CHAPTER 435

FORMERLY

SENATE BILL NO. 433

AS AMENDED BY SENATE AMENDMENT NO. 2

AN ACT TO AMEND CHAPTER 51, PART IV, TITLE 30 OF THE DELAWARE CODE RELATING TO STREET AID FOR MUNICIPALITIES

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Amend §5161, Chapter 51, Part IV, Title 30 of the Delaware Code, by striking the definition of "street improvements" as set forth therein and by inserting in lieu thereof the following:

"'Street improvements' means construction, reconstruction, repair and maintenance of streets, including paving, repaving, grading and drainage, repairs, acquisition of rights-of-way; extension and widening of existing streets; elimination of railroad grade crossings; acquisition of trucks and other equipment necessary in the construction and maintenance of streets; removal of snow and ice and the laying of materials for traction; purchase and installation of street identification signs and traffic control signs; construction, reconstruction and repair of sidewalks and under and overpasses necessary for pedestrian safety; administration and other necessary expenses in connection with such street improvements; and the expenses of law enforcement for the policing of the streets, including, but not limited to, salaries, equipment, vehicles and supplies."

Section 2, Amend §5165, Chapter 51, Part IV, Title 30 of the Delaware Code, by striking said section, and substituting in lieu thereof the following:

§5165. Expenditures of Funds by Municipalities; records, audits and regulations of municipalities

(a) Each municipality shall keep all funds received from the State municipal aid fund in a separate bank account, designated as 'municipal street aid fund' and may expend such funds as follows:

(1) An amount not exceeding thirty percent (30%) of the annual grant may be used for the following purposes:

(i) the construction, installation, repair, maintenance or replacement of water and sewer systems;

(ii) the preparation or revision of comprehensive plans for urban renewal;

() the payment of principal and interest on any bonds issued for the purpose of subsection (i), notwithstanding that such indebtedness may have been incurred prior to May 27, 1972.

(2) Any portion of the annual grant not expended pursuant to subsection (1) may be expended for the following purposes:

(i) street improvements;

(ii) lighting of the streets and all expenses related thereto;

() payment of principal and interest on any bonds issued for street improvements.

(b) Each municipality shall:

(1) furnish evidence annually to the Secretary of Finance that the municipal employees authorized to expend municipal street aid funds are bonded in an amount not less than the amount of such funds available to such municipality;

(2) submit annual reports to the Secretary of Finance showing the annual expenditures of municipal street aid funds;

(3) award contracts for street improvements which shall be in accordance with the provisions of Chapter 69, Title 29 of the Delaware Code, and any specifications of the Department of Highways and transportation;

(4) before June 15 of each year, file with the Secretary of Finance an affidavit signed by the Mayor, City Manager, or President of the Council of the municipality, setting forth the population of the municipality and the length of the usable streets therein. In the absence of the affidavit, the Secretary of Finance may, for the purpose of this Subchapter, use the most recent, accurate and acceptable figures as to the population and length of usable streets of a municipality. For the purpose of this Subchapter, the population of a municipality which is a summer resort shall be deemed to include all property owners entitled to vote in a municipal election.

(5) before May 15 of each year, file with the Division of Highways (a) an affidavit as to population and (b) a tabulation of streets added during the past fiscal year which are dedicated to public use and maintained by their municipal forces. Said tabulation should include street names, starting and ending points and length in feet or miles and be accompanied by a map indicating location of any new streets.

(c) Pending expenditure of funds received pursuant to §5163 of this Title, a municipality may make short-term investments of such funds in United States government securities and may deposit up to $50,000 in any bank or savings and loan association interest-bearing accounts or certificates guaranteed by any agency of the United States government. Any interest earned on such investments or deposits shall be used for the purpose set forth in subsection (a) (2) of this section. Such investments or deposits shall not be deemed to be 'expenditures' of the funds as set forth in subsection (a) of this section."

Section 3. Amend §5166, Chapter 51, Part IV, Title 30 of the Delaware Code, by designating all of the present section as subsection (a), and by adding a new subsection thereto, which shall read as follows:

"(b) Upon report by the State Auditor of Accounts that expenditures of municipal street aid funds have been made by a municipality for purposes other than as set forth in this Subchapter, the Secretary of Finance and/or the State Treasurer shall withhold all further payments of municipal street aid funds to such municipality until:

(1) the Attorney General or the courts of this State shall have found the disputed expenditures to have been proper; or

(2) the municipality shall have reimbursed the municipal street aid funds to the extent of the improper expenditures; or

(3) the municipal official or employee responsible has made restitution to the fund as set forth in subsection (a) of this section."

Section 4. Any municipality which, prior to the enactment date of this Act, has spent more than the percentage designated in a category permitted by Chapter 51, Title 30 of the Delaware Code shall be deemed, nevertheless, to have substantially compiled with the requirements of said Chapter 51, Title 30, and no municipality shall be penalized for any such imbalance in its expenditure of Municipal Street Aid funds. Any municipality which have overspent funds, but on projects permitted under §5165, shall be permitted to carry such accounts forward.

Approved July 10, 1974.