,- 

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 receipt of your latter in whiah you quots'%he following 

letter from Mr. B. L. Gates, Seoretary of the l beve mentimed Water Control 

Mstriutr 

"The wter and sewer system owned by our distriot is'ia need of repairs lad 

extensions. Part of the properties lying in the district am not serviced 

by these utilities and a'.WJOrdiBg~ we are wondering if there is say legal nay 

M whiah people msy 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 applied at all it 

would have to apply 08 all the property tithin the dlstriot and in order to 

be oertain on this point, we are asking for your opinion." 

Replying to the above, you am advised that it is our opinion that m 

district oould levy a tax and have it apply only to property serviaed by the 

water and 8-r lines, andthis distriotwould hava no authoritg to levy w 

tax, either on 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 adopted a 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 

other words, when it is proposed to issue tax bonds, the Board requires 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 receive the '4neMts of the 

waterand sewer systams are required to pay anything. 

In the order authorizing the issuame of bonds of the above mentioned distriat,shioh rsoord is on file in the offioa of the Comptroller, it is 
Hon. Charles H. ThoobPld -- page 2 (o-6702) 

recited that the distriot has the law&l power to pledge the net revenues 

and has lawfklly kxoroised said power under the Constitution end laws of 

the State of Texas, iaoluding the power existing under Artioles ~7660-90a, 

Revised Civil Statutes of Toxas,vdth mnendmnts thereto. Section A of the 

bond order omtaims the following: 

“A. Bates. The distriot shall fix and maintain rates and oolleot charges 

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 maintain the Bond Fund. 

"(3) To establish a B&tome& aad Replaoemat Fund. 

"(4) To pay all outstanding indebtedness against the System, other 

than kmdrr, as and whoa the scene booome due." 

If the rates now in offout are 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 raising the rates. 

Yours voxy truly 

ATTORXEY GERSRhL OFTEXAS 

% /s/C. F. Gibson 

C. F. Gibson 

AssistPnt 

AFTWVED JULY 23, 1945 

/s/ Carlos Ashley 

FIRSTASSISTANT 

AT'IW2NRY GBNERAL 

AF'PROWZD 

Opinion Coxauittea 

ByBWB 

Chairman 

CF.%RPlOgW