Mississippi Advisory Opinions December 06, 1988: 19881206 (December 06, 1988)

Advisory Opinion Text

Mr. Chuck E. Lambert

County Administrator

Pike County Board of Supervisors

Post Office Box 431

Magnolia, MS 39652

Dear Mr. Lambert:

Attorney General Mike Moore has received your letter requesting an opinion and has assigned it to me for research and reply. In your letter you ask the following question:

“Your direction is needed on how monies received from the sale of industrial property can be used. Pike County currently owns and operates two industrial parks. One is located at Fernwood, MS and the other is located just north of Magnolia, MS.

The park located north of Magnolia currently has approximately ninety-nine thousand dollars (99, 000.00) in a special fund for the maintenance and upkeep of that park. This amount has been realized by the sale of industrial park lots. These funds have not been used to retire any of the still outstanding debt in the form of FHA loans. These loans are being retired entirely by tax levy.

The industrial park located at Fernwood is currently debt free, however, no funds are available for maintenance. This park contains its own water system, but no method has been established by which user fees could be collected to help maintain it. In the past all of its utility and maintenance expenses have been paid out of the county's general fund.

Our question is this: Can we use Magnolia Industrial Park's special fund monies to purchase and install water meters at the Fernwood Industrial Park? With these meters, each industry would be charged for their water usage.

Based on information you supplied by telephone, we understand one of the industrial parks in question was created pursuant to authority of Chapter 737, Local and Private Laws of 1964, as amended. The other was created pursuant to Chapter 868, Local and Private Laws of 1976, as amended. Both Acts authorize the Board of Supervisors to lease, rent and sale all or any part of the property acquired. Both Acts also specifically state:

“Any income derived by the county from the sale or lease of the property authorized to be acquired under this Act shall be used for the retirement of the bonds authorized to be sold under this Act.”

Section 12, Chapter 737, Local and Private Laws of 1964 and Section 9, Chapter 868, Local and Private Laws of 1976.

We further note that each of the above local and private bills constitute separate acts authorizing two separate and distinct bond issues and calling for two separate and distinct elections with respect thereto. Accordingly, this office is of the opinion revenues generated from the sale of industrial park lots at the Magnolia Industrial Park may not be utilized at the Fernwood Industrial Park while there remains an outstanding bond indebtedness for said Magnolia Park.

Sincerely,

Mike Moore Attorney General.