Schuldice v. City of Pittsburgh

Citations

• 251 Pa. 28
• 95 A. 938
• 1915 Pa. LEXIS 631

Syllabus

<p>Municipalities — Indebtedness—Funding bonds — Vote of people —Calculation of debt — Bonds oiuing by bridge company — Damages for change of grade of streets — Judgments for personal injuries— Disputed claims — Assessments for benefits — Binicing fund — Deduction of cash and bonds.</p> <p>1. The issuance of bonds by a city for the purpose of funding or refunding a debt previously created and existing is not an increase of indebtedness but is merely a continuation thereof. The fact that the old debt is not instantly paid when the new is created is not material when the proceeds of the new loan are irrevocably pledged to the payment of the old debt.</p> <p>2. The fact that the people vote to permit the funding of an old debt incurred without their consent does not transfer the debt from the councilmanie to the electoral class.</p> <p>3. Bonds issued by a bridge company of which the city owns all the stock and has the complete control, are properly counted as a part of the city’s debt.</p> <p>4. The amount of an estimate made by the proper officers of a city as to the cost of changing the grade of a street which has been authorized, and the damages which will be caused property owners thereby, is properly counted as a part of the city’s debt; but possible benefits which might be assessed against property owners in such case where any estimate as to the amount of such benefits is necessarily uncertain and speculative, are not grounds for reducing the indebtedness so found.</p> <p>5. Undisputed liens actually filed against properties benefited are outstanding solvent debts owing the city and as such may be considered as an offset in computing the city’s debt.</p> <p>6. The amount of judgments recovered against a city for damages for personal injuries are properly computed as a part of the city’s debt, especially where there is nothing to show that appropriations have been made from current funds sufficient to cover such liabilities during the fiscal year.</p> <p>7. Unli