City of Carlyle v. Carlyle Water, Light & Power Co.

Citations

• 140 Ill. 445
• 29 N.E. 556

Syllabus

<p>1. Municipal indebtedness—providing for annual tax to pay same in twenty years—-five per cent limit. In a suit against a city to recover -the contract price agreed to be paid for water-works, the city pleaded that it was indebted in the sum of $1000 other than the debt created by the contract; that the value of-the taxable property within the city was $256,740; that the debt already existing against the city, together with the debt created by such contract, exceeds the sum of five per cent of said assessed value of all the property within the city; and that said ■ city did not, before or at the time of entering into such contract, in incurring the indebtedness thereby created, provide for the collection ■of a direct annual tax sufficient to pay said indebtedness incurred by such contract within twenty years from the time of contracting the same, as required by section 12, of article 9, of the constitution: Held, that the plea was bad on demurrer.</p> <p>2. Unless an indebtedness in excess of five per cent of the taxable property of a city has been created, no provision for levying an annual tax is necessary under section 12 of article 9 of the constitution. e</p> <p>3. Same—making appropriation before entering into contract for water-works. In a suit against a city for the contract price for the construction of water-works, the defendant pleaded that the city did not make an appropriation concerning the erection of water-works within the corporate limits previous to the making and entering into the contract, as in and by section 4, article 7, chapter 24, of the Revised Statutes -of this State, which is a part of the charter of said city, it is provided: Held, on demurrer, that the plea was clearly bad.</p> <p>4. Contract-—whether assignable. A city, by ordinance, entered into a contract with a corporation for the erection of water-works, to be accepted and paid for on the completion of the same. The corporation transferred its rights under the contract to a new c