State Ex Rel. Pinellas County v. Sholtz

• Decision Date: 22 June 1934
• Citation: 115 Fla. 561,155 So. 736
• Parties: STATE ex rel. PINELLAS COUNTY et al. v. SHOLTZ, Governor, et al.
• Court: Florida Supreme Court

155 So. 736

115 Fla. 561

STATE ex rel. PINELLAS COUNTY et al. v. SHOLTZ, Governor, et al.

Florida Supreme Court

June 22, 1934

En Banc.

Original proceeding in mandamus by the State, on the relation of Pinellas County and others, against the Honorable Dave Sholtz, Governor, and others.

Peremptory writ of mandamus denied.

BROWN J., dissenting.

COUNSEL

John C. Blocker, of St. Petersburg, for relators.

Cary D Landis, Atty. Gen., and H. E. Carter and J. V. Keen, Asst Attys. Gen., for respondents.

OPINION

DAVIS Chief Justice.

This is a mandamus proceeding in which the question presented is whether or not the state board of administration has authority, upon being directed by the board of county commissioners of a county exercising the powers of a special road and bridge district within its territorial jurisdiction, to accept refunding bonds issued by the special road and bridge district for a like amount, par value, of bonds theretofore issued by the same district, the original bonds to be exchanged being at the time held by the state board of administration for the account of the sinking fund of the county and the sinking fund of the several road and bridge districts located therein.

The command of the alternative writ requires the respondents, Dave Sholtz, Governor, J. M. Lee, comptroller, and W. V. Knott, state treasurer and ex-officio county treasurer of Pinellas county, and of special road districts Numbered 1, 3, 11, and 13, as and constituting the state board of administration under chapter 14486, Acts of 1929 (Ex. Sess.) to accept and exchange a like amount of refunding bonds of special road and bridge district No. 11 of Pinellas county, for a like amount of the original bonds of said district No. 11 described in the writ as constituting a part of the Pinellas county general road and bridge interest and sinking fund, as well as the interest and sinking funds of special road and bridge districts Nos. 1, 3, 11, and 13. Respondents by their return admitted the material allegations of the alternative writ, but denied the existence of any plain, legal duty to execute its commands. So the case is now before us on relator's motion for a peremptory writ, the return to the contrary notwithstanding.

The resolution adopted by the county commissioners of Pinellas county out of which the supposed duty is alleged to have devolved upon the state board of administration to do the things the alternative writ commands, is as follows:

'Whereas, Pinellas County through its Board of County Commissioners and under the provisions of the laws of Florida has heretofore issued general obligations for road and bridge purposes, and various road and bridge districts have heretofore been created which have issued bonds for road and bridge purposes; and

'Whereas, the Boards of Bond Trustees of the various issues were abolished, and the custody, care and control of all bond issues and the several sinking funds relating thereto was placed under the supervision and control of the Board of County Commissioners, by virtue of Chapter 11858, Acts of 1927; and

'Whereas, The Board of Administration, composed of the Governor, State Comptroller and State Treasurer, was created for the more economical administration of the road and bridge indebtedness of the state and the custody of all securities relating thereto was placed in the State Treasurer as County Treasurer Ex-Officio, for the use and benefit of the said county and its special road and bridge districts, under the provisions of Chapter 14486, Acts of 1929 (Ex. Sess.) known as Section 2470(1) et seq., C. G. L. 1932 supplement; and

'Whereas, the authority to make investments, to dispose of securities, to issue refunding bonds, to exchange refunding bonds for original bonds and to otherwise direct the affairs of Pinellas County's general bonded indebtedness and its special road and bridge district bonded indebtedness, is still vested in the Board of County Commissioners (Chapter 15772, Acts of 1931 (Ex. Sess.); also, Chapter 15891--Kanner Bill--Acts of 1933); and

'Whereas, the Board of Administration and W. V. Knott, State Treasurer as County Treasurer Ex-Officio of Pinellas County, Florida, have in their custody certain bonds, to-wit:

Special Road and Bridge Dist. #11 Bonds, Nos. 151/181 inc., dated 6-1-25, due 6-1-41 $31,000.00 Special Road and Bridge Dist. #11 Bonds, Nos. 715/724 inc., dated 6-1-25, due 6-1-53 10,000.00 Special Road and Bridge Dist. #11 Bonds, Nos. 182/200 inc., dated 6-1-25, due 6-1-42 19,000.00 Special Road and Bridge Dist. #11 Bonds, Nos. 311 and 312, dated 6-1-25, due 6-1-46 2,000.00 ---------- $62,000.00 under and by virtue of authority of Chapter 14486, General Laws of 1929, which said bonds have been heretofore issued by Special Road and Bridge District Number Eleven of Pinellas County, Florida, and which said bonds have heretofore been acquired as investments for and are now owned by the following sinking funds, to-wit:

Held for account of County wide Issues	Nos.	Due.	Amount
151/181	6/1/41	$31,000.00
	715/724	6/1/53	10,000.00
Special R & B Dist.	# 1 182/187	6/1/42	6,000.00
Special R & B Dist.	# 3 188/195	6/1/42	8,000.00
Special R & B Dist.	#11 196/200	6/1/42	5,000.00
Special R & B Dist.	#13 311/312	6/1/46	2,000.00
			----------
			$62,000.00

And whereas, subsequent to the acquisition of said bonds by the aforementioned officials, under and by virtue of authority of Chapter 14486, supra, the Board of County Commissioners of Pinellas County for and in behalf of Special Road and Bridge District Number Eleven has caused the refunding of the original bond issue of said district then outstanding in the sum of $990,000, under and by virtue of authority of Chapter 15772, General Laws of 1931, which said refunding bonds have been validated by a decree of the Circuit Court in and for Pinellas County, Florida, according to the statute made and provided for, and that said refunding bonds so issued and validated are now in the custody of the escrow agent, to-wit:

'The First National Bank of Wichita, Kansas, awaiting actual exchange and delivery under and by virtue of Chapter 15772, supra, and of the resolutions passed by this body by authority of said Chapter 15772; that more than eighty per cent of said refunding bonds have been actually exchanged; and

'Whereas, the several sinking funds heretofore mentioned owning the aforesaid original bonds are in need of the interest now matured on said original issue which has not been paid and which cannot be paid except by the exchange of the original bonds for refunding bonds; and

'Whereas, this Board has been advised that under and by virtue of authority of the laws of Florida relating to the subject matter hereof that it has authority to direct the aforesaid officials to exchange the aforesaid bonds of said district for a like amount of refunding bonds of said district and that such authority to make such exchange is not within the power of any officials of the State of Florida other than this body; and

'Whereas, this Board is desirous and willing for and on behalf of Pinellas County and for and on behalf of the several special road and bridge districts involved, and has found and determined that it is to the best interests of the citizens and taxpayers of Special Road and Bridge District Number Eleven, and of the county and the several road and bridge districts owning the various sinking funds herein involved, that the aforesaid exchange be made in the manner and form herein set forth,

'Now, therefore, be it resolved by the Board of County Commissioners of Pinellas County, Florida, acting for and on behalf of Pinellas County and the several special road and bridge districts herein involved----

'That the Board of Administration and W. V. Knott, State Treasurer as County Treasurer Ex-Officio, as the fiscal agent of Pinellas County and of the several special road and bridge districts thereof and the custodian of the securities and investments of the various sinking funds of Pinellas County and its special road and bridge districts, be and they are hereby directed to exchange the following bonds, to-wit:

Special Road and Bridge Dist. #11 Bonds Nos. 151/181 inc. dated 6-1-25, due 6-1-41 ...... $31,000.00 Special Road and Bridge Dist. #11 Bonds Nos. 715/724 inc., dated 6-1-25, due 6-1-53 ....... 10,000.00 Special Road and Bridge Dist. #11 Bonds Nos. 182/200 inc., dated 6-1-25, due 6-1-42 ....... 19,000.00 Special Road and Bridge Dist. #11 Bonds Nos. 311 and 312, dated 6-1-25, due 6-1-46 ........ 2,000.00 ---------- $62,000.00

for a like amount of said refunding bonds of Special Road and Bridge District Number Eleven, upon receipt of such refunding bonds.'

Under the laws of Florida (chapter 15772, Acts of 1931 [Ex. Sess.]), authorizing counties, cities, towns, and other municipalities, special road and bridge districts, and other taxing districts in the state of Florida to issue refunding bonds, such refunding bonds are in legal effect authorized projections into the future of the original contractual obligations represented by the bonds which are lawfully refunded, and are now so recognized in the Constitution itself by section 6 of article 9 of the state Constitution as amended in 1930 by Senate Joint Resolution No. 26 submitted to the electors by the Legislature of 1929 (See page 784, 1929 General Session Laws).

Section 6 of article 9 of the state Constitution as amended in 1930 contains an express organic confirmation of the right to issue refunding bonds when same are issued exclusively for the purpose of refunding bonds, or the interest...