Summey v. City of Ames

We are here concerned with the right of the City of Ames to issue certain bonds for the improvement and extension of its waterworks system. The facts were stipulated. The trial court’s judgment and decree, rendered in plaintiff’s action for a declaratory judgment, holds that the defendant, City of Ames, may not issue the bonds, and the case comes before us upon its appeal.

On June 20, 1953, the defendant adopted its resolution providing for the issuance of $600,000 of Waterworks Revenue Bonds, and they were duly issued. As of the date of the trial there were still outstanding $260,000 in face…