STATE OF SOUTH DAKOTA
OFFICE OF
THE ATTORNEY GENERAL

June 14, 1968

Charles A. Wolsky
State’s Attorney, Clay County
Vermillion, South Dakota 57069

OFFICIAL OPINION NO. 67-68 pg. 494

Bonds. Proceeds of Special Assessment Bonds may be expended without additional appropriation ordinance.

You have requested an opinion based upon the following factual situation:

"The City of Vermillion, looking forward to establishment of its 1969 budget has a problem on which it desires an opinion. Section 45.1402 of the 1960 Supplement provides in part that the governing body of a municipality shall appropriate such sums of money as may be deemed necessary to meet all lawful expenses  and liabilities of the municipality. Does this include expenditures to be made for the construction of public improvements, such as extensions of water mains, sewer mains, and street improvements for which special assessments are to be levied and their costs are to be raised from the sale of assessment bonds under Section 45.2114?"

SDC 1960 Supp. 45.1404 reads in part as follows:

“…, except that the governing body may expend the proceeds of any bond issue authorized by the electors of the municipality…”

The above is an exception to the appropriation ordinance requirements and does not directly relate to special assessment bonds, since such bonds are not authorized by the electors but are authorized by statute after certain procedures and hearings are followed.

SDC 1960 Supp. 45.1405 reads in part as follows:

"Except as otherwise provided, no contract shall be made by the governing body of any municipality and no expenses shall be incurred by any department or any officer thereof, whether ordered by the governing body or not, unless an appropriation shall have been previously made concerning such expense, or the governing body authorized to issue bonds for a specific purpose…”

SDC 1960 Supp. 45.2114 reads in part as follows:

"The governing body, in lieu of issuing assessment certificates, may provide by ordinance or resolution for the issuance of negotiable bonds without a vote of the electors in an amount not exceeding the entire cost of the improvement and sell the same at not less than par with accrued interest…”

It is my opinion that the proceeds from special assessment bonds may be expended by a municipality without any additional appropriation ordinance.