Case Information
*1 Attention: w., scanlan Hon. Jack Wiech Opinion Number O-2985 County Attorney Re: Does Article 6797, relative to Cameron County Brownsville, Texas bridges and ferries, contemplate that the Interest as well as principal of bonds thereunder be retired solely upon the revenues assessed and col- Dear Sir: lected as tolls?
We acknowledge receipt of your opinion request of recent date ,and quote from your letter as follows: “The Commissioners1 Court of this County contemplates the construction of a causeway over Laguna de la Madre between the mainland and Padre Island, and, in connection therewith, has ~been studying the statutes relative to bridges and ferries being Article 6794 Revised Statutes of Texas, 1925, et seq. and a 4 iffer- ence of opinion has arisen relative to the con- struction to be placed upon Article 6797.
“Zhe said Article 6797 reads as follows: “‘Whenever any county bonds are issued to build bridges, the commissioners court may as- sess and collect tolls on said bridges sufficient to pay the interestfon bonds so issued; and, If $&ought orooe& suf &Lent to oay the interest and create a ink&&fund ith hi h to uay thg princiaal at iaturitv. allwof w?~Lc: shall be done under such rules as said court may prescribe.’ (underlining ours)
“and, there being no authorities construing the said statute, your opinion is requested as to whether that part of the statute hereinabove quoted and underlined, contemplates that the in- terest as well as principal of the bonds there- under be retired solely upon revenues assessed and collected as tolls or whether, in addition to tolls, an ad valorem tax would be contempl.ated *2 .-
Hon. Jack Wiech, page 2
as security for either or both the prlnci- pal and interest on said bonds.U
We find no authority under the laws of this State providing for the Issuance of revenue bonds for the purpose of building bridges. We do not believe that Article 6797 of Vernon's Annotated Civil Statutes provides for the issu- ance of any kind of bonds, said article simply provides that wmver countv bpgSs are is- to build bridges the Commis- sioners' Court u assess and collect tolls on said bridges sufficient to pay the interest on said bonds so issued and to create a sinklng fund with which to pay the principal at maturity.
Bonds voted for the construction of bridges must be tax bonds, voted under the general laws end the.Constitution of the State of Texas, and a sufficient levy made out of county funds to create a sinking fund with which to pay the interest and principal at maturity. Acting under authority of Article 6797 the Commissioners' Courts may in their discretion assess and collect tolls on said bridges erected from the issuance of said bonds to supplement the sinking fund; however, we call your attention to the fact that if county bonds voted for the purpose of building bridges were presented to this department for approval we could not take Into consideration, in deter- mining the countyls ability to pay for said bonds, the fact that the Commissioners 1 Court was assessing ana collecting tolls.
Answering your question specifically, and based upon the above reasons, it is our opinion that Article 6797 does not contemplate that the interest as well as the principal of the bonds issued for bridges be retired solely upon revenues assessed and collected as tolls, but a sufficient ad valorem tax must be levied to take care of the principal and interest on said bonds.
APPROVED: FEB 3, 1941 Very truly yours ATTORNEY GENERAL OF TEXAS /s/ Grover Sellers FIRST ASSISTANT ATTORNEY GENERAL By /s/ Claud 0. Boothman
Claud 0. Boothman, Assistant APPROVED: OPINION COMMITTEE
BY: BWB, CHAIRMAN
COB-s:wb