Rockford Savings & Loan Ass'n v. City of Rockford

185 N.E. 623, 352 Ill. 348, 1933 Ill. LEXIS 750
CourtIllinois Supreme Court
DecidedApril 22, 1933
DocketNo. 21521. Reversed and remanded.
StatusPublished
Cited by16 cases

This text of 185 N.E. 623 (Rockford Savings & Loan Ass'n v. City of Rockford) 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
Rockford Savings & Loan Ass'n v. City of Rockford, 185 N.E. 623, 352 Ill. 348, 1933 Ill. LEXIS 750 (Ill. 1933).

Opinion

Mr. Justice Dunn

delivered the opinion of the court:

The plaintiff, the Rockford Savings and Loan Association, brought a suit against the city of Rockford before a justice of the peace to recover $14.15 which was paid by the plaintiff under protest in order to obtain a supply of water at a residence in Oxford street, in Rockford. The association acquired title to the property on December 16, 1930, and soon after leased it. The city water had been turned off before December 16, 1930, and the lessee, upon taking possession, was unable to obtain a supply of water Because the water department refused to turn the water on until the bill for $14.15 for water furnished to the property in the quarter ending in October, 1930, had been paid. The plaintiff thereupon paid the bill under protest. The defense was based upon a city ordinance providing rules governing consumption of city water, section 21 of which was in the following words:

“Sec. 21. Rates lien against property — In addition to any other remedy provided herein for the enforcement or collection of any water rent or rate, all rates provided for in this ordinance shall be a lien against the premises to which any water may be supplied and a charge against the owner thereof, and such property owner of rented buildings in the city of Rockford shall be responsible to the city of Rockford for all charges for city water used therein, or on or about the grounds adjacent thereto, in any action waged by the city in any court of competent jurisdiction for the amount of all such water rents or rates as may be due and unpaid, together with all penalties provided herein, and costs. Any change of ownership or occupancy shall not affect the application of this section.”

The justice of the peace rendered judgment against the plaintiff. On appeal the circuit court rendered a like judgment, from which an appeal was allowed to this court, the circuit court having certified that the validity of a municipal ordinance was involved and that the' public interest required a direct review of the cause by the Supreme Court.

Cities are of statutory creation and their powers are limited to those which are expressly granted by the General Assembly or are necessarily implied from such as are so granted. There is no statute which expressly grants authority to cities to declare rates for water to be a lien against the premises to which water has been supplied and a charge against the owner of such premises, and that the owner of rented buildings in the city shall be responsible for all charges for city water used in them or on or about the adjacent grounds. The sections of the statute which are applicable are section 3 of article 10 of the Cities and Villages act of 1872, (Cahill’s Stat. 1931, par. 238, p. 385 ; Smith’s Stat. 1931, par. 132, p. 369,) and section 4 of the act of 1873, authorizing cities, villages and incorporated towns to construct and maintain waterworks. ( Cahill’s Stat. 1931, par. 1065, p. 626; Smith’s Stat. 1931, par. 430, p. 428.) These two sections are here set out:

“132. Regulations — Rates—Taxation.] Sec. 3. The city council or board of trustees shall have power to make all needful rules and regulations concerning the use of water supplied by the waterworks of said city or village, and to do all acts and make such rules and regulations for the construction, completion, management or control of the waterworks, and for the levying and collecting of any water taxes, rates or assessments, as the said city council or board of trustees may deem necessary and expedient; and such water taxes, rents, rates or assessments may be levied or assessed upon any lot or parcel of ground, having a building 01-buildings thereon, which shall abut or join any street, avenue or alley in such city or village through which the distributing pipes of such waterworks (if any) of said city or village are or may be laid, which can be conveniently supplied with water from said pipes: Provided, [whether] the water shall be used on such lot or parcel of ground or not ; and the same, when so levied or assessed, shall become a continuing lien or charge upon such lot or parcel of ground, building or buildings situated thereon, and such lien or charge may be collected or enforced in such manner as the city council may, by ordinance prescribe. And the corporate authorities may levy a general tax for the construction and maintenance of such waterworks, and appropriate money therefor.”

“430. Rules — Tax—Water rents — Lien.] Sec. 4. The common council of such cities, or trustees of such towns or villages, shall have power to make and enforce all needful rules and regulations in the erection, construction and management of such waterworks, and for the use of water supplied by the same. And such cities, towns and villages shall have the right and power to tax, assess and collect from the inhabitants thereof such tax, rent or rates for the use and benefit of water used or supplied to them by such waterworks, as the common council or board of trustees, as the case may be, shall deem just and expedient. And all-such water taxes, rates or rents shall be a lien upon the premises and real estate upon or for which the same is used or supplied. And such taxes, rents or rates shall be paid and collected, and such lien enforced, in such manner as the common council shall, by ordinance, direct and provide.”

These sections are substantially identical so far as the authority to fix and collect rates for the use of water furnished by the city is concerned. The provisions of the two sections in regard to the lien differ somewhat. Each section uses the words “water taxes,” “rates,” “rents” and “assessments” indiscriminately and inaccurately in reference to the charge made for the use and benefit of the water furnished by the city through its waterworks, but it has been clearly established that the liability for the use of water furnished by the city is in no sense a tax but is contractual, only, and that the words mentioned in the sections of the statute cited refer only to water takers and to rents and rates and not to a tax. (Village of Lemont v. Jenks, 197 Ill. 363.) In Wagner v. City of Rock Island, 146 Ill. 139, it was held that the business of furnishing the inhabitants of a city with water brought from a permanent source by means of waterworks and distributed through pipes to the residences and places of business of those desiring to obtain their water supply in that manner is not an exercise of governmental functions. A city, however, may be expressly authorized to supply its inhabitants with water or gas, charging them therefor and thereby making a profit. In doing so the city acts in its capacity of a private corporation and not in the exercise of its power of local sovereignty. The water rates in question in that case were held not to be taxes, and the distinction was made between taxes as an enforced proportional contribution levied by the State by virtue of its sovereignty for the support of government, and rates imposed and collected merely as compensation for water furnished by the city, to be paid by those who choose to receive and use the water. No one was compelled to receive, use or pay for the water except at his own election, but when he did receive and use it with knowledge of the rates charged, he agreed, by implication, to pay those rates, and his obligation rested upon contract and not upon the State’s taxing power.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Estate of Cooper
532 N.E.2d 236 (Illinois Supreme Court, 1988)
State Ex Rel. State Highway Commission v. City of St. Louis
575 S.W.2d 712 (Missouri Court of Appeals, 1978)
Lewis v. Harness
230 N.E.2d 487 (Appellate Court of Illinois, 1967)
Rosborough v. City of Moline
174 N.E.2d 16 (Appellate Court of Illinois, 1961)
People Ex Rel. County of Du Page v. Smith
173 N.E.2d 485 (Illinois Supreme Court, 1961)
Cocanig v. City of Chicago
173 N.E.2d 482 (Illinois Supreme Court, 1961)
Cohn v. Celebrezze
159 N.E.2d 484 (Cuyahoga County Common Pleas Court, 1958)
Baltis v. Village of Westchester
121 N.E.2d 495 (Illinois Supreme Court, 1954)
Spence v. UTAH STATE AGR. COLLEGE
225 P.2d 18 (Utah Supreme Court, 1950)
Loomis v. Keehn
80 N.E.2d 368 (Illinois Supreme Court, 1948)
Dolan v. Louisville Water Co.
174 S.W.2d 425 (Court of Appeals of Kentucky (pre-1976), 1943)
Mechanics Savings Bank v. Collector of Taxes
12 N.E.2d 852 (Massachusetts Supreme Judicial Court, 1938)
Prudential Co. v. City of Minneapolis
277 N.W. 351 (Supreme Court of Minnesota, 1938)
Federal Farm Mortgage Corp. v. Falk
270 N.W. 885 (North Dakota Supreme Court, 1936)

Cite This Page — Counsel Stack

Bluebook (online)
185 N.E. 623, 352 Ill. 348, 1933 Ill. LEXIS 750, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rockford-savings-loan-assn-v-city-of-rockford-ill-1933.