Mississippi Advisory Opinions January 03, 1986: 19860103 (January 03, 1986)

Advisory Opinion Text

Honorable James K. Wetzel

Attorney for City of Gulfport

Post Office Drawer 1

Gulfport, Mississippi 39502

Re: Municipal Funds

Dear Mr. Wetzel:

Attorney General Edwin Lloyd Pittman has received your letter of request and has assigned it to me for research and reply.

Your letter states:

“As City Attorney for the City of Gulfport, I have been requested by the City Council to request an Attorney General's opinion as it pertains to Section 21–17–5 of the Mississippi Code of 1972, as amended by Chapter 487 of the 1985 Legislature, which is also known as ‘Home Rule’. My specific question deals with how this new legislation will affect expenditures which would be made by the City Council pertaining to donations to organizations where there is no specific legal authority to support a donation or contribution to a charitable institution by statute, and also for other expenditures, such as dues for civic clubs, flowers sent to an individual or group for specific occasion, and refreshments for receptions and banquets and other entertainment expenses which, if by resolution, the City Council decided to resolve to make these expenditures, and whether in light of the new Home Rule, the City Council could resolve to expend monies on these behalves where there is no specific statutory authority for said expenditures and there are no specific statutes specifically setting out that these monies cannot be spent for said purposes. “As you may be aware, on or about October 29, 1984, the State Auditor's office sent out a memorandum (copy attached) to all Mississippi municipalities advising that those certain expenditures set out above could not be made without specific statutory authority and not to make such expenditures without statutory authority. However, as of July 1, 1985, the legislation mentioned above came into effect which states that, ‘The governing authorities of every municipality of this State shall have the care, management and control of the municipal affairs and its property and finances, it shall have the power to adopt any orders, resolutions or ordinances with respect to such municipal affairs, property and finances for which no provision has been made by general law and which are not inconsistent with the Mississippi Constitution of 1890, the Mississippi Code of 1972, or any other statute or law of the State of Mississippi, and shall likewise have the power to alter, modify and repeal such orders, resolutions or ordinances.’ Therefore, in light of this new legislation, the City Council of Gulfport would like an opinion as to whether or not they could, by resolution, resolve to expend monies for items set out above, and also for such things as purchase of coffee and coffee supplies for the guests transacting business at City Hall or touring the City Hall.” (Emphasis added)

Mississippi Code Annotated § 21–17–5 as amended by Chapter 487, Laws of 1985 provides:

“The governing authorities of every municipality of this state shall have the care, management and control of the municipal affairs and its property and finances, and shall have the power to adopt any orders, resolutions or ordinances with respect to such municipal affairs, property and finances for which no provision has been made by general law and which are not inconsistent with the Mississippi Constitution of 1890, the Mississippi Code of 1972, or any other statute or law of the State of Mississippi, and shall likewise have the power to alter, modify and repeal such orders, resolutions or ordinances. This section shall not authorize the governing authorities of a municipality to (a) levy taxes of any kind or increase the levy of any authorized tax, (b) issue bonds of any kind, (c) change the requirements, practices or procedures for municipal elections or establish any new elective office, (d) change the procedure for annexation of additional territory into the municipal boundaries, (e) change the structure or form of the municipal government, (f) permit the sale, manufacture, distribution, possession or transportation of alcoholic beverages, or (g) grant any donation; unless such actions are specifically authorized by another statute or law of the State of Mississippi.” (Emphasis added)

The above quoted statute requires that any donation of municipal funds must be specifically authorized by another statute or law of the State of Mississippi.

Clearly the outright donation of municipal funds to an organization would not be lawful unless there is specific statutory authorization for same. For examples see Sections 21–19–41 through 21–19–59.

However, we point out that Section 17–3–1 authorizes the expenditure of municipal funds not to exceed one mill of the assessed valuation of the municipality making such expenditures for the purpose of advertising and bringing into favorable notice the opportunities, possibilities and resources of said municipality. Section 17–3–3 specifically provides that advertising pursuant to Section 17–3–1 shall include, inter alia, “publicity, expositions, public entertainment or other form of advertising or publicity which in the judgment of such board ... will be helpful toward advancing the moral, financial and other interests of such municipality ...”.

Very truly yours,

Edwin Lloyd Pittman Attorney General.