City of Phoenix v. Kolodziejski
Headline: Court strikes down Arizona rule letting only property owners vote on city general-obligation bond elections, blocking Phoenix bond issuance and giving non-property residents a vote in such local bond approvals.
Holding: The Court held that the Constitution forbids limiting the vote on municipal general-obligation bond approvals to property taxpayers, and it invalidated Phoenix’s June 10, 1969 bond election because nonproperty owners were excluded.
- Invalidates Phoenix’s June 10, 1969 bond election and blocks issuance of those bonds.
- Allows non-property residents to vote in future general-obligation bond elections.
- Limits the ruling’s reach to bond authorizations not final as of June 23, 1970.
Summary
Background
A Phoenix resident who did not own real property sued after a June 10, 1969 local election that approved $60,450,000 in general obligation bonds. Under Arizona law, only qualified voters who were also real property taxpayers could vote on those bond measures. The District Court found that excluding nonproperty owners from the bond vote violated the Constitution and enjoined issuance of the bonds; the City appealed to the Supreme Court.
Reasoning
The Court addressed whether the Constitution allows a State to limit voting on general obligation municipal bonds to property taxpayers. It concluded the difference between property owners and other residents is not large enough to justify excluding nonproperty owners. The Court relied on facts in the record: city services and improvements affect all residents; Phoenix expected to pay more than half of debt service from non-property tax revenues for 1969–1970; landlords commonly treat property taxes as a business cost and pass much of the tax burden to tenants; commercial property taxes are reflected in prices paid by everyone. The Court therefore held the Arizona restriction violated the Equal Protection Clause and affirmed the District Court.
Real world impact
The Phoenix June 10, 1969 bond election was held invalid and the city was enjoined from issuing bonds approved in that vote. The ruling means nonproperty residents may vote in future general obligation bond elections. The Court limited the decision’s reach: it applies only to bond authorizations not final as of June 23, 1970, so many earlier bond issuances remain unaffected unless timely challenged under state rules.
Dissents or concurrances
Justice Stewart (joined by The Chief Justice and Justice Harlan) dissented, arguing that Arizona’s rule is a rational policy because property owners legally bear the lien and tax burden for general obligation bonds and thus should approve such borrowing.
Opinions in this case:
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