Tuesday, October 16, 2012

Borrowing $400,000

Delmar Town Charter
(36) To borrow money in the name of the Town for any proper municipal purpose and in order to secure the payment of the same to issue bonds or other forms or kinds of certificate or certificates of indebtedness, pledging the full faith and credit of the Town or such other security or securities as the Town Council shall select for the payment of the principal thereof and the interest due thereon, all of which bonds or other kinds or forms of certificates of indebtedness issued by the Town shall be exempt from all state, county or municipal taxes; provided, however, that in no event shall the indebtedness of the Town for any and all purposes at any one time exceed the aggregate twenty-five percent (25%) of the assessed value of all real estate in the Town subject to the assessment for the purpose of levying the annual tax hereinbefore mentioned;

(42) To borrow money in anticipation of revenues on the full faith and credit of The Town of Delmar sum or sums not exceeding One Hundred Fifty Thousand Dollars ($150,000.00) in any one year when, in the opinion of a majority of the Town Council of The Town of Delmar, the needs of the Town require it. Any sum so borrowed shall be secured by promissory notes of The Town of Delmar, duly authorized by Resolution adopted by the Town Council, and signed by the Mayor, and attested by the Secretary of the Town Council with the corporate seal affixed, and no officer or member of the Town Council shall be personally liable for the payments of such notes because it is signed by them as officers of the Town and is authorized by the resolution of the Town Council; provided, however, that the total sum outstanding as a result of utilizing this section at any one time shall not exceed One Hundred Fifty Thousand Dollars ($150,000.00); and provided further that such ad valorem taxes may be levied as is necessary to pay the principal of the interest on said bonds as is required without regard to any other limitation concerning the maximum rate of taxation and such notes and the interest thereon shall be exempt from all taxation by the State of Delaware or by any political subdivision, agency or subdivision thereof.

(a) The Town Council may borrow money and issue bonds or certificates of indebtedness to secure the repayment thereof on the faith and credit of the Town of Delmar to provide funds for the erection, extension, enlargement, purchase or the repair of any plant, machinery, appliances, or equipment for the supply, or the manufacture and distribution of electricity or gas for light, heat or power purposes; for the furnishing of water to the public, for the construction, repair and improvements of highways, streets or lanes or the paving, curbing or erection of gutters and curbs along the same; for the purchase of real estate for any municipal purpose; for the construction or repair of sewage disposal equipment; or to defray the cost or the share of the Town of the costs of any permanent municipal improvements; provided however that the borrowing of money therefor, shall have been authorized for The Town Council in the manner following:
(1) The Town Council by resolution shall propose to the residents and property owners of the Town that The Town Council proposes to borrow a certain sum of money for any of the purposes above stated. The resolution shall state the amount of money desired to be borrowed, the purpose for which it is desired, the manner of securing the same, and all other pertinent facts relating to the loan which are deemed pertinent by The Town Council and in their possession at the time of the passage of the resolution and shall fix a time and place for a hearing on the said resolution.
(2) Notice of the time and place of the hearing on the resolution authorizing said loan shall be printed in a newspaper having a general circulation in the Town or distributed in circular form at least one week before the time set for the public hearing.
(3) Following the public hearing, a second resolution shall then be passed by The Town Council ordering a special election to be held not less than thirty (30) days nor more than sixty (60) days after the said public hearing to borrow the said money, the said special election to be for the purpose of voting for or against the proposed loan. The passing of the second resolution calling a special election shall ipso facto be considered the determination of The Town Council to proceed with the matter in issue.
(4) The notice of the time and place of holding the special election shall be printed in two (2) issues of a newspaper having a general circulation in the Town of Delmar within thirty (30) days prior to the special election or distributed in circular form at least fifteen (15) days prior to the special election, or both, at the discretion of The Town Council.
(5) At such special election every person who would be entitled to vote at a biannual election if held on that day shall be entitled to one vote.
(6) The Town Council shall cause to be prepared, printed and have available for distribution a sufficient number of ballots not less than five (5) days prior to the said Special Election. The Special Election may, at the discretion of The Town Council, be conducted by the use of voting machines or by paper ballot. The Town Council shall appoint three (3) persons to act as a Board of Special Election. The polling places shall be opened from 2:00 p.m. until 7:00 p.m. prevailing time, on the date set for the Special Election.
(7) The Board of Special Elections shall count the votes for and against the proposed loan and shall announce the result thereof. The Board of Special Elections shall make a certification under their hands of the number of votes cast for and against the proposed loan and the number of void votes and shall deliver the same to The Town Council which said Certificate shall be retained by The Town Council with the other papers of The Town Council.
(8) The form of the bond or certificate of indebtedness, the interest rate, the time or times of interest, the classes of the bond, the time or times of maturity, and the provisions as to registration shall be determined by The Town Council after the Special Election.
(9) The bonds may be sold at either public or private sale as determined by the Town Council. If the bonds shall be offered for public sale, they shall be sold to the best and most responsible bidder(s) therefore after advertisement in a manner to be described by the Town council as least one (1) month before offering the same for sale.

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