Culbertson v. City of Fulton

Citations

• 127 Ill. 30
• 18 N.E. 781

Syllabus

<p>1. Municipal indebtedness—constitutional limitation—as to the time when the debt is incurred. Where a city enters into a contract to pay a sum of money when certain work shall be done and accepted, the obligation thereby assumed will constitute a debt, within the meaning of the constitutional limitation of its power to incur indebtedness. Such indebtedness will be regarded as having been incurred from the date of the contract, and not postponed to the time of the completion and acceptance of the work.</p> <p>2. Same—the assessment of what year shall govern—in respect of the limitation. A city contracted for the construction of water works in August, 1887, by which it was to pay for the works, when completed and accepted, the sum of $11,619. The equalized value of the taxable property in the city was not fixed until October 1, 1887: Held, that the valuation of the property for the year 1886 governed as to the limitation of the amount of corporate indebtedness allowed to be incurred, and the valuation for that year being $209,061, the city was prohibited from incurring any greater indebtedness than $10,453.05, being five per cent upon the preceding year’s assessment, and that the debt in excess of that sum, being $1165.95, was void, but up to $10,453.05 was valid and enforceable.</p> <p>3. Same—upon what assessment. It is the assessment as finally fixed by the State Board of Equalization that must govern, in determining the basis of the limitation of the power to create municipal indebtedness.</p> <p>4. Same—City of Fulton—power to borrow money and issue bonds for water works. The city of Fulton, under its charter and the laws of the State, has the power, by ordinance adopted by a vote of the people, to borrow money with which to build and construct a system of water works, and to issue its bonds for the same, not exceeding the constitutional limit.</p> <p>5. Municipal taxation—injunction as to a part, if divisible. A tax can not be levied to pay a municipal debt f