Public purpose doctrine: use of city's credit for private interests

Cities are granted the right to impose taxes to raise public funds in Article II , § 29 of the Tennessee Constitution, which states: “The General Assembly shall have power to authorize the several counties and incorporated towns in this State, to impose taxes for County and Corporation purposes, respectively....” From this language has grown the public purpose doctrine, which dictates that public funds and public resources can be used only for public purposes. City credit may be extended and used for a public purpose, under which a private firm or corporation does receive benefit, but such lending of credit must be authorized by referendum vote or by specific statutory authority absent such a vote.