Section VI Section 26(a)

Constitution

Effective - 27 Feb 1945, see footnote   

  VI Section 26(a).  Limitation on indebtedness of local governments without popular vote. — No county, city, incorporated town or village, school district or other political corporation or subdivision of the state shall become indebted in an amount exceeding in any year the income and revenue provided for such year plus any unencumbered balances from previous years, except as otherwise provided in this constitution.

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Source: Const. of 1875, Art. X, § 12 (Adopted November 2, 1920).

(1958) Contract of employment with defendant city whereby plaintiff was to make preliminary investigations, plans and supervise construction of proposed sewer improvements was held contrary to public policy and ultra vires where both parties realized necessity of approval by voters of city of bond issues to secure funds for the improvements and voters subsequently failed to approve bond issues. Shikles v. City of Clinton (A.), 319 S.W.2d 9.

(1958) Indebtedness incurred by school district was valid so long as it was within the anticipated revenue for the year. First National Bank of Stoutland v. Stoutland School District (Mo.), 319 S.W.2d 570.

(1967) Cities' cooperative sewer agreement which conditioned obligation of a fourth class city to build facilities on its passage of a bond issue did not, until the passage of the bond issue, create an indebtedness of the city, within constitutional debt limitation, and was not ultra vires or void ab initio. The passage of the bond issue obligated the city to perform the construction and established corresponding obligation of the other contracting city to perform its duties conditioned on the passage of the bond issue. Kansas City v. City of Raytown (Mo.), 421 S.W.2d 504.

(1973) Lease agreement held to be an indebtedness of city and subject to this section. Scruggs v. Kansas City (Mo.), 499 S.W.2d 500.

(1976) In action by state highway commission to recover on contract whereby city agreed to pay one-half of cost of acquisition of right-of-way for highway through the city, record was insufficient to sustain city's defense that contract was ultra vires, as being in violation of Art. VI, § 26(a), since there was no showing that the city, by reason of the contract, became indebted in an amount exceeding the revenues for the year in which the contract became binding plus any encumbered balances from previous years. State ex rel. Highway Commission v. City of Washington (Mo.), 533 S.W.2d 555.

(2007) Requirement in sections 86.344 and 86.355, RSMo, that City of St. Louis pay entire contribution amounts certified by trustees for police retirement system and firemen's retirement system does not violate section. Neske v. City of St. Louis, 218 S.W.3d 417 (Mo.banc).