City of Fayetteville v. Fayetteville Sch. Dist. No. 1

In 2010, voters in the Fayetteville School District approved a 2.75 new-debt-service mills that would be a continuing debt service tax until the retirement of proposed bonds to be issued for the purpose of erecting and maintaining new and existing school facilities. The surplus revenues produced by debt service millage would be used for other school purposes. In 2011, certificates issued by the Washington County tax collector resulted in 1.45 mills of that 2.75-mill ad valorem increase being applied to the retirement of redevelopment-district bonds issued in 2005. The School District sought declaratory judgment and injunctive relief. The circuit court found that the assessor's certification was incorrect and that the tax collector improperly applied the 1.45 mills. The Supreme Court affirmed, holding (1) the present cause of action was not barred by res judicata; (2) Ark. Code Ann. 14-168-301(18)(B)(i) did not impair the bond-purchase contract and financing of the redevelopment bonds; and (3) the 2.75 expressly pledged the new millage to a bond in accordance with section 14-168-301(18)(B)(i). View "City of Fayetteville v. Fayetteville Sch. Dist. No. 1" on Justia Law