Clarke courier. [volume] (Berryville, Va.) 1869-1997, 1908-03-25
think would be void"

The minutes of a meeting Of the
Town Council held on December
2, 1907, contain the following;
"On motion it was ordered that
+. B. Whiting, Att be requested
to render his opinion as To whether
or not the Town can borrow
sufficient sum To pay its floating
Indebtedness by an act Of the Leg
islature to that effect, giving it
power to do so and providing for
a sinking fund each year to pay
the same off, without submitting
the question to- the people, and
that said Attorney be requested to
make his report as-Soon as possi-
BILE to the Mayor"
The minutes of the called meet
ing of the Town Council held on
December 10, 1907, contain the
following:
In reply To the enquiry of the
Town Council as to whether or not
the Town can borrow a sufficient
sum of money to pay its floating
Indebtedness by an act of the Leg
lSlaturc to that effect giving it
power to do SO, and providing for
q sinking fund each year to pay
the same off. | will state that under
the Constitution, Section 127. "A
Town cannot issue bonds for an
amount exceeding Is per cent of
of the assessed valuation of the real
estate IN the city or town subject
to taxation, aS is shown by the last
preceding assessment for taxes.
There are, however. two exceptions
TO this inhibition: one, when the
bonds are 10 be paid ont of the
revenue for the current year. and
the other when the Indebtedness is
incurred for u water system or for
some Improvement from which the
Town viii derivcarevenue There
fore | would state If the Town is
authorized 10y an act Of the LpeiS-
lature tc issue bonds 10 pay off its
floating Indebtedness it could do so.
There is nothing in the Constitu-
tion which require the question to
be submitted TO the people. The
charter Of the Town provides that
no bond shall be issued under any
previous act of the General Assem-
bly, until the question has been
submitted to the people. This
section could be repealed by the
act itself If necessary. but the acts
referred lin the Charter were the
acts authorizing the issuance of
bonds for water system and
electric plant"
The Council then instructed the
Town Attorney to draw up bill
and send To Senator Il. =. Parks
and urge him to have it rushed
through the Legislature. The bill.
which was sent To Mr.. Parks.
introduced 10y him, passed the
Legislature and was approved by
the Governor, and is now a law.
1t is A. follows:
Il. BE it enacted by the Gen
eral Assembly of Virginia. That
the council of the town of Berry
vile, Virginia, be, and it is hereby
authorized to borrow money and
issue its bonds therefor, bearing
interest and payable at such times
as it may determine: provided, the
amount borrowed does not exceed
six thousand dollars and the rate
of interest does not exceed six per
centum per annum.
-. Said council is hereby au-
thorized to use the money SO bor-
rowed in the payment Of the pres
ent floating Indebtedness of said
town.
"3. In order TO provide for the
payment of the principal and in
terest, of the bonds so to be issued,
the council of said town is author
lied to levy a special tax on al
property, real and personal, and
all other subjects of taxation for
municipal purposes, which tan
shall not exceed one-fOurth of the
taxes imposed by said town for al
other purposes.
II. The bonds so to be issued
under this act shall not be sold fol
less than par.
-. All acts and parts of act.
in conflict with this act are repeal
ed as to the town of Berryville.
IS. An emergency existing by
reason of the necessity for provid
ing for the aforesaid floating in
debtedneSS of said town, this &C
shall take effect from its passage.
We based our statements in tn,
matter upon the opinion of tn,
Town Attorney QUOTED above) ant
the laws cited by him as coverin.
the case.
Our belief was undoubtedly il
line with the belief OF the Tow
Council, else they would not hav
taken the steps they did to rails
money by a bond issue to pay OF
the floating Indebtedness, withou
o.h,>,4t,rr sc Il lo l.