Castevens v. Stanly County
| Decision Date | 11 December 1935 |
| Docket Number | 616. |
| Citation | 183 S.E. 3,209 N.C. 75 |
| Parties | CASTEVENS et al. v. STANLY COUNTY et al. |
| Court | North Carolina Supreme Court |
Appeal from Superior Court, Stanly County; P. A. McElroy, Judge.
Action by C. M. Castevens and James Forrest, citizens and taxpayers of Stanly County, against Stanly County and T. R. Wolfe and others, constituting the Board of Commissioners of Stanly County. From an adverse judgment, the defendants appeal.
Reversed.
Emergency County Bond Act of 1935 and acts relating to erection and repair of county buildings, including jails and courthouses and purchase of equipment therefor and providing for levying of taxes to pay for such alterations and repair are in pari materia, and must be construed together (Pub.Laws 1935, c 427; Code 1935, §§ 1297(9), 1317, 1321(a), 1334(8)(a, d).
Agreed Statement of Facts.
"The plaintiffs and the defendants above named beg to submit to the Court the questions of law involved in the above entitled controversy upon the following agreed statement of facts under C.S. § 626, and ask the Court to determine the rights of the parties on said statement of facts.
First. That the plaintiffs, C. M. Castevens and James Forrest, are citizens, residents and taxpayers of Stanly County, N. C and are interested in the financial conditions and welfare of said County.
Second. That T. R. Wolfe, J. V. Barringer and John L. Little constitute the Board of Commissioners of Stanly County, and as such board have been duly inducted into office and are now discharging the duties of the Board of Commissioners of Stanly County imposed upon them by law.
Third. That at a continued session of said Board of Commissioners held on August 7, 1935, at 10 o'clock A. M., T. R. Wolfe (Chairman, John L. Little and J. V. Barringer (Members) and D. L. Crowell (Clerk), being present, the County Board of Education presented a petition and requested the Board of Commissioners of Stanly County to issue school building bonds in order to provide the necessary funds for new school buildings, additions to present school buildings and school furniture, the total cost of above building and equipment not to exceed the sum of $380,000, less 45% Federal grant of $171,000, leaving a balance to be financed by the county of 55%, or $209,000, a copy of which is hereto attached, marked Exhibit A, and asked to be made a part of this agreed statement of facts.
Fourth. That when said resolution and request of the county Board of Education was presented to the Board of Commissioners of Stanly County said Board of Commissioners passed the following resolution, to-wit: 'Be it resolved, That this board approve the building and equipment program as set forth in the resolution of the county board of education in the maximum amount of $380,000 with the understanding that the federal government approve the grant of 45% of the total and the cost to Stanly County is not to exceed 55%.
It is the understanding of this board that the federal government will purchase bonds of Stanly County issued to finance the above work at an annual interest rate of not to exceed 4%, in the event the county is unable to sell the bonds on the open market at 4% or less. The secretary of the board of education is hereby authorized to make application to the federal government in behalf of the board of County Commissioners of Stanly County for the above grant.'
Fifth. That the Board of County Commissioners of Stanly County, North Carolina, met in continued session at the court house in Albemarle, N. C., on August 26, 1935, at 10 o'clock A. M., the following members being present; to-wit: T. R. Wolfe, Chairman, John L. Little and J. V. Barringer, members and D. L. Crowell, Clerk; members absent, none; when and where a resolution was read, discussed and passed by said board by the following vote: ayes, three; noes, none; which said resolution approved the construction of a new jail with plumbing, heating and electrical work, at a maximum cost of $60,000 with the understanding that the federal government approve the grant of 45% of the total, and the cost to Stanly County not to exceed 55%; and the Clerk to the Board of County Commissioners of Stanly County was authorized to make application to the federal government on behalf of said board for the above grant, copy of said resolution is hereto attached, marked Exhibit B, and asked to be made a part of this agreed statement of facts.
Sixth. That the Board of Commissioners of Stanly County, through its secretary, and through the secretary of the Board of Education of said County, are asking the federal government for the grants set forth in said resolution and, if same are approved by the authorities of the federal government in charge of same, that the Board of Commissioners of Stanly County will issue bonds of said county (a) for school purposes as set forth in said resolution in the sum of $209,000, and (b) for the erection of a new jail in the sum of $33,000, provided said Commissioners are authorized and empowered under the law to issue said bonds.
Seventh. That the erection of a new jail in Stanly County is a public necessity; that several grand juries have recommended to the Court that a new jail should be built at once and the court has ordered the commissioners to take immediate action to build said jail, that the present jail is considered unsafe and unsanitary.
That the erection of a new school building and the repair of old school buildings and the purchase of furniture and equipment for school buildings are necessary expenses of the County of Stanly in order to provide the necessary facilities for all the children in Stanly County with the six months school term as provided by the constitution of the state.
Eighth. That the General Assembly of North Carolina, at its regular session in the year 1927, enacted chapter 443 of its Public-Local Laws of the year 1927, which provided [section 1]: 'That the county commissioners of Stanly County, and the board of education of Stanly County and the board of road commissioners of Stanly County are each hereby prohibited from issuing the bonds of said county for any purpose, until after the same are approved by a majority of the votes cast on that question at a general election, or at an election duly called for that purpose: Provided, this act shall not apply to bonds and notes authorized by the General Assembly of nineteen hundred and twenty-seven, nor to cases of emergency, such as the destruction of buildings and bridges or other damages done by floods, storms, fire or other unforeseen events.'
Then follows some other provisions in regard to issuing the emergency bonds above provided for, which act was ratified on the 4th day of March, 1927, the whole of which act is referred to as fully as if written herein.
Ninth. That the Board of Commissioners of Stanly County are seeking to issue the bonds hereinbefore referred to under the terms of the Constitution of North Carolina, article 7, § 7, for necessary public expenses of the county, and also under the general laws of the State, and especially under chapter 427 of the Public Laws of 1935, known as the 'Emergency County Bond Act of 1935' and ratified by the General Assembly on the 11th day of May, 1935.
Tenth. That the assessed valuation of all the property in the County of Stanly at the time of the ratification of the County Finance Act of 1927, was $31,810.997.00.
And the net debt of the County of Stanly other than for school purposes at that time was $1,841,000.00, which was 5.8 per cent of the assessed valuation for that year;
That the net debt of the County of Stanly for school purposes at that time was $19,000, which was .0003 per cent of the assessed valuation for that year.
That the assessed valuation of all the property in the County of Stanly on June 30, 1935, was $22,924,091.00.
That the net debt of the County of Stanly other than for school purposes on June 30th, 1935, was $1,249,893.44, which was 5.4 per cent of the assessed valuation for that year;
That the net debt of the County of Stanly for school purposes on June 30, 1935, was $196,800.00, which was .007 per cent of the assessed valuation for that year.
In the meantime, the County of Stanly has assumed all outstanding indebtedness for school purposes of every city, town and school district, and school taxing district, township or other political sub-division therein.
Eleventh. That unless restrained from doing so, the Commissioners of Stanly County will proceed to issue the bonds of Stanly County in the sum of (a) $209,000 for schools as herein set out, and (b) the sum of $33,000. for the erection of a new jail as hereinbefore set out.
Twelfth. That C. M. Castevens and James Forrest, citizens and taxpayers of Stanly County, contend that the Board of Commissioners of Stanly County have no right to issue said bonds, (1) Without a vote of the people as provided in chapter 443 of the Public-Local Laws of the year 1927, set out in paragraph eight hereof; (2) That they have no right to issue same under the constitutional authority or under the general laws of the state, or under chapter 427, Public Laws of 1935, known as 'Emergency County Bond Act of 1935'; (3) That the issue of said bonds would far exceed the power of the county to issue bonds on its present tax values in the county.
The Commissioners, on the other hand, contend that they have a right to issue said bonds, and intend to do so, for the purposes herein named.
Upon the foregoing agreed statement of facts, the plaintiffs and the defendants desire an adjudication. Respectfully submitted,
James D. Forrest and C. M. Castevens, Residents and taxpayers of Stanly County.
J. V Barringer, Member; T. R. Wolfe, Chairman; John L. Little, Board of Commissioners of...
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