Boykin v. Town of River Junction

• Decision Date: 12 December 1935
• Citation: 121 Fla. 902,164 So. 558
• Parties: BOYKIN v. TOWN OF RIVER JUNCTION.
• Court: Florida Supreme Court

164 So. 558

121 Fla. 902

BOYKIN v. TOWN OF RIVER JUNCTION.

Florida Supreme Court

December 12, 1935

Suit by E. H. Boykin against the Town of River Junction. Decree for defendant, and plaintiff appeals.

Reversed and remanded, with directions. Appeal from Circuit Court, Gadsden County; E. C. Love, Judge.

COUNSEL

E. H Boykin, in pro. per.

Hugh M Taylor and Balke & Taylor, all of Quincy, for appellee.

OPINION

DAVIS Justice.

The town of River Junction is a municipal corporation created and existing under and by virtue of chapter 9060 Special Acts 1921, Laws on Florida, and exercises all of the powers vested in municipalities under the general laws of Florida, as well as the special powers conferred upon it by its special charter and amendments thereto. ^[1]

Purporting to act under and by virtue of the terms and provisions of chapter 17118, Acts of 1935, General Laws of Florida, the said town of River Junction proposes to issue and sell 'mortgage revenue certificates' as described and provided to be issued by the municipality in accordance with the following resolution:

'A resolution to be entitled:

'A resolution Proposing the Construction of a Sewerage System and Additions and Improvements to the Water Supply System: The Combining of the Water Supply System and the Sewerage System as a Combined Water Supply and Sewerage System and Proposing the Issuance of Mortgage Revenue Certificates to Finance the Cost of the construction thereof.

'Whereas the Town is without but is in dire need for a Sewerage System and whereas the Town has heretofore been purchasing from the Board of Commissioners of State Institutions water to be supplied to the inhabitants of the Town through the Water Distribution System owned by the Town; and

'Whereas it is necessary and desirable that the Town Construct improvements and additions to the Water Supply System of the Town that the Town may have an independent source of an adequate supply of palatable water; and

'Whereas the Water Supply System and Sewerage System are so closely related that the two should be combined and operated as one combined system;

'Now therefore be it resolved by the town council of the town of River Junction:

'Section 1. That it is expedient and necessary for the Town of River Junction to construct a Sewerage System and improvements and additions to its Water Supply System for the purpose of supplying an adequate quantity of palatable water to the inhabitants of the Town and of collecting and disposing of sewerage and other liquid wastes and that it is expedient and necessary that the Sewerage System and the Water Supply System be combined and operated as one system.

'Section 2. That the cost of construction of the Sewerage System and additions and improvements to the Water Supply System is estimated to be $107,272.

'Section 3. That the Town of River Junction as a whole shall be prescribed as the Zone or Area to be served by the Sewerage System.

'Section 4. That the said Sewerage System when constructed and the said Water Supply System shall be and hereby are combined as the Water Supply and Sewerage System of the Town of River Junction. That there shall be established just and equitable rates and charges to be paid to the Town of River Junction for the use of the Water Supply and Sewerage System by every person, firm or corporation whose premises are served thereby which charge shall be sufficient at all times to provide a sufficient revenue to pay the reasonable cost of operation of the combined system and for the payment of the principal and interest on the Mortgage Revenue Certificates hereinafter referred to. The amount charged for water furnished and the amount charged for the services of the Sewerage System shall be as separate items but in one statement for the use of the combined Water Supply and Sewerage System. Upon the failure of and person, firm or corporation to pay within the time required the whole or any part of the amount due the combined system the water service of such person, firm or corporation failing to pay shall be discontinued as provided by ordinance and shall only be restored upon full payment being made of the charges to the combined system together with such reconnection charges as may be provided by ordinance or resolution.

'Section 5. That it is the intention of the Town of River Junction to issue negotiable Water and Sewer Mortgage Revenue Certificates in the aggregate principal sum of $59,000 to be dated November 1, 1935 to bear interest at the rate of 4% per annum payable semi-annually on the first day of May and November of each year to be in the denomination of $100 to be payable in numerical consecutive order $1000 November 1 of each of the years 1939 to 1945, inclusive, $2000 November 1, of each year in the years 1946 to 1956, inclusive, $3000 November 1 of each year in the years 1957 to 1960, inclusive, $4000 November 1, of each year in the years 1961 to 1964, inclusive, and $2000 November 1, 1965, to be payable solely from and secured by a pledge of the gross income and revenue of the combined Water Supply and Sewerage System after the deduction only of the reasonable cost of operation thereof and the lien hereinafter mentioned. That the ordinance authorizing the issuance of such certificates will provide that such certificates are additionally secured by a lien to be thereby created upon the property and revenues of such combined Water Supply and Sewerage System and will grant a franchise setting forth the terms upon which in the event of foreclosure the purchaser may operate the combined system. Said ordinance will further provide that no free service shall be rendered by the combined Water Supply and Sewerage System and that the Town of River Junction and all departments thereof shall be subject to the same charges and regulations in force for other users of the combined system.

'Section 6. The Mortgage Revenue Certificates herein referred to shall not impose any tax liability upon any real or personal property in the Town of River Junction.

'Section 7. Objections to any provision of this resolution shall be made in writing and filed with the City Council and hearing thereupon will be had within thirty days after the passage of this resolution.

'Section 8. Notice is hereby given that not earlier than forty days after the passage of resolution the Town Council contemplates the passing of a resolution providing for the issuance of the Mortgage Revenue Certificates herein referred to. It is expected that the difference between the amount of the cost of the project and the amount of Mortgage Revenue Certificates herein referred to will be made available to the Town by way of a grant from the United States of America.

'Section 9. This resolution shall be published by posting a copy thereof on the Council Chamber door.

'Passed in open Council this 5th day of November, A.D. 1935.

'W. L. Sheppard

'Chairman Town Council Town of River Junction

'[Seal]

'Attest: R. H. Hatcher

'Town Clerk Town of River Junction.'

The present appeal is from a decree of the circuit court of Gadsden county denying an injunction and dismissing a bill of complaint filed by appellant as a citizen and taxpayer of the municipality, attacking the defendant municipality's above-outlined proposal as violative, among other things, of amended section 6 of article 9 of the State Constitution, which section prohibits the issuance of municipal bonds, unless the same shall first be approved by a majority of the votes cast in an election in which a majority of the freeholders who are qualified electors residing in the municipality shall participate; said election to be held in the manner prescribed by law therefor. See Senate Joint Resolution No. 26 (Acts 1929), ratified as part of the State Constitution in November, 1930.

In disposing of this appeal, we limit our consideration to the single proposition: 'Is the projected issuance of mortgage revenue certificates by a municipality, without an authorizing election held in accordance with amended section 6 of article 9 of the State Constitution in violation of said amended section and article, when the utility to be constructed with the proceeds of the contemplated certificates, together with an existing utility of a similar kind, are proposed to be combined, and their joint revenues and the physical properties of the combined...