This opinion is in regards to the expenditure of a balance of funds resulting from property assessments in No Fence District #1 of Jefferson County. Whether these remaining funds may be used to supplement other available funds to construct a county jail? ANSWER: Yes. Section 14-386-505.

STATE OF ARKANSAS OFFICE OF THE ATTORNEY GENERAL See, . 201 EAST MARKHAM STREET STEVE CLARK HERITAGE WEST BUILDING ATTORNEY GENERAL LITTLE ROCK, ARKANSAS 72201 (501) 371-2007 OPINION NO. 86-307 May 13, 1986 The Honorable Knox Nelson ~* Senator, District 27 P.O. Box 5715 Pine Bluff, AR 71611 Dear Senator Nelson: This letter is.in response to your request for an official opinion with regard to the expenditure of a balance of funds resulting from property assessments in No Fence District #1 of Jefferson County. You have asked whether these remaining funds may be used to supplement other available funds to construct a county jail. Assuming that No Fence District #1 is a continuing legal entity, the answer to your threshold question is yes. Ark. Stat. Ann. §78~-1364 (Repl. 1981) entitled “Surplus fund in fencing district ~ Disposal" provides as follows: -When any fencing. district in this State has completed all of the contemplated improvements. -~and..has paid and discharged all of its . a “obligations and has a “surplus of funds on handy ks cet _v»n6t:;needed for repair or maintenance or the re operation of. the. district, then in. such event, . ithe -Board of Directors of such district may in | their discretion contribute so much of such _-gurplus. funds as they may determine to ‘any. - “public, charitable, -educational or general |. welfare purpose within the county in. which the district is situated. ; . _ Although there. is no case law on point, it would’ appear that .§78-1364 has* general applicability to. all’ fencing : . districts within the State... Therefore, assuming that-No’Fence ..-. ° District. #1 was properly.established and that it has. not ‘been :..°° abandoned or: dissolved, the Board has authority under §78=1364). .. "to contribute -the- surplus funds to construction of 4 jail: oo within Jefferson _ Sounty. This: would - certainly quality. Ags ae Senator Knox Nelson May 13, 1986 Page 2 “public purpose." This assumes, of course, that the various conditions of §78-1364 ‘are met; specifically, that all contemplated improvements have been made and all obligations discharged, and that the surplus is not needed for repair or maintenance or operation of the district. It further assumes that the Board of Commissioners referenced in your letter is the equivalent of the “Board of Directors" appearing in §78-1364. This would seem to be a reasonable assumption, particularly since applicable statutory provisions use the terms "Fencing Board", "“Commssioners" and "Directors" interchangeably. See Ark.- Stat. Ann. §78-1301 et seq. (Repl. 1981). Since §78~-1364 appears to give broad discretion to the Board for disposal of such surplus funds, the procedure for transfer of the funds can be determined by the Board, §78-1364 contains no directive with respect to actual accomplishment of the "... public, charitable, educational or general welfare purpose ... ." The Board would, of course, © need to formally direct the trustee in this regard. The foregoing opinion, which I hereby approve, was prepared by Assistant Attorney General, Elisabeth A. Walker. Sincgtely, roo: TE LAR Attorney General SC:BAW:jn