AN ACT TO AMEND TITLE 9 OF THE DELAWARE CODE TO EXTEND THE PERMITTED MATURITIES OF BONDS FOR SEWER AND WASTEWATER TREATMENT IN NEW CASTLE COUNTY.

According to the American Society of Civil Engineers, the useful life of the components of typical sewer and wastewater systems ranges from 15 years to 100 years. In light of the long life of sewer and wastewater infrastructure, longer maturities are appropriate for bonds issued to fund such infrastructure. This bill extends the maturity of bonds permitted to be issued by New Castle County from 30 years to 40 years for both sewer and wastewater projects, recognizing the long life of such assets. Extending the maturities of sewer and wastewater infrastructure-related bonds will enable New Castle County to access federal programs that allow for longer-duration repayment periods, such as the Water Infrastructure and Innovation Act and the U.S. Department of Agriculture loan program for sewer, solid waste and stormwater drainage in eligible rural areas. Furthermore, longer maturities reduce the debt service burden on the County’s operating budget. Additionally, this bill removes the requirement that New Castle County advertise bond sales in newspapers, while retaining an obligation to provide published notice of bond sales to New Castle County residents. Municipal bond sales are advertised through national and international electronic platforms that are monitored by institutional investors, rendering print advertising of such sales obsolete and unnecessary.