,-

Honorable

Charler

H. TbwrhId Comty Attorney Galveston

County Galveston,

Texas
Dear Sir: Opi+xl No. C-6702 RW Galveston

Counw lktsr Control & lbprovawat Mstriot no. 2; lkter and sewer service, League City, Texas.
Ha ar* 5n receiptof your latter in whiahyou quots'%he following letterfrom Mr. B. L. Gates, Seoretary of the l

beve mentimed Water Control Mstriutr
"Thewter and sewer system ownedby our distriotis'ianeed of repairs lad extensions. Part of the properties lying in the district am not serviced by theseutilities

and a'.WJOrdiBg~ we are wonderingif there is say legalnay M whiah peoplemsy vote tam8 upoa themselves and have it apply only to prope* serviasd

by the water and 8ener lines.

"In our disoussioaa it has been suggested that if a tax ie appliedat all it would have to apply 08 all the property tithinthe dlstriot and in order to be oertain

on this point,

we are asking for your opinion." Replying to the above,you am advisedthat it is our opinion that m districtoould levy a tax and have it apply only to property serviaed

by the water and 8-r lines,andthisdistriotwould hava no authoritg

to levy w tax, eitheron all of the property or only onthat part servioed by the water and sewer lines.

In the first plaoe,~the Boati of Hater Engineers have adopteda palicy of being mob more striot ia creating a district

with authority

to levy taxes than they are with dintriots proposing

to issue reomue bonds only. In otherwords,when it is proposed to issuetax bonds,the Boardrequires the, plans and speoifications to showthat praotioally all persons

residiag

within the district

oan be furnished

with the faailities of the distriot, whereas in the issuauoe

of revenue

bonds, only those persons*o are situated aad aotually

use the faoilities of the distriot

aad receivethe '4neMts of the waterand sewer systamsare required to pay anything.

In the order authorizing the issuame of bonds of the above mentioned distriat,shioh

rsoord is on file in the offioaof the Comptroller, it isHon. Charles H. ThoobPld

-- page 2 (o-6702)

recited

that the distriot

has the law&l power to pledgethe net revenues and has lawfklly

kxoroised

said power under the Constitution end laws of the State of Texas, iaoluding the power existing

underArtioles

~7660-90a, Revised Civil Statutes of Toxas,vdth

mnendmnts thereto. Section A of the bond order omtaims the following:

“A. Bates.The distriotshall fix and maintain rates and oolleotcharges for theaoilitios aad sorvioos afforded

bytho system,

which till provide rewnues suffioieat at all times: "(1 "(2 1 To pay all reasonable operation

and maintonanoo

expenses. To establish

and maintainthe Bond Fund. "(3) To establish

a B&tome& aad Replaoemat Fund. "(4) To pay all outstanding indebtedness

againstthe System,other than kmdrr, as and whoa the scene booome due."
If the rates now in offoutare not sufficient to oarry out the purposes onumeratod

above, the only solution is to amend the rate ardor and raise the rates of the water users so that auffioiont Pmd8 will bo provided for said purposes. If you woro to tax only the users ofwator, it sooms to us that the same results would be dbtaimed

by raisingthe rates.
Yours voxytruly
ATTORXEYGERSRhLOFTEXAS
% /s/C. F. Gibson
C. F. Gibson AssistPnt

AFTWVED JULY 23, 1945 /s/ Carlos

Ashley FIRSTASSISTANT AT'IW2NRY

GBNERAL AF'PROWZD OpinionCoxauittea ByBWB Chairman CF.%RPlOgW