Benton v. Scott

• Decision Date: 02 May 1902
• Parties: BENTON et al. v. SCOTT.
• Court: Missouri Supreme Court

68 S.W. 78

168 Mo. 378

BENTON et al. v. SCOTT.

Supreme Court of Missouri.

May 2, 1902.

SCHOOLS — TAXATION FOR SCHOOL PURPOSES — SCHOOL MEETINGS — AUTHORIZING INDEBTEDNESS — ESTIMATE BY SCHOOL BOARD — INTEREST — SINKING FUND.

1. The act of an annual school district meeting, held on the first Tuesday in April, as required by Rev. St. 1899, § 9749, in fixing the rate of the school tax in excess of 40 cents on each $100 valuation, as authorized by section 9750, is not invalid because the school board has not submitted a proposed rate to the meeting, as the meeting is not limited to merely passing on a proposition so submitted; section 9777 requiring the board to submit an estimate, which the meeting may accept or reject, being expressly limited to special meetings called by reason of the insufficiency of the rate fixed at the annual meeting, and to increase the sum.

2. Const. art. 10, § 12, prohibits school districts from becoming indebted in any one year exceeding the revenues of the year, except by vote of two-thirds of the electors voting at an election held for such purpose, and provides that on incurring an indebtedness so authorized, provision shall be made for the collection of an annual tax for interest and a sinking fund. Rev. St. 1899, § 9752, authorizes the school board to borrow money and issue bonds after an election held for such purpose, two-thirds of the votes being in favor thereof. Section 9753 provides that the rates of interest on such loans shall be fixed by the directors, and that they shall provide for the collection of an annual tax for the payment of interest and for a sinking fund. Sections 9757, 9758, authorize the school board in such case to levy an interest and sinking fund tax. Held, that the school board of a town which had voted for such a loan could levy an annual tax for interest and sinking fund without the consent of the school meeting, notwithstanding Const. art. 10, § 11, authorizing the increase of the school-tax rate to erect school buildings, but requiring a two-thirds vote of the electors as a condition precedent, as the latter section only applies to the levying of taxes to erect buildings with the proceeds, and not to a loan for such purpose.

3. Rev. St. 1899, §§ 9757, 9758, authorizing school boards to levy a tax to pay interest on outstanding school bonds, and to create a sinking fund for their payment, is not limited to bonds issued prior to the adoption of Const. 1875, or issued to refund an indebtedness existing prior thereto.

Burgess, C. J., dissenting in part.

In banc. Appeal from circuit court, Clay county; E. J. Broaddus, Judge.

Suit by Elisha Benton and others against Charles H. Scott, as collector of revenues, to restrain the collection of a school tax. From a decree for defendant, plaintiffs appeal. Affirmed.

The following is the opinion of GANTT, J., in division:

This is a proceeding by plaintiffs, who are taxpayers in school district No. 3, township 53, range 31, in Clay county, against the defendant, who is the collector of revenue of said county, to enjoin the collection of school taxes levied at the rate of $1.05 in said school district. Prior to the finding of the bill, plaintiffs tendered the collector 40 cents on the $100 assessed valuation for school purposes, which was refused. All the evidence material to the issue is documentary, and consists of the records of the school board of said district. Prior to April 5, 1898, said school district was not incumbered with any debt whatever. The circuit court denied the injunction, and plaintiffs appeal.

At the annual school meeting of school district No. 3, township 53, range 31, of Clay county, on the first Tuesday in April, 1898, to wit, April 5, 1898, the qualified voters and taxpayers voted to tax themselves at the rate of 60 cents on the $100 assessed valuation for the purpose of raising funds to maintain the school. At the same meeting, by a two-thirds majority vote, they authorized an issue of $7,500 of bonds to build a new school house. The bonds were issued and sold, and with the proceeds the school house was erected, and is used by the district. The school district is organized pursuant to the provisions of section 9739, Rev. St. 1899, and is governed by three directors, and comprises the city of Kearney and adjacent territory. The assessed valuation of taxable property in said district made by the assessment next prior to April 5, 1898, is $242,570, and the limit of the indebtedness which said district can incur under the laws of this state is 5 per cent. of that amount, or $12,128.50. On the 15th day of March, 1898, the board of directors of said district ordered that two propositions be submitted to the annual school meeting of said district, viz.: "(1) To increase the estimate for school purposes in excess of forty cents on the one hundred dollars valuation in said district. (2) To authorize the board of directors of school district No. 3, township 53, range 31, county of Clay and state of Missouri, to issue fifteen bonds of the denomination of five hundred dollars each, to fall due and be payable on or before fifteen years after date, bearing interest at a rate not to exceed eight per cent. per annum, evidenced by fifteen coupons, payable annually, at the office of the county treasurer, upon the presentation and cancellation of said coupons as they severally become due, the proceeds derived from the sale of said bonds to be used for the purpose of erecting and furnishing a new school building upon the present site in said district." The foregoing propositions were incorporated in the notices put up by the clerk, which were posted by him in at least five different places in said district more than 15 days prior to April 5, 1898, and a copy of the same was also published in the Kearney Clipper, a weekly newspaper published in said district, for the same length of time. The annual meeting was duly held on Tuesday, the 5th day of April, 1898, beginning at 2 o'clock p. m. After said meeting had organized by the election of a chairman and secretary, the clerk of said district, who is a member of the board, read a report to the meeting, which showed, among other things, the following: Valuation of district, $242,570; rate of levy for school purposes, 60 cents on the $100 assessed valuation; estimated receipts, $1,941.02; estimated expenses, $1,970, — showing that at the rate of 60 cents on the $100 valuation receipts and expenditures would be nearly equal, and that 60 cents would be a proper rate for school purposes. Thereupon the chairman appointed T. S. Brown and W. W. Major as tellers to distribute and collect the ballots for one director for the next ensuing three years. When the ballots were read by the tellers and counted by the secretary and one assistant, it was found that Creth L. Eberts had received 98 votes for director and R. W. Groomer 58 votes, whereupon it was declared by the chairman that Creth L. Eberts was duly elected director of said district for the next ensuing three years. And thereupon the chair announced that the next business was to determine the length of the school term for the ensuing year, and directed the same tellers to distribute the ballots. After the ballots had been distributed, the election proceeded, and the ballots were counted, and it appeared, and was so announced by the chairman, that the vote stood as follows: For 6 months' school, 3 votes; for 7 months' school, 8 votes; for 8 months' school, 103 votes; for 9 months' school, 1 vote; for 13 months' school, 1 vote, — whereupon the chairman declared that a majority of the votes was for an 8 months' school. The next business in order was the proposition No. 1, of which notice had been given as aforesaid, to wit, "A proposition to increase the estimate for school purposes in excess of 40 cents on the $100 valuation." The ballots were distributed, cast and counted, from which it appeared the vote was as follows: For 40 cents levy, 12 votes; for 45 cents levy, 1 vote; for 50 cents levy, 16 votes; for 55 cents levy, 1 vote; for 60 cents levy 104 votes; for 65 cents levy, 2 votes, — whereupon it was declared by the chairman that the vote of the meeting was for 60 cents levy on the $100 assessed valuation for school purposes. The next business taken up was the proposition to authorize the board of directors of said school district to incur an indebtedness of $7,500, and issue in payment therefor 15 bonds of the denomination of $500 each, to fall due on or before 15 years after date, bearing interest not to exceed 8 per cent. per annum, evidenced by 15 coupons, payable annually, at the office of the county treasurer upon the presentation and cancellation of said coupons as they severally became due, the proceeds to be used for the purpose of erecting and furnishing a new school house on the present site in said district. The ballots were distributed, and the chairman directed the qualified voters to prepare their ballots, "For the loan," or "Against the loan," as they might desire to vote on said proposition to incur said debt, and further directed said voters to file by the chairman's desk, and deposit with the chairman their ballots; the chairman to write the number of each ballot thereon, and then place same in a ballot box prepared for such ballots, and the secretary was directed to register the name of each voter, and the number of his ballot, — all of which was done, and after all the ballots had been cast, the tellers, in the presence of the meeting, opened the ballot box, and read off the ballots which were counted by the clerk, and it was ascertained that 133 ballots had upon them the words "For the loan," and 41 ballots had upon them the words "Against the loan," and 8 ballots so irregularly indorsed that they were declared illegal. The whole number of voters at said election were 182, and of these 133 voted for the loan, and the highest number of votes cast on any proposition at said...