Lanigan v. Town of Gallup

131 P. 997, 17 N.M. 627
CourtNew Mexico Supreme Court
DecidedApril 10, 1913
DocketNo. 1536
StatusPublished
Cited by30 cases

This text of 131 P. 997 (Lanigan v. Town of Gallup) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lanigan v. Town of Gallup, 131 P. 997, 17 N.M. 627 (N.M. 1913).

Opinion

OPINION OF THE COURT.

BOBEBTS, C. J.

Sub-section 67 (sec. 2402, C. L. 1897, confers upon cities and towns the power to erect and operate water works, sewers and sewer systems, and other public utilities, and specifically provides the procedure by which the question of incurring an indebtedness therefor shall be submitted to a vote of the electors-of such city or town. Provision is also made for the issuance and sale of the bonds as evidence of such -indebtedness, and the levy of- a tax to provide for the payment of the principal and interest of the bonds authorized. '

The state constitution, adopted in 1911, and under Avhich Ncav Mexico was admitted as a state in January 1912, by sections 12 and 13 of article 9, provides as follows :

“Sec. 12. No city, town or village shall contract any debt except by an ordinance, which shall be irrepealable until the indebtedness therein provided for shall have been fully paid or discharged, and which shall specify the purpose to which the funds to be raised shall be applied, and which shall provide for the levy of a tax, not exceeding twelve mills on the dollar upon all taxable property within such city, town or village, sufficient to pay interest on, and to extinguish the principal of such debt within fifty years. The proceeds of such tax shall ho applied only to the paj'inent of such interest and principal. No such debt shall be created,unless the question of incurring the same shall, at a regular election for councilmen, aldermen or other officers of such city, town or village, have been submitted to a vote of such .qualified elec tors thereof as have paid a property tax therein during the preceeding year, and a majority of those voting on the question, by ballot deposited in a separate ballot box, shall have voted in favor of creating such debt.”
“Sec. 13. No county, city, town or village shall ever become indebted to an amount in the aggregate, including existing indebtedness, exceeding four per centum on the value of the taxable property within such county, city, town or village, as shown by the last preceding assessment for state or county taxes; and all bonds or obligations issued in excess of such amount shall be void; provided, that any city, town or village may contract debts in excess of such limitation for the construction or purchase of a system for supplying, water, or for a sewer system, for such city, town or village.”

All proceedings looking to the issuance of the bonds in question were had after the adoption of the constitution and the admission of New Mexico as a state. No attempt was made by the town trustees to comply with the requirements of suh-section 67 of sec. 2402, C. L. 18.97, but it appears that they assumed that the provisions of the constitution above quoted were self executing and repealed all of sub-sec. 67.

The first question, therefore, which presents itself for determination is whether the above provisions of the constitution are self executing in that they confer the power upon municipalities to contract indebtedness independent of legislative authorization.

If such power is granted, it must be by the language used in the proviso to sec. 13, viz.: “Provided, that any city, town or village may contract debts in excess of such limitation, for the construction or purchase of a system for supplying water, or of a sewer system, for such city, town or village,” for it could not be argued, with any plausibility that other language used, in either of said sections confers such power, or authorizes the creation of any indebtedness, for any purpose, independent of legislative authorization, it would not be contended that a city or town has an inherent right, independent of legislative sanction, express or implied, to borrow money.

“Of every municipal corporation the charter or'statute by which it is created is its organic act. Neither the corporation nor its officers can do any act or make any contract, or incur any liability, .not authorized thereby, or by some legislative act applicable thereto. All acts beyond the scope of the powers granted are void.” Dillon’s Municipal Corporation (6th ed.) sec. 237. The power to borrow money may be granted to such corporations or withheld from them by the Legislature; and the Legislature may limit the right to certain purposes. It may grant the power for one purpose and withhold it as to others.

Section 12 of said article contains no language, which by any rule of construction, could be held to confer power upon such municipalities, independent of a legislative grant, to incur indebtedness for any purpose. Said section begins: “No cityr, town or village shall contract any debt except by an ordinance,” and this language is followed by specific provisions as to what the ordinance shall contain. It does not say that cities, towns and villages may contract debt, in the manner provided, but that no debt shall be created, unless it be created in a certain way. This portion of the section is simply a procedure provision, and no debt created in any other manner would be valid. It is true the language used “and which shall provide for the levy of a tax, not exceeding twelve mills,” etc., “sufficient to pay the interest on, and extinguish the principal of such debt within fifty years” is either a limitation upon the debt contracting power, or upon the tax levying power,, but whether the one or the other, such clause can not beheld to authorize the incurring of indebtedness, in and of itself. By the language used, we do not understand that, the legislature might not properly limit the time the bonds should run to less than than fifty years, but certainly it could not provide that such bonds should run for a longer period. The concluding clause in said section is, like the first clause, a procedure provision.

That portion of sec. 13, which precedes the proviso, above quoted, is a limitation upon the debt contracting power of such municipalities. It does not undertake to confer upon such governmental agencies the power io contract debts, in the aggregate, amounting to four per centum of the value of the taxable property, but limits the amount of such aggregate debts, to such ratio of the taxable property, beyond which the Legislature is powerless to authorize. The limitations contained in said sections, upon the debt contracting power of such municipalities are certainly self executing. Doon Twp. v. Cummins, 142 U. S. 366; Dunbar v. Canyon Co., 5 Idaho 407; Law v. People, 87 Ill. 385. And the procedure provisions, of sec. 12 are self executing, in tire sense, that no debt contracted, except in compliance therewith, would be valid. But no language used in either of said sections, can bo held to confer the authority upon municipalities to contract debts, unless such power is conferred by the proviso to sec. 13, to contract debts for water and sewer systems. By this proviso, the framers of the constitution were-carving an exception out of the limitations theretofore imposed upon the debt contracting power of such municipalities. In other words, by previous language used, the convention placed limitations upon the legislative power to authorize, and the municipal power to incur, indebtedness, out of which limitations it excepted debts for the two purposes named, leaving intact, however, the procedure provisions.

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Cite This Page — Counsel Stack

Bluebook (online)
131 P. 997, 17 N.M. 627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lanigan-v-town-of-gallup-nm-1913.