Davis v. Fresno Unified School Dist.

Summary

The court held that the lease-leaseback arrangement at issue was not a "contract" subject to validation under Government Code section 53511. Because the school construction was fully financed through previously issued general obligation bonds, and repayment depended on ad valorem property taxes rather than the lease-leaseback arrangement or project completion, the arrangement was not sufficiently connected to government indebtedness. The court affirmed the Court of Appeal's judgment and remanded for further proceedings on the taxpayer action.