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Arthur v. City of Stillwater
611 P.2d 637
Okla.
1980
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*1 likely be act- would most recommendations Board, in fact upon by and ed the School ARTHUR, Badger, Dan Anna Allan upon. relied Banks, Brown, Brown, Don W. Gene Larry Brown, Bruner, fairly Myral allegations may us T. before Willma Young Arthur and Bruner, George Carney, showing that Cummins,

read Irene exercise reasonable Company’s failure to Cummins, Richard L. Clarence M. Cun plain- of harm to the increased the risk care ningham, Cunningham, Janet K. Otis C. ease, allegations, if being tiff. Dermer, Dorris, duBois, Troy Thora Sam reasons, would be defective for other not Durham, Jr., Engh, Benny B. M. Ev J. liability. allega- to establish sufficient ans, Fawcett, Ewing, Robert M. Bracie are, however, rea- defective for other tions Ferguson, George Gorin, Justin J. Re sons, and thus did not state a cause Harris, Stephen Harris, becca Ann M. E. Young. against Arthur action Kohnke, Kuhlman, Jr., E. L. Nel Robert allege Although plaintiffs Latham, Leftwich, H. da Richard Car have Young Company Arthur would Lehnert, Macneil, D. men Katherine it recommendations had made different Maxwell, Pybus, James Nani Ruth Flor proper study, allegations these conducted Pybus, Ragan, ence Elnor S. William W. not factual. are conclusional in nature and Rambo, Stone, Stephen John F. Tweed are we told what petition Nowhere ie, Margaret Vitek, Billy Wallace, C. were- Arthur recommendations made Wolfe, Wolfe, Appel Carol A. and John Young, petition nor indicate what does the lants, the School Board action taken v. Young, might reliance Arthur the risk of harm to the have increased The CITY OF STILLWATER and short, plaintiff has failed plaintiff. Authority, Stillwater Utilities allege to state a cause of facts sufficient Appellees, certainly While it is conceivable action. proper study that a failure to make a could McMahan, Dan Amicus Curiae. could have result recommendations which plaintiff, are increased the harm to the we 54164. No. possibilities, conjure up free to such but Supreme of Oklahoma. Court rely upon alleged. facts As there must | must hold allegations, Iwere no factual we petition failed state a cause Young Company. against May 23, Arthur Rehearing Denied action reasons, stated we hold For above

that the trial court committed no reversible dis- sustaining

error in the demurrers and all

missing against causes action

named defendants.

AFFIRMED. J., J.,

LAVENDER, IRWIN, C. V. C.

WILLIAMS, HODGES, HARGRAVE

OPALA, JJ., concur. JJ., DOOLIN, dissent.

SIMMS

created for the use and benefit of the 176-180.3; O.S.Supp.1976 to 60 §§ for the levy and assessment of an addi- one tional cent sales tax on all taxable sales city. Propositions within the Four *3 Proposition submitted to voters. 1 is the pertinent appeal. Proposition to this proposed City of Stillwater be au- the thorized to an in an incur by amount not to exceed dollars million $12 general obligation pro- issuance of to bonds portion a the funds to con- vide of needed Pierce, Couch, Hendrickson, Johnston & improvements to the struct additions and Couch,Jr., by R. Baysinger John Oklahoma system; City’s levy water and to and collect appellants. City, for tax, taxes, annual in addition to all an other Jr., Stillwater, D. Draper, Daniel upon City all the property taxable Brown, Fagin, Tinney by Bush & Wm. Don to pay sufficient the interest on the bonds Kiser, City, for appellees. Oklahoma sinking pay- to constitute a fund for the Wilkinson, Chapel, Riggs, Abney & Keef- principal. Proposition ment of the In 3 the Bullock, Tulsa, by er Louis for amicus W. were to empower City voters asked to the curiae. sewer, water, elec- lease its solid waste and utility system term of

tric to the Trust for a fifty years. Trust proposed It also that the HODGES, Justice. by be authorized to incur an indebtedness brought by group This action was a of issuance of revenue bonds in an amount attorney interested the taxpayers [before sufficient, when combined with the mil- $12 in Bond general capacity his as ex-officio bonds, general obligation dollars of to lion approved disapproved Commissioner1 has or provide the funds to construct additions general challenge obligation the to bonds] City’s system. improvements to the water validity authorizing the the of an election Nothing on the ballot reflected that of issuance the bonds. project total cost of the water was from $25 dollars, On the Board of Commis- so definite to million that no $30 Stillwater, Oklahoma, City sioners of the of upper limit on the amount of revenue bonds adopted might by No. 1834 No. 1835. Trust was Ordinances be issued provided leasing Proposition These for the of ordinances endorsed the electorate. sewer, water, autho- City’s question electric and solid submitted the of whether to disposal levy rize the and assess an addition- systems waste to the Stillwater deposit al one cent sales tax and to Authority [Trust], public trust Utilities provided by procedure provided It is of be incon- 62 O.S.1971 13: forms testable so any court in State of Oklahoma duty “It shall be the Bond Commis- brought in a court unless suit thereon shall be having jurisdiction prepare prescribe sioner to a method uniform forms thirty within same procedure under the laws of the approval days thereof from the date of the State in all where it is desired to issue cases Bond Commissioner.” bonds, any county, public town- securities or City, Beauchamp v. Oklahoma ship, municipality political sub-divi- other (Okl. 1970) an this held that P.2d Court Oklahoma; thereof and it sions shall be of the State may challenge the le maintained to action be duty further of said Bond Commis- perform prior gality of a bond election to the pass se- sioner curity examine into and passing issued, on security, of the Bond Commissioner ance so when de- and such validity. by the their clared certificate said Bond Commis- to be with the sioner issued accordance sought declaratory and in- account trust special in a junctive relief which was denied the trial trustees.2 used They court. asserted that the sales tax approved by All of ordinance, null void be- No. voters,3 and the majority of the simple , art. the Okla.Const. cause it violated sales collecting the additional City began 1) ap- it was not 264 as enumerated: tax. provided: ballot 2.The The vote on The vote on The vote was as It is vote on provided Proposition Proposition Proposition 3 2 was: 4 was: the Okla.Const. follows: was: 2,176 2,443 for 2,113 for - (cid:127) [1741] art. against against against 10, 26: -(cid:127) - 58% -- § 52% 50.5% county, city, other amount “Except any State, political exceeding, manner, town, township, herein be allowed corporation, or for any year, otherwise any purpose, to become or subdivision school *4 provided, no income district, indebted, to an a n voters; 2) I majority

proved legal obligation was incurred argument of the income and which exceeded pay a debt assumption that art. premised on the year fiscal for the revenue of taxpayers’ com- applicable. § 3) tax reve- prohibited; and sales which is basics, plaint, down to is that if when boiled the Trust for an in- pledged nues were the election is validated an undetermined in excess of the period of time definite over an money spent amount of will be period. The twenty-five year period simple on a permitted undisclosed of time based majority that the direct voters not know also concerned who could taxpayers are they voting argu- what for. Their Trust revenues to the of the tax payment premised assumption ment is on the payment prohibition portion applicable. art. 26 is general fund consti- tax revenues into the any city prohibits the constitution from be- statutory effort to circumvent the tute an manner, any or for coming any indebted in of tax appropriation of annual procedure exceeding purpose, to an amount addition, the by municipalities. In provided revenue year, the income and the ballot taxpayers allege that year the assent of three-fifths such without disastrously from that Proposition 3 varied election. voting at of the electorate it did not No. 1834 because of Ordinance option to renew the Trust had an state that apply 26 does not We find art. fifty years, and for an additional the lease Proposition and 4. Propositions *5 proposi- nor the neither the ordinances that utility its the to lease which authorizes amount of the tions disclosed the total Authori property to the Stillwater Utilities project. trust, does not create an indebt ty, public invalidity of parties agree that the The City. the The indebtedness against edness impossible make it either ordinance will the of revenue bonds under by the issuance pro- project, Trust, and that the finance the total not of the Trust is the indebtedness exclusively by Barton, owned posed utilities will be 358 P.2d City. the In Harrison v. lease municipality. validity 211, (Okl.1960) The held that the this Court unchallenged by trustees agreement are are issued and sold and the trust where bonds inden part public the trust to a bond taxpayers and are not a of a by the ture, did proceeds or therefrom the bonds appeal. record on furniture, buildings, acquiring year, fix- provided or school without the for such revenue assent of three-fifths ing thereof, equipment; to such and such assent vot- tures or indebtedness of the voters election, purpose, shall be deemed to be a sufficient held for that at an to be need, assent, showing unless other- requiring of such absolute such nor in cases further, Provided, by provided wise law. be incurred to an be allowed to indebtedness town, district, indebtedness, any county, city, amount, or other including existing school in the political corporation, (5%) subdivision of the exceeding per or aggregate of to five centum State, requiring incurring any the property the taxable therein the valuation of aforesaid, shall, before assent of the voters as assessment for from the last be ascertained so, doing provide previous for the the county purposes at the time of to the in- or collection interest and also to payment State pay Provided, curring of an annual tax sufficient that if indebtedness: of such due, therefor, it falls on such indebtedness as need has an absolute a school district sinking fund for the may, constitute a with the assent of three- such district twenty- principal voting thereof within at an election of the voters thereof fifths to be held for that contracting (25) years the from the time of purpose, five incur indebtedness indebtedness, same, nothing provided in this amount, including existing further that to an prevent any from exceeding per school district aggregate Section shall five centum peri- personnel contracting (10%) for exceeding per with certificated (5%) ten centum but not (1) therein, year beyond extending current the property ods one valuation of the taxable of the to be ascertained year, limita- conditions and under such for fiscal tions as shall be from the last assessment prescribed by law. As amend- county purposes previous in- to the State and 368, indebtedness, Question Petition purpose No. Referendum curring State ed No. 109. for the of such sites, Adopted special election acquiring improving con- or school of structing, repairing, remodeling equipping or debt, public III not create or constitute a legal, valid that the bonds when issued allegation by The is made the tax obligations the Trust. binding payers that the transfer of funds as deline charter, by provides No. which 4.2(1)(2),re- ated Ordinance city Art. IV § payment for the direct of tax revenues to any city the sale or lease of quired that $50,000, the the prohibits payment than Trust and property valued at more fund, public utility general owned additional sales tax into the the lease of an entire authority only by statutory proce the an effort to circumvent the by City, the be made at an election approved appropriation of an ordinance dures of annual of revenues majority of the by municipalities.6 O.S.Supp.1978 an affirmative vote of a Title 11 City. The reason qualified prohibits electors of 17-101 funds the transfer of 3 on the ballot placing Proposition No. appropriation unless there been an has approval of the voters to gain was to taxpay provided by the manner law. City’s to the Trust. There lease the utilities charge ers that 68 which O.S.1971 § statutory authority is no constitutional requires all revenues from sources [other requires that the electorate authorize except pro than ad valorem taxation of revenue bonds the Trust. the issuance of bonds and those ceeds from the sale ballot, surplusage was on specifically required by law to be appli- and neither art. 26 or 27 were §§ deposited sinking deposit into the fund] Therefore, the amount of the reve- cable. city general ed in the revenue fund of the the Trust nue bonds to be issued did levy and that an annual be made to meet simple majority need to be stated and city’s obligations. only requirement the electorate taxes, Except for ad valorem passage. authorized 2701 to assess O.S.1971 § specific purposes general taxes for II municipal government legislature argue may levy purposes and collect for of state statute, 1835 and the *6 adoption government. together of Ordinance No. with 68 Proposition 4 passage permits pas- of the sales tax the O.S.1971 1323and §§ legally obligated City pay to specific pur- the the sage of the sales tax for period beyond to the the current public trust for a How- pose improving of utilities. proscribed year’s ever, revenue and constituted a compliance with 68 O.S.1971 2489 § by City. disagree. the We deposited in requires that all revenues be obligation imposed on There is no financial general appropriated annually the fund and City pay to the sales tax We, therefore, the other than city the commissioners. Authority for the fiscal revenues to the portion find that of 4 of Ordinance No. § which it is collected. There is no year in 1835, prohibiting proceeds the of the addi- on the pledge contingent or encumbrance being paid sales tax from or transfer- tional beyond year in City funds of the the fiscal fund, general red to to be violative of 68 the received, are and which the sales tax funds hereby stricken. O.S.1971 2489. It is § 3 the to No. 1835 § Ordinance may repealed any at time a 21 of Ordinance No. sales tax be Section provides severability any however majority of the voters.5 repealed by majority provides: repealed registered 1835 3 which unless a of the § 5. See Ordinance No. City voting repeal to voters the and be “This Ordinance shall become required subject July same in the approval.” as was for its to manner and after effective on approval majority registered of a voters voting same in of the the of Stillwater on the particularly Supp., The are troubled prescribed by 11 O.S.1978 manner 2482-2492, especially seq.; provided and § O.S.1971 §§ that Section 16-101 et above, approval by required O.S.Supp.1978 this 17-101. the voters in effect and not be Ordinance shall remain misleading, and free from uncer- held inval- that it be the ordinance which is portion of test is competent tainty ambiguity. and The whether by any court of unoperative id or opportunity the re- are an fair- Finding no with the voters afforded jurisdiction. fault ordinance, will,10 whether express we hold to their the ly the maining sections of apprise to question sufficiently re- is definite with the additional the ordinance valid accuracy as with to the voters substantial quirement compliance with O.S.1971 approve. are they what asked to complete published was The ballot IV No. 3 paper. Proposition the local does trial taxpayers contend that the being more fully to the lease term as refer concluding that the ballot court erred 1834, out in Ordinance No. the set title No. 1834 was sufficient. of Ordinance where newspaper the voters informed is that while the ordinance contention the be copy of lease could obtained municipal City to the provided for the lease appeal Appellants contend on examined. fifty the Trust a term of utilities to misleading the ballot title was addi- years option an to renew for an with the lease. specify failed to term of the Yet language of fifty years, the ballot tional allegation petition by the there is no op- the No. 3 failed to mention Proposition or citizens that citizen defrauded although court The trial held that tion.8 mislead; presented at nor was evidence the might how reasonable men differ on support trial to such an assertion. the articulated, have proposition should been contrary, a absence of evidence to the the title was not defective. regulari presumption arises in favor validity of The bur ty and the election.11 construing requirements Cases contesting the persons on the election den is question question of the ballot hold that the to with constitu prove comply failure to popular on vote the ballot submitted to statutory requirements.12 tional and permit electorate must in a form citizens failed to meet the burden. reach an informed decision voter to the meas approve disapprove whether to V it specific, but question ure. The must be invalidity Taxpayers argue be also proposition from need not include enough Proposition It is is 2 which authorizes ginning to end.9 sufficient if indebtedness of printed identify subject matter incur an Stillwater by the issuance of purpose of the twelve million dollars to reflect the character and Having Generally, requirement general operation found bonds. proposition. argument Propositions 3 and their concerning of ballot valid submission deceptive admittedly moot. question not be *7 813, (Tex. McCoy, England provides: 815 1 v. 269 S.W.2d § 7. No. 1834 9. Ordinance Civ.App.1954); City County v. & of McNichols Water, Sys- “Approval of Sewer and Electric Denver, 380, (1949); 120 209 P.2d 910 Colo. City hereby is and authorized tems Lease. 223, Wyo. Springs, v. of 53 Anselmi Rock presently existing here- to lease its and directed (1938). A.L.R. 1250 80 P.2d 116 water, sys- acquired electric after sewer and Authority for a tems to the Stillwater Utilities Walker, 586, 374 Rich v. 237 Ark. S.W.2d 10. fifty (50) years date as all term of or to such Education, (1964); Turner v. Board of 266 476 Authori- indebtedness of the Stillwater Utilities (Ky.1954). 321 S.W.2d made, ty paid provision payment is is right a to like term with renewal 106, Belk, Sykes v. 179 S.E.2d 439 11. 278 N.C. Agreement conditions a Lease the terms and of (1971). 1, 1979 dated as of and between Utilities and the Stillwater of Stillwater Mauermann, v. 195 S.W.2d 422 Lucchese 12. Authority, copy with the is on file den'd., (Tex.Civ.App.1946) U.S. cert. 329 City Clerk.” (1947); 91 L.Ed. 693 Oklahoma 67 S.Ct. Allcott, 154 v. 195 Okl. Tax Commission 2, supra. 8. See note (1945). 973 P.2d 644 propositions the re tween 2 and 3 was a statement opinion is addressed to injunc- pass enter court to to the effect that all issues must

fusal of the district limited to the decision is accomplish purpose tive relief. Our of the Bond issue. pertaining to validity of the election sample Examination of the ballot shows a intended, and It is not propositions. ballot proposition 3 appearing cross-reference construed, approval cannot be proposition 2. I think the extraneous duty of the Attor bond issue. This is 2 3 and statement between and General, ney position in his as bond commis separate- the cross-reference violates the Oklahoma, pursuant sioner of the State required by Supp. 16- ness O.S.1979 § 11-14. to 62 O.S.1971§§ PART, IN AFFIRMED IN REVERSED grave provi- I that the entertain doubts PART. sions of Art. Ill Constitution § Oklahoma, equal guaranteeing free and IRWIN, J., LAVENDER, J., V. C. C. by the ex- elections have not been violated SIMMS, WILLIAMS, BARNES, HAR- pre- in the traneous statement referred to OPALA, JJ., concur. GRAVE and ceding paragraph. cannot be tol- Coercion DOOLIN, J., dissents. election, electioneering spe- erated an cifically prohibited, Supp. 7- O.S.1979 § DOOLIN, Justice, dissenting: of the extraneous mate- existence majority opinion, The vice of the at least question whether or not rial raises a as to me, apparent respects. in several the voter’s free choice has been affected. eight page transcript Examination of the Although we law have no case or statuto- made in the trial court reveals there was no ry provision language as to what must be adversary hearing controversy nor was special used on a ballot for elections con- presented, argued or Jurisdiction decided. issues,2 cerning persuaded bond I am justiciable of a issue is vested in the district language likened to title should be Constitution, 7(a) court VII of our Art. § requirements the ballot title made under although fully not as detailed or ex- provisions. initiative referendum That pressed Controversy provi- as the Case and 9(a) language as stated in 34 O.S.1971 § Constitution, Art. sions of the United States requires gist proposition to be issue) (justiciable Ill it is nonetheless as persons in language stated understood necessary.1 engaged practice of law. Secondly, Supp. pro- 16-113 O.S.1979 words, clear, other should be proposi- vides: “. . .if more than one plain unambiguous. It cannot be seri- submitted, they arranged be so tion is fifty ously years doubted that the term of proposition may that each be voted and the fact that the term was renewable only provisions separately.” Not must the fifty year for another term must be stated physically arranged separate in a man- plain language. The fact ner, they separately must stand on their (the gist) is not amount own bottoms and should not be cluttered clearly plainly open-ended stated but is with extraneous material or cross-refer- case, present In the inserted be- likewise renders the election invalid to me. ences. McCoy, examples people: England 1. For of cases deemed controversies ed on v. *8 Summers, see, 813, justiciable (Tex.Civ.App.1954); and thus In re: S.W.2d McNi 561, 1307, (1945), Denver, County U.S. 65 S.Ct. 89 L.Ed. 1795 chols v. & 120 Colo. case, Nixon, 380, (1949); and the recent United States v. 209 P.2d 910 Anselmi v. 3090, Springs, Wyo. 418 U.S. 94 S.Ct. 41 L.Ed.2d 1039 Rock 80 P.2d Freeman, (1974); Walker, cf. Jones v. 146 P.2d (1938); 116 A.L.R. 1250 Rich v. (1944). Okl. 554 (1946); Ark. 374 S.W.2d 476 Turner v. Education, (Ky.1954). Board of 266 S.W.2d 321 jurisdictions following 2. The cases from other require clarity vot-

Case Details

Case Name: Arthur v. City of Stillwater
Court Name: Supreme Court of Oklahoma
Date Published: Apr 18, 1980
Citation: 611 P.2d 637
Docket Number: 54164
Court Abbreviation: Okla.
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