Untitled Texas Attorney General Opinion ( 1944 )

ENERAL Grover Sellers Hon. A. C. Foster OpiAiOA No. O-5798 County Attorney Re: Necessity of holding elections Haskell C unty in order to fix tax rate in consoll- Haskell, 8 exas dated school district. Dear Mr. Foster: We have your request for opinion, which is as follows: “1 am writing you for an opinion pertaining to tax rates in a consolidated school district. “Last August the Plainview Common School District of Haskell County voted to consolidate .with the Paint Creek Rural High School District of Haskell County. However there was no eleotion had pertaining to the assumption of the bonded in- debtedness of the Paint Creek School Dist. by the Plainview C.S. District and there was no election held to Increase the 50 cent tax rate of Plainview C.S. Dist. to the $l.OO tax rate of the Paint Creek Rural High School District. “Was it necessary to have one or both elec- tions before the Commissioners Court could legally fix the rate at $1.00 in the consolidated district including the property previously in the Plainview C.S. Dist .‘I We think your question may be answered by a reference to the statutory law now in full force and effect. Article 2807, Vernon’s Revised Civil Statutes, provides as follows: “If at the time of such proposed consolida- tion there are outstanding bonds of any of such dis- tricts, then at an election held for that purpose on some fUture day, there shall be, or ,at the elec- tion held for the purposes of consolidation, there w be, submitted to the qualified tax paying voters of such proposed consolidated district the question as to whether or not the said consolidated district . _. Hon. A. C; Foster, page 2 shall assume and pay off said outstanding bonds and whether or not a tax shall be levied therefor. If said eleotI.on on the ~ouestion of assus&n said outstanding bonds ls held ba the day upon wit ich the election on the question of aonsolidation is held there shall be separate notices, ballots, and ballot boxes and tally sheets, for the two separate elections, If a majority of said voters should vote at either of said elections to assume and pay off said bonded indebtedness then sa$d bonded indebtedness shall become valid ahd sub-~ slsting obligations of said consolidated district, and the proper officers thereof shall annually thereafter levy sufficie4t taxes to pay the Q- terest thereon as it aocrues and to oreate a sink- ing fund whlah in addition to the sinking funds already accumulated in the original bonded dls- trict will pay off and retire the said outstanding bonds when they shall become due.” Ing#auch as at the time of the consolidation of the Plalnvlew Common School District and the Paint Creek Rural High School District there was an outstanding bonded indebted- ness of the Paint Creek RuraJ. H$gh SchooJ District It is clear from a perusal of the statute above set out that an election should be held wherein the question is submitted to the quali- fled taxpayers of such consolidated distrlot the question as to whether or not the said consolidated dlstrlct shall assume =a P off said outstanding bonds and whether or not a tax shall% levied therefor. Article 2815~ of V.R.C.S. of Texas is as follows: WBC. 3. When the boundarles of any school dlstrlat ,having an outstandlng bonded Indebtedness have been ahanged or Its territory divided or two or more suah distriots consolidated it shall be the duty of the County Board of Tr?&es to make such an adjustment of.such indebtedness and district proper- ties between the districts affected and between the ’ territory divided, detached or added as may be just and equitable, taking Into considera$ion the value of the school properties and the taxable wealth of the dlstriots affeoted and the territory so divided, detached or added, as the case may be. And when said Board has arrived at a satlsfaatory basis of suah an adjustment, It sha3.l have the power to nake such orders in relation thereto as shall be oonolu- sive and blndi upon the districts and the territory thereby affeot 3. . ., . Hon. A. C. Foster, page 3 ,‘. “Sea. 4. To carry ,iAto effect orders adjusting bonded indebtedness when ohange~s are made in school districts, the Couqty,Board of Trustees shalS have the power to order the trustees of the ‘districts affected, to order aA election for the issuing of such refunding bonds as maybe necessary~to carry out the purpase of such order; and, in such case, it shall be the duty of the district trustees to order such election, cause the same to be held, and if the proposition is carried, to issue the bonds, voted. Such bonds shall be of the same denomination and carry the same interest rate and mature at the same time as the outstanding bonds owing by the district issuing them and when so issue~d, shall,’ if possible, be exchange !I for the outstanding bonds for which the district issuing them shall still be liable, according to the order adjusting such indebtedness; and in cases where such an exchange can not be made, the nevi bonds of the district to the amount of the old bonds for whioh it is still liable, and,,for which no exchange can be made, shall be deposited in the County Treasury to the account of suah district. Thereafter taxes shall be levied and assessed only for the payment of the interest, slnkLng fund and principal of the new bonds so issued; and the funds arising from such taxation shell be used to discharge the principal and interest ,of such new bonds as have been issued and exchanged, and such old bonds as have not been exchanged, When taxes are oollected applicable to new bonds not exchanged aAd the proceeds applied to payment on old bonds not ex- changed the corresponding new bonds in the County Treas- ury shall be credited with such payment and retjred as the old unexohanged bonds are retired. Wet. 5. IA cases where changes are made in dis- tricts having outstanding bonded indebtedness and where the necessary refund- bonds are vnfed down or where the County Board of Trustees are otherwise unable to arrange an adjustment or settlement of such bonded in- debtedness, it shall be the duty of the trustees to certify the fact and the territories affected by ,such changes, to the Commissionerst Court and thereupon it shall beaome the duty of the Commissio~ers7 Court to thereafter annually levy and cause to be assessed and collected from the taxpayers of such districts as they existed before the changes were made, the tax necessary to pay the interest, the sinking funds and discharge the principal, of such indebtedness as it matures. And it shall be the duty of each independent school district so affected, to cause all funds in its hands, whether HO& A1 C. Fostv, Pago 4 slnk&ag funds or otherwise Whloh have been colleoted on aoooumt of suoh bonded ~ndebteduess t6 be transferred to the County Trraeuriar of the oounty ln whleh such dlstrlot 1s situated and suoh d$stxlot shall thereafter oeat@ to Le and oolleot eny tax on account of saoh bonds; and 13 shell be the duty of the County Treasurer to keep the funds 60 transferred and those arising from taxation in separate aooounta and a ply the same only to the dfsoharge OS such bondrd indo i tedness and the Interest thereon, as the same matures. “Sea. 6. lothing in the provisions of thls Act shall prevent the County Board of Trustees from arraug- 11% any other method for the adjustment and settlement of outstanding bonded indebtedness of sohool dlstrlots In which ohenges are made but they shall have full power and authority to n&e legel and equj.table ad- u&meat and settlement lm suo “k oases that oan be ef- i eQted. w We think the answer to.your question 1s to be found ln the above quoted statutory Law and that ~sald statutory en- unciation $0 so plain as to requlre,no -construction by usI However If any further questions should arise In conneotlon wlth th{s matter, iie shall be very glad Indeed to help you solve same to the very best of our ab$lity. Vary tray yours ATTORIGYGEAIWAL OF TBXAS /a/ George P. Blackburn George P. Blaokburn, Assistant APPaovlD m 1 1% /s/ hovell Se&s ATTORNSYGBIQB&AcOF TPltae OPB:AEllrwb