Nebuda v. Dodge County Sch. Dist. 0062

After voters in School District rejected a bond proposal to construct an addition to existing high school building, School District entered into a lease-purchase agreement with Bank, which agreed to finance the project. Appellants, residents and taxpayers in the school district, sought declaratory and injunctive relief contending that the agreement violated Neb. Rev. Stat. 79-10,105. The trial court denied relief, concluding (1) under section 79-10,105, lease-purchase agreements may be used to make school improvements without the voters’ approval if the project is not funded by bonded debt; and (2) School District in this case did not fund the project through bonded indebtedness. The Supreme Court affirmed, holding (1) Appellants’ claims were moot because, as of the time of this appeal, the addition had been completed, but the public interest exception to the mootness doctrine applied; and (2) section 79-10,105 does not prohibit a school district from entering into a lease-purchase agreement to finance a capital construction project if it has not created a nonprofit corporation to issue bonds for the school district, and because there was no evidence that this occurred in this case, School District did not violate section 79-10,105 by entering into the lease-purchase agreement with Bank. View "Nebuda v. Dodge County Sch. Dist. 0062" on Justia Law