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Sierra Madre Says Its Tiered Water Rates Comply With Court Decision

Published on Wednesday, April 22, 2015 | 11:12 am
 

On Monday, the Court of Appeal issued its decision analyzing whether conservation water rates (also known as tiered water rates or inclining block rates) utilized in the City of San Juan Capistrano are consistent with the provisions of Proposition 218 requirements that a fee charged to a property owner shall not exceed the proportional cost of the service attributable to the property. When the decision was issued, Sierra Madre, which has a tiered water rate structure created for compliance with Prop 218 requirements, reviewed its own water rate study to ensure that the City’s tiers are also consistent with the Court’s decision.

After review, City Attorney Highsmith stated, “Sierra Madre’s tiered rates comply with the recent Appellate Court decision because the City’s water rate tiers reflect the cost of providing water at the various tier levels, as required by Prop 218. The City’s rate study shows that each rate is tied to the cost of providing the water.” City Manager Aguilar further stated, “In 2013, when Sierra Madre completed the most recent rate study, the City was fully aware of the San Juan Capistrano case and took efforts to make sure the tiers were tied to the cost of providing water at the different tier levels.”

It is important to note that the Court of Appeal did not decide that all tiered water rates are illegal, rather the Court analyzed Prop 218 requirements and determined that the rates in each tier must reflect the cost of service for property owners falling in that tier. Sierra Madre’s 2013 Rate Study used a different methodology to determine the rates per tier, as compared to the San Juan Capistrano rate study. Sierra Madre’s complete rate study can be found on the website at, http://cityofsierramadre.com/water.

The Court of Appeal case is Capistrano Taxpayers Association, Inc. v. City of San Juan Capistrano Case No. G048969.

For further information regarding water conservation, or the City’s water rate structure, please contact City Hall at (626) 355-7135.

 

 

 

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