Perez

This appeal by plaintiff from a judgment in favor of defendants in a taxpayer’s suit raises the question of whether a municipality may use tax funds for the improvement, jointly with the state, of a state highway within the municipality’s boundaries.

Facts

The appeal is on an engrossed settled statement. The Alameda in San Jose is a part of State Highway Route No. 2. Pursuant to a prior cooperative agreement between the city and the state, the city promulgated plans and specifications for a central dividing strip 6 feet in width, electrical traffic signals, and a central highway lighting system, for the improvement of a certain portion of The Alameda within the city limits. After advertising for bids the city let a contract for the performance of the work. The total contract price is $71,878.52. All but $15,000 of this amount was put up by the state. The $15,000 was appropriated by ordinance from the unappropriated surplus of the city’s general fund, to wit, tax funds.

Was This a Municipal Purpose ?

The determination of plaintiff’s contention that the appropriation of city tax funds for such a purpose is unconstitutional depends upon whether such purpose is a municipal one.…