The daily gazette., 1882-09-15
THE SCHOOL LOAN FUND
WHAT THE CITY SOLICITOR
SAYS ABOUT 1T.
COUNCILS ACTION ILLEGAL
Regular Meeting of City COuncil-OpIn-
Ion OF the City Solicitor in Regard to
the Use OF the school Board Money.

At the regular meeting of City Council
last night, under the call of committees,
Mr.. Talley iroW the Finance Committe,
presented the following report of II. G.
Turner, City Solicitor, upon the subject of
the S20,0 600 still due the Board Of Education
OFFICE OF TIE CRY SoLfcIToR,
| WILMINGTON, DEL, Scpt. IL, iSS~.
| To the Honorable Chairman md Il .D,Lel'a
Finance Committee Of The Chy Council Of
imi,.gton--GESTLEMEN: ln the matter Of
the $40, 900, balance OF S6O, 600, proceeds of
bonds issued and sold by the Mayor and
Council OF Wilmington nndnr by author
ity of the Act of the General Assembly, ell
titled. ga further Suppimeut to tie act
for the benefit of the Public Schools In
Wilmington" passed at Dover, April 8,
1881, have the honor TO report as follows
The facts as ] understand them III this
matter are as follows
The General Assembly al its last session
passed the act above nanci section of
which gives TO the Mayor and Council of
Wilmington power and authority and they
are hereby authorized under an ordinance
or ordinances OF the City Council, to be
passed with the concurrence of Lwo-tlTrtls
| of all the members thereof for the time
being, at any time hereafter, to borrow upon
the faith and credit Of the city sum or
sums OF money not exceeding In the az
| gregate SG0,00O, 10 be applied and expended
under the direction of the Board Of Public
Education IN building and furnishing adj
ditional school houses IN she city of VIII
mington, the repayment of the said sum or
sums and the repayment of interest thereon
| 10 be provided for at such times and in such
manner us the City Council shall by such
ordinance or ordinances prescribe and ap-
point. Section 2 of said act provides for
the manner and times ut which such bonds
as may be issued under section shall be
made payable, and the means to be adopted
to raise the money to pay them at their
meeting.
In January Of the present year the CITY
Council exercised the powers conferred upon
| IL by the above named act aud passed all
ordinance I'm conformity Herewith directing
the issuing of bonds to the amount OF
$50, 900. The bonds were accordingly issued
and placed upon the market and the pro-
ceeds, $50, 600, and slight premium came
into the hands of the City Treasurer. On
the Sd day of February, 1882, the City
Treasurer in his report to Council set forth
the receipt into his hands Of the proceeds OF
the bonds aforesaid, and asked instructions
as to the manner in which said proceeds
should be- deposited in bank, and u motion
was passed by the Council directing him to
"depOst the money received from the pro
ceeds of sale of Loan No. 30 IN bank to the
credit Of the Mayor and Council" and the
money was SO deposited by the City
Treasurer. On the books Of the City
Treasurer there appears an entry AS fol
lows
No. 80 loan, for the use of the Board of
Public Education, 1882, February l, by cash
500, 900, and the books OF the City Treasurer
also show that the Board of Public Educa-
+ lion has received on account of Loan No.
30 the sum in aggregate of 100000, leaving
| a - 1nfp pttbIi,. E1t1,.o
ton of $4,000. BY the minutes of City
Council 1t appears that the City Treasurer
in his weekly reports on the state OF the
balances to the credit of the city in bank
from the Oath day of February, 1892, to the
9Th day of May next ensuing, reports a
g balance in bank to account of current ex-
penses and a balance in bank TO account OF
I Loan No. 30 as separate items, which added
5 to whatever may have been the weekly re
ceipts make up the general balance in his
e reports. On the 18TH day of May the City
! Treasurer in his weekly report simply re
ports balance in bank to The account OF
. the Mayor and Council of $17 ,957.7O. On
1 the 10Th of May he reported balance to a
similar account of 80, 1881, and on the 26th
{ of May balance to like account of 50 3S3. 3.52.
e On the I'd day Of June, 1882, the City
n Treasurer reports balance In bank to
| account of Loan No. 80 of S4,029 0G. The
reports Of the City Treasurer after that date
fail to show any balance whatever to the
| credit of Loan No. 80, or to the credit foI
n current expenses, but on the contrary show
: oyerdraits of various amounts. These, arc
the facts as given to me from the proper
II sources.
= There being balance due to the Board o
Public Education on account of Loan No
30 of S20, 900, the Board of Public Eduea
II ton now calls for said balance to apply and
!, expend the same for the purposes specified
e in the act creating the loan, and am asked
as City Solicitor to give my opinion as Il
g whether or no there are any available fund.-
IS in the city treasury out of which Cit,
ID Council can properly and legally order thu
D. payment to the Board OF Education oi th'
Of said balance of 10000.
IN In my opinion there are no funds IN tn
D. CITY Treasury which can be so applied. Tn
I'd proceeds of the sale OF the bonds issue'
under the act of the General Assembly, Ell
II titled, GA further supplement to the act 10
he the benefit of public schools in Wilmington,
n and the ordinance of city Council passed
o in conformity Herewith were by the YER
Nv terms of the act applicable to but one pun
pose, namely: Building and furnishin'
Al. additional school houses in the City OF VII
vi mington, and the application and expend
" " ture of those proceeds was by the act lodge
~ in the Board OF Public Education. Thes
~ | proceeds were in the hands of Council as
" | trust for the specific purpose named IN th
as ~ act of General Assembly. Council had II
'S right to expend dollar of those proceed
for any purpose whatever, and had only
naked custody of the fund bound to hold
ready to pay over when called for by I'll
hc proper authorities to be used for the propt
2 purpose The reports of the City Treasur,
show that the balance of the proceeds
l.. Loan No 80, being the 100000 now aske
nc for by the Board of Public Education, wei
Nu spent by the City Council for the curreI
." expenses of the city. The Legislature new
intended that this money should be used fc
ate any such purpose or it would have said {
OF IN the act of General Assembly.
The In my opinion the fund arising from Loa
cry No, 80 should have been deposited Tree fro
any connection with the general funds
the city, or at least so as to be clearly distil
guishabie. City Council has 70 power
divert to the payment of this balance
lsy So0. 900 any OF the funds now in the eli
lar treasury, because the funds now in Il
treasury are the results of rate OF taxatto
sey liked by the City Council to meet the val
an GUS appropriations for the present fiscal yei
vii and to meet these appropriations is the SO
object of the taxation. City Council in Nj,
ing received the estimates OF the probable rev
w. nue and expenses of the city for the iisc
h a year beginning on the first day of July.
the first stated meeting in June was pass
the ordinance making the appropriation
and the tax rate was afterward nx
nit that the necessary amount might