Monday, September 26, 2011

KMTG Legal Alert: Water District’s New Rate Structure Failed To Comply With Requirements Of Proposition 218

In City of Palmdale v. Palmdale Water District (--- Cal.Rptr.3d ----, Cal.App. 2 Dist., August 9, 2011), a court of appeal considered whether the new water rate structure of a water district met the constitutional requirements of Proposition 218. The court held the rate structure did not meet Proposition 218’s proportionality requirement because the district’s tier structure establishes that certain customers are charged disproportionate rates without any showing by the district that there is a disparity in the cost of providing water to the customers at different tiers within the structure.

For a detailed discussion of the facts of this case, and the rationale behind the court's ruling, please see the full KMTG Legal Alert here.

A copy of the court's opinion may be found here.

If you have any questions concerning this topic, please contact Jeffrey L. Massey or Jon Goetz from our office, or the KMTG attorney with whom you normally consult.

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