The Honorable Darrell J. Minott
November 8, 1995
Page 3

funds and the contract will result in the employment of mechanics and/or laborers.

From the information provided with your opinion request, it appears that any contract utilizing money from the Fund would necessarily involve construction of wastewater treatment facilities. Such faciliites are public work projects and have been found to be public buildings. George & Lynch, Inc. v. Division of Parks and Recreation, Del. Supr., 465 A.2d 345 (1983). Moreover, either a municipality or a county or similar entity would be a party to the contract, and such entities are subdivisions of the State. Beck v. Claymont School District, Del. Supr., 407 A.2d 226 (1979). Finally, any contract would employ mechanics and/or laborers and for purposes of your inquiry, we assume that the contract amount would exceed the statutory minimums for new construction or alterations.

The remaining question is whether the State is deemed to appropriate any part of the funds for the contract when the Department grants a loan from the Fund for the contract. An examination of the State statute, 29 Del. C. § 8003(12), and the Federal statute, 33 U.S.C. § 1382, shows that the Fund is the depository for the Federal money and a twenty percent (20%) matching share from the State. The State's share is deposited in the Fund as a result of an appropriation. 67 Del. Laws c. 285 § 38(a). A loan from the Fund will include money appropriated by

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