County of Coles v. Goehring

70 N.E. 610, 209 Ill. 142
CourtIllinois Supreme Court
DecidedApril 20, 1904
StatusPublished
Cited by33 cases

This text of 70 N.E. 610 (County of Coles v. Goehring) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
County of Coles v. Goehring, 70 N.E. 610, 209 Ill. 142 (Ill. 1904).

Opinion

Mr. Justice Magruder

delivered the opinion of the court:

The questions, presented by the record, arise out of the propositions of law as held and refused and modified by the trial court.

First—It is claimed on the part of plaintiff in error, the county of Coles, that the contract for the repair and reconstruction of the court house, as set out in the statement preceding this opinion, was void as having been executed without authority of law. The contract is claimed to be void upon the alleged ground that, when.it was made, the county of Coles had already assessed taxes to the amount of seventy-five cents per $100.00 valuation, and that, when the levy to that amount was reached and exhausted in the payment of current expenses, the county had no power to contract any further indebtedness, unless authorized by a vote of the people of the county. Section 8 of article 9 of the constitution of 1870 is as follows: “County authorities shall never assess taxes, the aggregate of which shall exceed seventy-five cents per $100.00 valuation, except for the payment of indebtedness existing at the adoption of this constitution, unless authorized by a vote of the people of the county.” The equalized valuation of the property of Coles county for the year 1897 was $5,213,228.00 and the tax levy for that year at seventy-five cents per $100.00 valuation produced about $39,099.21. The equalized valuation of the property of the county for the year 1898 was $5,167,602.00 and the tax levy of seventy-five cents per $100.00 valuation produced about $38,757.01. It is contended by plaintiff in error that, whether the tax levy for 1897 or for 1898 is taken, it was inadequate to pay the ordinary running expenses of the county, and that, when the contract in question was made, there was a deficit which amounted to a sum somewhere between $35,000.00 and $50,000.00. It is, therefore, said that the county, having levied the total amount which it was authorized to levy without a vote of the people, and that, such amount so levied having been required for the payment of current expenses and borrowed money, the county was without authority ■ to go in debt to the amount of $85,727.00 for the construction of a court house without submitting to the vote of the people of the county the question, whether taxes should be assessed to an amount exceeding seventy-five cents per $100.00 valuation. In other words, the position taken is that the prohibition against an assessment of taxes, the aggregate of which shall exceed seventy-five cents per $100.00 valuation, is, by implication, a prohibition against the creation of a debt, or the making of a contract—when the amount of the levy of seventy-five cents per $100.00 valuation is necessary to pay current expenses or existing indebtedness—without a vote of the people, as required by said section 8 of article 9. The objection thus made makes the prohibition against the assessment or levy of taxes equivalent to a prohibition against the incurring of an indebtedness. The theory, upon which the objection is based, is that the incurring of an additional indebtedness under such circumstances necessitates the making of a levy of taxes in excess of the amount, named in section 8, as a means of paying such indebtedness. As counsel say in their brief: “The forbidding of the levy of the tax without a vote of the people is the forbidding of the creation of the debt rendering such increased tax necessary. The forbidding of the result is the forbidding of the means, which create that result. If the effect is.forbidden, then the cause,' which created that effect, is also forbidden.”

A limitation upon the power to levy taxes is not necessarily a limitation upon the power to contract a debt. (Hitchcock v. Galveston, 96 U. S. 341; Jackson County v. Rendleman, 100 Ill. 379; Andrews v. Knox County, 70 id. 65; Mills v. Gleason, 11 Wis. 513; Rendleman v. Jackson County, 8 Ill. App. 287; Town of Kankakee v. McGrew, 178 Ill. 74; City of Danville v. Danville Water Co. 180 id. 235; Baltimore and Ohio Southwestern Railroad Co. v. People, 200 id. 541; Ketchum v. Buffalo, 14 N. Y. 361; Opinion of Justices, 126 Mass. 567; 1 Story on the Constitution, sec. 880; City of Galena v. Corwith, 48 Ill. 423.) Section 12 of article 9 of the constitution provides that “no county, city, township, school district, or other municipal corporation, shall be allowed to become indebted in any manner or for any purpose, to an amount, including existing indebtedness, in the aggregate exceeding five percentum on the value of the taxable property therein, to be ascertained by the last assessment for State and county taxes, previous to the incurring of such indebtedness. Any county, city, school district, or other municipal corporation, incurring any indebtedness as aforesaid, shall before, or at the time of doing so, provide for the collection of a direct annual tax, sufficient to pay the interest on such debt as it falls due, and also to pay and discharge the principal thereof within twenty years from the time of contracting the same.” The equalized valuation of property in Coles county for the year 1897 being $5,213,228.00, five per cent of the same is $260,661.40, and the equalized valuation of the property in that county for the year 1898 being $5,167,602.00, five per cent of the same is $258,380.10. It is not claimed, or shown by the proofs in the record, that the indebtedness of Coles county on September 20,1898, when the contract here in question was made, was more than $50,000.00 outside of the amount specified in the contract for the construction of the court house, made on that date. If the $50,000.00 be added to the $85,727.00, the amount for which the court house was contracted to be built, the sum would make $135,727.00. The latter amount is far less than either $258,380.10 or $260,661.40. Even if the indebtedness of the county should be put at $167,529.00, as it appears to be from some of the resolutions adopted by the county board in June, 1901, the total indebtedness of the county would still be less than either $258,380.10 or $260,661.40. Therefore, by incurring the indebtedness for the repairing and reconstruction of the court house, the county did not become indebted, if all prior indebtedness theretofore existing be included, to an amount exceeding in the aggregate five percentum on the value of the taxable property in the county, as ascertained by the last assessment for State and county taxes previous to the making of the contract. The only prohibition against incurring indebtedness, which the constitution imposes, is.that embraced in section 12 of article 9. No county is allowed to become indebted in any manner or for any purpose to an amount, including existing indebtedness, in the aggregate exceeding five percentum on the value of the taxable property therein, to be ascertained by the last assessment for State and county taxes, previous to the incurring of such indebtedness. In discussing the application of this section 12 to the incurring of indebtedness by towns in Town of Kankakee v. McGrew, 178 Ill. 74, we said (p. 81): “That the aggregate indebtedness of the town shall not exceed the constitutional limitation is the only restriction upon the power of a town to become indebted to discharge such duties devolved upon it by law.” In Culbertson v. City of Fulton, 127 Ill. 30, we said (p. 38): “The indebtedness, however, can only be regarded as void to the extent of the amount of the excess over the constitutional limit. Up to and under that limit the indebtedness is valid.

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Bluebook (online)
70 N.E. 610, 209 Ill. 142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-of-coles-v-goehring-ill-1904.