Evening journal., 1911-07-08
BOND PREMIUM
FOR STREETS
;OIlCitOr hastings Says Pre-
MUM Cannot be Applied to
Current Expenses

5# sewer department loan OF @1OO,VVv
81 amounting to $14,302.50, could be used
by that department for current pur-
81 poses, the opinion of Daniel 0. Hast
= ings, the new city solicitor, submit
3 ted to the Street and Sewer Depart
Il ment and read at the meeting of Coun-
# cil on Thursday night, is directly op-
81 posite.
Mr.. Hastings contends that the
n money can be used only for street and
sewer improvements for which the
bonds were issued. Mr.. Hastings opin-
n ion follows
July 6, 1911.
y Hon. George W. Sparks, President
Street and Sewer Department VIII
mington, Del.
Dear Sir: / am in receipt of your
81 letter of even date relative to the S14,-
a 302.50 deposited by the city treasurer
n to the credit of your department for
n special fund, and which was after
Il wards, by resolution of City Council
appropriated to your department. for
current uses to be applied to balance
n due May 1st.
AS I understand it, this sum of S14,-
30250 is the premium received from
z the sale of bonds issued in accordance
q with an ordinance of Council approved
4 April 20, 1911. This ordinance was
passed under authority given by the
Act Of the Legislature approved March
A. A. D., 1907 Section of said ordi-
nance provides that:
"The money so borrowed shall be
paid into the City Treasury and upon
receipt Of the same by the City Treas
urer he shall deliver the amount Of
the same to the Board of Directors
of the Street and Sewer Department
Of the City of Wilmington, which said
Board shall have supervision manage
ment, direction and control of the
work required to be done with the
proceeds of the sale of the said bonds
and the expenditure of the money ne
cessary with respect thereto"
1 understand the point of your in
quiry to be whether this premium
money was applicable to current ex-
pense or whether it must be credited
to the special fund for improvements
n addition to the portion Of the
OF Anance above quoted there are two
is of the Legislature that throw
F(of the Act creating the Street and
Sewer Department, approved April 20
ial upon this subject. Section
1887. as amended by the Act approved
March 4, 1907, provides that:
The Council shall in the month Of
May. A. D. 1907 and in every year
\ thereafter when determining the
amount necessary to be raised on the
persons and estates in the city f1i
public use, also include the sum neces
|, sary to be raised on the persons ant
/, estates for meeting and paying the
public expenses estimated and deter
mined by the Council as aforesaid
The amounts so determined upon shall
be raised collected and paid into th'
r City Treasury as other taxes are rails
ed, collected and paid into said Cit,
Treasury. At the time of making th'
annual appropriation for public use
the Council shall also make an ap
preparation the expenses Of the salt
Street and Sewer Department equal il
amouw to that determined in the man
ner aforesaid by the Council. Pro
vided, that the amount so determine,
BY the Council for the use of said de
partment shall not be less than 500,
600 for the current and ordinary ex
penses Of said Department for any on
fiscal year"
This Act makes provision for 9TH
current and ordinary expenses OF sal
department for any one fiscal year.
The amount mentioned in the statut
is the minimum amount, but, a
course, that can be increased by Coun
Gil IN making up their appropriation
Section 1, Of the Act, approved Marc
a. 1907. under the authority Of whic
the ordinance above referred to wa
passed provides:
"Thatf the Mayor and Council G
Wilmington shall have power and au
thority to borrow money in sue
amounts and at such times az the
shall doom necessary TO bo borrowe
and shall by ordinance prescribe IN
appoint for tho ourbing. gutterinl
grading, widening. paving and in
proving OF tho stroots, avenues, lane
or alleys and the building OF sewer
ana 65nduitE In tho city OF Whining
tens Del, and 10 isHun the bonds {
fhs said city IN payment therefor
with interest : tho moneys so borrow
cd ta 30 paid into tho City TroasuT
Rnd upon the receipt Of tho same y
tine City Treasurer. ha shall dolivC
the amount of tie saVe to tho boar
of directors of the Street and Sews
Department OF the said city Of WI
mington which board shall have 81
pervision. management, direction NJ
control over the said work and IL
expenditure OF tho money necessai
with respect thereto, All mone'
borrowed as aforesaid for the pu
poses heTeinbefore mentioned sha
be placed on deposit by tho board
directors Of the Street and Sewer D
paFtment of the said city OF Wilmin
ten and no warrant or order for d
payment Of money shall be draw
against said funds except such ord
az warrant Is for payment for vol
dene or material or implements usi
Upon and about the improvements
improvements provided for IN m
Ast or prescribed In he ordinance
Council providing the sum to be bo
rowod,"
Tho intont Of these two acts Of t
Legislature ] think Is very clear T
ono first above referred to is intend
10 provide for the current ezpens
Of the department in a certain wa
the intent Of the second is that Cou
ell shall have authority to borr,
money for certain purposes. Coun
can only borrow money under ST
ton / above quoted for the purpos
set forth in said section, and Il
does not include money for the CT
rent expenses of the department
must therefore necessarily follow tf