Beaumont Investors v. Beaumont-Cherry Valley Water District

On this appeal, we are asked to consider whether a facilities fee enacted by a water district constitutes a “special tax” within the meaning of article XIII A, section 4, of the California Constitution (Prop. 13), and thus must be approved by a two-thirds vote of the electors in the district.

Factual and Procedural Background

On September 4, 1980, the Beaumont-Cherry Valley Water District Board of Directors (District and Board) adopted resolution No. 80-5 imposing a “facilities fee” payable upon application for connection to its water system. About three months later, plaintiff, Beaumont Investors, Inc., applied for a hookup to the water system for its recently completed 80-unit apartment complex. It was then informed that a condition to the hookup would be payment to the District of a new facilities charge of $60,000 (80 units x $750). It declined to pay. As a result, the District refused to connect plaintiff to the water system. Plaintiff thereupon brought this action against the District and its Board (hereinafter referred to collectively as defendant) for declaratory relief and damages.

The action was submitted to the trial court upon stipulated facts and documents…