In the 1933 case of Utley et al. v. St. Petersburg, the U.S Supreme Court ruled in favor of the city of St. Petersburg, Florida against a group of bondholders who sued for payment on bonds issued by the city to finance improvements to its municipal pier and approach thereto. The plaintiffs argued that they were entitled to be paid from special assessments levied upon property specially benefited by such improvements as well as from revenues derived therefrom but not yet applied towards paying off these bonds or interest thereon. The court held that while it was true that under Florida law, cities could issue improvement bonds payable solely out of special assessments on benefited properties without pledging their general credit; this did not mean all such obligations automatically became secured debts with lien rights over specific revenue streams or assets unless explicitly stated so in authorizing legislation or bond contracts themselves. Since neither state statutes nor terms stipulated in these particular bonds provided any explicit pledge securing them with liens over either special assessment receipts or pier revenues, they remained unsecured general obligations which could only be satisfied pro rata along with other similar claims against city's available resources after meeting its essential operating expenses.

The dissenting opinion in the case of Utley et al. v. St. Petersburg argued that the city's ordinance, which required a permit for public speaking and gave authorities discretion to deny permits based on content, was unconstitutional as it violated First Amendment rights to free speech. The dissenting justices believed that such an ordinance could easily be used by those in power to suppress unpopular or controversial views, thereby undermining one of the fundamental principles upon which American democracy is built - freedom of expression without government interference or censorship. They also expressed concern about potential abuse of this discretionary power by local officials who might use it arbitrarily or discriminatorily against certain groups or individuals.