SENATE BILL NO. 409
AN ACT TO AMEND THE CHARTER OF THE TOWN OF MILLSBORO, BEING CHAPTER 457, VOLUME 60, LAWS OF DELAWARE, AS AMENDED, ENTITLED "AN ACT TO REINCORPORATE THE TOWN OF MILLSBORO", TO AMEND SECTION 34, POWER TO BORROW MONEY AND ISSUE BONDS, BY PROVIDING FOR REFUNDING ALL OUTSTANDING BONDS OR OTHER INDEBTEDNESS OF THE TOWN TO INCLUDE REFINANCING SUCH BONDS OR OTHER EVIDENCES OF INDEBTEDNESS, EXPANDING AUTHORITY TO STATE THE SUM TO BE BORROWED MAY BE STATED IN A "NOT TO EXCEED" AMOUNT; CLARIFYING VOTER QUALIFICATIONS FOR NON-RESIDENT PROPERTY OWNERS; AUTHORIZING THE TOWN TO CANCEL THE BORROWING; PROVIDING FOR BOND ANTICIPATORY NOTES; PROVIDING FOR A STATUTE OF LIMITATIONS FOR CHALLENGES TO PROCEDURES OF THE TOWN IN THESE MATTERS, AND ALSO INCREASING THE LIMIT WHICH THE TOWN MAY BORROW ON ITS FULL FAITH AND CREDIT UP TO $500,000.
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 34 (Power to borrow money and issue bonds), of Chapter 457, Volume 60, Laws of Delaware, as amended, entitled "An Act to Reincorporate the Town of Millsboro" by striking from Subsection (a)(1) the phrase "a certain sum of money" and substituting in lieu thereof the phrase "a sum of money, not to exceed a stated amount".
Section 2. Amend Subsection (a)(5) of Section 34 (Power to borrow money and issue bonds) of Chapter 457, Volume 60, Laws of Delaware, as amended, by striking from said subsection the clause following the phrase "in addition" and substituting in lieu thereof the following:
"every person who is an owner of real property within the corporate limits of the Town of Millsboro shall also have one vote. No vote shall be cast by a partnership except by a partner presenting notarized certification of said partnership authorizing the partner named therein to cast the vote of the partnership and no vote shall be cast by an association, corporation, limited liability company, trust or other legally constituted entity except by a person presenting notarized certification or certified copy of a resolution of said entity authorizing the person named therein to cast the vote of said entity. The Board of Special Elections shall be the sole and final judge of the legality of the votes offered at such special election."
Section 3. Amend Subsection (a)(8) of Section 34 (Power to borrow money and issue bonds) of Chapter 457, Volume 60, Laws of Delaware, as amended, by designating the existing paragraph (8) as new subsection "(8)(b)" and by adding to the beginning thereof a subsection to be designated "(8)(a)" as follows:
"(a) If a majority of the votes cast at such special election shall be in favor of such borrowing, the Town Council shall proceed with the issuance of said bonds or evidences of indebtedness; provided, however, that the Town Council may, at any time prior to entering into a binding agreement for the public or private sale of such bond(s) or evidence(s) of indebtedness, abandon the proposed borrowing."
Section 4. Amend Subsection (a)(8) of Section 34 (Power to borrow money and issue bonds) of Chapter 457, Volume 60, Laws of Delaware, as amended, by adding a new subsection to be designated "(8)(c)" as follows:
"(c) Bond Anticipatory Notes. 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 Town Council may issue and sell bond anticipatory notes of the Town 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 Town 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 Town Council 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."
Section 5. Amend Subsection (a) of Section 34 (Power to borrow money and issue bonds) of Chapter 457, Volume 60, Laws of Delaware as amended by adding a new subsection to be designated "(12)" as follows:
"(12) Statute of Limitations, 60 days. No action contesting any proceedings conducted, or action taken, by the Town Council hereunder regarding the authorization of any bonds or certificates of indebtedness issued under this Section shall be brought after the expiration of sixty (60) days from the publication of a notice in two (2) issues of a newspaper having general circulation in the Town of Millsboro, which notice shall announce the following information.
(a) That the Town Council has determined to borrow a certain sum of money and to issue bonds or certificates of indebtedness therefor;
(b) That the proposal 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;
(c) The amount of money to be borrowed;
(d) The purpose for which it is to be borrowed;
(e) That any person desiring to challenge the authorization of such bond(s) or certificate(s) of indebtedness must bring his or her action within sixty (60) days from the date of publication of such notice or forever be barred from doing so;
(f) Such notice shall be in bold print or bordered in black in such manner to call attention thereto."
Section 6. Amend Subsection (a) of Section 34 (Power to borrow money and issue bonds) of Chapter 457, Volume 60, Laws of Delaware, as amended by adding a new subsection to be designated "(c)" as follows:
"(c) The Town Council may refund 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 but refunding of such bonds or other indebtedness of the Town shall not require the procedure set out in this Section 34 (a) so long as the outstanding principal amount of the refunding bonds or other evidence of indebtedness does not exceed the face amount refunded, plus the cost of refunding, and shall be enacted by resolution of the Town Council."
Section 7. Amend Subsection (42) of Section 30 of Chapter 457, Volume 60, Laws of Delaware by striking from said subsection the figure "$250,000" where it appears and substitute in lieu thereof the figure $500,000".
Approved July 08, 2002