Ordinance 31: Financing the Construction of a Water Tower
ORDINANCE # 31 AUTHORIZING ISSUANCE OF GENERAL OBLIGATION BONDS OF THE TOWN FOR FINANCING THE CONSTRUCTION OF A WATER TOWER
WHEREAS, the Town of Townsend (the “Town”) received its charter from The State of Delaware (the “State”) in 1885 and was reincorporated as a town in 1905 by an act of the General Assembly of the State in Chapter 174, Volume 23, Laws of Delaware; and
WHEREAS, the General Assembly amended the Town’s Charter in 1977 by Chapter 176, Volume 61, Laws of Delaware in the 1989 by Chapter 17, Volume 67, Laws of Delaware (the Charter and the amendments thereto collectively referred to herein as the “Charter”); and
WHEREAS, pursuant to Section 4 of the Charter, the Town has the authority to pass ordinances to provide for repairs of watercourses; and pursuant to Section 11 of the Charter to enact ordinances relating to sanitation, health, safety, convenience and comfort of the Town’s population; and
WHEREAS, pursuant to Section 15 of the Charter, the Town has the authority to issue general obligation bonds of the Town to finance the cost of construction of a water tower.
The PRESIDENT AND COUNCIL OF THE TOWN OF TOWNSEND HEREBY ORDAINS (3/5ths of all Members of the Council concurring therein as follows:
The Town of Townsend shall issued its general obligation bonds in a maximum aggregate principal amount not to exceed $210,400 for the purpose of financing (including the reimbursement of costs) the construction of a water tower and the costs related to the preparation, sale and issuance of the bonds.
The full faith and credit of the Town of Townsend shall be pledged to the punctual payment of the principal of the interest and all bonds issued pursuant to the Ordinance. The principal of, premium, if any, and interest on the bonds, if not paid from other sources, shall be paid by ad valorem taxes levied on all real property subject to taxation by the Town without limitation as to rate or amount. The monies raised by the bonds authorized herein, after payment of the charges and expenses connected with the preparation, sale and issuance thereof, shall be held in separate accounts and shall be expended only for the purposes for which said bonds are authorized in this Ordinance or as may otherwise be authorized by the Council (including the reimbursement of costs previously expended), or for the payment of principal of and interest on temporary loans or grants made in anticipation of the sale of bonds. If, for any reason, any part of such moneys is not applied to or is not necessary for such purposes, such unexpanded moneys shall be applied to the payment of the principal of or interest of such bonds. None of said funds may be used for the payment of any operating expenses or for any judgment resulting from the failure of the Town to pay any item of operating expense or for any equipment or public improvement of a normal life of less than five years.
The Bonds authorized by this Ordinance shall be issued pursuant to the terms of a subsequent resolution of the council which shall specify or shall delegate authority to the Council President to specify the following: the date or dates of such bonds; the maturity of such bonds; the provisions for serial or term bonds; sinking fund or other reserve fund requirements, if any; provisions for redemption prior to maturity, if any, with or without premiums; the interest rate or rates and any limitations with respect thereto or the manner of their determination; the time and place or places within or without this State for the payment of principal and interest; the method of execution of the bonds; the form of the bonds; the denominations and designations of the bonds; provisions for the consolidation of debt authorized for several objects or purposes pursuant to one or more ordinances into one consolidated issue; provisions for this receipt and deposit or investment of any good faith deposit; provisions for the public or private sale of the debt instruments and such other temrs and conditions as may be in the best interests of the Town.
This Ordinance shall become effective immediately upon its adoption.
First Reading: May 28, 1991; Second Reading: June 4, 1991; Adopted: June 4, 1999; Signed by Town Council President: Hugh Dugan; Attest: Suzanne B. Clark, Secretary
I, THE UNDERSIGNED, Secretary of the Council of the Town, do certify that the above ordinance was passed at a meeting of the Council of the Town of Townsend held on the 4th day of June, A.D. 1991, at which a quorum was present and voting throughout and that same is still in full force and effect
SIGNED BY: Suzanne Clark, Secretary; DATED: June 18, 1991