June 24, 2003
Re: Procedure for surrender of charter
Dear Mayor,
Your Management Consultant advised me that you need to know the procedure for dissolution of
the City’s charter. This letter explains the steps to follow, based on the general law charter
adopted by your city.
The Tennessee Code contains provisions governing the surrender, or abolition, of municipal
charters for cities incorporated under the general law. The process is started by the filing of a
petition signed by ten percent (10%) of the registered voters with the county election
commission, pursuant to the following code section:
Whenever ten percent (10%) or more of the registered voters of any such town or city
shall petition the county election commission of the county in which the town or city is
located, setting forth in the petition that they desire and pray that an election be held of
the qualified voters of the town or city, submitting to them the question of “charter” or
“no charter,” the county election commission shall cause to be held an election in the
town or city, in the several wards thereof, if there are such wards, to ascertain the will of
the people of the town or city, as to the surrender or nonsurrender of their charter.
T.C.A. ' 6-52-201(1). After the filing of the petition, the election commission has the obligation
to publish notice of the election, as follows:
the county election commission shall give notice of the time of holding such election, by
written or printed handbills posted at five (5) or more public places in the town or city
and every ward thereof, at least thirty (30) days before the day of election, stating the
object of the election, and shall also cause the same to be published for two (2)
consecutive weeks in some newspaper, if there is one published in the town or city.
T.C.A. ' 6-52-202. The election is then held on the date stated in the notice, pursuant to the
general election laws. T.C.A. ' 6-52-203. Eligible voters who desire to surrender the charter
shall have the words “no charter” printed or written on their tickets, and those opposed to the
surrender shall have “charter” printed on their tickets.
The election will be scheduled to coincide with the next city or county-wide election, primary or
referendum which is held 45 days after the petitions for abolition are filed with the election
commission. T.C.A. ' 6-52-206.
If the majority of votes cast are in favor of abolishing the charter, the election commission:
shall make a triplicate certificate of the result of the election and file one (1) with the
original petition with the county clerk; it shall also file one (1) of the certificates, together
with a copy of the original petition, with the secretary of state’s office, and it shall cause
one (1) of the certificates to be registered in the register’s office of the county in which
the town or city is situated. When the certificates are duly filed and registered as herein
provided, the corporation shall be abolished and become extinct.
T.C.A. ' 6-52-205(a) (emphasis added). If the majority of voters chose to keep the charter, the
election commission files the certificate of result with the county clerk, and no further election
may be held on the issue for twelve (12) months. T.C.A. ' 6-52-205(b).
If the charter is abolished in the election, the board of mayor and aldermen become trustees of the
property and funds of the municipality. Under the bonds which may be required by the county
governing body, the trustees shall terminate the affairs of the city and dispose of its property.
Charter Section 6-1-305(b).
If the property and funds exceed the debts of the municipality, any surplus shall be paid into the
treasury of the county. If the funds are insufficient to meet the city’s obligations and debts, the
county legislative body may levy and collect taxes on property within the former boundaries of
the municipality and pay the revenue to the trustees for the purpose of meeting the current deficit.
The trustees must wind up the affairs of the former city as soon as possible, but within thirty-six
(36) months. Charter Section 6-1-306.
I hope this information is helpful. Please let us know if you need further assistance in this or any
other matter. Thank you for consulting with MTAS.
Sincerely,
Melissa A. Ashburn
Legal Consultant