,-
HonorableCharlerH. TbwrhId Comty Attorney GalvestonCounty Galveston,Texas
Dear Sir: Opi+xl No. C-6702 RW GalvestonCounw lktsr Control & lbprovawat Mstriot no. 2; lkter and sewer service,League City, Texas.
Ha ar* 5n receiptof your latter in whiah you quots'%hefollowing letterfrom Mr. B. L. Gates, Seoretaryof the lbeve mentimed Water Control Mstriutr
"Thewter and sewer system owned by our distriotis'ianeed of repairs lad extensions. Part of the propertieslying in the districtam not serviced by these utilitiesand a'.WJOrdiBg~ we are wonderingif there is say legal nay M whiah peoplemsy vote tam8 upoa themselvesand have it apply only to prope* serviasdby the water and 8ener lines.
"In our disoussioaait has been suggestedthat if a tax ie appliedat all it would have to apply 08 all the propertytithinthe dlstriotand in order to be oertainon this point,we are asking for your opinion."
Replyingto the above, you am advisedthat it is our opinionthat m districtoould levy a tax and have it apply only to propertyserviaedby the water and 8-r lines,andthisdistriotwouldhava no authoritgto levy w tax, eitheron all of the propertyor only onthat part servioedby the water and sewer lines.
In the first plaoe,~theBoati of Hater Engineershave adopteda pal- icy of being mob more striotia creatinga districtwith authorityto levy taxes than they are with dintriotsproposingto issue reomue bonds only. In otherwords, when it is proposed to issuetax bonds,the Board requiresthe, plans and speoifications to showthat praotioallyall personsresidiagwith- in the districtoan be furnishedwith the faailitiesof the distriot,whereas in the issuauoeof revenuebonds, only those persons*o are situatedaad aotuallyuse the faoilitiesof the distriotaad receivethe '4neMts of the waterand sewer systamsare requiredto pay anything.
In the order authorizingthe issuame of bonds of the above mention- ed distriat,shiohrsoord is on file in the offioaof the Comptroller,it is Hon. CharlesH. ThoobPld-- page 2 (o-6702)
recitedthat the distriothas the law&l power to pledgethe net revenues and has lawfkllykxoroisedsaid power under the Constitutionend laws of the State of Texas, iaoludingthe power existingunder Artioles~7660-90a, Revised Civil Statutesof Toxas,vdthmnendmnts thereto. SectionA of the bond order omtaims the following:
"A. Bates.The distriotshall fix and maintainrates and oolleotcharges for theaoilitios aad sorvioosaffordedbytho system,which till pro- vide rewnues suffioieatat all times:
"(1 To pay all reasonableoperationand maintonanooexpenses. "(21 To establishand maintainthe Bond Fund. "(3) To establisha B&tome& aad Replaoemat Fund. "(4) To pay all outstandingindebtednessagainstthe System,other than kmdrr, as and whoa the scenebooome due."
If the rates now in offout are not sufficientto oarry out the purposes onumeratod above, the only solutionis to amend the rate ardor and raise the rates of the water users so that auffioiontPmd8 will bo providedfor said purposes. If you woro to tax only the users ofwator, it sooms to us that the same resultswould be dbtaimedby raisingthe rates.
Yours voxytruly
ATTORXEYGERSRhLOFTEXAS
% /s/C. F. Gibson
C. F. Gibson AssistPnt
AFTWVED JULY 23, 1945 /s/ CarlosAshley AF'PROWZD FIRSTASSISTANT OpinionCoxauittea AT'IW2NRY GBNERAL ByBWB Chairman
CF.%RPlOgW