The situation is as follows. In 1988 the Commissioners Court passed a county order setting a maximum limit of 15 years on payback of costs incurred for special road district taxes. In 1989 a road district was properly created and it appears that the county "loaned" the funds to build the roads. The road district was to repay the county for the contractor's expenses and there were never any bonds issued.

Now, 19 years later, only 1/2 of the cost has been repaid and yet citizens want to know why they are paying additional taxes when a county order limits the road districts to 15 years.

I understand that a road district is a separate and independant political entity where the commissioners are the trustees. Road Districts may borrow money by methods other than bonds subject to Article III, section 52 restrictions. But, AG Opinion JM-1276 states that a County has no authority to loan money to a road district.

Based on the current information it appears that I am dealing with an unauthorized loan that has not been paid back within the time limit established by county order upon which the voters relied when electing to incur the additional taxes to establish the road district.

I would greatly appreciate any guidance on how to proceed.

AG Opinion JM-1276

[This message was edited by Rex Emerson on 03-12-08 at .]