cast were for the borrowing of the sum of $444,000 by the issuance of bonds of said town of the aggregate principal amount of $444,000, to finance the cost of improving and enlarging the sewage disposal system of the town as hereinafter set forth and, in order to effect a sale of such bonds upon advantageous terms, it will be necessary that the town enter into covenants or agreements with the purchaser of the bonds relative to the establishment of sewer service charges and frontage taxes or assessments and the pledging of revenues derived from such sources to the payment of the principal of and interest on the bonds and to the creation of reserves therefor;
Be it enacted by the General Assembly of the State of Delaware (two-thirds of all Members elected to each House concurring therein):
Section 1. All the acts done and proceedings taken by the Mayor and Council of the Town of Milton in and about the calling and holding of a special election held in said town on June 21, 1958, at which a majority of the votes cast were cast in favor of borrowing, as provided in a resolution adopted by the Mayor and Council on April 25, 1958, the sum of $444,000 by the issuance of bonds of said town of the aggregate principal amount of $444,000 bearing interest at a rate not exceeding five per centum per annum, to finance the cost of improving and enlarging the sewage disposal system of the town by the construction of intercepting, sub-main and lateral sewers, manholes, house connections, pumping stations, force mains, a sewage treatment plant together with the equipment required therefor, and an outfall sewer, and by replacing with concrete or macadam the surface of streets affected by such improvements, and proposing that such bonds and the interest thereon shall be paid from sewer revenue receipts, including a front foot benefit charge, and a tax to be levied annually on all taxable property in said town, are hereby legalized and validated notwithstanding any defect, irregularity or omission in said acts and proceedings, and notwithstanding any lack of statutory authority therefor; and the Mayor and Council of said town is hereby authorized to issue said bonds pursuant to said acts and proceedings, and said bonds when issued shall be valid and binding obligations of said town.
Section 2. The Mayor and Council may, prior to the issuance of such bonds, adopt a resolution or resolutions, containing provisions which shall be a part of the contract with the holders of such bonds, as to (a) the rentals, fees and other charges to be prescribed and charged for services afforded by the town's sewage disposal system, and the amounts to be raised in each year thereby, and the use and disposition of the revenues thereby obtained; (b) the levy and collection of taxes or assessments, in the manner provided by law, for the purpose of paying the expense of constructing, reconstructing, extending, operating and maintaining the town's sewage disposal system, including the payment of principal of and interest on bonds issued to finance such system, upon parcels of land abutting or fronting on any public street within the town along which the town shall have constructed or maintains a sewer main capable of disposing sewage from the parcels of land abutting or fronting thereon, and the amount to be raised in each year thereby, and the use and disposition of the revenue thereby obtained; (c) pledging all or any part of such revenues to secure the payment of the bonds; (d) the setting aside of reserves or sinking funds and the use and disposition thereof; (e) limitations on the purpose to which the proceeds of the sale of such bonds may be applied and the manner of the expenditure of such proceeds; (f) limitations on the issuance of additional bonds and the terms upon which such additional bonds may be issued and secured; (g) vesting in a trustee or trustees such property, rights, powers and duties in trust as the Mayor and Council may determine to be appropriate to secure the payment of such bonds and limiting or abrogating the rights, powers and duties of such trustee or trustees; (h) conferring upon the holders of the bonds or such trustee or trustees remedies for enforcing the rights of the holders of the bonds and requiring the town to carry out any agreement with the holders of the bonds; (i) the insurance to be carried on such sewage disposal system, and the use and disposition of insurance moneys; (j) limitations or restrictions as to the leasing or otherwise disposing of the sewage disposal system while any of the bonds or interest thereon remain outstanding and unpaid; (k) the continuous operation and maintenance of the sewage disposal system; and (1) any other matters, of like or different character, which in any way affect the security or protection of the bonds.
Section 3. The Mayor and Council of the Town of Milton shall have power to acquire by condemnation any lands, tenements, property or interest therein, whether within or without the limits of the Town, required for the improving and enlarging of the sewage disposal system of the Town. Any such condemnation may be made in the manner provided and in accordance with the procedure prescribed by Title 10 of Chapter 51 of the Delaware Code of 1953.
Section 4. All acts or parts of acts inconsistent with or in conflict with the provisions of this act are hereby repealed.
Approved May 24, 1960.