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
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