Trumbo

The Crestline-Lake Arrowhead Water Agency is a public entity created by a special act of the Legislature (hereinafter referred to as the “Act”) and activated by a vote of the qualified electors. At a bond election held on June 15, 1965, the voters authorized the agency to issue general obligation bonds totalling seven and one-half million dollars. Petitioners, who are residents, property owners, and qualified voters within the agency, sought a writ of mandate in the superior court challenging both the procedural validity of the bond election, as well as the substantive power of the agency to incur a bonded indebtedness in an amount which they allege would require revenues in excess of that which could be raised by the maximum tax rate of $1.00 per $100 assessed valuation in order to service the bonds. A general demurrer to the amended petition was sustained without leave to amend, and judgment was entered dismissing the petition. Petitioners appeal from the judgment.

The Act provides for a maximum tax rate of $1.00 per $100 assessed valuation subject to an increase by a vote of the electors. Originally no provision was made for a standby water charge, but in 1965 the Legislature…