Mississippi Advisory Opinions April 02, 1980: AGO 000001597 (April 2, 1980)

AGO 000001597.

Dear Mr. Sims:

Attorney General Allain has received your letter of request dated March 25, 1980, and has assigned it to me for research and reply. You submit the following, to-wit:

"I am writing at the request of, and as the Attorney for the Board of Supervisors of Jasper County, Mis- sissippi. Jasper County, like many other Counties in the State of Mississippi, is having difficulties operating its General Fund on the millage allotted by the Mississippi State Legislature. My question is whether or not we can borrow under Section 19-9- 27 of Mississippi Code of 1972, one-fourth (1/4) of our General County Fund tax levy for the previous year, and thereby indirectly increase the millage set by the Legislature. This Section provides that 'the aforesaid special tax, if necessary, may be in excess of the rate of taxation otherwise limited by laws. For example, if our millage for the previous year was six mills, could we then borrow an addition- al sum of money for the General County Fund, and levy an additional 1.5 mills by special tax levy to repay the sum borrowed? This would, in effect, give us the use of 7.5 mills for the General County Fund.

"Also, under Section 19-11-21 of Mississippi Code, providing for the borrowing of money to meet emer- gency expenditures, provision is made that the Board of Supervisors may borrow money to meet man- datory expenditures required by law. In our case, we do not have sufficient funds in the General County Fund to pay the increased cost of Court, lunacy hearings, and increased pay of jurors and elections.

"If the Board so finds, that these mandatory ex- penditures can only be met by borrowing, then can the Board borrow a sum of money that will be repaid by a special tax levy of 2 mills for the repayment of these funds?"

The Board of Supervisors is, pursuant to the provisions of Section 19-9-27, Mississippi Code 1972, and subject to the conditions and limitations therein contained, authorized to borrow, not in excess of twenty-five percent (25%) of the e- stimated amount of taxes collected and to be collected under the last preceding annual tax levies for the particular fund for which said money is borrowed, in anticipation of taxes for the purpose of defraying the expense of the county. In accordance with the provisions of this section, the board must adjudicate the actual necessity to borrow money for the purpose of defraying the expense of the county, and must give notice by publication of its intent to issue notes and if twenty percent (20%) or fifteen hundred (1500) whichever is less, of the quali- fied electors of the county protest or file a petition against the issuance of such notes, before issuing such notes an elec- tion must be called on the question of the issuance thereof and such notes may not be issued unless approved by a three-fifths (3/5) majority of the qualified electors of the county voting at such election.

Section 19-9-27, further provides, "For the payment of such loan, the board of supervisors shall either pledge the levy of a special tax each year sufficient to pay the amount borrowed for use that year, with interest, or shall pledge that such notes shall be paid out of the first money collected from taxes for the year in which they are issued."

Section 19-11-21, Mississippi Code 1972, makes provision for certain emergency expenditures and within the conditions and limitations contained therein authorizes the board of super- visors to borrow an amount, not to exceed the authorized emer- gency expenditure, and to levy a special tax, not to exceed two mills on the dollar for the repayment thereof.

Under the conditions and to the extent authorized by Section 19-9-27 or 19-11-21, Mississippi Code 1972, the tax levied pursuant to such statutes may be in excess of the tax levies otherwise authorized by the Legislature.

With kindest regards,

Very truly yours,

BILL ALLAIN, ATTORNEY GENERAL

BY:

P. L. Douglas First Assistant Attorney General

PLD:mfd