Expenditures for county pension fund.

- County's inclusion of the sheriff in its pension plan with county funds did not create a temporary loan in violation of Ga. Const. 1983, Art. IX, Sec. V, Para. V. Malcom v. Newton County, 244 Ga. App. 464, 535 S.E.2d 824 (2000).

Under this paragraph, counties do have authority to negotiate temporary loans in order to defray current county expenses.

- There are, of course, conditions and limitations placed on such loans; this power to borrow money for county purposes may be exercised by county commissioners. 1954-56 Op. Att'y Gen. p. 69 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

Gasoline tax allocation not included in gross income.

- In view of the fact that this paragraph provides that the amount of temporary loans may not exceed 75 percent of the total gross income of the county from taxes collected by such county, the last preceding year, the gasoline tax allocation should not be included in the gross income, as these taxes are collected by the state and not by the county as required by this paragraph, to arrive at the maximum amount of temporary loans that may be procured. 1948-49 Op. Att'y Gen. p. 641 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

Debt cannot exceed one year without voter approval.

- A county or other political subdivision may not legally incur ordinary indebtedness, secured or unsecured, for periods exceeding one year, without assent of a majority of the qualified voters of the county or other political subdivision voting in an election for that purpose to be held as prescribed by law. 1969 Op. Att'y Gen. No. 69-160.

Payment of insurance premiums with county funds.

- Use by county of public funds for payment of group life and hospitalization insurance premiums of its employees violates this paragraph and Ga. Const. 1976, Art. IX, Sec. VIII, Para. I (see Ga. Const. 1983, Art. IX, Sec. VI, Para. I). 1965-66 Op. Att'y Gen. No. 65-25 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

Debt limitation provisions fully applicable to school boards. See 1969 Op. Att'y Gen. No. 69-160.

Contractual employment term limited.

- Georgia Const. 1976, Art. VIII, Sec. VII, Para. I (see Ga. Const. 1983, Art. VIII, Sec. VI, Para. I), Ga. Const. 1976, Art. IX, Sec. V, Para. I (see Ga. Const. 1983, Art. IX, Sec. IV, Para. I), and this paragraph impliedly limit term of contractual employment of employees by county boards of education to one school year. 1963-65 Op. Att'y Gen. p. 79 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

This paragraph indirectly affects county boards of education.

- Inasmuch as a county board of education is not authorized to levy taxes, this paragraph does not apply to such boards, but this paragraph does apply to counties, and when a county makes a temporary loan for educational purposes this paragraph must be complied with, and therefore, it might be said that this paragraph indirectly affects the county boards of education. 1948-49 Op. Att'y Gen. p. 113 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

State funds as collateral for a loan.

- This constitutional limitation on amount which a county board may borrow applies to loans for which state funds are pledged as collateral, and therefore, a county board may not exceed the constitutional limitation when pledging anticipated state funds as collateral for a loan. 1948-49 Op. Att'y Gen. p. 107.

This paragraph limiting amounts county boards may borrow is still in effect. 1948-49 Op. Att'y Gen. p. 105 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

Former Code 1933, § 32-921 (see now O.C.G.A. § 20-2-390) was controlled by provisions of this paragraph, restricting amount of debt which may be incurred by a county board of education. 1958-59 Op. Att'y Gen. p. 97 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

Referendum required.

- A referendum is required before a school board may borrow money for a term longer than 12 calendar months where the loan is to be repaid from expected sales tax for educational purposes. A school board may, without such referendum, borrow money for a term of one calendar year or less, if certain legal requirements are met. 1997 Op. Att'y Gen. No. 97-30.

Loans limited to total anticipated revenue.

- This provision expressly limits aggregate of all temporary loans "and other contracts or obligations for current expenses" to total anticipated revenue of county board of education for the calendar year, and would indicate all contractual obligations of the county board of education such as teacher contracts, etc.; it has reference to revenue from all sources including state funds. 1958-59 Op. Att'y Gen. p. 97 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

Anticipated revenues cannot include grants from state.

- The provision in this paragraph that the aggregate amount of all temporary loans of a county board of education outstanding at any one time shall not exceed 75 percent of the total gross income of such county board of education from taxes collected by such county means "local county taxes"; it cannot include anticipated revenues from the State Board of Education, which money is merely a grant from the state. 1958-59 Op. Att'y Gen. p. 97 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

Borrowing by local school system for school construction projects of less than $200,000.00 legally permissible.

- When allotted funds from the State Board of Education for school construction result in construction projects of less than $200,000.00, the Georgia Education Authority (Schools) does not directly supervise construction but requires the local school system to construct the project itself and then be reimbursed by the authority; this procedure often makes it necessary for the local school system to borrow a substantial part of the construction costs for a period of nine months to a year; such borrowing is within the legal power of local school systems. 1968 Op. Att'y Gen. No. 68-18.

Rental payments grossly in excess of reasonably considered fair rental value indicative of disguised conditional sale.

- A lease agreement whereunder a county school board leases school buses for a single year is not on its face illegal merely because such agreement also gives the school board three one-year renewal options coupled with a purchase option exercisable at the end of the final renewal period; such an agreement might be subject to attack, however, if the yearly "rental payments" are so grossly in excess of what reasonably could be considered to be the "fair rental value" of the buses as to lead to a conclusion that the transaction, while disguised as a lease plus purchase option, is essentially a "conditional sale." 1965-66 Op. Att'y Gen. No. 65-33.

County hospital authority not subject to this paragraph.

- A county hospital authority is neither a county, municipality, political subdivision of the state authorized to levy taxes, or county board of education so as to come within the provisions of this paragraph. 1969 Op. Att'y Gen. No. 69-9 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

Tax anticipation notes improper collateral for state deposits.

- Tax anticipation notes used to cover temporary loans for expenses to Georgia's cities and counties during the current year would not be proper collateral for state deposits since tax anticipation notes were not included in former Code 1933, § 100-108 (see now O.C.G.A. § 50-17-59) as proper collateral. 1968 Op. Att'y Gen. No. 68-3.

Homestead realty exception from declared exemption and taxable to pay interest and retire bonded indebtedness.

- The language "except to pay interest on and retire bonded indebtedness" as used in this paragraph considered within the context of the provisions of the Constitution exempting homesteads from taxation should be construed as granting an exception from the declared exemption and that the realty classified as a homestead would be subject to taxation to pay interest on and retire bonded indebtedness created after the ratification of the 1945 Constitution. 1945-47 Op. Att'y Gen. p. 560 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

Revenues received under Joint County and Municipal Sales and Use Tax Act (O.C.G.A. § 48-8-80 et seq.) may be included as part of the "total gross income from taxes collected in the last preceding year" for purposes of this Paragraph. 1988 Op. Att'y Gen. No. U88-19 (see Ga. Const. 1983, Art. IX, Sec. V, Para. V).

Am. Jur. 2d.

- 56 Am. Jur. 2d, Municipal Corporations, Counties, and Other Political Subdivisions, §§ 511 et seq., 534.

ALR.

- Liquidation of indebtedness incident to abandoned project for an improvement, the cost of which, if made, would have been assessed against property benefited, 82 A.L.R. 559.

Exception regarding "emergency," "urgency," etc., within statute or charter forbidding municipal corporation to expend money or incur indebtedness in absence, or in excess, of appropriation, 111 A.L.R. 703.

Rescission of vote authorizing school district or other municipal bond issue, expenditure, or tax, 68 A.L.R.2d 1041.

Validity of governmental borrowing or expenditure for purposes of acquiring, maintaining, or improving stadium for use of professional athletic team, 67 A.L.R.3d 1186.