Board of Com'rs of Pinellas County v. Herrick

• Decision Date: 31 March 1936
• Citation: 123 Fla. 619,167 So. 386
• Parties: BOARD OF COUNTY COM'RS OF PINELLAS COUNTY et al. HERRICK v. HERRICK. HERRICK v. BOARD OF COUNTY COM'RS OF PINELLAS COUNTY et al.
• Court: Florida Supreme Court

167 So. 386

123 Fla. 619

BOARD OF COUNTY COM'RS OF PINELLAS COUNTY et al. HERRICK v. HERRICK. HERRICK v. BOARD OF COUNTY COM'RS OF PINELLAS COUNTY et al.

Florida Supreme Court

March 31, 1936

En Banc.

Suit by John R. Herrick against the Board of County Commissioners of Pinellas County, Florida, and others. From the decree, the defendants appeal, and the plaintiff cross-appeals.

Affirmed in part, and reversed in part, and remanded, with directions. Appeal from Circuit Court, Pinellas County; T Frank Hobson, judge.

COUNSEL

John C Blocker and Allen C. Grazier, both of St. Petersburg, for appellants.

Ralph Richards, of Clearwater, for appellee.

OPINION

DAVIS Justice.

The county commissioners of Pinellas county, Fla., have been impleaded as defendants in a suit for injunction filed by a taxpayer wherein it was alleged that a certain challenged resolution adopted by them acting as the board of county commissioners of said county amounts to an unconstitutional proposal and attempt on their part as county officers to issue obligations that are in contemplation of law county bonds of Pinellas county, in violation of provisions of amended section 6 of article 9 of the State Constitution that authorize county bonds to be issued only when lawfully approved by an affirmative vote of a majority of the qualified electors freeholders voting in favor of same in a lawful election duly called and held in the county, wherein a majority of all of the qualified freeholder electors shall have participated. The circuit court held against the validity of the complaining taxpayer's objections. An appeal by him from the chancellor's order to that effect brings the controversy to this court for review.

The resolution thus brought into controversy as the subject matter of this suit, reads as follows:

'A resolution providing for the construction of a water supply and distribution system and to aid in financing the cost of said construction, providing for the issuance of $179,000 revenue certificates of Pinellas County, Florida, payable solely from the revenues derived from said water supply and distribution system.

'Be it resolved by the Board of County Commissioners of Pinellas County, State of Florida, and it is hereby resolved that:

'Section 1. Pursuant to Chapter 17644, Laws of Florida, Special Acts of 1935, it is hereby determined to proceed with and there is hereby authorized the construction of a water supply and distribution system, including the acquisition of lands, easements and rights in land in connection therewith (herein collectively called the 'Project'), for the purpose of supplying drinking water to the inhabitants of that certain chain of islands bordering on the Gulf of Mexico in Pinellas County, extending from Pass-a-Grille to Indian Rocks.

'Section 2. The estimated cost of construction of the project is $274,545.

'Section 3. To aid in financing the cost of construction of the Project, there are hereby authorized to be issued revenue certificates of Pinellas County, Florida, (herein called the 'Certificates,' each to be known as 'Water Revenue Certificates of 1936,' in the aggregate principal amount of $179,000.

'The Certificates shall be dated March 1, 1936, shall be in the denomination of $1,000 each, shall be numbered in order of their maturity from 1 to 179, both inclusive, shall bear interest at the rate of four percentum (4%) per annum payable semi-annually on March 1 and September 1 in each year from the date thereof until maturity; shall be payable as to both principal and interest at the office of ----- County depository, in ----- Pinellas County, Florida, or, at the option of the holder, at the ----- New York City, N. Y., in such coin or currency as is, on the respective dates of payment of principal thereof and interest thereon, legal tender for the payment of public and private debts; shall be in coupon form, shall be registerable as to principal only at the option of the holder; and shall mature serially on March 1 in years and amounts as follows:

Year Amount Year Amount Year Amount 1940 $1,000 1949 $6,000 1958 $ 7,000 1941 2,000 1950 6,000 1959 7,000 1942 2,000 1951 6,000 1960 11,000 1943 3,000 1952 6,000 1961 11,000 1944 3,000 1953 7,000 1962 11,000 1945 4,000 1954 7,000 1963 11,000 1946 4,000 1955 7,000 1964 11,000 1947 5,000 1956 7,000 1965 11,000 1948 5,000 1957 7,000 1966 11,000

'The Certificates shall be executed in behalf of Pinellas County by the signatures of the Chairman of its Board of County Commissioners, shall be sealed by the corporate seal of said Board, and shall be attested by the Clerk of said Board of County Commissioners, and the interest coupons thereto attached shall be executed by the facsimile signatures of said Chairman and said Clerk.

'Section 4. The Certificates and coupons attached thereto shall be substantially in the following form, to wit:

'No. -----

$1,000

'United States of America, State of Florida, Pinellas County.

'Water Revenue Certificate of 1936.

'Pinellas County, a political subdivision of the State of Florida, for value received, hereby promises to pay to bearer, or if this certificate be registered to the registered owner hereof, solely from the certificate fund provided therefor, as hereinafter set forth, and not otherwise, the principal sum of One Thousand Dollars ($1,000) on March 1, 19-- and to pay interest on said principal sum solely from said certificate fund from the date hereof at the rate of four percentum (4%) per annum, payable semi-annually on March 1 and September 1 in each year, upon the presentation and surrender of the interest coupons attached hereto as they severally become due, until the maturity of this certificate. Both the principal of and interest on this certificate are payable at the office of ----- County depository, in ----- Pinellas County, Florida, or, at the option of the holder, at the -----, New York City, N.Y., in such coin or currency as is, on the respective dates of payment thereof, legal tender for the payment of public and private debts.

'This certificate is one of a duly authorized issue of certificates, limited to an aggregate principal amount of $179,000. of like date, tenor and effect except as to number and maturity, is issued pursuant to and in full compliance with the Constitution and Statutes of the State of Florida, particularly Chapter 17644, Laws of Florida Special Acts of 1935, and by virtue of a Resolution entitled, 'A resolution providing for the construction of a water supply and distribution system, and to aid in financing the cost of said construction, providing for the issuance of $179,000 revenue certificates of Pinellas County, Florida, payable solely from the revenues derived from said water supply and distribution system,' duly adopted by the Board of County Commissioners of Pinellas County on the --- day of -----, 1936, and said resolution is hereby referred to and, as to all of its terms and provisions, is made a part of this certificate.

'This certificate is issued to aid in financing the cost of construction of a water supply and distribution system, and is payable only from a certificate fund in which there shall be set aside annually, in approximately equal monthly installments out of the revenues and income derived from the operation of said water supply and distribution system, including replacements, betterments and extensions thereto, hereafter constructed or acquired, such sums as shall be sufficient after provision for payment of all costs of operation, maintenance of said system, for the payment of the principal of and interest on said certificates as the the same respectively shall become due, and, together with all other certificates of the issue of which this certificate is one, is secured by a pledge of and exclusive first lien upon all revenues and income derived from the operation of said system after deduction only of the reasonable costs of operation and maintenance of said system, all as in said resolution provided.

'This certificate is neither payable from nor a charge upon any funds other than the revenues pledged to the payment hereof, nor shall Pinellas County be subject to any pecuniary liability hereon. No holder or owner of this certificate shall ever have the right to compel any exercise of the taxing power of Pinellas County to pay this certificate or the interest hereon, nor to enforce payment hereof against any property of Pinellas County, nor shall the certificate constitute a charge, lien, or encumbrance legal or equitable, upon any property of Pinellas County other than upon the aforesaid revenues.

'This certificate and the coupons attached hereto are issued upon the following terms and conditions, to all of which each holder and owner hereof consents and agrees:

'(a) Title to this certificate, unless this certificate be registered as herein provided, and to the coupons attached hereto, may be transferred by delivery in the same manner as a negotiable instrument payable to bearer; and

'(b) Any person in possession of this certificate, unless this certificate be registered as herein provided, or of the coupons attached hereto, regardless of the manner in which he shall have acquired possession, is hereby authorized to represent himself as the absolute owner thereof, and is hereby granted power to transfer absolute title thereto by delivery thereof to a bona fide purchaser, that is, to any one who shall purchase the same for value (present or antecedent) without notice of prior defenses or equities or claims of ownership enforceable against his transferor; every prior holder or owner of this certificate, unless this certificate be registered as herein provided, and of the coupons attached hereto, waives and renounces...