Delta College v. Saginaw County Board of Commissioners

T. G. Kavanagh, C. J.

Plaintiff college was organized under the Community College Act of 1955, 1955 PA 188, the predecessor of the Community College Act of 1966, MCLA 389.1 et seq.; MSA 15.615(101), et seq. In 1958 plaintiff sought and obtained its first grant of tax authority. The electorate approved a 20-year levy not to exceed 1 mill for debt retirement and not to exceed .5 mill for operating expenses.

In 1968 plaintiff sought and obtained from the *566electorate authorization to replace the 1958 millage with an unrestricted 1.5-mill levy pursuant to § 144 of the Community College Act of 1966; MCLA 389.144; MSA 15.615(1144).

That section requires the board of trustees of each community college to seek authorization from the voters for any tax up to a maximum of 5 mills. However, that section also empowers the board of trustees to impose unlimited taxes for:

"the payment of principal and interest on bonds or other evidences of indebtedness or for the payment of assessments or contract obligations in anticipation of which bonds are issued * * * .” MCLA 389.144(1); MSA 15.615(1144)(1).

Until 1972 plaintiffs board of trustees did not authorize a levy exceeding 1.5 mills. In that year plaintiff’s board of trustees approved a levy of 1.62 mills composed of 1.30 mills for operating expenses and .32 mills for bond retirement.

On September 12, 1972, defendant Saginaw Board of Commissioners adopted a resolution disapproving plaintiffs levy in excess of 1.5 mills. Defendant then spread a levy of only 1.5 mills.

Plaintiff filed a complaint for mandamus in Saginaw Circuit Court on September 26, 1972, which alleged that the defendant board of commissioners had a clear legal duty to direct the assessing officers of Saginaw County to levy taxes as certified by plaintiff.

Defendant in its answer pled the affirmative defense of equitable estoppel alleging that plaintiff misled the voters into thinking that no millage greater than 1.5 mills would be authorized.

The case was tried on October 2, 1972. At the trial the defendant asked the trial court to take judicial notice of the fact that plaintiff had circu*567lated misleading literature. The trial court declined to do so, but denied the writ anyway finding that the word "replace” as used in the ballot proposal did mislead the voters.

Plaintiff appealed to the Court of Appeals. Eighteen days after the trial defense counsel obtained from plaintiff copies of the literature alleged to have been misleading and attached that literature to the appellate brief.

The Court of Appeals reversed the trial court and held that the trial court erred in light of West Shore Community College v Manistee County Board of Commissioners; 389 Mich 287; 205 NW2d 441 (1973). We agree.

Defendants seek to distinguish West Shore on the basis of the remedy sought. The community college in West Shore sought a declaratory judgment that it was entitled to levy .3 mill to pay debt service, whereas the instant case is a proceeding in mandamus, which requires the showing of a clear legal duty.

That clear, legal and compulsory duty is found in Michigan’s general property tax law MCLA 211.37; MSA 7.55:

"[The board of commissioners] shall direct that such of the several amounts of money proposed to be raised for township, school, highway, drain and all other purposes as shall be authorized by law, be spread upon the assessment role of the proper townships, wards and cities.”

The board’s inquiry is limited to the question of whether the levies are "authorized by law”. If the board fails to exercise this duty, mandamus is the proper remedy to compel the same. Robbins v Barron, 33 Mich 123, 125 (1876). Since the 1972 levy of plaintiff was authorized by Const 1963, art *5689, § 6 and § 144 of the Community College Act of 1966, the board of commissioners had no discretion to refuse to spread the levy.

Defendants’ asserted defense of equitable estoppel is ordinarily available in mandamus cases. However, that defense may not be used to accomplish indirectly that which may only be accomplished directly, to wit, the voiding of an election. Fulton Twp School Dist, Gratiot County, v School Dist No 4 Fractional, Essex Twp, Clinton County, 302 Mich 566; 5 NW2d 467 (1942). In West Shore, too, the board of commissioners alleged that the ballot proposal was misleading. In response this Court said:

"Where a ballot proposal is misleading, the remedy is to void the election. We are not asked to do that in this action. Therefore, we express no opinion as to whether a referendum to establish 'a maximum tax rate’ is invalid in the absence of some reference to the power to levy taxes for the payment of principal and interest on bonds 'without limitation as to rate or amount’.” 389 Mich 287, 297.

For further clarification we note § 16 of the Community College Act of 1966; MCLA 389.16;. MSA 15.615(116) mandates the proper means to challenge an election held under the act:

"Sec. 16. The general election laws, including the voting of absent voters, and all laws of the state relating to the hours for the opening and closing of the polls at elections and for preserving the purity of elections and for preventing fraud and corruption shall govern all elections under this act so far as the same are applicable and not inconsistent with the provisions of this act. ” (Emphasis added.)

And § 4545 of the Revised Judicature Act of *5691961; MCLA 600.4545; MSA 27A.4545 sets out the procedure to be followed in testing the validity of an election:

"Sec 4545. (1) An action may be brought in the circuit court of any county of this state whenever it appears that material fraud or error has been committed at any election in such county at which there has been submitted any constitutional amendment, question, or proposition to the electors of the state or any county, township, or municipality thereof.
(2) Such action shall be brought within 30 days after such election by the attorney general or the prosecuting attorney of the proper county on his own relation, or on the relation of any citizen of said county without leave of the court, or by any citizen of the county by special leave of the court or a judge thereof. Such action shall be brought against the municipality wherein such fraud or error is alleged to have been committed.
(3) After such action is brought the procedure shall conform as near as may be to that provided by law for actions for quo warranto.”

Since the procedure for voiding the 1968 election was not followed by the Saginaw Board of Commissioners their legal duty is clear. They must spread the levy as authorized by the Delta College Board of Trustees.

We remand to the trial court for determination of a levy on property not heretofore charged as authorized by the plaintiff which will produce the sum that would have been produced by payment of the levy requested in 1972, mandamus shall issue to enforce such levy.

Affirmed. No costs, a public question being involved.

Levin, Fitzgerald, and Coleman, JJ., concurred with T. G. Kavanagh, C. J. *570Lindemer and Ryan, JJ., took no part in the decision of this case.