SENATE BILL NO. 42
AN ACT TO AMEND VOLUME 68, CHAPTER 3, LAWS OF DELAWARE AS AMENDED, ENTITLED "AN ACT TO REINCORPORATE THE TOWN OF ELSMERE" RELATING TO THE CONTINGENCY FUND.
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 804, Volume 68, Chapter 3, Laws of Delaware as amended, entitled “An Act to Reincorporate the Town of Elsmere” by deleting Section 804 in its entirety and replacing in lieu thereof the following:
“804. Budget Amendments After Adoption.
When the Mayor and Council determine that an emergency exists, the Council may make emergency appropriations out of the Town’s Contingency Fund in order to address said emergency. Such appropriations must be approved by a number of favorable votes which total one vote more than a majority of the sitting Council. At any time during the fiscal year, the Council may transfer part or all of any unencumbered line item balance from one department or office to another.”
Section 2. Amend Section 805, Volume 68, Chapter 3, Laws of Delaware as amended, entitled “An Act to Reincorporate the Town of Elsmere” by renumbering “Section 805” to “Section 806” and by adding a new “Section 805” to read as follows:
“805. Contingency Fund.
(A) There shall be a fund to be known as a Contingency Fund. The purpose of this fund shall be to allow the Mayor and Council to allocate an amount of funds to be kept in reserve which could be used to guard against possible losses, address emergency situations or plan for future expenses.
(B) The primary funding source for the Contingency Fund shall be a percentage of funds from the accumulated surplus of any fiscal year. This shall not however prohibit the Mayor and Council from allocating any funds they deem appropriate to the Contingency Fund.
(C) In accordance with Section 802(6) of this charter, the Town Council shall designate an amount of funds to the Contingency Fund that is equal to fifty percent (50%) of the total amount of any operating surplus which may have resulted in the prior fiscal year.
(D) While the appropriation of funds into the Contingency Fund shall require an affirmative vote of a majority of the sitting members of Council, any allocation of funds from the Contingency Fund shall require an affirmative vote of one more than a majority of the then sitting members of Council. For the purpose of this section, the term ‘sitting members of Council’ shall be the number of Council members and the Mayor who have been elected or appointed in accordance with this charter and shall not include any vacant position.”
Approved July 05, 2007