Delaware Code Title 14. Education § 1028. Division of reorganized school districts;  names;  bonded indebtedness;  levy of taxes without referendum;  real property;  personal property;  school boards;  school districts conducted and maintained as other reorganized school districts;  applicability of section;  division of school districts created by federal court orders




(a) A reorganized school district may be divided by the State Board of Education into 2 or more school districts in accordance with this section.

(b) A division, except in the case of the division of a reorganized vocational-technical school district, shall be by referendum, which referendum shall be conducted in the same manner as a referendum for the consolidation of reorganized school districts under § 1026 of this title.  If division is by referendum, the question of division shall be determined by a majority of the total vote of the reorganized school district to be divided.  A division of a reorganized vocational-technical school district shall be by resolution of the State Board of Education, and by resolution of the board of the reorganized vocational-technical school district affected.  In the case of any division of any reorganized school district, the State Board of Education shall specify in advance the effective date of the division.

(c) One of the school districts resulting from a division shall retain the name of the reorganized school district being divided, unless otherwise specified by the State Board of Education.  The school board of the reorganized school district being divided shall specify in advance and with the approval of the State Board of Education the proposed names for the school districts resulting from any division and the boundaries of the school districts so named.  If division is by referendum, the proposed names and the boundaries of the school districts so named shall be distinctly stated in the notice of referendum.

(d) In the event any reorganized school district has, at the time of division, any outstanding obligations evidenced by bonds or bond obligations resulting from a division in a previous high school district, such obligations shall remain the obligations of the residents of the school district then obligated upon such bonds to pay the principal and interest when due until paid according to the original authorization with respect to principal and interest.  The rights of any bondholder shall not be impaired by reason of a division of any reorganized school district.  If division is by referendum, the notice of the referendum shall distinctly state the provisions of this subsection.

(e) Each school district resulting from a division of a reorganized school district shall levy taxes sufficient:

(1) To maintain the level of current expenditures including Division III as established in the divided reorganized school district;  and

(2) To provide for payment of principal and interest on any bonded indebtedness as provided in this section.

Such taxes shall be levied by the school boards of the school districts resulting from any such division without a further referendum.  If division is by referendum, the notice of referendum shall distinctly state the provisions of this subsection.

(f) All real property of the divided reorganized school district shall, by operation of law, become vested in the respective school district resulting from such division in which such real property is located.

(g) All personal property of the divided reorganized school district shall be apportioned between or among the school districts resulting from such division upon the basis of enrollments in such resulting school districts as of September 30, immediately preceding the division.  In the event the school boards of the resulting school districts cannot agree as to such apportionment, the State Board of Education shall make the apportionment which shall be final.

(h) School boards for school districts resulting from any division under this section shall be created and constituted in accordance with § 1066 of this title.

(i) All school districts resulting from any division under this section shall be operated and maintained as other school districts reorganized under this chapter, and all laws in this State relating to school districts reorganized under this chapter generally and not inconsistent with this section shall apply to such school districts resulting from such division.

(j) This section shall apply only with respect to a division of a reorganized school district constituted and established in accordance with this chapter.

(k) During the period January 1, 1980, through August 31, 1981, the State Board of Education may divide any school district created by order of a federal court pursuant to this section;  provided, however, that:

(1) The requirement of referendum included in subsection (b) of this section, the requirement of taxation of subsection (e) of this section and the statutory restriction of subsection (j) of this section shall not be applicable;

(2) The requirements of subsection (d) of this section shall be met by funds available pursuant to § 1057(b) of this title and by taxes collected by the county taxing authorities, which taxes shall be collected uniformly throughout the entire area being divided;

(3) The area being divided shall be permanently constituted as a school tax district as defined in § 1925 of this title;

(4) The rates for school taxes for current operating expenses and debt service on obligations evidenced by:

a. Bonds of the district being divided authorized prior to the division;

b. Bonds of the district being divided;  and

c. Bonds of any former school district located in the geographical area of the district being divided which are levied in the school tax district

shall be established and set according to § 1925 of this title;

(5) Obligations evidenced by bonds authorized prior to the division herein authorized shall be paid by the county taxing authorities from debt service taxes collected in the school tax district;

(6) Taxes collected in the school tax district for current operating expenses shall be distributed each year in a uniform manner, on a per unit basis according to units certified by the State Board of Education for the previous fiscal year, by the county taxing authorities, to the districts formed by the division;

(7) No tax funds herein authorized shall be distributed to a separate vocational-technical school district;

(8) Nothing herein or in § 1925 of this title shall prevent any school district created as a result of such a division from levying and collecting taxes for any purpose within the new district when such rates are set according to Chapter 19 of this title requiring a referendum of the qualified voters in the district;

(9) Nothing herein or in § 1925 of this title shall prevent any school district created as a result of such division from issuing bonds and levying and collecting taxes to provide funds for the payment of interest and annual payments on such bonds, in accordance with Chapter 21 of this title;

(10) Any school district created as a result of such division may each fiscal year determine and set tax rates for tuition and for minor capital improvements for the next fiscal year;

(11) A change in tax rates by a single district shall not alter the rate set in accordance with § 1925 of this title for the school tax district;

(12) The boundaries of school districts divided according to this subsection shall be established in accordance with § 1066A of this title.

(13) The boards of education of school districts resulting from the division authorized by this subsection shall be established in accordance with § 1066 of this title.

(l) If the division of a school district is carried out under subsection (k) of this section, then the following provisions shall apply:

(1) Any outstanding obligations of the school district for current operating expenses, on the effective date of the division, shall become the joint obligation of the newly created districts.  Each new district shall be responsible for a portion of the total outstanding obligation;  the liability of each new district shall be in the same proportion to the total liability of the district being divided as the number of units of pupils enrolled in schools located in the area encompassed by the new district was to the total number of units in the district being divided in the fiscal year preceding the division;

(2) Balances in the local current expense account of the school district, on the effective date of the division, shall be divided among the newly created districts.  The amount of funds received by each such district shall be in the same proportion to the total balance as the number of units of pupils enrolled in schools located in the area encompassed by the new district was to the total number of units in the district being divided in the fiscal year preceding the division;

(3) Balances in the local tuition account of the school district, on the effective date of the division, shall be divided among the newly created districts.  The amount of funds received by each such district shall be in the same proportion to the total balance as the number of units of pupils enrolled in the schools located in the area encompassed in the new district was to the total number of units in the district being divided in the fiscal year preceding the division;

(4) Balances in the local debt service account of the reorganized school district, on the effective date of the division, shall be retained in the debt service account of the school tax district.  These funds shall be used to meet bond obligations which are due after the effective date of the division;

(5) Balances in the local minor capital improvement accounts of the district being divided, on the effective date of the division, shall be divided among the newly created districts.  The funds shall be divided in a proportion which will best enable the funds to be used for the projects for which they were intended at the time of the division, as determined by the State Board of Education;

(6) Balances in the annual maintenance accounts of the reorganized district, on the effective date of the division, shall be divided among the newly created districts.  The funds shall be divided in a proportion which will best enable the funds to be used for the maintenance for which they were intended at the time of the division, as determined by the State Board of Education.


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