No. 11-63
A county is authorized to issue bonds and purchase and nursing home owned and operated by townships within the county. The county may issue bonds for the construction and equipment of additions to the nursing home. The townships have authority to sell the nursing home. The townships are obligated to pay the bonds issued by the townships for the original purchase and construction of the nursing home.
Cite as Mo. Op. Att'y Gen. No. 11-63
NURSING HOMES:
BON'OS ~
TO\'/NSHIPS:
COUNTIES:
fl. cow1ty is authorized to isoue b<"•nds -md purc.ha.::~e
a nurs1ng home owned and operated by townships
within the county.
The county may issue bonds for
the construction and equipment of additions to the
nursing home .
The townships have authority to
sell the nursing home .
The townships are obligated
to pay the bonds issued by the townships ~or the
original purchase and construction o~ the nursing
hone .
May 29, 1963
Honorable J. w~ Colley
P~osecut ing Attorney
Dade County
Greenfield, Missour i
Dear Mr. Colley:
OPINION NO. 11
Your request t or an oftic1al opinion readea
•The Count y court of Dade Count y haa
asked
e t o write you t or an opinion
on ne tollowing proposit i on:
Dade County 1s a Township organizati on
and abOut 2 years ago the townships ot
LockWood and Smith voted a ·~J , Ov. OO
bond issue and erected t he Good Shepherd
Reat Home.
They were assisted f i nancially
by John c. Maybee and the Bill - Burton
Fund.
They now have a plan to enlarge the
building and apparently the J ohn c.
Maybee »oundation of TUlsa, Oklahoma,
ia now Vllllng t o aas1at 1n the expense
of the add~tion to the bu1141na.
The
11111 - Burton tund ie &lao W1ll1ng to
aaa1at in th1a const ruction.
' The County court Viahea to know 1f
oount7 vide bonds can be voted and the
mone1 used, r~rat - to P&J the present
bonds owed b7 Sllit h and LockWOod Town-
ah1pa and second - t o P&J tor the con-
struction or the additional apace ae
needed.
Fl LED
Honorable J. w. Colley
n When the Good Shepherd Rest Home wae
established and t he bonds voted only
two townships in Dade County participat ed.
this was done under Sec. 205.375 wb1ch
wae amended so that the townships could
legally operate a rest hom•· '1
In your opinion recaueat, you refer to 8ect1on 205.375,
RSMo. and we quote a portion of that section aa follows:
n2.
The county court or any county or
the tolmehip board ot any township may
acquire land to be uae4 aa a1tea tor.
cooat~ct and equip nureing homes and
ma-y contract tor mater-1ale. supplies,
and services necessary to carey out euch
purposes.
u 3.
Por the purpose of prov1d1ng tun4s
tor the eone·truct1on antt equipment of
nursing homes the count1 courts or town-
ship boards mar 1a.ue bonda as authorized
by the general law governing the incurring
ot indebtedness by count1ea. or may provide
tor the 1aauanee and p~nt ot revenue
bonds 1n the m.e.nner provided by and in
all ~eapecta subJect to chapte~ 176, RSMo1
which provides tor the 1aauance of revenue
bonds ot etate ec2ucat1onal 1nat1tut1onca. n
In your request you state that the 'ownahipa of LockWood
and Sm~th voted a $50,000.00 bond 1asue and ·&l'ected the Qood
Shepherd Jt.eat Home.
We assume that these are general obligation
bonds r.ather than revenue bonda.
SUch gen•ral obligation bonds
are t.n 1ndebtedoeaa of Lockwood and Slllith towrush1pa which voted
and 1&aued them.
A·a~1ng that the bonde were validly 1aauec1.
LockwOod and Smith townahipa are obligat•d to pay them.
They
are obligations of the tovnahtpa and. ot the townah1pa alone,
and we know ot· no statutory authority or method ot ah1tt1ng
the responsibility tor the payment ot this obligat ion from
Lockwood and S.1th townah1pa to Dade County.
~he t1rat part
of your question 1a whether tun4a trora bonda voted and 1aeued
by the county o•n be ueed to pay tae present bonds owed by
Smith and LockWood t ownships.
You do not give any 1ntorma.t1on
con4«erning the procedure-a. methods or mechanics involved in
the ptYJnent ot the towneh1p bcmde by the county.
in subsequent
correspondence you indicated that Smith and Lockwood townships
will sell the Good Sh.epherd Rest Home to Dade County.
We first
deal with the authority of such a sale and pul'chaae.
- a -
Honorable J. w. Colley
In regard to the authority or LockWood and Bm1th town-
ah1pa to sell the Good Shepherd Reat Hoae to Dac!e count1,
we call your attention to Section 65.270, RSMo, Which reads
as tollowa:
"Ho townah1p ahall poaaeaa &QJ corporate
powers, except .ucn as are enumerated or
granted by tbis chapter, or aball be apec1•
ally given by law, or aball be n&cesa&rJ
to the exercise ot the powers so enumerated
or gl'anted •. ,
In view ot this aect1on, 1t 1a eaaential that Lockwood
an4 Smith townahipa have apec1f1e atatutor, author1tr tor
the sale ot the Good Shepherd Re&t Home.
'the only statute
we have found which can be construtc1 to give auch authority
1s s~otio~ 65.260, RaMO, which prov14e• that each townahip
shall have power and capac1t1eaa
11 (4)
To aalce such orders tor tbe c!1apoa1tion,
regulation or uae ot ita corpoTate property
aa may be conc!uc1 ve to the t.ntereat ot the
inhabitant• thereot. n
It ie our o~1n1on t hat thia 1a auttic1ent authority tor
the sale ot the Good Shepherd Rest Home by Lockwood ancl Smith
townahipa to Dade County 1f such d1apoe1t1on 1a conducive
to the 1ntereat ot the 1nhab1tanta ot the townahipe.
Dade County h&a statutory authority to purohaae the Good
Shephe~d Rest Home.
The county court 1a authorized by 8eot1on
205. 375.. RSMo, to:
" (2)
• • • acquire laod to be uee4 u
a1tea tor [nursing homes] • • • • If
''Land:
11 hae been given the colllll:oti-law de1'1n1t1on in JJia•
aouri wb.1eh ., i,ncludea all buUdinga ot a pel"'Unent nature
standing thereon" aa well u the land.
Union Central Lite
Inauranae Co. v. Hlleq. 152 Mo. ll2.1; 54 8.1. 220.
MtWiiinous
Cuuiltz COrp. v. Vilih and Well• (Mo. ApJ>. ) .. 170 SV2d 117.
ns1te0 1a det1ne4 in. Vebatez-' a He• International Dictionary,
3rd Edition, •••
n 2 (a) the local po•1tiol'l ot building, town,
mol'lllment~ or a1111lar work either eonatrt1ctec! or to be constructed;
(b)
a apace ot ground oceupied or to b; oecupied u a buUd1ng. 11
- 3 -
HGnorable 1. w. Colley
"Land" and fi aite" ~ then, inc-lude botb the l•nd and th•
builtingf trutreon, ao that under the moat liberal eonatru:ot1on
ot the phrue ''acquire land to be uae4 •·• a1tea tor" • the
county court ma, ao~lre land with ba114inga thereon tor the
purpoae ot eatabl1.mictg a nut"81ng home.
lB a4dlt1on the geBeral statutes give county courta pever
to acquire lantl.
Section .11.9 .• 270, JtSMo 1959, p~v1deat
·
"'the aaid court shall have • • • power
ed authority to Rul.':e!}He, leaet ~r.
~84e1ve &donAtion' &n¥ propei=tiy, real
or per~
,
'lo~ t'he u•• end ben.et1t of
the county; • * •.u (Underacoring ouve) ·
As a nureing home 1a tor the uae and benet1t ot the
county, the coun-ty court may &Q4U1H land therefor by purchase,
lea•• or by donation.
"
We asBWDe that the bonds to be vote4 by Dade .county are
gerteral oblig•t!on bonds ra~her than revenue bonde and therefore
thia opinion 11 lill1ted to the iaauance ot general obligation
bonda and we are not making any ruling relative to the uae ot
revenue bonds.
Issuance ot gene~ obligation bonds by a county and
in4eb~e4neaa ot a county are covered by Article ~~ Section
26(a), 26(b), and 26(c), Mi asouri Conet1tut1on 194~~ and
b,y Chapter 108, RSJCo, 1959.· Sections 108.010 and 1~ .oao,
ltSMo 1959, prov1dez
'•108. 010.
Any county tn thia at ate, by
vote ot tvo•th1rde ot the qu-.J,1t1ed electors
~hereof voting the~on.. mat become indebted
1n an amount exceeding :ln any yeu- the in-..
come and revenue provided tor such rear plus
any unencumbered bal. ancet from previous yeara;
provided auch 1ndebtedneaa llhall not •xoeed
five pe~ cent ot the value ot taxable tengible
prope,rty therein as lhown l>y the l.aat eo~leted
aaae.aament tor state and county pu~sea.
"108. <>20.
,Any county 1n tb1a st•tf!, by
vote ot two,.th1rds ot the tua11f>1ed electors
tnereot voting tbereoB, m~ incur an 1n4ebted-
neae tor county purpoaea 1n ad41tton to that
authortze4 in section 108. 010 nO"t to exceed
five pel" cent ot the taxable tan_gible property
•hown ae provided 1n eat« section. n
- 4 •
Honorable J. w. Colley
Under thes-e proviaione a county mtQ' incur an 1ndebtedneaa
tor countr purpoeea not "o exceed t&n per cent ot the value
ot the taxable tan&tble property shown at laat ~ompleted
uae•ament tor oounty purpoeea. lt would be nece•*-7 to
detenaine tbat ~he aaount to be expanded in the eo.qu1a1t1on
ot ~he land U4 bu&lcl1naa will not exceed th1a limit before
the 1n.4ebte4neaa •*1 b• incurred to actu1l'• such land and
bu1ld1nge.
The conclua1ona we have reached thQa tt.r *" that Lock•
wood .a.d Smith town•h1pa }uave a\lthorit7 to aell the Good
Shepherd lleat Hoae to Dade Count7 an.cl Dade CountJ baa Ctlthor1ty
~o ptt~eha1e ~he Good lhe»h•~ Beat Home from LockWood an4
Smtth townall~pe. L<lekwoQd el4 Sll.ith tone1p• will at ill
be obligated to Pat the bonda iaw.ell by th• to:wn•hipt~ the
proeeeda ot Whlcb wet-e u•e4 to purch&ae and eonatruct the
Oood Shephel'CS Beat Home.
Dacle count¥ hu authority to tuue
county•wtde bod4e and uae the proo•eda toP the pu~haae of
the Ooo4 Shephett<l B.eat Home.
W• do not JQake ·ant l'Qling con-
cerning the procedutea, meehan1oe o.r Gther t1nanc'ial arr•age-
ment• whl.oh may be 1nvol v•d tn the aal• or pul"Ch_.e.
ln the abaence of epec1t1c tacte em the exact methode
and procedUre• bN ~ch the mooe1 t~ the county bonete 1a
to be uaed to pay the present boru:te o'tled
bJ lal"ith and Lock•
wo~d town•Mp•, we ere uttable to give an opinion aa to their
v811·d1t1 -.a tb.tt coaclueione we nav-e Nached and atated above
DNat autt1ce ae an opinion on the rs.r-at pa,rt ot your queattoa.
ln enever to the second part or ¥our tueetton we are ot
the op.1nion that the county court mq 1aau• county•ldde bonds
to pfq tot" the conatruct1on ot ad41t1ona.l epaoe tor the nuraing
homt.
Authority tor th1a is tound 1n $~ctlon 20$.375. eupra,
Which pl'Ovldee:
na. ror the purpo4e ot provl41ns tunda ror
the con•tNctlon end etU1pftltnt ot auralng
holll8a the eounty eourte or toltnehip board•
~a¥ iaae bonde •• au.thorued by the general
law govern1ng the incurring ot 1n4ebte4neaa
bJ oountl••• or ~
provide tor· the 1a~ce
an4 p.,-ment ot revenue b0n4• in the manner
pro•14e4 bf and in all reapeota _.b3eet to
chapter 176, !tSMo~ which p~v1cle• tor the
1aeuanoe ot re.venue bond~~ ot state edtloational
1n•tltu.t1one. tl
Honorable J. w. Colley
By th1a aubaection. tunda tor the conatruct~on and equipment
ot n.ura1ng homea may be provided by the 1a8U.ance ot general
obligation bonete un4er the seneral law regulating the incurring
ot indebtedneaa, and subject to tn. lt.itation ot the oonat1-
tut1on and atatutea~ ln our opinion thia 1noluctea the con-
atruotion and &4\lipmant o~ auoh acl41ttona to the nura1ng home.
COHCLUS~ON
:It 1a therefore the opinion ot thia ott1ce that Lockwood
Md lillith townlh1pa mq aell and Dade County me.r purohaae the
Oood Shepherd Reat Home.
Lockwood and lmith townahipa are obli-
gated to pq the bonds i.aaued by thoae townahipe tor the ortainal
purchue and· construction. of the Ooocl SbephercS !eat Hoae.
Dade
County ia authorized ~o iaaue oounty-ricle bonda an.d use the
proceeda tor the purcbaae of the Good Shepherd fteat Haae.
Dade
County suq 1a.ue sea.eral 1adebtedneaa bonda and uae the proceeda
tor the cooetruct1on and equipment ot a441t1oDa to the Good
Shepherd Jleat Home.
~he foregoing opinion, ~ch I hereby approve_ waa pre-
pared by my Aaaiataot, Wqae w. Waldo.
Wthlt& -'h
Your• very truly,
tzm '. mLttOR
Attorney General