ENERAL 

Grover Sellers 

Hon. A. C. Foster 

County Attorney 

Haskell C unty 

Haskell, 8 exas 

Dear Mr. Foster: 

OpiAiOA No. O-5798 

Re: Necessity of holding elections 

in order to fix tax rate in consolldated school district. 

We have your request for opinion, which is as follows: 

“1 am writing you for an opinion pertaining 

to tax rates in a consolidated school district. 

“Last August the Plainview Common School 

District of Haskell County voted to consolidate 

.with the Paint Creek Rural High School District 

of Haskell County. However there was no eleotion 

had pertaining to the assumption of the bonded indebtedness of the Paint Creek School Dist. by the 

Plainview C.S. District and there was no election 

held to Increase the 50 cent tax rate of Plainview 

C.S. Dist. to the $l.OO tax rate of the Paint 

Creek Rural High School District. 

“Was it necessary to have one or both elections before the Commissioners Court could legally 

fix the rate at $1.00 in the consolidated district 

including the property previously in the Plainview 

C.S. Dist .‘I 

We think your question may be answered by a reference 

to the statutory law now in full force and effect. 

Article 2807, Vernon’s Revised Civil Statutes, provides 

as follows: 

“If at the time of such proposed consolidation there are outstanding bonds of any of such districts, then at an election held for that purpose 

on some fUture day, there shall be, or ,at the election held for the purposes of consolidation, there 

w be, submitted to the qualified tax paying voters 

of such proposed consolidated district the question 

as to whether or not the said consolidated district 
. _. 

Hon. A. C; Foster, page 2 

shall assume and pay off said outstanding bonds 

and whether or not a tax shall be levied therefor. 

If said eleotI.on on the ~ouestion of assus&n said 

outstanding bonds ls held ba the day upon w it ich 

the election on the question of aonsolidation is 

held there shall be separate notices, ballots, 

and ballot boxes and tally sheets, for the two 

separate elections, If a majority of said voters 

should vote at either of said elections to assume 

and pay off said bonded indebtedness then sa$d 

bonded indebtedness shall become valid ahd sub-~ 

slsting obligations of said consolidated district, 

and the proper officers thereof shall annually 

thereafter levy sufficie4t taxes to pay the Qterest thereon as it aocrues and to oreate a sinking fund whlah in addition to the sinking funds 

already accumulated in the original bonded dlstrict will pay off and retire the said outstanding 

bonds when they shall become due.” 

Ing#auch as at the time of the consolidation of the 

Plalnvlew Common School District and the Paint Creek Rural 

High School District there was an outstanding bonded indebtedness of the Paint Creek RuraJ. H$gh SchooJ District It is clear 

from a perusal of the statute above set out that an election 

should be held wherein the question is submitted to the qualifled taxpayers of such consolidated distrlot the question as 

to whether or not the said consolidated dlstrlct shall assume 

=a P 

shall% 

off said outstanding bonds and whether or not a tax 

levied therefor. 

Article 2815~ of V.R.C.S. of Texas is as follows: 

WBC. 3. When the boundarles of any school 

dlstrlat ,having an outstandlng bonded Indebtedness 

have been ahanged or Its territory divided or two or 

more suah distriots consolidated it shall be the 

duty of the County Board of Tr?&es to make such an 

adjustment of.such indebtedness and district properties between the districts affected and between the ’ 

territory divided, detached or added as may be just 

and equitable, taking Into considera$ion the value 

of the school properties and the taxable wealth of 

the dlstriots affeoted and the territory so divided, 

detached or added, as the case may be. And when 

said Board has arrived at a satlsfaatory basis of 

suah an adjustment, It sha3.l have the power to nake 

such orders in relation thereto as shall be oonolusive and blndi 

thereby affeot 3. 

upon the districts and the territory 
. ., . 

Hon. A. C. Foster, page 3 ,‘. 

“Sea. 4. To carry ,iAto effect orders adjusting 

bonded indebtedness when ohange~s are made in school 

districts, the Couqty,Board of Trustees shalS have the 

power to order the trustees of the ‘districts affected, 

to order aA election for the issuing of such refunding 

bonds as maybe necessary~to carry out the purpase of 

such order; and, in such case, it shall be the duty of 

the district trustees to order such election, cause the 

same to be held, and if the proposition is carried, to 

issue the bonds, voted. Such bonds shall be of the same 

denomination and carry the same interest rate and mature 

at the same time as the outstanding bonds owing by the 

district issuing them 

possible, be exchange !I 

and when so issue~d, shall,’ if 

for the outstanding bonds for 

which the district issuing them shall still be liable, 

according to the order adjusting such indebtedness; 

and in cases where such an exchange can not be made, 

the nevi bonds of the district to the amount of the 

old bonds for whioh it is still liable, and,,for which 

no exchange can be made, shall be deposited in the County 

Treasury to the account of suah district. Thereafter 

taxes shall be levied and assessed only for the payment 

of the interest, slnkLng fund and principal of the new 

bonds so issued; and the funds arising from such taxation 

shell be used to discharge the principal and interest ,of 

such new bonds as have been issued and exchanged, and 

such old bonds as have not been exchanged, When taxes 

are oollected applicable to new bonds not exchanged aAd 

the proceeds applied to payment on old bonds not exchanged the corresponding new bonds in the County Treasury shall be credited with such payment and retjred as 

the old unexohanged bonds are retired. 

Wet. 5. IA cases where changes are made in districts having outstanding bonded indebtedness and where 

the necessary refund- bonds are vnfed down or where 

the County Board of Trustees are otherwise unable to 

arrange an adjustment or settlement of such bonded indebtedness, it shall be the duty of the trustees to 

certify the fact and the territories affected by ,such 

changes, to the Commissionerst Court and thereupon it 

shall beaome the duty of the Commissio~ers7 Court to 

thereafter annually levy and cause to be assessed and 

collected from the taxpayers of such districts as they 

existed before the changes were made, the tax necessary 

to pay the interest, the sinking funds and discharge the 

principal, of such indebtedness as it matures. And it 

shall be the duty of each independent school district 

so affected, to cause all funds in its hands, whether 
HO& A1 C. Fostv, Pago 4 

slnk&ag funds or otherwise Whloh have been colleoted 

on aoooumt of suoh bonded ~ndebteduess t6 be transferred 

to the County Trraeuriar of the oounty ln whleh such 

dlstrlot 1s situated and suoh d$stxlot shall thereafter 

oeat@ to Le 

3 

and oolleot eny tax on account of saoh 

bonds; and 1 shell be the duty of the County Treasurer 

to keep the funds 60 transferred and those arising from 

taxation in separate aooounta and a ply the same only 

to the dfsoharge OS such bondrd indo i tedness and the 

Interest thereon, as the same matures. 

“Sea. 6. lothing in the provisions of thls Act 

shall prevent the County Board of Trustees from arraug11% any other method for the adjustment and settlement 

of outstanding bonded indebtedness of sohool dlstrlots 

In which ohenges are made but they shall have full 

power and authority to n&e 

u&meat and settlement lm suo oases that oan be efi “k 

legel and equj.table adeQted. w 

We think the answer to.your question 1s to be found 

ln the above quoted statutory Law and that ~sald statutory enunciation $0 so plain as to requlre,no -construction by usI 

However If any further questions should arise In conneotlon 

wlth th{s matter, iie shall be very glad Indeed to help you solve 

same to the very best of our ab$lity. 

Vary tray yours 

ATTORIGY GEAIWAL OF TBXAS 

APPaovlD m 1 1% 

/s/ hovell Se&s 

ATTORNSY GBIQB&Ac OF TPltae 

/a/ George P. Blackburn 

George P. Blaokburn, 

Assistant 

OPB: AEllrwb