Vanguard Analysis: Current Water Rates Seem Fair and Proportional
Earlier this week, we evaluated whether Davis was in compliance with the Palmdale decision that invalidated the water rate structure of the City of Palmdale, based on a ruling from the Second District Appellate Court of California. The court found their rate structure failed to comply with the mandates of Proposition 218 and its “proportionality requirement which specifies that no fee or charge imposed upon any person or parcel as an incident of property ownership shall exceed the proportional cost of the service attributable to the parcel. Accordingly, we reverse the judgment.”
Some believed that the problems of Palmdale were, in fact, unique to Palmdale because “in this instance, the District failed to demonstrate that the proposed budget based rates for one customer class were proportionate to the cost of providing water service in violation of Proposition 218.”