Today, the California Court of Appeal, 4th District, Division 3, issued its long-awaited opinion in the Capistrano Taxpayers Association v. City of San Juan Capistrano water rates case. 

Louis C. Klein, a partner in Foley & Mansfield, PLLP’s Los Angeles office, represented Amicus Curiae Mesa Water District in this case siding with the taxpayers association. The ruling sheds much needed light on the State Constitutional requirements for determining how municipalities and water districts can set water rates.  Proposition 218, enacted by the voters in 1996, set certain constitutional limitations on the ability of government agencies to generate revenues without taxpayer approval. The Court held that the City’s water rates were not compliant with the mandates of the California Constitution and upheld the trial court’s ruling on this issue. 

Please see our link to an analysis of the Court’s ruling.