No matter how small the excess over the constitutional limitation, the increase shall be restrained. 348. "Defendants claim that the margin is so small and insignificant that the right of the plaintiffs to an injunction is at best doubtful on their own showing; but we hold that once it is clearly shown a school district has increased its indebtedness beyond the constitutional limitation an injunction must be allowed. Whether the excess is $100.00 or $1,000.00 or more makes no difference." 3 Without an election, decree of court authorizing indebtedness over two per cent. is null and void. 349. A decree of court authorizing a school district to borrow money to an amount increasing its indebtedness more than two per cent. upon the valuation of the property, without the assent of the electors, being void, equity will enjoin the performance of a contract entered into for the purpose of building a school house with the proceeds of such loan.4 Not a violation of the constitution whereby adjusting indebtedness between new and old district an indebtedness exceeding two per cent. is charged against one. 350. "A decree of the court of common pleas of the proper county, sitting in equity, adjusting the indebtedness between a new school district and the original district, of which it formerly constituted a part, in accordance with the provisions of the act of June 24, 1895, P. L. 259, is not in conflict with Art. IX., Sec. 8, of the Constitution of Pennsylvania, though the result of such decree may be to charge the new district with an indebtedness exceeding two per cent. of the assessed valuation of taxable property." 5 Resolution of school board to lay an annual tax for support of library not an increase of indebtedness under the constitution. 351. The Norristown School Board, at a regular meeting held May 3, 1901, passed the following resolution : "Whereas, Hon. Andrew Carnegie made the following proposition: 'If Norristown will provide a suitable site, Dolan et al. vs. Lackawanna School District, 10 D. R. 694, 1901. Parker Twp. School District vs. Bruin Boro. School Dist. 13 D. R. and, by ordinance, agree to tax itself to extent of $5,000.00 a year for the support of library, he will be glad to give $50,000.00 for a library building;' "And whereas, the citizens of Norristown and elsewhere, by public subscription, are providing (with other money made available) the necessary means to purchase the Slingluff property, opposite the high school, at the price of $20,000.00 as and for the most suitable site for a new public library; "Therefore, be it and it is hereby resolved by the board of school directors of the borough of Norristown, in regular meeting assembled, and acting by virtue of the power invested in said school board under the act of the General Assembly of the Commonwealth of Pennsylvania, passed June 28, 1895, and supplements, in consideration of the offer of the Hon. Andrew Carnegie to give the sum of $50,000.00 for the erection of a public library building, and of the donations by those contributing moneys for the purchase of a suitable site, the same are hereby duly accepted, and the said school board agrees annually to lay a tax on the valuation of the property assessed for school purposes sufficient to raise the sum of $5,000.00, which tax shall be collectible as the school taxes of the district are at the time of collecting the same; and said sum of $5,000.00 so annually collected shall be appropriated for and toward the support, maintenance and increase of said free public library." Among others, the following objections to the tax were raised "The action of the school board constitutes an attempt not only to impose upon the district a permanent indebtedness without provision for redemption, but an indebtedness in excess of the constitutional limit of two per cent." The court said: "If the action of the school board is to be considered as the creation of a debt, then either of the reasons assigned would be fatal to the library project. We are of the opinion that the agreement or resolution of the school board to levy an annual tax of $5,000.00 for the support of a library is not the creation of a debt within the meaning of any act of assembly or of the constitution. . The proposition before us is not to create a debt within the meaning of the constitution, but to increase the current revenue of the school district for a lawful purpose, and in an amount, as the facts before us disclose, far below the maximum limit stated in the act of 1895. If the time should ever come when the assessed valuation of property in the Norristown school district should fall below $5,000,000.00, and the law should remain as it is now, the levy could not exceed one mill. Or, if a future school board should refuse to make a levy of any amount for the maintenance of the library, we have very little doubt as to the reinedy by mandamus. But these questions are not before us now. In the particular phase of the case now under discussion, the question is, whether by any rule of construction the action of the school board can be considered as an increase of debt within the inhibition of the constitution. of the opinion that it is not. "6 What the word "indebtedness" shall include. We are clearly 352. The word "indebtedness," used in this act, shall be deemed, held and taken to include all and all manner of debt, as well floating as funded, of the said municipality; and the net amount of such indebtedness shall be ascertained by deducting from the gross amount thereof, the moneys in the treasury, all outstanding solvent debts, and all revenues applicable within one year to the payment of the same." Calculating assets and liabilities to determine indebtedness. 353. "In calculating the assets and liabilities of a school district to determine whether certain contracts authorized by the district are unlawful by reason of their increasing the indebtedness of the district beyond its constitutional limitation. "(a) The commissions and exonerations must be deducted from the amount claimed as an set due the district from taxes. 6. Sheetz et al. vs Norristown Boro. School Dist. II D. R. 403, 1901. Act April 20, 1874, Sec. 5, P. L. 65. 7. "(b) The value of certain lots of the school district, estimated at the amount of allowance which one of the contractors offers to make for them, if the school district will let them go at that price, is too problematic an asset to be considered as such., "(c) The right of the new board to levy a tax for building purposes is not an asset. "(d) Money due the school district from another school district, on an adjustment of the assets and liabilities between them, is an asset, although the exact amount thereof has not been determined by the auditor appointed for that purpose." 8 Statement of indebtedness to be published annually. 354. The corporate authorities of every such municipality or district shall, annually, in the month of January, prepare and publish in at least two newspapers of said municipality or of the county in which the same is situate, if so many be printed therein, a statement showing in detail the actual indebtedness, the amount of the funded debt, the amount of the floating debt thereof, and valuation of taxable property therein, the assets of the corporation, with the character and nature thereof, and the date of maturity of the respective forms of funded debt thereof, and a neglect or failure so to do shall be a misdemeanor, punishable by fine not exceeding one thousand dollars.9 Annual tax for the payment of interest and debt required by the constitution. 355. Any county, township, school district, or other municipality, incurring any indebtedness, shall, at or before the time of so doing, provide for the collection of an annual tax sufficient to pay the interest, and also the principal thereof within thirty years. 10 Debt may be increased by vote. Manner of payment. Statement. 356. Any county, city, borough, school district or other municipality or incorporated district may incur debt, 8. Dolan et al. vs. Lackawanna School District, 10 D. R. 694, 1901. 9. Act April 20, 1874, Sec. 6, P. L. 65. 10. Constitution of Penna., Art. IX., Sec. 10. or increase its indebtedness to an amount in the aggregate not exceeding two per centum upon the assessed value of the taxable property therein, as fixed and determined by the last preceding assessed valuation thereof; and the corporate authorities of such municipality may, by a vote thereof duly recorded upon its minutes, authorize and direct the incurring or the increase of such debt to the amount aforesaid, and may issue coupon bonds or other securities therefor in sums not less than one hundred dollars each, bearing interest at a rate not exceeding six per centum per annum, payable semi-annually, and the principal thereof reimbursable at a period not exceeding thirty years from the date at which the same is authorized; and an annual tax commencing the first year after such debt shall be increased or incurred sufficient for the payment of the interest thereon, and the principal of such debt within a period not exceed ing thirty years from the date of such increase shall be forthwith assessed. Before issuing any such obligation or security, it shall be the duty of the principal officer or of ficers of such municipality or incorporated district to prepare a statement, showing the actual indebtedness of such district, the amount of the last preceding assessed valuation of the taxable property therein, the amount of debt to be incurred, the form, number and date of maturity of the obligations to be issued therefor, and he shall make and append thereto his oath or affirmation of the truth of the facts. therein stated, and shall file the said statement in the office of the clerk of the court of quarter sessions of the proper county; upon failure so to do, he shall be guilty of a misdemeanor, and on conviction thereof shall be punished as provided in the first section of this act. Certified copies of the record of such statement under the seal of said court shall be competent evidence in all the courts of this Commonwealth Provided, That the bonds shall not be sold at less than their par value." II. Act April 13, 1897, P. L. 17. amending Sec. 2, Act April 20, 1874, |