Greater cincinnati/northern Kentucky Apartment Association, Inc. v. Campbell County Fiscal Court

479 S.W.3d 603, 2015 WL 6586947
CourtKentucky Supreme Court
DecidedOctober 27, 2015
Docket2014-SC-000383-TG
StatusUnknown
Cited by5 cases

This text of 479 S.W.3d 603 (Greater cincinnati/northern Kentucky Apartment Association, Inc. v. Campbell County Fiscal Court) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greater cincinnati/northern Kentucky Apartment Association, Inc. v. Campbell County Fiscal Court, 479 S.W.3d 603, 2015 WL 6586947 (Ky. 2015).

Opinions

OPINION OF THE COURT BY JUSTICE CUNNINGHAM

Our 911 emergency telephone service has become one of the most critical of all local public services. It provides instant access for all Kentuckians in times of need. But dispatching these emergency calls cannot occur without cost. We hold that the fee imposed by the Campbell County Fiscal Court to fund this indispensable service is a constitutional and statutorily valid exercise of its authority.

Background

Historically, the emergency 911 service in Campbell County — like much of the Commonwealth — was funded by imposing a monthly subscriber fee per landline telephone. Needless to say, the number of landline phones is decreasing rapidly. As such, the increase in.wireless telephones and other technologies has rendered the landline subscriber fee an inadequate source of funding.

On August 7, 2013, the Campbell County Fiscal Court (“Count/’) adopted Ordinance 0-04-13 (“Ordinance”). The Ordinance replaced the landline subscriber charge with an annual service fee of $45.00 levied upon each occupied individual residential and commercial unit within Campbell County. ■ -The Greater Cincinnati/Northern Kentucky Apartment Association (“Association”) filed a declaratory action in Campbell Circuit Court alleging that the Ordinance was an unconstitutional and invalid exercise of the County’s authority. The trial court disagreed. and ruled in favor of the County, thus affirming the Ordinance. The Association appealed that judgment and moved pursuant to CR 74.02 for an order transferring this case from the Court of Appeals to this Court. Given the statewide importance of this case, we granted transfer. Having reviewed the1 record and the law, we affirm the circuit court’s ruling, but on different grounds.

Analysis

Although the Association challenged the constitutionality of the Ordinance before the trial court, it has failed to raise a direct constitutional argument before this Court. In any event, state constitutional provisions concerning local government’s taxing authority are irrelevant here. As subsequently discussed, the Ordinance provides for a fee, not a tax. In accordance with the parties’ arguments, we will limit our analysis to whether the Ordinance is a statutorily valid exercise of the County’s authority.

Statutory Validity

The Ordinance was adopted pursuant to KRS 65.760(3) which provides in pertinent part:

The funds required by a city, county, or urban-county government to establish and operate'911 emergency telephone service, or to participaté' in joint' service with other local governments, may be obtained through the levy of any special tax, license, or fee not in conflict with [605]*605the Constitution and statutes of this state. The special tax, license, or fee may include a subscriber charge for 911 emergency telephone service that shall be levied on an individual exchange-line basis, limited to a maximum of twenty-five (25) exchange lines per account per government entity. (Emphasis added).

In construing statutes, we must give effect to the intent of the General Assembly. Maynes v. Commonwealth, 361 S.W.3d 922, 924 (Ky.2012). “We derive that intent, if at all possible, from the language the General Assembly chose, either as defined by the General Assembly or as generally understood in the context of the matter under consideration,” Id. (citing Osborne v. Commonwealth, 185 S.W.3d 645 (Ky.2006)).

It is undisputed that the funds collected by the County are not a form of special tax or license; rather, the Ordinance clearly provides that the charge is a service fee. The plain language of KRS 65.760(3) indicates that funds required to establish and operate 911 telephone services “may be obtained through the levy of any ... fee not in conflict with the Constitution .and statutes of this state.” (Emphasis added). There is no term provided in KRS 65.760(3) that qualifies the nature or scope of the term “fee.” Thus, the only express limitation provided in the statute is that, the fee not conflict with our state Constitution or statutes.

The Association argues that the fee imposed under the Ordinance constitutes an impermissible user fee that violates KRS 91A.510. That statute defines a user fee' as a “fee or charge imposed by a local government on the user of a public service for the use of any particular service not also available from a nongovernmental provider.” The Association contends that the Ordinance is invalid because-it imposes a user fee that is not based on actual use of the benefit received. As such, the Association submits that the Ordinance levies an unauthorized flat-rate tax.

In support of their respective arguments, both parties cite extensive case law, none of which is directly on point. See; e.g., Barber v. Comm’r of Revenue, 674 S.W.2d 18 (Ky.App.1984) (holding that a fire protection service charge was unconstitutional where enabling statute only authorized funding through use of property taxes); Kentucky River Authority v. City of Danville, 932 S.W.2d 374, 377 (Ky.App.1996) (“The fee in this case is based upon the actual use by the city of the Kentucky River water basin.”) (emphasis added). In fact, this is the first occasion upon which this Court has had thé opportunity to interpret KRS 65.760(3) or KRS 91A.510. We recognize that we must construe all applicable statutes together in an attempt to harmonize and give effect to the provisions of each. See Commonwealth v. Phon, 17 S.W.3d 106, 108 (Ky.2000) (citations omitted). However, there is no need to harmonize the. two statutes presented here. KRS 91A.510 is entirely inapplicable to the present, issue.

The Association’s argument is premised on the erroneous assumption that the term fee must mean user fee. To the contrary, “[v]arious fees exist and are used to implement programs deemed desirable by the Commonwealth.” Kentucky River Authority, 932 S.W.2d at 377. In addition, KRS 65.760(3) was enacted in 1984, thus predating KRS 91A.510 by two years. Therefore, the statutory definition of user fee now embodied by. KRS

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Bluebook (online)
479 S.W.3d 603, 2015 WL 6586947, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greater-cincinnatinorthern-kentucky-apartment-association-inc-v-ky-2015.