Honorable Marvin Fletcher
AGO 2019-33
No. 2019-033
Alabama Attorney General Opinion
State of Alabama Office of The Attorney General
April 24, 2019
Honorable
Marvin Fletcher
President,
Board of Trustees
Forestdale
Fire District
751
Heflin Avenue East
Birmingham,
Alabama 35214
Fire
Districts - Service Charges -Liens - Foreclosure Sale
-Redemption - Jefferson County
If the
Forestdale Fire District ("District") collects
annual service charges in the same manner as the foreclosure
of a municipal assessment for public improvements, it may use
for general operations excess proceeds from foreclosure sales
occurring more than six years earlier.
If the
District collects as ad valorem taxes are collected, it may
use for general operations funds which have been held in a
special account for three years after the property owner
relinquished possession. When the owner retains possession,
such funds must be held for ten years before becoming the
District's property.
Dear
Mr. Fletcher:
This
opinion of the Attorney General is issued in response to your
request on behalf of the Forestdale Fire District.
QUESTION
Can the
Forestdale Fire District use for general operations funds
which were collected from the sale of properties on which the
District had a lien for the nonpayment of the annual service
charge and which have been held in the District's overbid
account for over six years?
FACTS
AND ANALYSIS
Section
45-37-140, et seq., of the Code of Alabama, is a
local act providing for the creation and maintenance of fire
districts in Jefferson County. Ala. Code §§
45-37-140 to 45-37-140.14 (2014). Section 45-37-140.11(a)
provides two alternative methods of enforcing liens for the
nonpayment of annual service charges. How the District may
administer its "overbid account" consisting of
excess proceeds arising from the sale of property upon the
failure to pay the service charge depends on which
enforcement method the District selects.
Section
45-37-140.11(a) provides that the establishment and
maintenance of fire districts are to be funded through
"the proceeds of any service charge or fire dues . . .
collected from the property owners served by the
system." Ala. Code § 45-37-140.11(a) (2014). The
collection of the service charge or fire dues is to be
secured by a lien against the...
