Provisions of the acts providing for an increase of indebtedness must be strictly complied with. 357. "The provisions of the act of April 20, 1874 (and amendments), for increasing an indebtedness of a school district exceeding two per cent. of its assessed valuation, must be strictly complied with. The absence of a valid notice of an election upon the question of increase of indebtedness, as required by the act of 1874, the omission of the school board to levy an annual tax to pay the interest, etc., as required by Sec. 10, Art. IX., of the Constitution, and the failure to file a statement showing the indebtedness, etc., as required by the act of 1874, will prevent the issuing of bonds. "The spirit of the act of 1874 requires publication of notice of such election to be weekly for the thirty days immediately preceding the election." 12 Statement must show "actual indebtedness." 358. The evident legislative intent, permeating the entire statute law on the subject of municipal debt, is that it shall not be done in the dark-that the people who pay are entitled to know what they are paying for. And so, the statement required to be published at the end of the fiscal year must show the indebtedness in detail, and that required to be filed in the office of the clerk of quarter sessions must show, not the probable amount of indebtedness as guessed at, but the "actual indebtedness" as ascertained. What that is lies, or should lie, peculiarly within the knowledge of the school directors. Where the correctness of their filed statement in this regard is attacked, the burden is, therefore, upon them to support it; and when, as here, the evidence develops the fact that the directors did not know what the "actual indebtedness" of the district was, it is sufficiently obvious that they could not, and hence did not, file a statement "showing the actual indebtedness of such district" as required by law, and, therefore, have no authority to issue the bonds in question." 13 12. Witherop vs. Titusville School Board et al., 7 Pa. C. C. 451, 1889. 13. Mason vs. School District, 10 Kulp 563, 1890. A board of school directors shall not be enjoined from incurring a debt which they deny will exceed the legal amount and the proofs fail to disprove it.14 Notice of election on question of increase. Statement. Election. 359. The indebtedness of any county, city, borough, township, school district or other municipality or incorporated district in this Commonwealth, may be authorized to be increased to an amount exceeding two per centum, and not exceeding seven per centum, upon the last preceding assessed valuation of the taxable property therein, with the assent of the electors thereof, duly obtained at a public election to be held in the said district or municipality. Whenever the corporate authorities of any county, city, borough, township, school or other municipality or incorporated district, by their ordinance or vote shall have signified a desire to make such increase of indebtedness, they shall give notice during at least thirty days, by weekly advertisements in the newspapers, not exceeding three in said district; and if no newspaper be published therein, by at least twenty printed hand bills posted in the most public parts thereof, of an election to be held at the place or places of holding the municipal elections in said district or municipality on a day to be by them fixed, for the purpose of obtaining the assent of the electors thereof to such increase of indebtedness. Said notice shall contain a statement of the amount of the last assessed valuation, of the amount of the existing debt, of the amount and percentage of the proposed increase, and for the purposes for which the indebtedness is to be increased. Such election shall be held at the place, time and under the same regulations as provided by law for the holding of municipal elections, and it shall be the duty of the inspectors and judges of such elections to receive tickets, either written or printed from electors qualified under the constitution of this state to vote in such district, labeled on the outside, "Increase the debt," and containing in the in 14. Richards vs. Joyce, 8 Kulp 572, 1897. Wharton et al. vs. School side the words, "no increase of debt," or "debt may be increased;" also briefly, the purpose and amount of increase, and to deposit said ticket in a box provided for that purpose, as is provided by law in regard to other tickets received at said election; and the tickets so received shall be counted, and a return thereof made to the clerk of the court of quarter sessions of the proper county, duly certified, as is required by law, together with a certified copy of the ordinance and the advertisement; and the said clerk shall make a record of the same, and furnish a certified copy thereof, under seal, showing the result, to the corporate authorities of such municipality, and the same shall be placed of record upon the minutes thereof. The corporate authorities of such municipality shall, in all cases, fix the time of holding. such election on the day of the municipal or of the general election, unless more than ninety days elapse between the date of the ordinance or vote desiring such increase, and the day of holding the said municipal or general election. If any other day be fixed for such election, the expense of holding the same shall be paid by the municipality for the benefit of which it shall be held. In receiving and counting and in making returns of the votes cast, the inspectors, judges and clerks of said election shall be governed by the laws of this Commonwealth regulating municipal elections; and the vote shall be counted by the court as is now provided by general laws governing municipal elections, and all the penalties of the said election laws for the violation thereof, are hereby extended to, and shall apply to the voters, inspectors, judges and clerks voting at and in attendance upon the elections under the provisions of this act.15 Result of election. If for increase, tax to be levied for payment. 360. Whenever, by the returns of such election, it shall appear that there is a majority voting for "no increase of debt," such increase shall not be made. Nor shall any other election upon the same subject be held in that municipality for one year from the date of such preceding election. If the 15. Act June 9, 1891, P. L. 252, amending Sec. 3, Act April 20, 1874, P. L. 65. return of such election shall show a majority voting that "debt may be increased," the corporate authorities of the municipality may increase the same to the amount named and specified in the notice given for the holding of such election for increasing indebtedness, to an amount not exceeding two per centum, including the sworn statement to be filed in the office of the court of quarter sessions of the proper county; and they shall, before issuing any obligations therefor, assess and levy an annual tax, the collection whereof shall commence the first year after the said increase, which tax shall be equal to and sufficient for and applied exclusively to the payment of the interest and the principal of such debt within a period not exceeding thirty years from the date of such increase; and the moneys arising from such tax shall be applied, at such periods as the municipality may stipulate in such obligations, to the redemption, at par, of the said outstanding obligations according to their terms.16 Act of April 18, 1895, limited increase of debt at any time to two per cent. 361. Under the act of April 18, 1895, P. L. 36, a municipality can only increase its indebtedness at any one time, at any election, by an amount not over two per centum, by a vote of the people.17 Bonds may be redeemed before or after maturity with consent of holders. 362. In all cases where any school district, or school directors of any such district, in this Commonwealth has, by virtue of any law or any general or special act of assembly of this Commonwealth, issued bonds, either with or without interest coupons attached, certificates or any other evidences of indebtedness, to secure any indebtedness of any such school district, it shall be lawful for the school directors, or proper officers of any such school district, to redeem any or all of the bonds, certificates or any other evidences of indebtedness so issued as aforesaid, before or after maturity thereof, 16. Act April 18, 1895, P. L. 36, amending Sec. 4, Act April 20, 1874, P. L. 65. 17. But see Act of March 11, 1897, Sec. 1, P. L. 53. with the consent of the holders thereof, and for the purpose of redeeming or paying any such bonds, certificates or other evidences of indebtedness, to issue new bonds therefor, payable at any time not exceeding twenty years after the date thereof, at the same or any lower rate of interest, with or without interest coupons attached, and not exceeding in the aggregate amount the amount of the bonds, certificates or other evidences of indebtedness, so redeemed or paid.18 Refunding and redemption of existing indebtedness, incurred prior to April 20, 1875. 363. The existing indebtedness of any county, city, other than those of the first or second class, borough, school district, or other municipality or incorporated district, within this Commonwealth, evidenced by outstanding bonds, certificates, or notes issued prior to the twentieth day of April, Anno Domini one thousand eight hundred and seventy-five, may be provided for as the same shall mature by an issue to the holders of such outstanding bonds, certificates or notes, of bonds or certificates in lieu thereof, if they shall agree to receive the same, or by the issue and sale at not less than par, of bonds or certificates in lieu of indebtedness outstanding on the said twentieth day of April, Anno Domini one thousand eight hundred and seventy-five, except as hereinafter provided: Provided, That such bonds or certificates shall bear interest, at a rate not exceeding six per centum per annum, and may be issued redeemable at the pleasure of the obligators at any time fixed by them within twenty years from the date thereof; and it shall be the duty of the proper corporate authorities of such municipality or incorporated district, to assess and levy a special annual tax not exceeding five mills on the dollar on the assessed valuation thereof, immediately after the passage of this act, to pay such bonds or certificates reissued or issued and sold as aforesaid and which shall be sufficient for, and applied exclusively to, the payment of the interest and principal of such bonds and certificates within a period not exceeding twenty years from the date of such bonds and cer |