Citation Numbers: 67 Or. 221, 135 P. 516
Judges: Moore
Filed Date: 10/14/1913
Status: Precedential
Modified Date: 7/23/2022
delivered the opinion of the court.
It is unnecessary to set forth the facts in detail as averred in the writ, for such allegations are deemed sufficient, except in one particular to he hereinafter noted. The material facts as they appear from the writ are that on November 8, 1910, at a special city election held in Portland, Section 118 of the charter then in force (Spec. Laws Or. 1903, p. 3) was amended by creating a “department of public docks,” consisting of a commission composed of five members to be appointed by the mayor. The commission was empowered to issue and dispose of “dock bonds of the city of Portland” to an amount not exceeding $2,500,000. The commissioners, having been duly appointed, issued and sold some of these bonds, and expended the money thus obtained in making public improvements prior to May 3, 1913, when at a special election held in the city of Portland the legal voters thereof enacted a general amendment of the charter, providing for a commission form of government. The following excerpts are taken from the fundamental law of the municipality as thus amended:
“No bonds other than bonds for public -improvements payable out of assessments upon the property benefited, and sewer bonds if otherwise authorized, shall be issued unless approved by vote of the people at a general or special election at which the question shall be submitted in the same manner as other measures are submitted under the initiative or referendum. This provision shall not apply to bonds heretofore authorized”: Section 92.
“The council of the city of Portland is hereby authorized to issue and sell all additional bonds heretofore authorized and not sold under the provisions of sections 118, 118%, 227, 425% and 429 authorizing the issuance and sale of municipal garbage collection*225 bonds, of tbe charter of 1903, as amended; provided that the bonded indebtedness of the city of Portland shall at no time exceed the amount authorized under the provisions of section 88 of the charter of 1903 and provided further, that the bonds issued and sold under the provisions of section 383a of the charter of 1903, as amended, shall not be considered as a part of the debt limit fixed by said section 88”: Section 93.
• The section of the charter limiting the indebtedness, and to which reference has been made, reads:
“No indebtedness shall be incurred for the acquisition of any public utility under the provisions of this charter, which, together with the existing bonded indebtedness of the city, shall exceed at any one time seven per centum of the assessed value of all real and personal property in the city, but in estimating such bonded indebtedness, all bonds given for the acquisition or construction of public properties and utilities, the interest on which bonds is paid out of the earnings of said public utilities or properties, shall be excluded: Provided, that whenever and for so long as such utility or undertaking fails to produce a .sufficient revenue .to pay all costs of operation and administration (including interest on the city bonds issued therefor and the cost of insurance against loss by fire, accidents, and injuries to persons), and an annual amount sufficient to pay at or before maturity all bonds issued on account of said undertaking; all such bonds outstanding shall be included in determining the city’s power to incur indebtedness, unless the principal and interest thereof be payable exclusively from the receipts of such undertaking. The auditor shall annually report to the council, in detail, the amount of revenue from each such undertaking, and whether there is any, and if so, what, deficit in meeting the requirements above set forth”: Section 88; Spec. Laws Or. 1903, p. 41.
The power conferred upon the council by section 93 of the amended charter, “to issue and sell all addi
Construing in pari materia the clauses to which attention has been called, in order to give effect to each provision noted, it is believed that the legal voters of the city of Portland, in amending the charter, May 3, 1913, expressly limited the power to issue and sell additional bonds of the class specified, for any part of an authorization remaining, so that the municipal indebtedness should not exceed a stated pro rata of the material progress of the city as evidenced by the assessed value of all taxable property therein, subject, however, to certain qualifications specified in section 88 of the charter of 1903. It necessarily follows that the additional “dock bonds of the city of Portland,” heretofore authorized and not sold under the provisions of section 118 of the charter of 1903 as amended, cannot be disposed of except upon an affirmative showing that in executing such obligations the indebtedness of the city would not be augmented beyond the limit thus fixed.
The alternative writ does not state that by executing the bond to the plaintiff Teal the debt of the city
Submitted October 15, decided October 21, 1913.
On Amended Alternative "Writ.
(135 Pac. 897.)
delivered tbe opinion of tbe court.
Tbe former proceedings in tbis cause having been dismissed, an amended alternative writ of mandamus was issued, wherein it is averred that tbe execution of the dock bonds of tbe city of Portland to tbe plaintiff Teal would not increase tbe municipal indebtedness beyond tbe limit prescribed by Section 88 of tbe charter of 1903. Tbis allegation is supplemented by tbe affidavit of A. W. West, city auditor, containing a statement of tbe outstanding liabilities to be considered in determining tbe municipal indebtedness October 14, 1913, when tbe amended writ was issued, and tbe assessed value of tbe real and personal property in tbe city for tbe year 1913, which sworn declaration is made a part of the writ, and affirmatively establishes such averment. Tbe defendants demurred to tbe amended writ on tbe ground that it did not state facts sufficient to constitute a cause of action.
It is contended by defendant’s counsel that it affirmatively appears from tbe writ that tbe dock bonds directed to be executed to tbe plaintiff Henry Teal were not authorized by tbe council of tbe city of Portland, or by tbe commission of public docks thereof, for
In order to determine the question thus presented an examination of some of the provisions of the charter, which went into effect July 1,1913, becomes necessary.
Section 92 thereof is as follows: “No bonds other than those bonds for public improvements payable out of assessments upon the property benefited, and sewer bonds if otherwise authorized, shall be issued unless, approved by a vote of the people at a general or special election at which the question shall be submitted in the same manner as other measures are submitted under the initiative or referendum. This provision shall not apply to bonds heretofore authorized. All bonds of the city of Portland shall be sold to the highest responsible bidder.”
That part of section 93 of the new charter involved herein is as follows: “The council of the city of Portland is hereby authorized to issue and sell all additional bonds heretofore authorized and not sold under the provisions of sections 118, 118%, 227, 425%, and 429, authorizing the issuance and sale of municipal garbage collection bonds, of the charter of 1903, as amended; provided that the bonded indebtedness of the city of Portland shall at no time exceed the amount authorized under the provisions of section 88 of the charter of 1903 and provided further that the bonds issued and sold under the provisions of section 383a of the charter of 1903, as amended, shall not be con
Section 1 of the charter as thus altered, as far as material herein, reads: “All powers conferred and duties devolved by the sections of the charter of 1903, not repealed by this charter, upon the executive board, the water board, and other boards and commissions abolished by the charter shall, from and after the adoption of this charter, be exercised and performed by the council. ’ ’
Section 93 of the charter enacted May 3,1913, as far as deemed important herein, is as follows: “No board or commission now existing under the charter of 1903, as amended except ( ) the Civil Service Commission, shall continue to exist more than six months after this charter takes effect, and until such time such other boards or commissions shall be subject to full regulation or abolition by the council; provided, howeyer, that the executive board shall cease to exist on July first, 1913. * * The council of the city of Portland is hereby authorized to issue and sell all additional bonds heretofore authorized and not sold under the provisions of section 118, * * provided that the bonded indebtedness of the city of Portland shall at no
After the charter had been thus amended, and before the alteration went into effect, the qualified electors of the city of Portland, discovering that a grave mistake had been made in abolishing the dock commission, reenacted section 93, to which reference has been made, at an election held in that city June 2, 1913, by inserting in the space hereinbefore indicated by the first parentheses, a clause as follows: “The department of public docks and.” Also by adding to the end of the section, in the space hereinbefore indicated by the second parentheses, these words: “And this act shall take effect if it receives a majority of the votes cast thereon, notwithstanding any votes cast on the general amendments to the charter providing for a commission form of government.”
The ballot title of the last amendment was as follows : “An act to amend section 93, as amended, of the charter of the city of Portland providing that the department of public docks shall not be abolished, but shall be retained and continued with the right to exercise all of the power conferred upon it by the provisions of section 118, as amended, of the charter creating the dock commission. Shall the department of public docks be retained as originally created? 126 yes, 127 no.”
It will be remembered that the original amendment of section 118 of the charter of 1903 empowered the commission designated as the “Department of Public Docks,” in the name and under the corporate seal of the city of Portland, to issue and dispose of bonds of the city of Portland. By section 93 of the charter as amended by a vote of the people May 3, 1913, the department of public docks was to have been abolished
Construing in pari materia the enactment of November 8, 1910, creating the department of public docks, defining the powers conferred upon and the duties required to be performed by the dock commission, in connection with section 93 of the charter as amended May 3, 1913, and as that section was further altered June 2d of that year, so as to give force and effect to all the provisions if possible, there can be no doubt that the power of the department of public docks to issue and dispose of bonds of the city of Portland was withdrawn, and such authority conferred upon the council, to issue and sell all additional bonds heretofore authorized and not sold under the provisions of section 118 of the charter of 1903 as amended, provided, however, that such sale of additional bonds does not increase the indebtedness of the city beyond the limit prescribed by section 88 of the charter of 1903.
The conclusion thus reached seems to be in conflict with the ballot title of the proposed amendment of section 93 of the charter, as amended May 3, 1913. Assuming without deciding that the ballot title of an act to be voted upon by qualified voters under an exercise of the initiative power is like the title of a statute, and may be read in connection with the enactment iu order to resolve ambiguities in the text, so as to ascertain, if possible, the legislative intent, such purpose must be found in the language of the act, and not in the title alone. In legislation enacted by qualified electors who seldom read an entire act submitted for adoption or rejection, but who often rely for their information upon the ballot title when read perhaps for the first
The department of public docks could not have been reinvested of the power of which it had been deprived, to issue and dispose of bonds of the city of Portland, except by amending the section last referred to by inserting in place of the phrase “the council of the city of Portland” the words “the department of public docks,” thereby making the clause read: “The department of public docks is hereby authorized to issue and sell all additional bonds heretofore authorized and not sold under the provisions of section 118 * * of the charter of 1903 as amended,” or language of similar import. Not having done so the dock commission is
A clause of section 108 of the charter as amended May 3, 1913, reads: “The auditor of the city of Portland is hereby authorized to number the foregoing sections, providing for a commission form of government, and insert the same in the proper place in the charter of 1903, and thereafter have the same published in pamphlet form.” Complying with that requirement the auditor gave to section 90 of the charter as amended May 3, 1913, the number 113. So much of that section as is involved herein will be quoted, as follows: “Whenever bonds of the city of Portland are offered for sale, and there is a balance to the credit of any sinking fund or special fund, not invested, said bonds may be awarded at par and accrued interest to the city treasurer as an investment for said fund.” It is contended by defendants’ counsel that the word “may” in the language last quoted should be construed as “must,” and, this being so, the bid made by the city treasurer for the bonds advertised for sale should have been accepted and the bid of the plaintiff Teal rejected, but, the council having determined to the contrary, the defendants are not required to sign, seal and deliver the bonds so awarded to Teal.
“ ‘May,’ ” says Mr. Justice Lord in Deane v. Willamette Bridge Co., 22 Or. 167, 176 (29 Pac. 440, 443, 15 L. R. A. 614), “is construed as ‘must’ only in cases where the legislature meant to impose an absolute and positive duty, and not merely a discretionary power.” To the same effect as illustrating the legal principle under consideration, see the cases of Smith v. King, 14 Or. 10, 14 (12 Pac. 8); McLeod v. Scott, 21 Or. 94, 109 (26 Pac. 1061, 29 Pac. 1); McFarlane v. Cornelius, 43 Or. 513, 524 (73 Pac. 325, 74 Pac. 468); In re Conant’s Estate, 43 Or. 530, 535 (73 Pac. 1018).
Construing section 90 of the new charter in the light of the rule thus adopted in this state, we are satisfied that the word “may” as there used confers upon the council only discretionary power, in the exercise of which the sale of bonds may he awarded to the city treasurer or to any other purchaser. Any other conclusion would make the discretion of the city treasurer controlling, and such deduction was never contemplated by the charter.
Believing that the duty to execute the bonds awarded to the plaintiff Teal is clear, and that the prerequisite acts required to be performed by all others have been properly discharged, the writ herein should be made peremptory, and it is so ordered.
Peremptory Writ Allowed.