Leon County v. State

• Decision Date: 07 February 1936
• Citation: 122 Fla. 505,165 So. 666
• Parties: LEON COUNTY v. STATE.
• Court: Florida Supreme Court

165 So. 666

122 Fla. 505

LEON COUNTY v. STATE.

Florida Supreme Court

February 7, 1936

En Banc.

Proceeding by the County of Leon against the State of Florida. From an adverse decree, the plaintiff appeals.

Affirmed. Appeal from Circuit Court, Leon County; E. C Love, Judge.

COUNSEL

William Blount Myers, of Tallahassee, for appellant.

O. C. Parker, Jr., State's Atty., of Tallahassee, for the State.

OPINION

DAVIS Justice.

This is an appeal from a final decree of the circuit court of the Second judicial circuit of Florida in a proceeding brought under section 5106, C.G.L., section 3296, R.G.S., et seq praying for validation of certain tax anticipation certificates of indebtedness proposed to be issued by the county of Leon for the purpose of presently funding a county building tax provided for and levied under the provisions of section 2384, C.G.L., section 1556, R.G.S., for the purpose of erecting in said county a new jail as provided for by law.

The circuit judge was of the opinion that the tax anticipation certificates of indebtedness thus sought to be herein validated were in fact and in law 'bonds' as contemplated by amended section 6 of article 9 of the Constitution of Florida and that as such they should not be issued, nor confirmed by decree of the circuit court, until after the same should be first submitted to, and approved by a majority of the votes cast in an election in which a majority of the freeholders who were freeholders residing in Leon county, should participate. Accordingly, said judge denied the prayer of the petition for validation and entered his decree to that effect, from which this appeal has been taken on behalf of the authorities of Leon county, as petitioners in the court below.

Any contractual device for the present funding of tax revenues contemplated to be raised or made available for reimbursement in future years, contrived to be issued as an enforceable legal security to the obligee, or his assignee, by means of which such obligee or his assignee will acquire a legal or equitable right to coerce by judicial processes the repayment of a sum of money advanced on the strength thereof, together with interest for the hire of the amount advanced, however calculated or provided to be paid upon the sum so involved, is in contemplation of amended section 6 of article 9 of the Constitution of Florida a 'bond' and within the purview of the specific prohibitions and limitations of that section as to the issuance of 'bonds.' This is so, not only because any scheme of public financing, directly or indirectly, immediately or contingently calculated to obligate the future taxing power of the obligor, is within the scope of the Florida constitutional limitation on the issuance of 'bonds,' but because such contemplated obligation of the powers of future taxation can no more be afterwards repudiated as forming no part of the present transaction for a funding of the future public resources than a mortgage executed as security for a note can be subsequently disregarded as forming no part of the contractual arrangement evidenced by the negotiation of the same. See City of Clearwater v. State ex rel. United Mutual Life Ins. Co., 108 Fla. 623, 147 So. 459, citing to this effect Godchaux Co. v. Estopinal, 142 La. 812, 77 So. 640.

The petition for validation shows that on the 24th day of January, 1935, a resolution was duly adopted by the board of county commissioners of the county of Leon, in the state of Florida wherein it was recited that it was deemed necessary to erect a new jail for Leon county, Fla., and which provided for giving notice that at the next regular meeting of the board to be held on March 7, 1935, the question of whether or not a levy would be made for the purpose of constructing such jail to be acted upon by said board.

Due notice of said meeting was given, and at such meeting a resolution was adopted by said board wherein the necessity of the erection of such jail was determined and there was in and by said resolution levied a building tax of not exceeding five (5) mills per annum for five (5) consecutive years beginning with the year 1935 in lieu of all other county building tax, the amount necessary to be collected each year in order to construct said jail building, with or without federal funds, to be determined and included in the budget of said board in each of the five (5) years aforesaid, the tax so levied to be assessed and collected at the same time and in the same manner as other state and county taxes are collected.

Thereafter, on September 2, 1935, the said board adopted a resolution reciting the facts hereinabove set forth and further reciting that it then appeared that in order to construct the jail building provided for by the previous resolution, it was necessary to anticipate the collection of the taxes provided for in said resolution and to borrow the money contemplated to be realized from such levy; and further reciting that it appeared that said levy, based upon the then present taxable value, over the period of years for which such levy had been and lawfully might be made, would produce a sum of not less than $85,000. The said resolution then provided for the issuance of certain tax anticipation certificates of indebtedness, describing the numbers, denominations, and maturities thereof, place of payment, and other form and details of said certificates, and described the security to be given incident thereto as follows:

'Sec. 4. There is hereby pledged as security for said Tax Anticipation Certificates of Indebtedness and to provide a sinking fund for the payment and retirement of the said Tax Anticipation Certificates of Indebtedness as the same shall mature serially as hereinabove particularly set forth, only the proceeds of the tax levy heretofore made by the said Board by resolution adopted by the said Board on the 7th day of March, A. D. 1935, and it is hereby made the duty of the said Board and its successors or any other body which may hereafter be vested by law with the power of levying and collecting taxes for and in behalf of the County of Leon, in the State of Florida, to levy and collect annually the taxes provided for in the said resolutions, not to exceed the limits prescribed by law and the terms of said resolutions, and no taxes collected under the authority. of said resolution shall be appropriated for any other purpose than that for which the said tax is levied and collected and no other or further tax shall ever be levied, assessed, or collected for the payment of such Tax Anticipation Certificates of Indebtedness nor shall the same be construed as general obligations of said County, pledging the full faith and credit and taxing power thereof.'

'Sec. 5. That the said Board of County Commissioners of Leon County, Florida, be and they are hereby authorized and empowered to dispose of said Tax Anticipation Certificates of Indebtedness, in whole or in part, by delivery thereof to the United States Government or any administrative branch thereof, for value, or to the contractor or contractors constructing such a jail or by public or private sale; provided, however, that such Tax Anticipation Certificates of Indebtedness should not be disposed of or sold for value, services or cash at less than the par value thereof, plus accrued interest.'

The resolution further provided that the attorney for said board should prepare the form of such tax anticipation certificates of indebtedness and should take the necessary proceedings for the...