Section 5.51 Public Purpose

• Library: Local Government Deskbook (2017 Ed.)

A. (§5.51) Public Purpose

Various constitutional provisions provide that cities and other political subdivisions can expend and raise public funds only for a public purpose. Certain limitations on counties, cities, or other political corporations are contained in article VI, §§ 23 and 25, of the Missouri Constitution. Section 23 states that no such entity may “own or subscribe for stock in any corporation or association, or lend its credit or grant public money . . . in aid of any corporation . . . except as provided in this constitution.” Section 25 states that no such entity may “lend its credit or grant public money or property to any private individual, association or corporation except as provided in Article VI, Section 23(a)” with respect to industrial projects and except for providing for retirement or pensions for its officers and employees, etc. Furthermore, article X, § 3, of the Missouri Constitution provides that taxes may be levied and collected only for public purposes. These provisions are usually described as requiring municipalities and other units to collect and spend public funds only for public purposes.

Under article I, § 26, of the Missouri Constitution, the taking of private property for public use without just compensation is forbidden, and article I, § 28, of the Missouri Constitution absolutely forbids the taking of private property for a private use. Thus, taken together, §§ 26 and 28 require that a “public purpose” exist before a municipality can spend public money to compensate those whose properties are taken by eminent domain. See, e.g., State on Inf. of Dalton v. Land Clearance for Redevelopment Auth. of Kansas City, Mo., 270 S.W.2d 44 (Mo. banc 1954).

Missouri courts adhere to a broad interpretation of “public purpose,” which essentially means that some benefit or convenience flows directly to the public. State ex rel. Wagner v. St. Louis Cnty. Port Auth., 604 S.W.2d 592, 597 (Mo. banc 1980). Even if benefits accrue to private persons, government action does not lose its public character as long as the primary purpose is public. Id. Thus, the issuance of revenue bonds for commercial, industrial, agricultural, and manufacturing facilities has been held to serve the public purposes of improving employment and stimulating the economy. Id.; see also State ex rel. Jardon v. Indus. Dev. Auth. of Jasper Cnty., 570 S.W.2d 666 (Mo. banc 1978).

The courts have stated that judicial review of legislative determinations as to “public purpose” is limited. The...