Howard Jarvis Taxpayers Ass'n v. City of San Diego

The issue here is whether a business improvement district (BID) assessment imposed on businesses is governed by Proposition 218 (Cal. Const., arts. XIII C, XIII D ). We conclude Proposition 218 does not apply and affirm.

Factual and Procedural Background

The plaintiffs in this case are four businesses in Pacific Beach who are subject to a levy pursuant to the Pacific Beach BID and the Howard Jarvis Taxpayers Association (hereafter collectively referred to as the Association). The plaintiffs, through counsel, registered their opposition to the Pacific Beach BID at a public hearing in June 1997. Following the public hearing, the City of San Diego (the City) adopted City Ordinance No. 0-18373, creating the Pacific Beach BID. Thereafter, the plaintiffs filed a complaint for declaratory and injunctive relief, contending the adoption of the Pacific Beach BID levied an assessment or special tax in violation of Proposition 218. The City successfully moved for summary judgment on the basis Proposition 218 did not apply to the Pacific Beach BID and obtained a judgment against the plaintiffs.

Discussion

I

Pacific Beach BID and the Parking and Business Improvement Area Law of…