ARTICLE XI.

MUNICIPAL COPORATIONS.

SECTION I. The several counties of this state are hereby recognized as legal sub-divisions of the state.

SEC. 2 The construction of jails, court-houses and bridges, and the establishment of county poorhouses and farms, and the laying out, construction and repairing of county roads, shall be provided for by general laws.

See Mitchell County v. Bank, 91 T., 361, 43 S. W. R., 880, (under Art. 11, Sec. 5).

Where bonds for building a court house were issued redeemable at a fixed period, in the absence of legislation, authorizing it, an injunction was the proper method to stop it. Breedlove v. Robertson, 61 T. 316, (Lunie v. Galveston, 54 T., 517, distinguished).

In the absence of legislation a county has no implied power to issue bonds for the building of a court house. Id.

SEC. 3. No couuty, city or other municipal corporation shall hereafter become a subscriber to the capital of any private corporation or association, or make any appropriation or donation to the same, or in

any

wise loan its credit; but this shall not be construed

to in any way affect any obligation heretofore under

taken pursuant to law.

This section prohibits a city from appropriating its revenue or using its credit to obtain right of way and depot grounds for a railroad commission. And this section is not modified by Art. 10, Sec. 9. Cleburne

v. G. C. & S. Fee, 66 T., 457, I S. W. R., 342.

An agreement of a city to refund the money paid out by a railway company for right of way and depot grounds is an appropriation prohibited by this section. Id.

A contract between a city and individuals who bind themselves, to be afterwards incorporated, and which provides for an extension of such credit, to the proposed corporation, is prohibited by this section. Cleburne v. Brown, 73 T., 443, 11 S. W. R., 404.

SEC. 4. Cities and towns having a population of ten thousand inhabitants or less, may be chartered alone by general law. They may levy, assess and collect an annual tax to defray the current expenses of their local government, but such tax shall never exceed, for any one year, one-fourth of one per cent, and shall be collectable only in current money. And all license and occupation tax levied, and all fines, forfeitures, penalties and other dues accruing to cities and towns, shall be collectable only in current money.

Annual tax here used means an ad valorem tax and is not a denial of power to collect other classes of taxes. Perry v. Rockdale, 62 T., 454.

The sum for which bonds may be issued is the sum

which together with interest at the given rate could be liquidated by the annual stated payments. Russell v. Cage, 66 T., 428, I S. W. R., 270.

The legislature has no power to authorize a city under 10,000 inhabitants to levy a special tax to pay the bonds or coupons, when she has already levied onefourth of one per cent for current expenses. Gould v. City of Paris, 68 T., 512, 4 S. W. R., 650.

The power of a city of 10,000 inhabitants or less. to create a debt is limited to a sum, the interest and two per cent of the principal, which can be paid out of a levy of 25 cents on each $100 worth of property. Bank v. Terrell, 14 S. W. R., 1003, 78 T., 450.

SEC. 5. Cities having more than ten thousand inhabitants may have their charters granted or amended by special act of the legislature, and may levy, assess and collect such taxes as may be authorized by law, but no tax for any purpose shall ever be lawful, for any one year, which shall exceed two and one-half per cent of the taxable property of such city; and no debt shall ever be created by any city unless at the same time provision be made to assess and collect annually a sufficient sum to pay the interest thereon and create a sinking fund of at least two per cent thereon.

Where a city wrongfully appropriates land without first paying for the same, the damage for which it is liable arises from tort and not from contract and such obligation does not come within this section. Dallas v. Miller, 27 S. W. R., 498, 7 C. A., 503.

A contract to pay a debt by the issuance of bonds, no provision being made for a sinking fund, is void. Howard v. Smith, 38 S. W. R., 15.

The creation of a debt by a city without making provision required by this section is void. McNeal v. City of Waco, 89 T.,83, 33 S. W. R., 322.

The constitution requiring that cities creating debts shall at the same time make provision for the payment of the same by assessing tax to pay the interest and provide a sinking fund does not apply to current expenses. Biddle v. City of Terrell, 82 T., 335, 18 S. W. R., 691.

An obligation by a city to pay for the erection of a town hall and school building is not created for current expenses.

Id.

Construing this section and section nine, article eight, held that cities of 10,000 inhabitants are to be exempted from the maxim limit prescribed for municipalities as a class, and may levy ad valorem taxes to the extent of two and one-half per cent on the $100 valuation, when so authorized by the legislature. Dean v. Lufkin, 63 T., 437; Cave v. City of Houston, 65 T., 619.

This section and Sec. 7 of this article, do not apply to an ordinance, under which bonds are issued, for a debt incurred prior to their adoption. Jefferson v. Bank, 46 S. W. R., 97.

Construing this section with Sec. 7, Art. II, held that they apply to all cities alike without regard to the number of inhabitants. City of Terrell v. Dessaint, 71 T., 770, 9 S. W. R., 593.

Any debt created by the city government, which can not be discharged from the revenues of the current year, and which matures at a period, which would make it a charge upon the city revenues for future years, is a debt within the meaning of this section. Id.

Debts for the ordinary running expenses of a city payable within a year out of the incoming revenue does not come within the prohibition mentioned above. Id.

A debt contracted by a city for current expenses does not come within this class of debts. Dwyer v. City of Brehman, 65 T., 526.