Dreher

BACKGROUND

Under the City’s Charter, LADWP, through its Board of Water and Power Commissioners (Board), has the power and duty to set proposed water rates for LADWP users. (L.A. Charter, §§ 670, 675(b)(3).) LADWP’s proposed water rates are subject to approval by ordinance of the City Council. (Id. at § 676.) Before we discuss the particulars of the ratemaking process for the challenged water rates, we provide background on some legal authorities that informed the ratemaking process.

A. Article XIII D Added by Proposition 218 In 1996, California voters adopted Proposition 218, the “Right to Vote on Taxes Act,” which added articles XIII C and XIII D to the California Constitution. Article XIII D, at issue here, applies to assessments, defined as “any levy or charge upon real property by an agency for a special benefit conferred upon the real property,” and to fees and charges, defined as “any levy other than an ad valorem tax, a special tax, or an assessment, imposed by an agency upon a parcel or upon a person as an incident of property ownership, including a user fee or charge for a property related service.” (Art. XIII D, §§ 1, 2, subds. (b) & 2 (e).)

2 Article XIII C…