[1959 Code, sec. 336. 1951, ch. 534, sec.
55] [Amended 9-9-1957 by Ord. No. 765A; 1-11-1999 by Res. No. 623; 5-23-2005 by Res. No. 1247; 4-10-2006 by Res. No. 1395; 9-23-2013 by Res. No. 2332; 9-11-2017 by Res. No. 2017-4]
A.
There shall be a Department of Finance headed by a Director of Finance. The Director of Finance shall be appointed by the Mayor with the advice and consent of a majority of the full Council and shall serve continuously unless terminated pursuant to § SC2-10. The compensation for the Director shall be determined by a majority of the full Council. All subordinate personnel shall be appointed as provided in § SC3-4.C of the City Charter.
B.
The financial powers of the city, except as otherwise
provided by this Charter, shall be exercised by the Director of Finance
under the authority of the Mayor and the direct supervision of the
City Administrator.
An Assistant Director of Finance Operations and an Assistant
Director of Finance Accounting shall be recommended for appointment
by the Director of Finance and appointed by the Mayor.
[1959 Code, sec. 338. 1951, ch. 534, sec.
57] [Amended 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No. 2017-4]
Under the authority of the Mayor and the direct
supervision of the City Administrator, the Director of Finance shall
have authority and shall be required to:
A.
Supervise and be responsible for the disbursement
of all moneys and have control over all expenditures to assure the
budget appropriations are not exceeded.
B.
Maintain a general accounting system for the city
in such form as state law or the Council may require.
C.
Submit to the Council through the Mayor a monthly
statement of all receipts and disbursements in such form as the Council
may require.
D.
Submit at the end of each fiscal year a complete financial
report to the Council through the Mayor.
E.
Ascertain that all taxable property within the city
is assessed for taxation.
F.
Collect all taxes, special assessments, license fees,
liens and all other revenues (including water revenues) of the city
and all other revenues for the collection of which the city is responsible
and receive any funds receivable by the city, except that the collection
of taxes and other revenues may be delegated to a third party through
written agreement approved by the Council.
G.
Have custody of all public moneys belonging to or
under the control of the city, except as to funds in the control of
any set of trustees, and have custody of all bonds and notes of the
city.
H.
Have custody of all investments and invested funds
of the city or under the control of the city, except as to funds in
the control of any set of trustees, and have custody of all bonds
and notes of the city.
I.
Do such other things in relation to the fiscal or
financial affairs of the city as the Mayor or the Council may require
or as may be required elsewhere in this Charter.
[1959 Code, sec. 339. 1951, ch. 534, sec.
58] [Amended 5-23-2005 by Res. No. 1247; 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No.
2017-4]
The Director of Finance shall provide a bond
with such corporate surety and in such amount (but not less than fity
thousand dollars ($50,000.00), as the Council by ordinance may require.
[1959 Code, sec. 340. 1951, ch. 534, sec.
59]
No public money may be expended without having
been appropriated by the Council.
[1959 Code, sec. 341. 1951, ch. 534, Sec.
60] [Amended 9-23-1963 by Res. No. 27[1]]
The city shall operate on an annual budget.
Commencing on the first day of July 1964, the fiscal year of the city
shall begin on the first day of July and shall end on the last day
of June following. Such fiscal year shall also constitute the tax
year, the budget year and the accounting year.
[1]
"The preamble to Res. No. 27, adopted 9-23-1963,
was as follows (and note that this resolution also amended the sections
numbered originally as 76, 87, 91, and 93):
"Whereas the fiscal year of the City of Salisbury
now covers the calendar year period January first to December thirty-first;
and
"Whereas the General Assembly of Maryland
enacted a law, Chapter 825 of the Acts of 1963, hereinafter called
the Act, which requires that all municipalities adopt a uniform fiscal
year running from July first to June thirtieth following, and allowing
a transitional period from June 1, 1963 to June 30, 1966 for the change-over
for those not now using this prescribed fiscal year; and
"Whereas the Act authorizes a fractional levy
or levies for a portion or portions of the transitional period and
prescribes that if taxes are levied for a fraction of a year, they
shall be due and payable on the first day of the third month following
the beginning of such fraction of a year; and
"Whereas the Council of The City of Salisbury,
with a view to making the change without delay, and with the least
inconvenience to the taxpayers, has elected to make a fractional levy
to cover the period from January 1, 1964 to June 30, 1964, and has
prescribed that taxes for this fractional period shall be due and
payable on and after April 1, 1964, and if unpaid by June 1, 1964
shall be subject to payment of interest at the rate of one-half of
one per cent for each month or fraction of a month thereafter until
paid."
[1959 Code, sec. 342. 1951, ch. 534, sec.
61] [Amended 3-14-1966 by Res. No. 75[1]; 5-13-1996 by Res. No. 527; 5-23-2005 by Res. No. 1247]
The Mayor, on such date as the Council may require,
but at least by April 15th of each year, shall submit to the Council
a budget and an explanatory budget message. For that purpose, as such
date as he shall determine, the Mayor and/or the City Administrator
shall obtain from the head of each office, department and agency estimates
of revenue and expenditures for the next fiscal year, detailed by
organization units and character and object of expenditure; such other
supporting data as he may request; and an estimate of all capital
projects pending or which such office, department or agency head believes
should be undertaken within the budget year and within the five (5)
next succeeding years. He shall refer such proposed capital projects
to the Planning Commission for its review and recommendation as to
any project which it believes will or may affect the Master Plan or
Comprehensive Plan of the city, which recommendation shall form part
of his budget message but shall not be binding upon the Council. In
preparing the budget, the Mayor and/or the City Administrator shall
review the estimates, shall hold hearings thereon with the head or
other representative of the office, department or agency concerned
and may revise the estimates as deemed advisable.
[1]
"The preamble to Res. No. 75, adopted 3-14-1966,
was as follows:
"WHEREAS, it is believed that the role of
the Planning Commission would be strengthened and made more effective
in carrying out the City's master plan or comprehensive plan by requiring
capital projects to be submitted to the Planning Commission for review
and recommendation prior to their being submitted to the Council with
the budget, and that it would be in the public interest to require
that separate copies be prepared of the capital budget as finally
passed by the Council for distribution to interested persons; and
"WHEREAS, in the judgment of the Council,
it is in the public interest to make the aforementioned provisions."
[1959 Code, sec. 343. 1951, ch. 534, sec.
62]
The budget message submitted by the Mayor to
the Council shall explain the budget, shall contain an outline of
the proposed financial policies of the city for the budget year and
shall describe the important features of the budget plan. It shall
set forth the reasons for salient changes from the previous year in
cost and revenue items and shall explain any major changes in financial
policy. It shall include a statement of pending capital projects of
a capital program for the next five (5) fiscal years. Attached to
the budget message shall be such supporting schedules, exhibits and
other explanatory material, in respect to both current operations
and capital improvements, as the Mayor shall believe useful to the
Council.
[1959 Code, sec. 344. 1951, ch. 534, Sec.
63]
[1959 Code, sec. 345. 1951, ch. 534, sec.
64]
Anticipated revenues shall be classified as
"surplus," "miscellaneous revenues and "amount to be raised by property
tax." Miscellaneous revenues shall be subclassified by sources.
[1959 Code, sec. 346. 1951, ch. 534, sec.
65]
In parallel columns opposite the several items
of anticipated revenues there shall be placed the amount of each such
item in the budget of the last completed fiscal year, the amount of
such items actually received during the last completed fiscal year,
the amount of each such item in the budget of the current fiscal year
and the amount actually received to the time of preparing the budget
plus receipts for the remainder of the fiscal year estimated as accurately
as may be.
[1959 Code, sec. 347. 1951, ch. 534, sec.
66]
The anticipated revenues and proposed expenditures
and anticipated surplus of water and sewer operations and any other
public utilities owned or operated by the city shall be stated in
a separate section of the budget.
[1959 Code, sec. 348. 1951. ch. 534, sec.
67]
The proposed expenditures shall be itemized
in such form and to such extent as shall be provided by law or, in
the absence of such provision, by regulations established by ordinance.
Separate provisions shall be included in the budget for at least:
A.
Interest, amortization and redemption charges on the
public debt for which the faith and credit of the city is pledged.
B.
Other statutory expenditures.
C.
The payment of all judgments.
D.
An amount equal to the aggregate of all emergency
notes which it is estimated will be outstanding at the end of the
current year.
E.
An amount equal to the deficit for operations of water
and sewer and other public utilities during the last completed fiscal
year, separately stated for each utility which appears in a separate
section of the budget.
F.
Administration, operation and maintenance of each
office, department or agency of the city itemized by character and
object of expenditure.
G.
Contingent expense in an amount of not more than three
percent (3%) of the total proposed expenditures.
H.
Expenditures proposed for capital projects.
[1959 Code, Sec. 349. 1951, ch. 534, sec.
68]
In parallel columns opposite the several items
of proposed expenditures, there shall be placed the amount of each
such item in the budget of the last completed fiscal year, the amount
of such items actually expended during the last completed fiscal year,
the amount of each such item in the budget of the current fiscal year
and the amount actually expended to the time of preparing the budget
plus the expenditures for the remainder of the current fiscal year
estimated as accurately as may be.
[1959 Code, sec. 350. 1951, ch. 534, Sec.
69]
At the head of the budget there shall appear
a summary of the budget, which need not be itemized further than by
principal sources of revenue and kinds of expenditures, in such form
as to present to the taxpayers a simple and clear picture of the detailed
estimates of the budget.
[1959 Code, sec. 351. 1951, ch. 534, sec.
70] [Amended 3-14-1966 by Res. No. 75[1] ; 5-23-2005 by Res. No. 1247; 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No.
2017-4]
The budget and budget message and all supporting
schedules shall be a public record in the office of the Director of
Finance open to public inspection by anyone. The Mayor shall cause
sufficient copies of the budget and budget message to be prepared
for distribution to interested persons. Separate copies of the capital
program as finally adopted by the Council shall be prepared for distribution
to interested persons.
[1959 Code, sec. 352. 1951, ch. 534, sec.
71]
At the meeting of the Council at which the budget
and budget message are submitted, the Council shall determine the
place and time of the public hearing on the budget and shall cause
to be published in one (1) or more newspapers published in the city
a notice of the place and time, not less than seven (7) days after
publication of the notice, at which the Council will hold a public
hearing.
[1959 Code, sec. 353. 1951, ch. 534, sec.
72]
At the time and place so advertised, or any
time and place to which such public hearing shall from time to time
be adjourned, the Council shall hold a public hearing on the budget
as submitted at which all interested persons shall be given an opportunity
to be heard for or against the estimates or any item thereof.
[1959 Code, sec. 354. 1951, ch. 534, sec.
73]
No director or head of any office, department
or agency shall take any public stand on the items of the proposed
budget except when called before the Council hearings on the budget.
Appearances of directors or heads of any office, department or agency
at budget hearings may be requested by the Mayor, the Council or any
member of the Council.
[1959 Code, sec. 355. 1951, ch. 534, sec.
74]
The Council may insert new items or may increase
or decrease the items of the budget. Where the Council shall increase
the total proposed expenditures, it shall also increase the total
anticipated revenue to at least equal such total proposed expenditures.
[1959 Code, sec. 356. 1951, ch. 534, sec.
75]
The budget shall be prepared and adopted in
the form of an ordinance. A favorable vote of at least a majority
of the total membership of the Council shall be necessary for adoption.
[1959 Code, sec. 357. 1951, ch. 534, sec.
76] [Amended 9-23-1963 by Res. No. 27[1] ]
The budget for the new fiscal year shall be
finally adopted not later than the 15th day of June. Should the Council
take no final action on or prior to such day, the budget, as submitted,
shall be deemed to have been finally adopted by the Council.
[1959 Code, sec. 358. 1951, ch. 534, Sec.
77] [Amended 5-23-2005 by Res. No. 1247; 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No.
2017-4]
A copy of the budget as finally adopted shall
be certified by the Mayor and the City Clerk and filed in the office
of the Director of Finance. The budget so certified shall be printed,
copied or otherwise reproduced, and sufficient copies thereof shall
be made available for the use of all offices, departments and agencies
and for the use of interested persons and civic organizations.
[1959 Code, sec. 359. 1951, ch. 534, sec.
78]
From the effective date of the budget, the several
amounts stated therein as proposed expenditures shall be and become
appropriated to the several objects and purposes therein named.
[1959 Code, sec. 360. 1951, ch. 534, sec.
79]
Before the beginning of the budget year, the
head of each office, department or agency shall submit to the Mayor,
when required by him, a work program for the year, which shall show
the requested allotments of the appropriations for such office, department
or agency, by quarterly (three-month) periods, for the entire budget
year. The Mayor shall review the requested allotments in the light
of the work program of the office, department or agency concerned
and may revise such allotments before approving the same. An approved
allotment may be revised during the budget year by the Mayor after
consultation with the director or head of the office, department or
agency concerned. At the end of the fiscal year, the sum of the four
(4) quarterly allotments made by the Mayor shall not be greater than
one hundred percent (100%) nor less than ninety percent (90%) of the
total appropriation as made by the Council. The term appropriation
as used here shall include any supplemental, deficiency or emergency
appropriations and any transfers of funds authorized by state law
or by this Charter.
[1959 Code, sec. 361. 1951, ch. 534, sec.
80] [Amended 12-28-1998 by Res. No. 624; 5-23-2005 by Res. No. 1247; 4-10-2006 by Res. No. 1395; 9-23-2013 by Res. No. 2332; 9-11-2017 by Res. No. 2017-4]
All disbursements of any kind whatsoever, including, but not
limited to, checks, electronic transfers, ACH debits, etc., shall
be signed or authorized by two individuals, one of whom shall be the
President or the Vice-President of the Council and the other of whom
shall be either the Director of Finance, the Assistant Director of
Finance Operations, or the Assistant Director of Finance Accounting,
except that:
A.
All disbursements
from the payroll account and for payroll-related items shall be signed
or authorized by one of the following individuals: the Director of
Finance, the Assistant Director of Finance Operations, the Assistant
Director of Finance Accounting, the President of the Council, or the
Vice-President of the Council; and
B.
All disbursements
relating to the purchasing of investments or debt payments of principal
or interest investments or bond issues shall be signed or authorized
by any two of the following individuals: the President of the Council,
the Vice-President of the Council, the Director of Finance or the
Assistant Director of Finance Operations, or the Assistant Director
of Finance Accounting.
[1959 Code, sec. 362. 1951, ch. 534, sec.
81]
No disbursing officer of the City of Salisbury
shall authorize any expenditure under a Council appropriation except
as covered by such quarterly allotment or upon the specific authorization
of the Mayor.
[1959 Code, sec. 363. 1951, ch. 534, sec.
82]
The Mayor may at any time transfer any unencumbered
appropriation balance or any portion thereof between general classifications
of expenditures within an office, department or agency. At the request
of the Mayor and within the last three (3) months of the budget year,
the Council may by resolution transfer any unencumbered appropriation
balance or portion thereof from one office, department or agency to
another.
[1959 Code, sec. 364. 1951, ch. 534, sec.
83] [Amended 8-9-1999 by Res. No. 655]
The Contingency Fund authorized by Section SC7-12G
of the Charter shall be under the control of the Mayor and City Council.
Money from this Contingency Fund may be allocated and expended as
follows:
A.
The Mayor and the City Council, by a majority vote
of the City Council, may authorize its direct expenditure for public
purposes not anticipated at the time of budget adoption; or
B.
The Mayor and the City Council, by a two-thirds (2/3)
vote of all members of the City Council, may allocate funds to the
various offices, departments or agencies of the City of Salisbury
as the Mayor and Council deem advisable.
[1959 Code, sec. 365. ch. 534, sec. 84]
No office, department or agency shall during
any budget year expend or contract to expend any money or incur any
liability or enter into any contract which by its terms involves the
expenditure of money, for any purpose, in excess of the amounts appropriated
for that general classification of expenditure pursuant to this Charter.
Any contract, verbal or written, made in violation of this Charter
shall be null and void. Any officer or employee of the city who shall
violate this section shall be guilty of a misdemeanor and upon conviction
thereof shall cease to hold his office or employment. Nothing in this
section, however, shall prevent the making of contracts or the spending
of money for capital improvements to be financed in whole or in part
by the issuance of bonds or the making of contracts of lease or for
services for a period exceeding the budget year in which such contract
is made, when such contract is permitted by law.
[1959 Code, sec. 366. ch. 534, sec. 85]
All appropriations shall lapse at the end of
the budget year to the extent that they shall not have been expended
or lawfully encumbered. Any unexpended and unencumbered funds shall
be included in the next year's budget as surplus.
[1959 Code, sec. 367. 1951, ch. 534, sec.
86]
All fees received by any officer or employee
shall belong to the city government and shall be paid to the Department
of Finance.
[1959 Code, sec. 368. 1951, ch. 534, sec.
87] [Amended 9-23-1963 by Res. No. 27[1]; 8-14-2006 by Res. No. 1428]
The financial books and accounts of the city
shall be audited as of the 30th day of June in each year by a competent
person or persons appointed by the Council. The audit shall be presented
to the Council and to the Mayor prior to being submitted to the State
of Maryland in accordance with the deadline set forth in the Annotated
Code of Maryland. The Council and the Mayor will be informed if any
extension requests of the deadline are made to the State of Maryland.
The Council or the Mayor may order an audit of the financial books
and accounts of the city by a competent person or persons appointed
by the Council or the Mayor at any time the Council or the Mayor may
deem it proper so to do.
[1959 Code, sec. 369. 1951, ch. 534, sec.
88]
All revenues from water and sewer operations
and from any other public utilities operated by the city shall be
put into a separate fund to be used for current operating expenses
of these utilities, replacement and extension of facilities and payment
of interest and principal on bonds issued for these purposes. If these
revenues are not sufficient, the deficit must be made up from the
general funds of the city. Revenues from water or sewer operations
or from other public utilities operated by the city may not be transferred
under the authority of § SC7-27 of this Charter and may
not be used for any other purposes than those specified in this Charter.
[1959 Code, sec. 370. 1951, ch. 534, sec.
89]
From the effective date of the budget, the amount
stated therein as the amount to be raised by the property tax shall
constitute a determination of the amount of the tax levy in the corresponding
tax year. In addition to a sum for general purposes, the Council may
levy on assessable property such sums as have been heretofore authorized
or that may be hereafter authorized by the General Assembly of Maryland
for the liquidation and payment of the indebtedness of the City of
Salisbury or any bonds thereof or interest thereon, issued or to be
issued under the authority of state law or this Charter.
[1959 Code, sec. 371. 1951, ch. 534, sec.
90] [Amended 3-24-1969 by Res. No. 117; 3-22-1971 by Res. No. 142; 7-9-2001 by Res. No. 771; 4-23-2007 by Res. No. 1516; 5-11-2020 by Res. No. 2020-2]
All real and tangible personal property within
the limits of the City of Salisbury, or which may have a situs there
by reason of the residence of the owner therein, shall be subject
to taxation for municipal purposes, and the assessment for said purpose
shall be the same as that for state and county purposes.
[1959 Code, sec. 372. 1951, ch. 534, sec.
91] [Amended 9-23-1963 by Res. No. 27[1] ]
The taxable year shall be the fiscal year. Commencing on the first day of July 1964, the taxes provided for in § SC7-34 of this Charter shall be due and payable on or after the first day of July and shall be overdue and in arrears on the first day of the succeeding October. They shall bear interest at the rate of one-half of one percent (1/2 of 1%) for each month or fraction of a month thereafter until paid. All taxes not paid and in arrears after the 30th day of the following June shall be collected as provided in §§ SC7-38 through SC7-43.
[1959 Code, sec. 373. 1951, ch. 534, sec.
92] [Amended 5-23-2005 by Res. No. 1247; 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No.
2017-4]
Unless delegated by the City Council to Wicomico
County, immediately after the levy is made by the Council in each
year, the Director of Finance shall give notice of the making of the
levy in one (1) or more newspapers published in the city. He shall
make and mail or deliver in person to each taxpayer or his agent a
bill or account of the taxes due from him. This bill or account shall
contain an itemized statement of the amount of real and personal property
with which the taxpayer is assessed, the rate of taxation, the amount
of taxes due and the date from which they will bear interest. In case
the owner or his agent cannot be found, the Director of Finance shall
attach the bill or account to a piece of the real property or deliver
it to the servant or bailee in custody of the personal property so
assessed. He shall keep a copy of the bill or account with a memorandum
thereon of the date of mailing, delivering or posting on the property,
as the case may be, of such bill, and such memorandum shall be prima
facie evidence of such mailing, delivering or posting.
[1959 Code, sec. 374. 1951, ch. 534, sec.
93] [Amended 9-23-1963 by Res. No. 27;[1] 5-23-2005 by Res. No. 1247; 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No.
2017-4]
Unless delegated by the City Council to Wicomico
County, on or after the first day of July succeeding the levy for
any year, the Director of Finance may enforce the payment of any taxes
due and owing by mailing or delivering to the delinquent taxpayer
or his agent, or by posting on property where owner or agent cannot
be found, a notice giving the amount of taxes due, warning the delinquent
that if the taxes are not paid within twenty (20) days from the date
of the notice he will proceed to sell the delinquent's property for
the payment of the taxes, interest and the penalty thereon. At the
expiration of the twenty (20) days he may advertise the property or
any part thereof by two (2) successive insertions in some newspaper
published in Salisbury prior to the day of sale and by such other
notice as he may deem proper. He may sell the property so advertised
unless the taxes and penalties, together with the cost of advertising,
shall be paid by the owner of the property on or before the sale of
same. The notice of sale shall be sufficient if it contains the time,
place and terms of sale, the year or years for which the taxes are
due, the name of the person to whom the property is assessed and a
description of the property sufficient to identify same. It shall
not be necessary for him to levy upon any land sold hereunder. In
case there is not real estate, he may levy upon and seize any personal
property belonging to the delinquent taxpayer and, after giving at
least 10 days' notice of the time, place and terms of sale by notice
posted at the courthouse door in Salisbury, may sell the personal
property levied upon and seized, or so much thereof as is necessary,
for the payment of the taxes due, the penalties thereon and the costs
of the sale.
[1959 Code, sec. 375. 1951, ch. 534, sec.
94] [Amended 5-23-2005 by Res. No. 1247; 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No.
2017-4]
Unless delegated by the City Council to Wicomico
County, when the Director of Finance shall sell any real estate under
the provisions of this Charter, he shall report such sale with his
proceedings relating thereto to the Circuit Court for Wicomico County.
Whereupon the Court shall pass an order nisi thereon, which order
nisi shall be published for not less than three (3) successive weeks
in some newspaper published in the City of Salisbury at least one
(1) month before final ratification of the sale, warning the party
to whom the property is assessed and all persons interested in the
property to appear in the court on some certain day to be named therein
and show cause, if any they have, why the sale should not be ratified.
For hearing the objections and ratifying the sale the Court shall
be deemed always open. If objections or exceptions are filed to the
ratification of any sale so reported, the burden of proving noncompliance
with the provisions of this Charter shall be upon the objectors or
exceptant.
[1959 Code, sec. 376. 1951, ch. 534, sec.
95] [Amended 5-23-2005 by Res. No. 1247; 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No.
2017-4]
On hearing or if no objections are filed, the
Court, if it is satisfied that the requirements of this Charter have
been substantially complied with, shall finally ratify the sale, and
its action shall be final and conclusive of all questions arising
about the sale. In case the Court finds an objection, or the provisions
of this Charter have not been substantially complied with, and shall
not finally ratify such sales, the Court shall award costs in its
discretion. The Director of Finance may readvertise and sell the property
for the payment of the taxes and shall first refund the purchase money
to the purchaser. If the sale is finally ratified, the purchaser shall
pay the costs incurred in making report of the sale, together with
the cost of recording same, and thereupon the Director of Finance
shall make a deed for the property to the purchaser at purchaser's
expense. No case shall be reopened after final ratification except
for fraud or collusion on the part of the Director of Finance and
the purchaser.
[1959 Code, sec. 377. 1951, ch. 534, sec.
96] [Amended 5-23-2005 by Res. No. 1247; 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No.
2017-4]
All moneys received from the sale of any property
under this Charter shall be kept by the Director of Finance, who,
after deducting the amount of taxes, penalties and costs of sale,
shall on demand pay the balance of the purchase money to the owner
of the property sold. If the owner does not demand or will not receipt
for the balance or for any reason cannot legally receipt therefor,
then the same shall be deposited in a bank in Salisbury, designated
by the Council, paying interest on deposits, to the credit of the
City of Salisbury, for the use of delinquent taxpayers and shall be
only paid out by checks signed by the Director of Finance and countersigned
by the President of the Council. The money so deposited shall not
be used for any other purpose than payment of those entitled thereto.
Once in every two (2) years the Director of Finance shall publish
in a newspaper printed in Wicomico County a statement of all sums
remaining in this fund and the names of the person or persons entitled
thereto, the expense of publication to be paid out of the fund. If
at the expiration of six (6) years from the date of sale any part
of the fund shall be unclaimed, then that not claimed shall become
the property of the City of Salisbury and shall be transferred to
the general money account of the city and used for any city purpose.
[1959 Code, sec. 378. 1951, ch. 534, sec.
97] [Amended 5-23-2005 by Res. No. 1247; 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No.
2017-4]
Every deed given by the Director of Finance
for land sold under this Charter for taxes shall contain a statement
of the name of the owner of the land and when recorded shall be indexed
under the name of the grantor, grantees and the owner or owners. The
Owner of any land so sold may redeem the same at any time within one
(1) year of the date of ratification of its sale by paying to the
purchaser or to the Clerk of the Circuit Court for use of the purchaser
the amount of the purchase money paid for the land, together with
the costs and expense incurred by him in the ratification of sale
and of deed and record, with fifteen percent (15%) interest per annum
on purchase money from the date of sale. Thereupon the purchaser shall
reconvey the land to the owner, the land to be free of all liens or
claims, except such as were against it before the tax sale. In case
the purchaser or purchasers shall fail to execute such deed, the Circuit
Court for Wicomico County on a petition filed by the owner in the
matter of the Director of Finance's report of sale under oath, setting
out the facts of the sale of the property and the payment of the money,
penalties and charges, as herein required, or the tender and refusal
thereof, may pass an order to be served on the purchaser, or, if he
cannot be found, to be published as directed by the Court, commanding
the purchaser to be and appear in the Court on some certain day to
be named therein and show cause, if any he have, why he should not
reconvey the property. If no cause is shown as required, the Court
shall pass a decree ordering that the property be reconveyed to the
owner and appointing a trustee to convey same to him in the same manner
and as fully as the purchaser would do. The cost of such petition
and of the proceedings thereunder, including reasonable fee to his
solicitor in case it is granted, shall be paid by the purchaser and
shall be ordered done so by the Court. If the purchaser shall fail
to pay costs and charges for the period of 30 days after decree, he
may be adjudged guilty of contempt of court and may be confined in
the county jail until he purges himself therefrom. In all cases of
a sale of property for taxes, the City of Salisbury may buy same at
a sum not to exceed the amount due for the taxes, penalties and costs
and expenses of sale.
[1959 Code, sec. 379. 1951, ch. 584, sec.
98]
The provisions of §§ SC7-38 through
SC7-42 of this Charter shall be applicable only to the extent that
they do not conflict with Sections 71A through 90W of Article 81 of
the Annotated Code of Maryland (1947 Supplement)[1] relating to the sale of tax-delinquent property by counties.
[1]
See §§ 70 through 123 of Article
31 of the 1957 Edition of the Annotated Code of Maryland.
[1959 Code, sec. 380. 1951, Ch. 534, sec.
99] [Amended 7-14-1986 by Res. No. 287; 4-13-1987 by Res. No. 299]
To encourage industrial expansion in the City
of Salisbury, the Mayor, with the approval of the Council, is authorized
to exempt from taxation for corporate purposes the following; (A)
Equipment owned and operated by any manufacturing, fabricating or
assembling facility that locates in the City; (B) Newly purchased
equipment owned and operated by any manufacturing, fabricating or
assembling facility that: (1) expands in the city; or (2) develops
a new product or industrial process in the city. Such exemption shall
in no case exceed a maximum of five (5) years.
For a manufacturing, fabricating or assembling
facility to obtain the above-referred exemption, a written application
must be filed with the Office of the Mayor. If the application is
filed within two (2) years from December 31st of the calendar year
in which the manufacturing, fabricating or assembling facility locates
in the city or in which the equipment was purchased for which an exemption
is requested, then, in that event, up to five (5) years' exemption
may be granted. If the application is filed after two (2) years but
within three (3) years from December 31st of the calendar year in
which the manufacturing, fabricating or assembling facility relocates
in the city or in which the equipment was purchased for which an exemption
is requested, then, in that event, up to three (3) years' exemption
may be granted. If the application is filed after three (3) years
but within four (4) years from December 31st of the calendar year
in which the manufacturing, fabricating or assembling facility relocates
in the city or in which the equipment was purchased for which an exemption
is requested, then, in that event, up to two (2) years' exemption
may be granted. If the application is filed after four (4) years but
within five (5) years from December 31st of the calendar year in which
the manufacturing, fabricating or assembling facility relocates in
the city or in which the equipment was purchased for which an exemption
is requested, then, in that event, up to one (1) year's exemption
may be granted.
[1959 Code, sec. 381. 1951, ch. 534, sec.
100] [Amended 3-26-1962 by Res. No. 10,[1] 9-24-1984 by Res. No. 260; 5-9-2005 by Res. No. 1246]
A.
General obligation debt. The City of Salisbury shall
have the power to borrow money for any proper public purpose and to
evidence such borrowing by the issuance and sale of its general obligation
bonds, notes or other evidences of indebtedness.
B.
Economic/industrial development debt. The City of
Salisbury shall also have the power to borrow money for the encouragement
of economic or industrial development and expansion in the City of
Salisbury and its immediate environs by providing plants or necessary
facilities therefor, which is hereby declared to be an essential public
and governmental purpose and necessary for the general welfare of
the City, and to evidence such borrowing by the issuance and sale
of its bonds, notes or other evidences of indebtedness secured by
the revenues derived from the particular project undertaking or property
in connection with which such obligations were authorized and issued
and/or a mortgage thereon, or by a pledge of the both[2] of the City's full faith and credit and such revenues
and/or mortgage.
[2]
Editor's Note: So in original. Probably should
be "of both."
C.
Other revenue debt. The City of Salisbury shall also
have the power to borrow money for the purpose of financing or refinancing
other public purpose revenue-producing projects and to evidence such
borrowing by the issuance and sale of its revenue bonds, notes or
other evidences of indebtedness, including for the purpose of providing
(by way of illustration and not in limitation) parking, recreational,
or water, sewer or other utility projects, facilities or systems.
Such revenue obligations may be made payable, both as to principal
and interest, solely from the income, rentals, proceeds, revenues
and funds of the City derived from the particular project, undertaking,
facility, system or property in connection with which such obligations
were authorized and issued, except that the payment of such obligations,
both as to principal and interest, may be further secured by a pledge
of any part or all of any special assessments upon property in a limited
and determinable area connected or associated with or specially benefited
by the particular project, undertaking, facility, system or property
and/or by a mortgage of all or any part of such particular project,
undertaking, facility, system, or property.
D.
Documentation. In connection with the issuance of any obligations contemplated by this Section SC7-45, the City may enter into any indenture, trust agreement, loan agreement, mortgage, deed of trust, lease, letter of credit agreement, line of credit agreement, standby bond purchase agreement or other similar instrument and any other instruments customarily utilized in connection with financings of a similar nature, and the City may make therein such covenants and commitments as may be required by any purchaser for the adequate security of such obligations.
E.
Authority not exclusive. The City may issue and sell bonds, notes and other evidences of indebtedness contemplated by this Section SC7-45 in accordance with the provisions of Section SC7-46 or as otherwise provided in accordance with applicable Maryland public general or public local law. The authority provided by this Section SC7-45 shall be considered additional and supplemental to any other borrowing authority granted to the City by Maryland public general or public local law, and the City may authorize, issue and secure any such debt in conformity with this Charter or any other applicable Maryland law, including (without limitation) the Maryland Economic Development Revenue Bond Act or the provisions of Section 12 of Article 31 of the Annotated Code of Maryland, as amended.
[1]
The preamble to Res. No. 10, adopted 3-26-1962,
was as follows:
"Whereas, pursuant to Article XII-A of its
Charter, entitled "Redevelopment--Urban Renewal", which became effective
June 1, 1961, being Chapter 842 of the Acts of the General Assembly
of Maryland, 1961 Session, The City of Salisbury was empowered in
connection with urban renewal projects to issue and sell revenue bonds
in addition to its general obligation or full faith and credit bonds,
but the City lacks power to issue and sell revenue bonds for its general
corporate purposes other than such urban renewal projects; and
"Whereas, Section 38 of Article 23A of the
Maryland Code of Public General Laws (1957 Edition) authorizes the
amendment of municipal charters to provide the power to issue and
sell revenue bonds for general municipal purposes; and
"Whereas, this Council believes that the encouragement
of industrial development within the area of The City of Salisbury
and its immediate environs, by the attraction of new industries to
locate therein, directly benefits the citizens of the City of Salisbury,
in that it furnishes employment opportunities, tends to increase trade
and business of all kinds, and to stabilize and enhance property values,
and reduce unemployment and the depressing effects thereof on business,
property values and tax and revenue collections, and this Council
further believes that the borrowing of money by The City of Salisbury
to promote and encourage industrial development within such area is
for an essential public and governmental purpose, and necessary for
the general welfare of the City for the reasons aforesaid; and
"Whereas, this Council therefore believes
that it is in the public interest to amend Sections 100, 101 and 102A
of its Charter to give the City power to borrow money through the
issuance and sale of revenue bonds for its general corporate purposes
(including promotion and encouragement of industrial development within
the area aforesaid) other than urban renewal projects and to provide
that such bonds shall not constitute an indebtedness of the City within
the meaning of the Section 102A debt limitation of seven and one-half
percent of assessed taxable property."
[1959 Code, sec. 382. 1951, ch. 534, sec.
101; 1953, ch. 713, sec. 101(h)] [Amended 10-24-1955 by Ord. No. 734; 3-26-1962 by Res. No. 10[1]; 8-23-1965 by Res. No. 60;[2] 3-14-1966 by Res. No. 76;[3] 1-11-1988 by Res. No. 313; 5-9-2005 by Res. No. 1246]
A.
Approval. All bonds, notes or other evidences of indebtedness issued under the provisions of this Charter (unless authorized and issued in accordance with other applicable Maryland law) shall be authorized by an ordinance that shall contain; (1) a statement of the maximum principal amount of such obligations to be issued; (2) a statement of the purpose or purposes for which the proceeds of such obligations are to be expended; (3) a pledge of the security for such obligations or provisions for the making of such pledge by resolution; and (4) a requirement that prior to the issuance of any such obligations, the Council shall adopt a resolution in accordance with the provisions of this subsection A. Prior to issuing any such obligations, the Council shall adopt a resolution containing, determining or providing for the determination of, or approving or providing for the approval of (1) the designation, date of issue, denomination or denominations, form or forms and tenor of such obligations; (2) the rate or rates of interest payable on such obligations (which may be fixed or variable or may be determined by a method approved or provided for); (3) the date or dates and amounts of maturity, (4) the manner of selling such obligations, which may be either at public or private sale, for such price or prices as may be determined to be in the best interest of the City; (5) any desired provisions relating to the redemption of such obligations prior to maturity (which may be at a premium); (6) any documents pursuant to which such obligations are to be issued or secured; and (7) such other provisions regarding the terms, conditions, issuance, sale, delivery and security of and for such obligations as the Council may determine necessary or desirable. By resolution the Council may delegate to a specified official or officials the authority to approve any matters or make any determinations contemplated by this Section SC7-46. A resolution adopted pursuant to this subsection A, may be introduced and adopted at a single session of the Council, may not be petitioned to referendum and shall become effective immediately upon adoption or upon the date specified in such resolution.
B.
Form. Bonds, notes or other evidences of indebtedness
may be either coupon or registered bonds. From January 1, 1952, all
such obligations, except for obligations with final maturities of
five (5) years or less, shall have serial maturities, or have the
benefit of a sinking fund sufficient to retire the issue at market.
They shall be issued in such denominations, at such rate or rates
of interest and for such period of time as the Council may decide.
C.
Signature. All bonds, notes or other evidences of
indebtedness shall be signed by the Mayor, the seal of the city attached
thereto and attested by the City Clerk, except that the Mayor's signature
and said seal may be facsimiles engraved or printed or reproduced
by other mechanical process; provided that with respect to any obligations
which are required to be manually signed by a Trustee, issuing agent,
fiscal agent, registrar or other agent or custodian, the signature
of the City Clerk may also be a facsimile engraved or printed or reproduced
by other mechanical process.
D.
Delivery. When signed and attested, the bonds, notes
or other evidences of indebtedness shall be delivered to the Director
of Finance, who shall be responsible for their safekeeping until sold;
provided that the Council may appoint a Trustee, bond registrar, paying
agent or other custodian to act in place of the Director of Finance
for purposes of this section.
[Amended 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No. 2017-4]
E.
Sale. As determined by or provided for in the authorizing
resolution, the bonds, notes or other evidences of indebtedness may
be issued and sold; (1) by private (negotiated) sale without advertisement
or solicitation of competitive bids or by the solicitation of competitive
bids at public sale after publication or dissemination of notice of
the sale (which competitive bids may be delivered by electronic or
facsimile means or by any other commercially reasonable manner), and
any notice of sale may be published solely in summary form twice in
a newspaper of general circulation in the City and/or in a generally
recognized financial journal such as The Bond Buyer, with the first
insertion to be not less than 10 days prior to the date of sale, or
any notice of sale may be disseminated solely in electronic form and/or
in any other commercially reasonable manner; (2) for a price or prices
that may be at, above or below the par value of such obligations;
(3) at a rate or rates of interest that may be fixed or variable or
may be determined by other method approved or provided for; and (4)
for either cash or other valuable consideration.
F.
Funds. Proceeds from the sale of all bonds, notes
or other evidences of indebtedness shall be kept by the Director
of Finance under such rules and regulations as the Council may prescribe,
unless the Council by resolution shall designate some other custodian.
[Amended 4-10-2006 by Res. No. 1395; 9-11-2017 by Res. No. 2017-4]
G.
Issue. The Council may regulate the issuing or sale
of bonds, notes or other evidences of indebtedness in any manner not
contrary to this Charter.
H.
Other laws. No provision or limitation contained in
this Charter shall apply to or affect the issuance and sale of bonds,
notes or other evidences of indebtedness by the city pursuant to the
provisions of Article 43, titled "Health," of the Annotated Code of
the Public General Laws of Maryland (1957 Edition), or any amendments
thereto, Section 12 of Article 31, titled "Issuance of bond anticipation
notes," of the Annotated Code of Maryland, as amended, Sections 14-101
through 14-109, inclusive, of Article 41, titled "Maryland Economic
Development Revenue Bond Act," of the Annotated Code of Maryland,
as amended, or any other applicable public general or public local
law providing borrowing authority to the City, except as otherwise
expressly provided in this Charter.
I.
Previous issues. All bonds, notes or other evidences
of indebtedness issued by the City pursuant to Charter Sections SC7-45
or SC7-46 prior to the effective date of this Charter, as amended
to date, and all ordinances and resolutions passed concerning them,
are hereby declared to be valid, legal and binding and of full force
and effect as if set forth herein.
[2]
Editor's Note: The preamble Res. No. 60, adopted
8-23-1965, was as follows:
"WHEREAS, under Section 101(i) of the City's
Charter relating to payment, effect, terms, conditions, security etc.,
of revenue bonds, no specific provision is made, in the establishment
of security for such revenue bonds, for the assignment and pledge
of rental rates, rental fees, charges or other revenues received by
the City from parking facilities (including, but not limited to, curb
meter collections); and
"WHEREAS, in the judgment of the Council,
it is in the public interest to add the aforementioned provisions."
[3]
Editor's Note: "The preamble to Res. No. 76,
adopted 3-14-1966, was as follows:
"WHEREAS, in the judgment of the Council,
it is in the public interest to provide that revenue bonds issued
to finance parking facilities may be secured, in addition to other
security provided by Section 101(i) of the City's Charter, by the
agreement of the City to pay any deficiency in debt service requirements,
provided, that any payment under such agreement or agreements shall
not exceed a maximum payment of Ten Thousand Dollars ($10.000.00)
for any one year; and
"WHEREAS, in the judgment of the Council,
it is in the public interest further to define the term "parking facilities"
as used in said section 101(i).
[1959 Code, sec. 383. 1951, ch. 534, sec.
102; 1953, ch. 500, sec. 102]
The City of Salisbury shall have the power to borrow for current operations in any budget year an amount not to exceed thirty-five percent (35%) of the revenues to be collected for that budget year, giving tax anticipation notes for such borrowings. These notes may be renewed from time to time but must be finally paid off by the end of the budget year next succeeding the one in which the borrowing took place. In addition, no original borrowing nor any renewal thereof shall be made for an amount that will bring the total outstanding tax anticipation indebtedness against any budget year in excess of seventy-five percent (75%) of the revenues of that budget year uncollected at the time the borrowing or renewal takes place. All notes or other evidences of indebtedness issued under the provisions of this section and the interest thereon shall be paid from the general tax levy of the city. The payment of any notes or other evidences of indebtedness issued under the provisions of this section and the interest thereon must be made from the general taxes levied for use of the city. Levying or collecting any special tax for the payment of these notes or other evidences of indebtedness is expressly prohibited. The notes or other evidences of indebtedness issued under this section need not be submitted to a vote of the qualified voters of the city as provided in § SC7-46[1] of this Charter. They shall be sold in the manner provided
by the Council.
[1]
The amendment to this section by Ord. No.
734, adopted 10-24-1955, removed the requirement for a referendum.
[1959 Code, sec. 384. 1953, ch. 500, sec.
102A] [Amended 3-26-1962 by Res. No. 10;[1] 7-9-2001 by Res. No. 771; 5-12-2003 by Res. No. 971; 2-23-2015 by Res. No. 2015-1]
Subject to the further provisions of this. Section, the total
principal amount of indebtedness of the City of Salisbury represented
by its general obligation bonds, notes or other evidences of indebtedness
issued in accordance with this Charter or other applicable Maryland
law ("general obligation debt") outstanding at the time any such general
obligation debt is issued shall not exceed an amount which is equal
to (i) two percent of the assessed valuation of all real property
subject to taxation by the City of Salisbury plus (ii) five percent
of the assessed valuation of all personal, corporate and utility personal
property subject to taxation by the City of Salisbury. In applying
the debt limit provided for in this Section, there shall be excluded
from such calculation the principal amount of any outstanding general
obligation debt that in the City's records is allocated to be paid
from any enterprise fund. Any revenue bonds, notes or other similar
instruments issued pursuant to the authority of (i) Section 12-201
et seq. of the Economic Development Article of the Annotated Code
of Maryland, as replaced, supplemented or amended ("TIF obligations"),
or (ii) Section 21-407 et seq. of the Local Government Article of
the Annotated Code of Maryland, as replaced, supplemented or amended
("STD obligations"), shall not be counted in calculating such debt
limit unless the City's full faith and credit and unlimited taxing
power are also pledged to payment of such TIF obligations or STD obligations.
If the City issues TIF obligations or STD obligations that are also
backed by a pledge of other revenues in addition to its full faith
and credit and unlimited taxing power, there shall be excluded from
the debt limit calculation the outstanding principal amount of any
such hybrid TIF obligations or hybrid STD obligations that in the
City's records is allocated to be paid from any enterprise fund. In
addition, (i) any grant that is repayable by the City upon a failure
to meet conditions of the grant, (ii) compensated absences, and (iii)
capital leases (unless such capital leases are backed by a pledge
of the City's full faith and credit and unlimited taxing power) shall
not be treated as general obligation debt for purposes of this Section.
The City shall calculate the debt limit set forth in this Section
using the assessed value of real and personal property as of the July
1 immediately preceding the issuance of the applicable general obligation
debt, as determined by the State Department of Assessments and Taxation
or any department or agency that is subsequently charged with assessing
property values for the City pursuant to Maryland law.
[1959 Code, sec. 385. 1951, ch. 534, sec.
103]
At any time in the budget year, the Council
may, pursuant to this section, make emergency appropriations to meet
a pressing need for public expenditure, for other than a regular or
recurring requirement, to protect the public health, safety or welfare.
Such appropriation shall be by resolution adopted by the favorable
votes of at least four-fifths (4/5) of the members of the Council
and shall be made only on recommendation of the Mayor. The total amount
of any emergency appropriations made in any budget year shall not
exceed three percent (3%) of the total appropriations made in the
budget for that year.
[1959 Code, sec. 386. 1951, ch. 534, sec.
104]
In the absence of unappropriated available revenues to meet emergency appropriations made under the provisions of § SC7-49, the Council may by resolution authorize the issuance of notes, each of which shall be designated "emergency notes" and may be renewed from time to time, but all such notes of any fiscal year and any renewals thereof shall be paid not later than the last day of the fiscal year next succeeding the budget year in which the emergency appropriation was made. The notes issued under this section need not be submitted to a vote of the qualified voters of the city as provided in § SC7-46[1] of this Charter. They shall be sold in the manner provided
by the Council.
[1]
The amendment to this section by Ord. No.
74, adopted 10-24-1955, removed the requirement for a referendum.
[1959 Code, sec. 387. 1951, ch. 534, sec.
105]
All bonds, notes or other evidences of indebtedness
issued previous to January 1, 1952, and all ordinances passed concerning
them are hereby declared to be valid, legal and binding and of full
force and effect as if herein fully set forth.
[1959 Code, sec. 388. 1951, ch. 534, sec.
106]
All bonds, notes or other evidences of indebtedness
issued and sold by the City of Salisbury under the authority of this
Charter shall be exempt from all state, county and municipal taxes
in Maryland.
