# The Attorney General ofTexas

December 8, 1978

Honorable Ben F. McDonald, Jr. Executive Director Texas Department ofCommunity Affairs Box 13166,Capitol Station Austin, Texas 78’7ll Opinion No. H- 1275 Re: Authority of the Texas Department of Corn munitg Affairs to expend appropriated state funds on public works programs. Dear Mr. McDonald: You have requested our opinion regarding the authority of the Texas Department of Community Affairs to expend appropriated funds on public works programs. You state that the City of Raymondville, pursuant to section 304 ofthe Public Works and Economic Development Act of 1965,42U.S.C., section 3153, has recently applied for federal funding of a sewer lift system to serve a nearby farm labor camp. The farm labor camp is at present being upgraded under agrant from the Farmers Home Administration. Anestimated $100,000 has been budgeted for the sewer lift system, of which $15,000 has been allocated for services and the remainder for construction costs. As a condition to the expenditure of federal funds under section 304, the state must provide matching funds equal to 25 percent of the federal contribution. The state’s portion may derive from any state source, but may not include contributions by local governments or by private organizations or individuals. Thus, in order to make maximum use of the federal grant and lo fund the sewer lift system in the full amount of $100,000, the state must contribute $20,000. Youindicate, however, that inpast projects funded under section 304, the Department ofCommunity Affairs “has abided by the policy of contracting to reimburse local governments for only the costs of professional services,” in this case $15,000. The department has not heretofore committed state funds for the reimbursement of construction costs. You askwhether it isprohibited from doing so. In order to justify the expenditure of state funds for a particular project, the project must be statutorily authorized and must also be supported by a specific appropriation. Attorney General Opinion H-944 (197’7). In

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addition, the funds may be expended only infurtherance ofavalid public purpose. Attorney General Opinion H-1042 (19’77);Letter Advisory No. 107(1975). The Department ofCommunity Affairs isempowered to (3) provide financial aid to local governments and combinations of local governments for programs which are authorized such assistance. V.T.C.S. art. 4413(201),S4. Furthermore, the department may

apply for contract for, receive and expend for its purposes any appropriations or grants from the State of Texas, the federal government, orany other source, public orprivate. E section 13. Inour opinion, these provisions furnish ample statutory authority for the department to expend state funds for the construction ofa sewer system to be owned and operated byacity government. The current appropriations act allocates a total of $59,617,590 to the department for “Community Assistance and Resource Utilization” for fiscal 1979, including $1,358,911 for “Community and Local Development.” Of the entire amount, the sum of $710,549 is to be financed from general revenue funds. Acts 1977, 65th Leg., ch. 872, at 2851. Webelieve that these items of appropriation furnish sufficient basis for the department to expend funds thereunder for the sewer lift project you have described. Finally, it is also our view that the department is not prohibited from expending state funds for this purpose byvirtue ofarticle 3,section 51ofthe Texas Constitution. If the project has aproper public purpose, any incidental benefit to individuals does not invalidate the expenditure of state funds. State v. City of Austin, 331 S.W.2d 737 (Tex. 1960); Barrington v. Cokinos, 338 S.W.2d 133(Tex. 1960). Inour opinion, the construction ofasewer lift system for afarm labor camp could be found to serve avalid public purpose ofthe State ofTexas. See Housing Authority of City of Dallas v. Higginbotham, 143S.W.2d ‘79(Tex. 1940);Attorney General Opinions H-403, H-257 (1974); H-109(1973); Letter Advisory No. 107(1975). Weconclude therefore that the Department ofCommunity Affairs isnot prohibited from expending state matching funds for the construction of a sewer lift system, owned and operated byacity, and serving afarm labor camp. SUMMARY The Department of Community Affairs is not prohibited from expending state matching funds for the construction of a sewer lift system, owned and operated by the City of Raymondville, and serving afarm labor camp.

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Attorney General ofTexas APPROVED: 

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DAVID M.KENDALL, First Assistant 

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Opinion Committee ’

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