City of Loveland v. Western Light & Power Co.

• Decision Date: 03 June 1918
• Docket Number: 9037.
• Citation: 173 P. 717,65 Colo. 55
• Parties: CITY OF LOVELAND et al. v. WESTERN LIGHT & POWER CO.
• Court: Colorado Supreme Court

173 P. 717

65 Colo. 55

CITY OF LOVELAND et al. v. WESTERN LIGHT & POWER CO.

No. 9037.

Supreme Court of Colorado

June 3, 1918

Error to District Court, Larimer County; Robert G. Strong, Judge.

Suit by the Western Light & Power Company to enjoin the City of Loveland and others from issuing and disposing of electric light bond. Judgment for plaintiff, and defendants bring error, and plaintiff assigns cross-errors. Affirmed.

See also, 170 P. 191.

This suit was brought to enjoin the City of Loveland, plaintiff in error, defendant below, from issuing and disposing of electric light bonds to the amount of $79,000.

At a special city election held in Loveland August 11, 1914, under section 1, p. 419, Laws of 1899, the city authorized the city council to erect a municipal electric light plant to be owned and operated by the city, and at the general city election following, held April 6, 1915, under section 1, p. 386, Laws of 1891, authorized the city council to issue bonds aggregating $79,000, to erect the plant, and May 16, 1916 the city council passed an ordinance providing for issuing the bonds. Thereupon this suit was begun, the purpose being to prevent by injunction the carrying out of the authority granted. The court found that the special election held on August 11, 1914, in the city of Loveland upon the question of the city erecting an electric light plant was in all respects properly submitted and carried, and was valid, and authorized the city council to erect an electric light plant for the city, but enjoined the city from issuing the bonds because as it held, the amount exceeded the limit of indebtedness which could be created by the city. The city sued out a writ of error to review this judgment, and assigned errors assailing the action of the court in holding the bonds could not be legally issued, and the Western Light & Power Company, plaintiff below, as defendant in error, assigned cross-errors, claiming that the court erred in holding the election of August 11, 1914, authorizing the erection of the light plant, was valid. During the pendency of the writ of error, the Legislature, by amending the law, did away with the limitations upon the city, and another election was held April 3, 1917, at which a valid bond issue of $83,000 was authorized. The city thereupon had no further interest in prosecuting the writ of error, and we dismissed the suit upon its motion, but later reinstated the cause upon the cross-errors assigned by the Western Light & Power Company. See City v. Western Co., 170 P. 191. The case is now here upon the cross-errors assigned by the company, with respect to the validity of the city election held August 11, 1914, purporting to authorize the city council to erect a municipal electric light plant.

The Constitution provides that no city shall contract any debt by loan in any form unless the question of incurring the same shall be submitted at a regular city election to a vote of such qualified electors of the city as shall, in the year next preceding, have paid a property tax therein and a majority of those voting on the question shall vote in favor of creating such debt. Article 11, § 8, Constitution.

The act of 1891 provides that no indebtedness on behalf of the city shall be contracted by borrowing money or issuing bonds for the purpose of constructing a plant to supply electric light for the city, unless the question of incurring the same shall, at a regular city election, be submitted to a vote of such qualified electors of the city as shall, in the year next preceding, have paid a property tax therein, and a majority of those voting thereon on shall vote in favor of creating such debt. Laws of 1891, p. 386.

The act of 1899 provides that no electric light works shall be erected unless a majority of the voters of the city who are tax payers under the law, voting on the question at a general or special election, shall by vote, approve the same. Laws of 1899, p. 419.

The act of 1909 provides:

'The term 'taxpayer,' 'taxpaying elector' or 'qualified * * * elector,' shall be held to mean and include only those persons who are qualified voters under the registration and election laws of this state and who, in the calendar year the last preceding election at which said note was offered, shall have paid a tax, or be liable for the payment of such tax upon real or personal property assessed to them and owned by them in the county where such vote is offered.' Laws of 1909, p. 511.

Defen...