DANIEL E. SCOTT, Chief Judge.
Appellant Western Taney County Fire Protection District ("District") is a duly organized fire protection district authorized to tax property within its boundaries in support of its services. Respondent City of Branson ("City") likewise has taxing authority and a fire department.
From time to time through 1994, City annexed property within District's boundaries, resulting in duplication of fire protection services and double taxation in the overlapped areas.
In 1994, City and District entered into an "Agreement Concerning Provision of Fire Protection Services" ("Agreement") to eliminate overlapping boundaries, avoid double taxation and double service, and provide adequate fire protection services for both City and District. The Agreement included these provisions:
Both parties performed their contractual obligations, including City's total payment to District of $1.25 million (3 × $416,666.66).
City later annexed other property within District's boundaries. District sought more money per § 321.322 RSMo, a statute known to both parties when they made the Agreement.
District sued, a stipulation of facts was filed, and the parties filed cross-motions for summary judgment. The trial court found that the Agreement was one contemplated and authorized by § 321.322; it unambiguously provided for future annexations by City; valuable consideration had been paid in full; and District was entitled to no further compensation. The court granted City's summary judgment motion, denied District's motion, and entered judgment accordingly.
District appeals. Our review is de novo. Henslee v. Cameron Mut. Ins. Co., 292 S.W.3d 476, 477 (Mo.App.2009).
Annexation issues like these are the focus of § 321.322, which was enacted in
District's primary argument here, as in the trial court, is that the statute also evinces a "`sixty days' statutory mandate" forbidding agreements as to future annexations and negating agreements "outside the statutory 60 day window." District cites this part of § 321.322 (our emphasis):
We have fully considered the parties' excellent oral and written presentations and agree with District's bottom-line conclusion
Having stated the "big picture," we address District's statutory, contractual, and other arguments in turn.
Section 321.322 is not a model of concise or cogent drafting, but its basic procedure is clear enough. A statutory compensation scheme is triggered unless a city contractually assumes, within 60 days of the effective annexation date, responsibility to pay other mutually-agreed consideration. District goes further, however, in urging that the statute prohibits the making of agreements outside that 60-day period and invalidates any contracts so made.
We do not so narrowly read the statutory text, which does not state that it invalidates anything and expresses only one prohibition: "Nothing contained in this section shall prohibit the ability of a city to negotiate contracts with a fire protection district for mutually agreeable services." Moreover, one can "assume by contract" future obligations, or can contract now to render future performance within 60 days of an event that may not occur for months, or years, or ever.
The question is not whether § 321.322 authorizes the Agreement, but whether the statute forbids it. We conclude that it does not.
We also reject two contract-based arguments made by District. One is that the Agreement "does not address whether it extends to future annexations; it simply confirms the parties [sic] understanding that they will not again get into the situation of double coverage and double taxation." This is rebutted by the Agreement's explicit references to "future annexations" and what would happen in those situations.
Finally, District urges that even if the Agreement complies with § 321.322, it violates Article 10, §§ 1 & 2 of the Missouri Constitution and the common law rule against perpetual contracts.
District claims that the cited constitutional sections,
District's perpetual contract argument fails as well. A contract for an indefinite term is not necessarily perpetual. See Paisley v. Lucas, 346 Mo. 827, 143 S.W.2d 262, 270-71 (1940).
Our de novo review confirms the propriety of the trial court's decision. Judgment affirmed.
BATES and FRANCIS, JJ., concur.