McGuire v. Philadelphia

Citations

• 245 Pa. 287
• 91 A. 622
• 1914 Pa. LEXIS 875

Syllabus

<p>Municipalities — Increase of indebtedness — Computation of city’s debt — Deductions—Debt assumed by coincident school district— Authorized but unissued loans — Constitutional law — Act of April 20,1874, P. L. 65 — Act of May 18,1911, P. L. 809.</p> <p>• 1. The constitutional provision which concisely, clearly and definitely fixes the borrowing capacity of a city is that its indebtedness “shall never exceed seven per centum upon the assessed value of the taxable property therein.” The indebtedness of a' municipality, like that of an individual, is what it owes and can be called upon to pay, and the constitutional limitation upon its power to contract indebtedness is fixed without regard to what assets, real or personal, it may own.</p> <p>2. In construing the meaning of “solvent debts” mentioned in the Act of April 20,1874 P- L- 65, only debts due to a municipality directly, payment of which it can enforce as one of its quick assets for the liquidation of any of its obligations, will be deemed to be included.</p> <p>3. Although a portion of the debt of a city may have been imposed upon a school district coincident with such city, and assumed by it, this in no manner affects the absolute liability of the city to pay such indebtedness. The amount of the indebtedness of the city is just the same before as after the assumption of a portion thereof by the school district, and. the amount so assumed cannot be deducted from the gross indebtedness of the city in determining how much it actually owes. The words “solvent debts” cannot be construed to include the character of obligation, if any, created by such assumption of indebtedness by a school district, especially where it does not appear how or when the indebtedness incurred by the city for school purposes is to be paid by the school district.</p> <p>4 In determining the net amount of its indebtedness, a municipality is not entitled to deduct authorized but unissued loans. Redding v. Espíen Borough, 207 Pa. 248, expla