Attorney General Opinions and Advisory Letters

Decision Information

Opinion No. 60-161

Collection Attorney General Opinions and Advisory Letters
Date 09/02/1960
File Number 1960 Op. Att'y Gen. No. 60-161
Citations - New Mexico Appellate Reports
Seward v. Bowers - cited by 137 documents

Decision Content

Opinion No. 60-161

September 2, 1960

BY: OPINION of HILTON A. DICKSON, JR., Attorney General

TO: Mr. Frank C. Boyce City Attorney City of Alamogordo Alamogordo, New Mexico

QUESTION

QUESTION

May outstanding water revenue bonds payable solely from revenues derived from the operation of municipal water works be refinanced from funds derived by the issuance of general obligation water refunding bonds?

CONCLUSION

No.

OPINION

{*550} ANALYSIS

Water revenue bonds may not be refunded in whole or in part by the issuance of general obligation water refunding bonds for the reason that, in the opinion of this office, the statutory grant of such power is lacking. Sec. 11-6-23 through Sec. 11-6-33, N.M.S.A., 1953 Comp. (as amended) permits a municipality to issue general obligation refunding bonds "for the purpose of refunding the bonded indebtedness of the municipality."

From this language it is clear that the legislative mandate limits refunding issues to "bonded indebtedness." This office is of the opinion that water revenue bonds do not constitute a "bonded indebtedness" of the municipality inasmuch {*551} as such revenue bonds are payable only from the net revenue of the water works system. See Seward v. Bowers, 37 N.M. 385, 24 P. 2d 253.

By: Patricio S. Sanchez

Assistant Attorney General

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