Article XI, Section 7 of the Texas Constitution (discussion page)

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This page is available for comment and discussion regarding the page Article XI, Section 7 of the Texas Constitution.

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McNeill v. City of Waco, 33 S.W. 322, 323 (Tex. 1895)

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Article XI, section 7 limits the authority of a county to incur debt; it does not affirmatively authorize counties to levy taxes for any purpose. See Mitchell County v. C~~JJ Nat? Bank, 43 S.W. 880, 883 (Tex. 1898) (Tex. Coast. art. XI, 5 7 “contains no grant of authority to levy a tiuc”). ‘I&refore, before providing for a levy and sinking !iaid in order to comply with article XI, section 7, a county shordd fust verify that it is authorized to levy the tax.

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Clear L&e City Water Auth. v. Clear Lake Ori/. Co., 549 S.W.Zd 385, 390 (Tex. 1977) (amtracts that contemplate aucwsaix pcrfomlances and which are indcfudtc in duration can lx temhatcd a1 will ofeither party)

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Stevenson v. Blake, 113 S.W.2d 525, 527 (Tex. 1938) (defining "debt" by reference to satisfaction of pecuniary obligations "out of the current revenues for the year")

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A county's spending authority also implicates section 7 of article XI of the Texas Constitution, which prohibits a county from incurring a "debt" without establishing a tax to cover interest on the obligation and create a sinking fund of at least 2% to reduce the principal. See TEX. CONST. art. XI, § 7. A "debt" for constitutional purposes means any contractual pecuniary obligation except that which was within the lawful and reasonable contemplation of the parties, at the time of the agreement, "to be satisfied out of the current revenues f()r the year or out of some fund then within the immediate control of the county." Tex. & New Orleans R.R. v. Galveston County, 169 S.W.2d 713, 715 (Tex. 1943).

https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2019/kp0261.pdf