The Jackson County Board of Commissioners “County” plans to enter into a lease purchase agreement with the Association of County Commissioners of Georgia “ACCG” to finance and construct a new courthouse. ACCG is a non-profit organization that assists county governments. The proposed agreement is intended to comply with the requirements of OCGA § 36-60-13. The Bauerbands and several other residents of Jackson County “Bauerbands” sued for an injunction, writ of mandamus, and declaratory judgment, to prevent the County from proceeding with the agreement, arguing primarily that the agreement results in the County incurring debt without a public vote approving the incurrence of debt, contrary to the mandate of Article IX, Section V, Paragraph I a of the Georgia Constitution. The Bauerbands appeal from the grant of the County’s motion for summary judgment.1 For the reasons that follow, we affirm. Under the proposed agreement, the County will lease the land from ACCG, which will sell “certificates of participation” in the agreement. Proceeds from the sales will be held by a trustee, who will disburse funds for the construction of the courthouse. The County will pay an annual rent, and the agreement is renewable each year, for thirty years. Each renewal will terminate on December 31 of the renewal year. At the end of the thirty years, the County has the option to purchase the land. The agreement specifically provides that the County is under no obligation to appropriate money for annual rentals, and that the only obligation is “year to year.”
1. The constitutional provision at issue concerning the authority of local governments to undertake debt reads: The debt incurred by any county, municipality, or other political subdivision of this state, including debt incurred on behalf of any special district, shall never exceed 10 percent of the assessed value of all taxable property within such county, municipality, or political subdivision; and no such county, municipality, or other political subdivision shall incur any new debt without the assent of a majority of the qualified voters of such county, municipality, or political subdivision voting in an election held for that purpose as provided by law. Ga. Const. of 1983, Art. IX, Sec. V, Para. I. a. The debt limitation based on the assessed value of taxable property is not at issue in this case, only the voting provision.
