State v. City of Hollywood

• Decision Date: 02 March 1938
• Citation: 131 Fla. 584,179 So. 721
• Parties: STATE v. CITY OF HOLLYWOOD.
• Court: Florida Supreme Court

179 So. 721

131 Fla. 584

STATE v. CITY OF HOLLYWOOD.

Florida Supreme Court, Division B.

March 2, 1938

Petition by the City of Hollywood, Fla., against the State of Florida for validation of water revenue certificates of the City of Hollywood, Fla. From a decree validating and confirming the issuance of the certificates, the State appeals.

Decree affirmed. Appeal from Circuit Court, Broward County; George W. Tedder, judge.

COUNSEL

Louis F. Maire, State Atty., of Fort Lauderdale, for appellant.

C. H Landefeld, Jr., of Hollywood, for appellee.

OPINION

CHAPMAN Justice.

On the 30th day of December, 1937, Hon. George W. Tedder, judge of the Fifteenth judicial circuit, in and for Broward county Fla., entered a final decree validating and confirming the issuance of water-revenue certificates of the city of Hollywood, Fla., under chapter 12877, Special Acts of the Legislature of 1927, and chapter 17558, Special Acts of 1935. The proceeds of the sale of the certificates were to be used for public utilities, including a water system and works for supplying the city and its inhabitants with water, and in so doing paying the cost of erecting dams and pumping stations used in connection with the water system and thereby promoting the comfort, education, morals, peace, government health, and general welfare of the city of Hollywood.

The ordinance upon which the petition for validation is predicated is drafted under chapter 12877, Special Acts of the Legislature of 1927, and chapter 17558, Special Acts of 1935, and pledges revenues from the waterworks system, less cost of operation, maintenance, and repairs, to liquidate and otherwise retire or pay the said indebtedness.

From the final decree validating and confirming the issuance of the water-revenue certificates in the total sum of $200,000, an appeal was taken to this court on the part of the state of Florida by Hon. Louis F. Maire, state attorney, and it is contended that the final decree appealed from should be reversed for the reasons, viz.:

'1. That no election was had approving the issuance of said certificates as required by section 6, article 9, of the Constitution of Florida [as amended in 1930].

'2. That the certificates because of the covenants contained in the authorizing resolution constitute an indirect or contingent pledge or obligation of the taxing power of the city.

'3. That there was no express charter authority for the issuance of the said water revenue certificates.

'4. That no attempt was made by the city to comply with the provisions of chapters 17118, 17119 of the General Laws of Florida 1935; section 3100(6) et seq., Compiled General Laws [Supp.].'

The contention that there is no expressed charter provision authorizing the issuance of the water-revenue certificates on the part of the city of Hollywood is answered by chapter 12877, Special Acts of the Legislature of 1927, and chapter 17558, Special Acts of 1935, which last-mentioned act, in part, reads as follows:

'Section 1. That Chapter 12877, of the Laws of Florida, approved June 1, 1927, Entitled 'An Act to Abolish the Municipality Created by Chapter 11519 of the Acts of the Legislature of the State of Florida, approved November 25, 1925, and designated the City of Hollywood, County of Broward, State of Florida, and to Create and Establish a Municipal Corporation to be known as the City of Hollywood; to provide a Charter for said City; to Define its Territorial limits; to provide for its Government; and to Prescribe its Jurisdiction,' as amended by subsequent legislation, be and the same is hereby amended by adding thereto three new sections, designated as Section 56, Article 3; Section 57, Article 3; and Section 58, Article 3, as follows:

'Section 56, Article 3. The City of Hollywood shall have the power to borrow money for the erection, purchase, construction, furnishing, rehabilitation, repairing, improving of public buildings, golf courses, water works systems, water softening plants, board walks, sewerage systems, fishing piers, casinos, streets and parkways, parks, sea walls, public utilities, aviation fields, community and recreation centers, play grounds, base ball fields and sports stadiums, or for any other purpose incident to the carrying out of any power given the City by its Charter, or by laws of the State of Florida, or by the laws of the United States, provided, however, that no money thus secured shall be used to construct, purchase or operate projects or businesses in competition with existing projects or businesses. To secure any such loans the City shall have full power and lawful authority to execute its notes and other evidences of indebtedness and to secure the same by a mortgage upon such improvements and the lands upon which the same shall be constructed. The City shall have full power and lawful authority to pledge and hypothecate the net revenues from such improvements and lands upon which they stand for the purpose of securing any and all moneys so borrowed. The City shall have full power and lawful authority to issue certificates of indebtedness and promissory notes for the moneys so borrowed secured by an assignment of all net rentals and all net revenues from the projects so constructed. The City shall also have full power and lawful authority to mortgage its entire water works system, or any portion thereof, for the purpose of borrowing sufficient money to make necessary repairs and additions to said system, or any part thereof, and for the construction of a water softening system and may in addition thereto pledge all net revenues derived from said system until said money so borrowed shall have been fully repaid.

'The City shall also have full right and lawful authority to issue revenue bonds of the City for the purpose of paying the costs of any such improvements or betterments, as well as the necessary expenses incidental thereto, upon such terms and conditions and in such amounts and maturities as may be determined by the Commission by ordinance. All such notes, certificates of indebtedness, revenue bonds and other evidences of indebtedness issued by the City pursuant to this provision shall have and are hereby declared to have all the qualities and incident of negotiable instruments under the negotiable instrument law of the State of Florida. None of such notes, certificates of indebtedness, revenue bonds or other evidence of indebtedness so issued shall be subject to any limitation prescribed by the law of Charter provision upon the amount of bonds, certificates of indebtedness, notes or revenue bonds which may be issued by the City, nor are the same to be considered when computing the amount of bonds which may be issued under the Charter. Any revenue bonds issued under this Act shall contain a statement on their face that the City shall not be obligated to pay the same nor the interest thereon except from the revenues of such works.

'The City shall have full power and lawful authority to issue bonds of the City to secure any such loans, or to raise revenues for any of the foregoing purposes, and none of the bonds so issued shall be subject to any limitation prescribed by Section 17, Article 22, of the Charter of the City, or any other law or Charter provision under the amount to bonds which may be issued by the City, nor shall any such bonds be considered when computing the amount of bonds which may be issued under the City Charter.

'Section 57, Article 3. The City shall have full power and lawful authority and shall be eligible and be entitled to receive from the United States of America or the State of Florida and/or any agency or bureau thereof, any loan or grant of money made available under the provisions of that certain Act of Congress approved April 8, 1935, entitled 'Public Resolution 11, Seventy-fourth Congress, H.J. 117 Joint Resolution making appropriation for relief purposes known and cited as Emergency Relief Appropriation Act of 1935,' and Acts amendatory thereof or supplementary thereto, and under any other acts, statutes or laws of the United States or State of Florida; and to institute, apply for, negotiate and deal directly concerning any such loans or grants with the President of the United States or with such agencies or officials as he may authorize or designate for that purpose and thereupon...