Thommarson

Can a city bond issue, authorized by a two-thirds vote of the people at a maximum interest rate of 6 percent, be amended by a like vote of the people to authorize a higher interest rate? That is the question presented in this original proceeding in mandamus.

Petitioner is a general law city. On April 22, 1969, its council adopted an ordinance calling an election for the issuance of $1,120,000 of general obligation bonds for improvement of the city’s sewage treatment and disposal plant. This ordinance was incorporated by reference in the proposition voted upon by the people. It specified, as required by statute (Gov. Code, § 43610), the maximum interest rate to be paid upon such bonds. It fixed this maximum at 6 percent, the most then allowed by the same code section. The proposal was approved by more than two-thirds of the voters. By statute effective July 25, 1969 (Stats. 1969, ch. 600, § 6) section 43610 was amended to increase the maximum allowable rate to 7 percent. The bond market was such that King City bonds could not be sold at .a 6 percent rate. The council adopted an ordinance on March 24, 1970, submitting to a new election the proposition “Shall the maximum…