Opinion ID: 2226504
Heading Depth: 1
Heading Rank: 1

Heading: the interfund credits objection

Text: Objection No. 1 presents the issue we have this day decided in People ex rel. Brenza v. Edwards, ante, p. 513. Certain items of the tax levies of the city for the years 1939, 1940, 1941, and 1942 were ultimately adjudicated to be invalid long after the appropriations for the year in question had been spent. The city had distributed the taxes which it received among its various funds in the proportions which the levy for each fund bore to the levy for all funds. As in the Edwards case, the objector here contends that this method of distribution resulted in overpayments to some funds, and underpayments to others, which gave rise to interfund obligations, and that the failure of the city to recognize these interfund obligations resulted in excessive levies on behalf of the funds to which underdistributions had been made. It is unnecessary to state here the history of each of the tax levies involved, or the detailed contentions of the parties, because the basic theory which underlies this objection is disposed of by our opinion in the Edwards case. We there held that the method of distribution of tax collections which was used by the city in this case is the method contemplated by statute and that the asserted interfund obligations do not exist. It follows that the county court erred in sustaining this objection.