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Harris v. City of Little Rock

40 S.W.3d 214 (2001)

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Harris v. City of Little Rock

Arkansas Supreme Court
40 S.W.3d 214 (2001)

DD

Facts

Ark. Const. amend. 65 (Amendment 65) prohibited a municipality from using tax revenues to repay revenue bonds. The city of Little Rock (the city) (defendant) passed an ordinance that authorized the city to issue revenue bonds to fund improvements to the city’s parks and recreational facilities. The revenue bonds were to be repaid with user fees, that is, fees the city charged for the use of the city’s parks and recreational facilities. Nora Harris (plaintiff), a taxpayer, brought suit, contending that the ordinance was unconstitutional. Harris argued that by pledging user fees to repay the bonds, the city would have to use tax revenues to cover the operating costs of the parks and recreational facilities. Thus, Harris maintained, the ordinance indirectly pledged tax revenues to repay the revenue bonds, thereby violating Amendment 65. However, at the trial before the chancery court, Harris did not offer any proof that the city would have to use tax revenues to make up shortfalls in the operation of the parks and recreational facilities. The city manager testified only that the city’s board of directors would decide whether the city would use tax revenues to replace the user fees pledged to the repayment of the bonds. The chancery court found that the ordinance was constitutional. Harris appealed.

Rule of Law

Issue

Holding and Reasoning (Corbin, J.)

Concurrence (Imber, J.)

Concurrence (Brown, J.)

Concurrence/Dissent (Glaze, J.)

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