182 Ga. 633 | Ga. | 1936
The City of Atlanta owned certain realty used as an amusement park called Lakewood. The property was leased to the Southeastern Fair Association (a corporation) for the purpose of conducting each year “a public fair exposition and entertainment,” and several amusement enterprises, the rental being upon a percentage basis, all of which should go into maintenance and improvement of the property. An amendment to the charter of the City of Atlanta provided: “Said Mayor and General Council of the City of Atlanta may, at their discretion, acting jointly with the Southeastern Fair Association, or separately, as may be desired, procure from the United States Gov-
1. This amendment to the municipal charter contemplates a loan of money (not to supply a casual deficiency or to meet current expenses) to be payable by the city after the year in which the loan should be made, 'and a pledge of municipal assets consisting solely of income derivable under the lease for repayment of the loan, without submitting the question of making the loan to the qualified voters of the municipality at an election held for that purpose. In the absence of such an election the city could not pledge its good faith for repayment of the loan. Renfroe v. Atlanta, 140 Ga. 81, 95 (78 S. E. 449, 45 L. R. A. (N. S.) 1173); see also Byars v. Griffin, 168 Ga. 41 (147 S. E. 66). Nor, upon the principle of the cases cited, could the city pledge for such purpose municipal income derivable under the lease. The making of a loan in the circumstances stated will create a debt. The fact that the city might not be generally bound for the debt beyond the assets pledged for its repayment would not change the character of the loan and prevent it from constituting a debt.
2. The meaning and object of the charter amendment stated above renders it obnoxious to article 7, section 7, paragraph 1,
3. In a suit by citizens and taxpayers to enjoin the city and the Southeastern Fair Association from making a loan of the character hereinbefore mentioned, the judge erred in sustaining a general demurrer to the petition, and in refusing to grant an injunction. Judgment reversed.