The town of Cedar Grove in Bay County, Florida was dissolved in 2008 after a referendum passed. This was a big deal because it had never happened in Florida before. It was a complicated process to transfer all the town’s stuff to the county. The whole thing started with a grassroots campaign by local citizens, and eventually, the town was dissolved. It was a big win for the people who wanted it to happen. Municipalities are created and dissolved by the state legislature. The law for dissolution is found in Chapter 165 of the Florida Statutes. A municipality can be dissolved by a special act of the legislature or by a vote of the municipality’s residents. When a municipality is dissolved, its assets and debts go to the county. The county may have to raise taxes to pay off the debts. In 2008, the town of Cedar Grove voted to dissolve. The town provided a severance package for its employees. The commission found that Bay County can provide the services needed if Cedar Grove is dissolved. They held a referendum to ask residents if they wanted to dissolve the town. It was too hard to make a plan before the vote. The county commission didn’t want to take sides, so they stayed neutral. If the vote passed, the commission had to make a plan within 90 days. The town decided to dissolve and become part of the county, so they needed a plan for how to do it. This plan had to cover things like what to do with the townâs debts, assets, and employees. The law didnât give much detail on what the plan should include, so the town looked to corporate law for guidance. In the end, they had to make sure that all debts were paid, assets were transferred, and everything was wrapped up before officially joining the county. The town of Cedar Grove, Florida needed to continue operating after the election before it could be dissolved. The county helped the town make a plan for how to dissolve, and the mayor was given the power to carry out the plan. The plan covered things like what would happen to the town’s employees, debts, and assets. The county took over the town’s financial accounts and control of its money. The town promised to not take on any more debts and to give a final report on its finances when the dissolution process was finished. In 2008, the town decided that the county manager, town clerk, and mayor would make financial decisions. The county took over the town’s property and debts in December. There were some unexpected issues, like a retired employee wanting payments and missing financial records. It took over a year for the county to take on the town’s loans. Finding all the town’s assets, like water and sewer lines, was tricky, especially in old areas where records were lost. Utility problems are still being dealt with. Cedar Grove’s water and wastewater services were taken over by Bay County due to financial issues. Residents saw some benefits, but the county stopped paying for street lights, which became a problem. The county also took over the town’s records and digital assets. When the town was dissolved, all of its rules and laws became invalid, causing a big problem in the county’s planning and zoning. The county had to quickly come up with a new plan to cover the area that used to be the town. There were also issues with land development and legal cases still ongoing, but most things were sorted out smoothly. Some problems, like a hazardous waste issue and a dispute over a copier lease, still needed to be resolved. The town of Cedar Grove in Florida was dissolved in 2008, and its police department was disbanded and replaced by the Bay County sheriff. This decision was made by a small percentage of the town’s voters. Even though the town no longer legally exists, it still exists in people’s hearts and minds. The power and obligations of the town were transferred to Bay County. This kind of dissolution of a town is rare and hasn’t happened much since the 1968 Constitution was adopted. In Sullivan v. Volusia County, the court used the word âdissolutionâ to mean the same thing as âabolishedâ in the Florida Constitution. Florida law has specific procedures for forming or dissolving municipalities, and these procedures must be followed. The legislature does not want small areas to become their own separate towns. Citizens Coalition wanted to dissolve the town of Cedar Grove, but their petition was dismissed. The town had some financial issues, with about $3.6 million in outstanding revenue bonds. Before 2004, there was a law allowing the state to dissolve “inactive” towns, but it was repealed. After dissolution, the town’s property and assets would go to the county. The town also passed Resolution No. 08-12. If the dissolution plan had been explained better before the election, it might have affected the outcome. The Bay County Attorneyâs Office and the town worked together to create a dissolution ordinance. Employees were laid off gradually and given severance pay. The county is finishing stormwater projects started by the town. The town used a blow up doll in a police car as a traffic device, which went missing after the dissolution. Bay County opposed Cedar Grove CRAs in the past. Terrell K. Arline, a lawyer and urban planner, has had a long career and is now the Bay County attorney.
Source: https://www.floridabar.org/the-florida-bar-journal/the-dissolution-of-the-town-of-cedar-grove/
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