AN ACT TO AMEND § 1163, CHAPTER II, PART II, TITLE 9, DELAWARE CODE, RELATING TO POWER OF COUNTY COUNCIL OF NEW CASTLE COUNTY TO CREATE DEBT.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. § 1163, Chapter II, Part II, Title 9, Delaware Code, is amended by deleting paragraph (a) thereof and substituting in lieu thereof the following:
§ 1163. Creation of debt
(a) (1) The County Council shall exercise all power heretofore vested in the Levy Court of New Castle County in connection with the creation of debt, and in addition, shall have the power to authorize the issuance of bonds of New Castle County to finance the cost of any object, program or purpose for which New Castle County, or any officer, department, board or agency thereof, is by this title or by any other law, authorized to raise, appropriate or expend money, or for the implementation and performance of functions, programs and purposes specified in this title, or in any other law, applicable to New Castle County ; provided, however, that the County Council shall not have authority to create or to authorize the creating of any bonded indebtedness for the following purposes : the payment of any operating expenses ; the payment of any judgment resulting from the failure of the County to pay any item of operating expense ; the payment for any equipment or any public improvement of a normal life of less than ten years. The foregoing limitations shall not apply should the County Council unanimously declare the existence of an emergency due to public calamity.
(2) The powers conferred by this Chapter shall be in addition to and not in substitution for or in limitation of the powers conferred by any other law. Bonds may be issued hereunder for any object or purpose for which the County is by this Chapter or any other law authorized to raise or appropriate or expend money notwithstanding that any other law may provide for the issuance of bonds for the same or like purposes and with-
out regard to the requirements, restrictions or other provisions contained in any other law. Bonds may be issued under this Chapter notwithstanding any debt or other limitation prescribed by any other law, and the mode and manner of procedure for the issuance of bonds and the adoption of the ordinance authorizing issuance of the bonds under this Chapter need not conform to the provisions of any other law or any other provision of this Chapter.
(3) Bonds issued pursuant to this Chapter shall be authorized by an ordinance passed by the County Council with the concurrence of three-fourths of all the members elected to the County Council. Each such ordinance shall state in brief and general terms the objects or purposes for which the bonds are to be issued, the maximum aggregate principal amount of bonds to be issued for each such object or purpose, the maximum rate of interest the bonds shall bear, the times and place or places of payment of the principal of or interest on the bonds, the date of the bonds, the date upon which each installment of bonds shall become due and payable and the denomination or denominations of the bonds. All matters not determined by such ordinance may be determined by subsequent resolutions passed by the County Council.
(0) The bonds authorized by each ordinance shall mature in annual installments as may be determined by the County Council, the first of which shall be payable not more than one year after the date of such bonds and the last of which shall be payable not later than thirty years after the date of the bonds, and shall bear interest at such rate or rates as shall be determined after the bonds have been sold in the manner heretofore set forth. Provided, however, that the first maturity of bonds issued for purposes of financing a water improvement may mature not later than three years after the date thereof and, the last maturity of bonds issued to finance any single water improvement costing over $5,000,000 may mature not later than forty years after the date of such bonds. Bonds for several objects or purposes may be combined into one consolidated issue.
(0) Bonds issued pursuant to this Chapter shall be negotiable instruments and shall be bonds payable to bearer with coupons attached for the payment of interest to bearer, but
provision may be made for the registration of such bonds as to principal only or as to both principal and interest. Such bonds may be made subject to redemption prior to their respective maturities with or without premium and the bonds may be made payable at such place or places either within or without the State of Delaware as the County Council may by resolution provide. Such bonds, and any interest coupons representing the interest thereon, shall be issued in such form and shall be executed in such manner as the County Council may prescribe. The delivery of bonds executed in the manner prescribed by the County Council shall be valid notwithstanding any change in the officers or in the seal of the County occurring after the signing and sealing of the bonds.
(6) Bonds issued pursuant to this Chapter shall be sold by the County Executive and shall be sold for not less than par and accrued interest at public sale upon sealed proposals after at least ten days' notice published at least once in one newspaper published in the City of Wilmington and in a financial journal published in the City of New York, and upon such terms, conditions and regulations as the County Council may prescribe.
(7) The proceeds of the sale of bonds issued under this Chapter shall be used only for the object or purpose or objects or purposes specified in the ordinance authorizing such bonds or for the payment of the principal of and interest on temporary loans made in anticipation of the sale of such bonds. If for any reason any part of such proceeds are not applied to or are not necessary for such purposes, such unexpended part of such proceeds shall be applied to the payment of the principal of or interest on such bonds.
(8) Bonds shall not be issued pursuant to this Chapter if their issuance would increase the aggregate principal amount of all bonds of the County, then outstanding, to an amount in excess of 3% per centum of the assessed valuation of the real estate taxable by the County. Provided, however, that in computing the outstanding bonds under the previous sentence of this paragraph (8), there shall not be included therein any bonds, notes or other evidences of indebtedness issued or which may hereafter be issued for the purpose of financing sanitary districts, the construction or acquisition of sewer or sewage sys-
tems, suburban community improvements under 9 Delaware Code, Chapter 5, airport facilities, or water improvements or supply systems, or for anticipation of tax or other revenues pursuant to subsection (c) of this Section.
(9) Whenever the County Council shall have authorized the issuance of bonds by an ordinance adopted pursuant to the Chapter, the County may borrow money in anticipation of the issuance of such bonds so authorized and, for such purpose, may issue, and from time to time renew, negotiable bond anticipation notes of the County, of an aggregate principal amount not exceeding the principal amount of such bonds authorized by such resolution. The County Council shall authorize such notes by a resolution or resolutions which shall determine the date of the notes, date on which such notes are to be payable, the maximum principal amount thereof and the rate or maximum rate of interest to be borne thereby and the manner of their signing. The County Council in such resolution may delegate to the County Executive authority to sell the notes thereby authorized, either at public or private sale, and to determine within the limitations prescribed by such resolution the rate of interest to be borne by such notes and the principal amount thereof. Moneys raised by the issuance of notes in anticipation of the issuance of bonds shall be used only to finance the object or purpose for which the proceeds of the bonds may be used and such proceeds shall be applied, to the extent necessary, to pay and retire such notes.
(0) The full faith and credit of the County shall be deemed to be pledged for the punctual payment of the principal of and interest on every bond and note issued under this Chapter. The County Council shall annually levy and collect a tax ad valorem upon all property taxable by the County sufficient to pay the principal of and interest on each such bond or note as such principal and interest become due; provided, however, such tax may be reduced by the amount of other moneys appropriated and actually available for such purpose or provided for by local or special assessments or local service taxes. Nothing herein shall relieve the government of New Castle County from any requirement to levy any local or special assessment or local service tax.
Approved January 8, 1968.