Opinion
April 10, 1951.
Appeal from the Circuit Court, Dade County, George E. Holt, J.
Loftin, Anderson, Scott, McCarthy Preston, of Miami, for appellant.
J. Mark Wilcox and Hudson Cason, all of Miami, for appellees.
This is an appeal from a declaratory decree entered by the Circuit Court of Dade County, Florida, validating an issue of Four Million Dollars ($4,000,000.00) revenue bonds to be issued by the Board of County Commissioners of Dade County, Florida, acting as Dade County Port Authority. Pursuant to the provisions of Chapter 22963, Laws of Florida, Acts of 1945, as amended, the Board of County Commissioners of Dade County, Florida, in its capacity as Dade County Port Authority, on December 29, 1950, entered into a contract for the purchase of the existing causeway and bridge across Biscayne Bay between the cities of Miami and Miami Beach, and known as the Venetian Causeway, together with all appurtenant physical properties, both real and personal, relating to or used in connection with the operation of the said Venetian Causeway, which properties have for many years been operated as a toll bridge or toll causeway.
For the purpose of financing the acquisition of said properties the said Board on March 7, 1951, adopted its Resolution No. 362, authorizing the issuance of Four Million Dollars ($4,000,000.00) of revenue bonds to be known as "Dade County Venetian Causeway Revenue Bonds", payable solely and exclusively as to both principal and interest from the revenues arising from the operation of the said Venetian Causeway. The bonds so authorized are to bear interest at three percentum (3%) per annum, interest payable semi-annually on the first days of May and November of each year. The Resolution provides that there shall be no principal maturities until May 1, 1954; thereafter, the bonds mature serially on the first day of May of each year until and including the year 1968.
The Resolution provides that the Dade County Port Authority shall operate the property as a toll bridge or toll causeway and shall charge and collect sufficient tolls to pay all costs of operation and maintenance of the property and to pay all requirements for interest and principal upon the bonds so proposed to be issued. It is provided that all revenues arising from the operation of the property shall be deposited in a special fund and that there shall be created within the "Dade County Venetian Causeway Cost Fund" a sinking fund for the protection of the bonds in the sum of Two Hundred Fifty Thousand Dollars ($250,000.00).
The total requirements for interest payments during the first year will be One Hundred Twenty Thousand Dollars ($120,000.00), and the greatest amount required in any one year for the payment of principal and interest of the issue will be the sum of Three Hundred Sixty Five Thousand Seven Hundred Fifty Dollars ($365,750.00) in the year 1967.
The proposed bonds contain the following provision: "This Dade County Venetian Causeway Revenue Bond shall not be deemed to constitute a general obligation or debt of Dade County or the Dade County Port Authority or a pledge of the faith and credit of said County or the Dade County Port Authority, but shall be payable exclusively from the sources recited herein, and from no other source, and Dade County shall not be obligated directly or indirectly or contingently to levy or pledge any taxes whatever for its payment, either principal or interest, and the County shall not be compelled to levy, collect or pledge any taxes whatever for its payment, nor can this Dade County Venetian Causeway Revenue Bond be enforced or collected by levy of any tax, nor shall this Dade County Venetian Causeway Revenue Bond be or become a charge upon the property of Dade County, Florida, or taxpayers of said County or the resources of said County except the funds herein specifically pledged."
Appellees filed in the Circuit Court of the Eleventh Judicial Circuit of Florida, in and for Dade County, a bill for declaratory decree in which Appellees as plaintiffs in said cause sought a decree of said Circuit Court declaring:
1. That the Board of County Commissioners of Dade County, Florida, acting as Dade County Port Authority, has full legal power and constitutional authority to enter into the contract for the purchase of the Venetian Causeway, and to consummate such purchase on the terms and conditions therein set out;
2. That, for the purpose of borrowing funds from the defendant, Bessemer Properties, Inc., with which to pay the cost of the said Venetian Causeway, the said Board has full legal power and constitutional authority to enact Resolution No. 362 and to borrow money and issue therefor Dade County Venetian Causeway Revenue Bonds in the form incorporated in said Resolution, payable from money arising from the operation of the said Venetian Causeway, and that such bonds when issued will be a lawful and valid obligation payable from the Dade County Venetian Causeway Cost Fund in accordance with the terms and provisions of said Resolution;
3. That the issuance of said Dade County Venetian Causeway Revenue Bonds is not required by Section 6 of Article IX of the Constitution of the State of Florida, F.S.A., to be approved by the freeholder of Dade County at an election held for that purpose.
The cause came on for trial in the Circuit Court of Dade County, Florida, on March 9, 1951, at which time oral testimony and documentary evidence was submitted for the consideration of the Court.
The evidence established that the net revenue anticipated from the operation of said property after payment of all operating costs and expenses and based upon actual experience in the operation of said property under corporate management would exceed an average of Five Hundred Thousand Dollars ($500,000.00) per annum, over the period of the ensuing twenty-five (25) years.
The evidence showed that under corporate ownership and management the net income of the said property for the year 1950 had been Four Hundred Sixty Four Thousand Five Hundred Fifty Four Dollars and Twenty cents ($464,554.20). Since the total requirements for maturities on the proposed bonds during the first year would amount to only One Hundred Twenty Thousand Dollars ($120,000.00) it appeared, therefore, that the revenues for the first year of County ownership would be sufficient not only to provide for all operating expenses and all requirements for maturities on the bonds, but would also fully pay up the entire requirements of the sinking fund and leave a surplus in the treasury. The revenues for 1951 will actually exceed those of 1950 upon which the foregoing estimate is based because the evidence shows that revenues for the first two months of 1951 are more than twelve percent (12%) in excess of the revenues for the corresponding two months of 1950.
The court thereupon entered its final decree, declaring:
1. That Dade County Port Authority has full legal power and constitutional authority to consummate the purchase of Venetian Causeway on the terms and conditions set out in the agreement;
2. That Dade County Port Authority has full legal power and constitutional authority to issue the Four Million Dollars ($4,000,000.00) principal amount of revenue bonds in the form and upon the terms and conditions set forth in Resolution No. 362;
3. That the Dade County Venetian Causeway Revenue Bonds authorized by and described in Resolution No. 362 are revenue bonds payable solely from the revenues arising from the operation of Venetian Causeway and do not constitute a general obligation or debt of Dade County, and do not pledge the faith and credit of said County or of Dade County Port Authority, and shall not be or become a charge upon the property of Dade County or the taxpayers of said County or the resources of said County except the revenue arising from the operation of Venetian Causeway; and
4. That the issuance of said bonds is not required by Section 6 of Article IX of the Constitution of the State of Florida to be approved by the freeholders of said County.
None of the questions presented by this appeal is novel. We have decided in prior opinions all of the pertinent questions which are raised in the instant suit. No useful purpose would be served were we to reiterate what we have stated many times upon the subject now before us. We have sustained the position taken by the Appellees herein on numerous occasions. Consequently, we affirm the final decree from which this appeal was prosecuted upon the authority of Flint v. Duval County, 126 Fla. 18, 170 So. 587; State v. Dade County, 146 Fla. 331, 200 So. 848; State v. Escambia County, 153 Fla. 282, 14 So.2d 576; State v. Dade County, 157 Fla. 859, 27 So.2d 283; Miami Beach Air Line Service, Inc., a Florida corporation v. Crandon et al. as and constituting the Board of County Commissioners of Dade County, Florida, acting as Dade County Port Authority, 159 Fla. 504, 32 So.2d 153, 172 A.L.R. 1425; Seaboard Air Line Ry. Co. v. Peters et al., Fla., 43 So.2d 448.
Affirmed.
SEBRING, C.J., and TERRELL and THOMAS, JJ., concur.