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.

Year: 1963Length: 1,938 wordsOfficial source

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
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. | Justis AI