Dillon’s Rule and the Limits of Road District Authority
A fundamental principle of local government law—known as Dillon’s Rule—helps clarify an important question:
What can a road district legally do?
What is Dillon’s Rule?
Dillon’s Rule is a long-standing legal doctrine that governs local government authority. In simple terms, it provides that local governmental entities—such as road districts—have only the powers that are:
- Expressly granted by state law
- Necessarily implied from those powers
- Essential to the declared purposes of the entity
If a power does not fall into one of these categories, it does not exist.
This means local boards cannot create authority for themselves through bylaws, policies, or long-standing practice.
Applying Dillon’s Rule to the Saddleback Road District
The Saddleback Road District (SBRD) states that it operates under SDCL Chapter 31-12A. That statute defines what the district can—and cannot—do.
1. “Special Maintenance Fees”
The SBRD bylaws claim authority to:
“levy taxes, special assessments, special maintenance fees…”
However, SDCL 31-12A-21 authorizes only:
- Taxes
- Special assessments
There is no explicit mention of “special maintenance fees.”
Under Dillon’s Rule:
- If the legislature did not grant that power
- And it is not clearly implied
Then the power does not exist
This raises a direct question:
Can a road district create a new category of fee that is not listed in statute?
2. Flat Per-Landowner Charges
The bylaws state that the district uses:
“an annual flat per landowner levy”
Traditional special assessments are typically based on:
- Property benefit
- Measurable impact
A flat fee applied equally to all landowners does not clearly align with that structure.
Under Dillon’s Rule, the question becomes:
Is a uniform per-owner charge expressly authorized—or necessarily implied—from the power to levy special assessments?
If not, the authority is questionable.
3. Expansion of Powers Through Bylaws
The bylaws include provisions that:
- Impose obligations on landowners
- Regulate use of public right-of-way
- Establish enforcement-related requirements
While bylaws can govern internal procedures, they cannot expand statutory authority.
Under Dillon’s Rule:
A local entity cannot grant itself powers the legislature did not provide.
4. Meeting Practices and Governance
The bylaws also authorize “ministerial meetings” conducted via:
- Text message
- Other electronic communication
and claim exemption from public notice requirements.
Public bodies are governed by state transparency laws, including South Dakota Codified Laws § 1-25-1.
Under Dillon’s Rule, the question is:
Does state law authorize these types of meetings in the manner described?
If not, the practice may exceed lawful authority.
Why This Matters
Dillon’s Rule exists to ensure that local governments:
- Remain accountable to state law
- Do not exercise powers beyond what was granted
- Operate within clearly defined limits
This is especially important when:
- Fees are imposed on property owners
- Rules affect use of private property
- Decisions are made outside of clear public processes
Conclusion
The issues raised here are not about disagreement—they are about legal authority.
Under Dillon’s Rule:
If state law does not authorize a power, the power does not exist.
This principle applies directly to questions surrounding:
- “Special maintenance fees”
- Flat per-landowner charges
- Governance and meeting practices
Where statutory authority is unclear or absent, those actions deserve closer examination.
For the benefit of both the district and its residents, clear alignment with state law is not optional—it is required.