The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-03-07

I
Guiding the tax levy, and in addition q
sum equal to the tax leyy-that the
county may expend the entire revenue
to the tax levy.
.ihe position, as applied to the case in
nands IS. If the revenue of 1896 including
Iae tax OF slSoO66, amounted to s265.s59, the
/ mitted the liabilities of the county 10
equal that amount. and $130066 in addition;
that the county could float a debt with
S gu vote OF the electors over ito 1897, OF
$lSoU zoo, after having expended the entire
revenue Oh 1896. The language of the pro-
tation.
AN UNREASONABLE CONSTRUCTION
Admitting there is room for construc-
ton, the one placed upon the provision by
the plaintiff appears to be unreasonable
IN view OF its Language, and the expert
ences ana conditions in view of which 1t
was adopted. The expression, No debt
IN excess of the taxes of the current
year. is used; not, No debt in excess of
year.
1t appears to be clear that debt ex-
ceeds the taxes when il remains after
they have been expended; and If taxes are
construed TO mean the entire revenue,
that the debt is in excess of it if it re-
mains after it has been expended.
But We cannot concede that liabilities
incurred during the year do not amount
exceed the revenue for the year. in the
sense in which the term is used in the
provision under consideration. The sal
ares of officers and employees of the
county, If not paid as the official or other
service is rendered. becomes county in
deotedness. and the price of lumber or
other material purchased, if not paid for
Oh delivery, becomes indebt adness If the
county were sued for such Indebtedness,
1t would be no defense for the county to
say, have sufficient revenue in my treas
ury TO pay you; or that I have levied a
sufficient tax to pay it.
The city of Springfield vs. Edwards. 81
Il.s GIG. IS cited in support of the propo-
sitfon contended for by the plaintiff. The
court held in that case, that though the
corporate Indebtedness may have reached
the debt limit established. the corporation
MAJ give an order TO an individual for
material or other consideration furnished,
for enough of the taxes when collected to
pay him, provided no liability against the
county Is created. The court said: The
principle, as we understand it, is, there is
in such case no debt. because one thing
is simply given and accepted for an
other
This decision declares. in effect. that a
debt within the meaning of the constitu-
uonal limitation is created If the corpor-
a ia11 fdz is bound to pay tha1gh the tax
ury may be sufficient to pay it. Such ap-
pears TO be the rule adhered to by the
supreme court of Illinois.
In the city of Valparaiso vs.. Gardner, 81
lnd-. Il. the supreme court of that state
held the limitation to indebtedness i'm
posed upon political corporations by the
constitution did not apply 10 payments
for water furnished. provided the contract
price could be paid from current revenues
as the water should be furnished. with
out increasing the corporate Indebtedness
beyond the constitutional limit, or en-
croaching upon the funds set apart for
other purposes.
MUST BE AUTHORIZED BY THE
PEOPLE.
In nearly all the cases to which we
have been referred, the term Indebtedness
was considered as found in constitutional
provisions laying down a general rule
limiting all classes of indebtedness at all
times While the provision under con-
sideration forbids debt in excess of the
taxes for the current year, unless it is
authorized by a vote Of the electors. The
general limitation in the Utah constitu-
ton is found in section 4 of the same
article. and established per cent of the
assessed value of taxable property as the
limit.
Section 13e a. Dillon's Municipal Cor
poration 9th ED states the rule in the
states named above: Under the consti-
tutional provisions in Iowa. Illinois. Indi-
ana and Pennsylvania. referred to, it is
held that corporation may make a con-
tract (at least for necessaries) covering a
series of years. upon which an obiiea-
as the thing contracted for is furnished;
and in such case. the whole amount which
may ultimately become due does not con-
stitute q debt within the constitutional
prohibition. But in order to ascertain
whether the corporation by such contract
is transgressing the limit, regard is had
only TO the amount which may fall due
within a certain year or other period; and
e the revenues for that year or other
period are sufficient, over and above the
payment of the other expenses, TO pay
such amount. there is no debt incurred
within the constitutional prohibition
If all the liabilities of the county are
paid as they arise, no Indebtedness is
created: but If they are not, a debt ex-
lists: and if the revenue of the year is
applied to the payment of county expenses
and liabilities incurred or arising during
the year, and il is sufficient to pay them,
the Indebtedness can be no greater at the
end of the year than at the beginning;
but If the revenues are not so applied,
and the Indebtedness not so paid. the debt
will be greater, and if the debt was at
the limit at the beginning. it will exceed
ii at the end, and the constitution VIII be
violated, according to the rule expressed
in Dillon.
The plaintiff also relies upon the case
of Fenton VS.. Blair. IL Utah. Is. This de-
cison was made under the limitations i'm
posed by the organic act and the laws OF
the territory. Section of an act of con-
gress. in force July 80, 1856, declared that
no county should ever become indebted
IN any manner or lot any purpose 10 an
amount in the aggregate. including ex-
listing indebtedness, exceeding per cent
on the value of the taxable property with
in such county, to be ascertained by the
last assessment for territorial and county
taxes previous to mourning the indebted
ness. In this way the provision fixes the
amount of the Indebtedness that the
county might incur. And subject to this
provision the territorial legislature pro-
vsded that no county should incur any
Indebtedness or liability in any manner,
or for any purpose, to an amount exceed
ing in any year the total amount of its
income and revenue for the two fiscal
years Immediately preceding the mourning
29s. ' '''~ 49, 40 ''''
This section also fixed the amount, by
similar method to which the county
Tie court said: But we are clearly of
the opinion that by no means of juggling
with the figures and the financial state
ment of the county can the debt limit be
ceeding the entire revenue for the two
years Immediately preceding the time
such debt is created
The language used in the organic act of
the territory. and its arrangement, differs
widely from the language and its arrange
ment in the third section OF the constitu-
ton. According to the latter. if we as
sumo that the county may become in
exceeds its liabilities. then its indebted
ness must not exceed its revenue. Or 81
according to legal fiction, we assume
something as true which is false. but not
not be indebted when its revenue has not
been exhausted, then the constitutional
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