ENERAL

Grover Sellers

Hon. A. C. Foster County Attorney Haskell Cunty

8 Haskell, exas
Dear Mr. Foster: OpiAiOA No. O-5798 Re: Necessity of holding elections in order to fix tax rate in consolldated school district.

Wehave your request for opinion, which is as follows:

“1 amwriting you for an opinion pertaining to tax rates in a consolidated school district.
“Last August the Plainview CommonSchool 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. bythe Plainview C.S. District and there was no election held to Increase the 50cent tax rate of Plainview C.S. Dist. to the $l.OO tax rate of the Paint Creek Rural High School District.
“Wasit 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
Wethink your question maybe answered by a reference to the statutory law nowin 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 itich 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 amajority of said voters should vote at either of said elections to assume and pay off said bonded indebtedness then sa$d bonded indebtedness shall become valid ahd sub-~ slsting obligations of said consolidated district, and the proper officers thereof shall annually thereafter levy sufficie4t taxes to pay the Qterest thereon as it aocrues and to oreate a sinking fund whlah in addition to the sinking funds already accumulated in the original bonded dlstrict **will** pay off and retire the said outstanding bonds when they shall become due.” Ing#auch as at the time of the consolidation of the Plalnvlew CommonSchool District and the Paint Creek Rural High School District there was an outstanding bonded indebtedness of the Paint Creek RuraJ. H$gh SchooJ District It is clear from aperusal 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. Whenthe 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 maybe 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 maybe. Andwhen 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 **oonolu** sive and blndi thereby affeot 3. upon the districts and the territory. ., .

Hon. A. C. Foster, page 3 ,‘

.

“Sea. 4. Tocarry ,iAto effect orders adjusting bonded indebtedness when ohange~sare made in school districts, the Couqty,Board of Trustees shalS have the power to order the trustees of the ‘districts affected, to order aAelection 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
sameto 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 !Iand 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 nevibonds 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 newbonds as have been issued and exchanged, and such old bonds as have not been exchanged, Whentaxes are oollected applicable to newbonds not exchanged aAd the proceeds applied to payment on old bonds not exchanged the corresponding newbonds 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 downor 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 fundsand discharge the principal, of such indebtedness as it matures. Andit shall be the duty of each independent school district
so affected, to cause all funds in its hands, whetherHO& A1C. **Fostv, Pago** **4**

slnk&agfunds or otherwise Whlohhavebeencolleoted onaoooumtof suohbonded~ndebteduess t6 betransferred to the CountyTrraeuriar of the oountylnwhlehsuch dlstrlot 1s situated andsuohd$stxlot shall thereafter oeat@to Le

3 andoolleot enytax onaccount of saoh bonds; and1 shell bethe duty of theCountyTreasurer to keepthe funds 60transferred andthose arising from taxation in separate aooounta andaply the sameonly to the dfsoharge OSsuchbondrdindoitedness andthe Interest thereon, as the samematures.

“Sea. 6. lothing in the provisions of thls Act shall prevent the CountyBoardof Trustees from arraug11%anyother methodfor the adjustment andsettlement of outstanding bondedindebtedness of sohool dlstrlots Inwhich ohenges aremade but they shall have full powerandauthority to n&e u&meat andsettlement lmsuo oases that oanbeefi “k legel andequj.table adeQted.w Wethink the answerto.your question 1s to befound ln the abovequoted statutory Lawandthat ~saldstatutory enunciation $0soplain asto requlre,no -construction byusI However If anyfurther questions should arise In conneotlon wlth th{s matter, iie shall bevery glad Indeed to help yousolve sameto the

### verybest of our ab$lity. Varytray yours
**ATTORIGY**

GEAIWAL

OF**TBXAS**

APPaovlDm 1 1% /s/ hovell Se&s ATTORNSY

GBIQB&Ac

OFTPltae /a/ GeorgeP. Blackburn

GeorgeP. Blaokburn, Assistant

OPB: AEllrwb