Court Opinion

ID: 7810939
Source: CourtListenerOpinion
Date Created: 2022-09-07 17:12:45.399966+00
Date Added: 2024-06-11T16:30:28.201990
License: Public Domain

McCulloch, C. J., (dissenting). The point of difference of my views from the conclusion of the majority is in regard to the interpretation of act No. 158 óf the General Assembly of 1911, authorizing the improvement district to purchase the waterworks plant from the Municipal Waterworks Company. The district was organized under the general statutes for the construction of local improvements and the special statute was enacted to authorize the district to purchase the plant, instead of constructing one anew. The statute also contained authority to mortgage the plant, the clear implication being, I think, to mortgage for the purpose of securing the purchase price or for borrowing money to pay the purchase price. Under the provisions of the general statutes (Crawford & Moses’ Digest, § 5739), the waterworks, when purchased by the district, passed to the city to operate and maintain. Improvement Dist. No. 1 of Wynne v. Brown, 86 Ark. 61. This was clearly the intention of the lawmakers in enacting act No. 158, for section 2 of the act expressly refers to the general statute. Having in mind that the plant would pass to the city for maintenance and operation, the lawmakers provided in section 2 of act No. 158 that the city could apply the revenues arising from the operation of the plant, not only to the payment of expenses of operation and maintenance, but also “for the purpose of paying the principal and interest on the bonds issued by the watérworks improvement district.” The general statute cited above cast upon municipalities the duty and burden of maintaining and operating water and light plants through the agency of improvement districts, and the special statute referred to (act No. 158) clearly recognized the application of that statute to the purchase of the waterworks plant in Fort Smith. Since it is made the statutory duty of the city to maintain the waterworks and that duty is distinctly recognized in act No. 158, then it is not reasonable to assume that the Legislature meant to authorize the improvement district to mortgage the plant for maintenance purposes. Construing act No. 158 in connection with the general statute (Crawford & Moses’ Digest, § 5739), I think it clearly confers authority to mortgage the plant only for the purchase price or for borrowed money to pay the purchase price, and it does not confer continuing power to mortgage for maintenance or extension of the plant. When a water or light plant is constructed and put into operation by an improvement district, control over the plant passes to the municipality, and the only remaining function for the district to perform is to complete the payment for the improvement — to enforce assessments for that purpose and pay off the indebtedness.