State v. Town of River Junction

• Decision Date: 11 September 1936
• Parties: STATE v. TOWN OF RIVER JUNCTION.
• Court: Florida Supreme Court

169 So. 676

125 Fla. 267

STATE v. TOWN OF RIVER JUNCTION.

Florida Supreme Court

September 11, 1936

En Banc.

Proceedings between the State of Florida and the Town of River Junction a municipal corporation. From the decree, the former appeals.

Affirmed.

BROWN J., and ELLIS, P.J., dissenting in part. Appeal from Circuit Court, Gadsden County; J. B. Johnson, judge.

COUNSEL

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

E. S Blake and H. M. Taylor, both of Quincy, for appellee.

OPINION

BUFORD Justice.

This is the second appearance of the subject-matter of the suit in which this appeal is taken to this court. See Boykin v. Town of River Junction, 121 Fla. 902, 164 So. 558, 561. In our opinion in that case prepared by Mr. Justice Davis we said:

'We therefore hold on this appeal that the challenged financial arrangement and proposal of the town of River Junction adopted in accordance with chapter 17118, Acts 1935, Laws of Florida, as hereinbefore described in its resolution as quoted in this opinion, is and will be violative of amended section 6 of article 9 of the Constitution of Florida unless and until same shall first be submitted to and duly approved by a majority of the votes cast in an election duly called and held in said town of River Junction in which a majority of the freeholders who are qualified electors residing in such municipality shall participate.'

After the mandate went down the town of River Junction proceeded to call and hold an election to determine whether or not the certificates involved should be issued.

The appellant presents five questions for our determination, stated as follows:

1. 'Is chapter 17118, Laws of Florida, Acts of 1935, Constitutional and valid?'

2. 'Is the Town of River Junction within the purview of chapter 17118, Laws of Florida, Acts of 1935?'

3. 'Are charter limitations relative to the issuance of bonds, applicable to the issuance of Mortgage Revenue Certificates proposed to be issued under the terms of chapter 17118, Laws of Florida, Acts of 1935?'

4. 'Are the proceedings shown by the record to have been had sufficient under chapter 17118, Laws of Florida, Acts of 1935, to create a mortgage lien upon the utilities of the Town of River Junction therein described?'

5. 'Has the Town of River Junction, under chapter 17118, Laws of Florida, Acts of 1935, authority to combine a proposed sewerage system and its present water supply system and issue mortgage revenue certificates against the combined utility to finance the cost of construction of the sewerage system and of improvements and additions to the water supply system?'

The lower court answered the first, second, fourth, and fifth questions in the affirmative and the third question in the negative.

The election involved here was called and held under chapter 14715, Acts 1931, and the record shows that a large majority of the electors qualified to vote in such election voted therein and that of those voting about 90 per cent. voted in favor of the issuance of the certificates.

The appellant has not pointed out any provision of the organic law which is violated by the provisions of chapter 17118, Acts of 1935, as applied to the subject-matter now before us. The provisions of chapter 17118, supra, when sought to be applied to such obligations as those here under consideration and as those which we had under consideration in the case of Boykin v. Town of River Junction, supra, must be applied in accordance with the provisions of amended section 6 of article 9 of the Constitution and the election required must be held under the provisions of chapter 14715, Acts 1931, and as to such obligations such an election as is provided for in section 5 of chapter 17118 will not suffice.

The record here shows that the election was held in such a manner as to meet the terms of the law. This holding does not destroy the scope of the provisions of section 5 of chapter 17118, but it means that such an election as is therein provided for may be held in cases where the governing authority of a city wishes to issue obligations which will not constitute bonds or in anywise general obligations of the city, but before doing so wishes to have an expression from the qualified electors of the municipality as to the advisability of so doing.

The next contention made by appellant is that the town of River Junction does not come within the purview of chapter 17118, supra, because it is not a city or a village. We hold that the contention is untenable because the record shows that there are more than 300 registered voters in the town of River Junction, and while the charter act provides for the creation of 'a municipality to be known as the Town of River Junction,' section 1826, R.G.S., section 2936, C.G.L., provides as follows:

'Whenever any municipal government is established, and it shall appear that there are three hundred registered voters within the limits hereby to be designated, it shall be and the same is hereby incorporated and designated as a city, entitled to the privileges of a city.'

The Legislature, by chapter 9060, Sp. Acts 1921, created a municipality and gave it the name of 'Town of River Junction.' The word 'Town' is a part of the name of the municipality and does not prevent the application of the general law hereinabove quoted.

The third question presents the question as to whether or not the provisions of section 5 of chapter 17118, supersedes the charter provisions of the municipality with regard to the limitation of bonded indebtedness. Section 5 of the act provides:

'Any municipality which acquires, constructs or extends any of the public utilities authorized by this Act and desires to raise money for such purpose, may issue mortgage revenue certificates or debentures therefor without regard to the limitations of municipal indebtedness as prescribed by any statute now in effect or hereafter enacted; provided however, that such mortgage revenue certificates or debentures shall not impose any tax liability upon any real or personal property in such...