TITLE 30

State Taxes

Commodity Taxes

CHAPTER 51. Motor Fuel Tax

Subchapter III. State Aid to Municipalities for Streets

§ 5161. Definitions.

As used in this subchapter:

(1) “Municipality” means any incorporated city or town having been in existence for a period of 1 year.

(2) “Municipal Street Aid Fund” means the funds set up under this subchapter from money received under this subchapter.

(3) “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 underpasses and overpasses necessary for pedestrian safety, relocation of above ground utilities, mowing, trimming and removal of trees impacting a street, administration and other necessary expenses in connection with such street improvements.

(4) “Streets” includes streets, highways, avenues, boulevards, bridges, tunnels, alleys or other public ways dedicated to public use and maintained for general vehicular travel lying within a municipality’s corporate boundary, except that this term does not include state or federal highways within municipalities maintained by the Department of Transportation. The Department shall determine which areas are eligible for municipal street aid funds.

30 Del. C. 1953, §  5161;  51 Del. Laws, c. 55, §  159 Del. Laws, c. 435, §  165 Del. Laws, c. 354, §  179 Del. Laws, c. 79, §  9381 Del. Laws, c. 336, § 1

§ 5162. Appropriations paid through State Treasurer.

(a) There shall be appropriated annually to municipalities within the State beginning in the State’s 1998 fiscal year and each subsequent year thereafter in conjunction with, under, and as a portion of, the Delaware Transportation Trust Fund within the Capital Transportation Program, a sum in the amount as appropriated in the annual Bond and Capital Improvement Act. The sum so appropriated shall be transferred to the Municipal Street Aid Fund by the State Treasurer and distributed to municipalities as provided in this subchapter.

(b) When deemed in full compliance with the provisions of § 5165(b) of this title, including the annual submission of an affidavit that will certify the municipality’s boundary, mileage and population totals, the State Treasurer is authorized to process payments to municipalities in the following manner:

(1) Recipients of municipal street aid whose total fiscal year share is $50,000 or less shall be paid 1 lump-sum in August.

(2) Recipients of municipal street aid whose total fiscal year share is greater than $50,000 but not more than $200,000 shall be paid in 2 equal installments, 1 in August and the other in January.

(3) Recipients of municipal street aid whose total fiscal year share exceeds $200,000 shall be paid in 4 equal installments, 1 each in August, October, January and April of each year.

(c) Disbursements can be accrued for up to 3 years for larger construction projects.

30 Del. C. 1953, §  5162;  51 Del. Laws, c. 55, §  155 Del. Laws, c. 10659 Del. Laws, c. 216, §  261 Del. Laws, c. 414, §  164 Del. Laws, c. 415, §  166 Del. Laws, c. 87, §  366 Del. Laws, c. 360, §  5267 Del. Laws, c. 285, §  53(a)71 Del. Laws, c. 150, §  7381 Del. Laws, c. 336, § 183 Del. Laws, c. 37, § 35

§ 5163. Time and method of computation.

(a) The Department of Transportation shall compute annually no later than 15 calendar days from the adoption of the Bond and Capital Improvements Act by the General Assembly of each year or at the end of the state fiscal year the moneys due each participating municipality from the state Municipal Street Aid Fund. Such computation shall be based upon the share of the proceeds of the motor fuel tax imposed by this chapter and appropriated by this subchapter.

(b) Each annual computation by the Department shall be made as follows:

(1) Forty percent of the state Municipal Street Aid Fund shall be distributed in the proportion that the population of each municipality bears to the total population of all participating municipalities. Population shall be ascertained in accordance with § 5165(b)(4) of this title.

(2) Sixty percent of the state Municipal Street Aid Fund shall be distributed in the proportion that the mileage of usable streets not maintained by the State in each municipality bears to the total mileage of said streets in all municipalities.

(c) [Repealed.]

30 Del. C. 1953, §  5163;  51 Del. Laws, c. 55, §  151 Del. Laws, c. 24359 Del. Laws, c. 216, §  261 Del. Laws, c. 414, §  281 Del. Laws, c. 336, § 1

§ 5164. Certification of Secretary of Transportation; time for payment.

The Department of Transportation shall forward to the Secretary of Transportation within 20 days after each annual computation a certification as to the sum of money due each municipality from the state Municipal Street Aid Fund. Such certification shall be used by the Secretary to advise the State Treasurer as to distribution of the moneys as provided in this subchapter not later than 30 days from the date of receiving the certification.

30 Del. C. 1953, §  5164;  51 Del. Laws, c. 55, §  159 Del. Laws, c. 216, §§  2, 361 Del. Laws, c. 414, §§  2, 3

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

(a) Each municipality shall keep an accounting of all funds received from the state municipal aid fund and may expend such funds as follows:

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

a. Paving of the street after construction, installation, repair, maintenance or replacement of water and sewer systems associated with a street;

b. Preparation or revision of the mobility element of the comprehensive plans;

c. Payment of principal and interest on any bonds issued for the purpose of paragraph (a)(1)a. of this section, notwithstanding that such indebtedness may have been incurred prior to May 27, 1972.

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

a. Street improvements;

b. Lighting of the streets and all expenses related thereto;

c. Payment of principal and interest on any bonds issued for street improvements.

d. Preparation or revision of inventory of all municipal infrastructure.

(b) Each municipality shall:

(1) Furnish evidence annually to the State Treasurer that the municipal employees authorized to expend municipal street aid funds are bonded in an amount as may be required by the charter of the municipality;

(2) In a form prescribed by the State Treasurer, submit an accurate and complete annual report not later than August 15 of each year to the State Treasurer showing expenditures of municipal street aid funds for the preceding fiscal year ended June 30. Such form shall itemize each expenditure as represented on said form as “Other expenditures”. Payment for the current fiscal year will not be issued until the report for the preceding fiscal year has been received by the State Treasurer’s Office;

(3) Award contracts for street improvements which shall be in accordance with the provisions of Chapter 69 of Title 29, and any applicable specifications of the Department of Transportation;

(4) On or before May 15 of each year, file with the Department of Transportation an affidavit signed by the mayor, city manager or president of the council of the municipality, setting forth:

a. The population of the municipality, based on the latest official estimate prepared by either the United States Bureau of the Census or the Delaware Population Consortium. For purposes of this subchapter, the population of a municipality can be adjusted between the latest decennial census, the latest official estimate prepared by either the United States Census Bureau or the Delaware Population Consortium by providing proof of new dwelling construction through “certificate of occupancy.” The population of the municipality which is a summer resort shall be deemed to include all property owners entitled to vote in a municipal election; 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 tabulations 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 or may deposit same 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 purposes set forth in paragraph (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.

30 Del. C. 1953, §  5165;  51 Del. Laws, c. 55, §  157 Del. Laws, c. 34357 Del. Laws, c. 741, §§  24C, 24F, 24G58 Del. Laws, c. 15058 Del. Laws, c. 409, §  159 Del. Laws, c. 216, §  359 Del. Laws, c. 435, §  260 Del. Laws, c. 113, §  4860 Del. Laws, c. 421, §  161 Del. Laws, c. 44, §  167 Del. Laws, c. 285, §§  53(b)-(d)73 Del. Laws, c. 95, §  9981 Del. Laws, c. 336, § 1

§ 5166. Unauthorized expenditures; personal liability.

(a) No municipal official or employee shall authorize, direct or permit the expenditure of money from any Municipal Street Aid Fund for any purpose except those specifically authorized by this subchapter. Any municipal official or employee who violates this section shall be personally liable to the extent of the unauthorized expenditure.

(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 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;

(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.

30 Del. C. 1953, §  5166;  51 Del. Laws, c. 55, §  159 Del. Laws, c. 435, §  360 Del. Laws, c. 113, §  48