Raja Development Co. v. Napa Sanitary Dist.

BACKGROUND

The District operates a wastewater utility through which it provides wastewater collection and treatment services to its residents.1 Plaintiffs own condominium units located within the District’s jurisdiction. As alleged in plaintiffs’ original complaint, the District has imposed an annual sewer service charge of “1.0 Equivalent Dwelling Unit” (EDU) on townhomes and condominiums since at least 1975, despite failing to demonstrate a “direct and reasonable correlation” between the charge and the actual costs of providing services to townhomes and condominiums. According to the complaint, failing to demonstrate such a correlation converts the charge into an illegally collected special tax in violation of Proposition 13,

1 The operative complaint names the District as the defendant but identifies Napa County as the real party in interest.

2 62, and 218.2 The complaint further alleged that the service charge is an illegal tax because it was not approved by two-thirds of voters, as required by the California Constitution. Plaintiffs sought a refund of the service charges paid and injunctive and declaratory relief to preclude future collection of the charges. After the…