RECENT CALIFORNIA DECISIONS

October 2006

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California Supreme Court Extends the Reach of Proposition 218
Bighorn-Desert View Water Agency v. Verjil

In Bighorn-Desert View Water Agency v. Verjil, the California Supreme Court, on July 24, expanded the scope of the California tax revolution, holding that Proposition 218 permits the use of the initiative to reduce user fees charged by public water agencies. After the passage of Proposition 218, there was uncertainty as to whether all of its restrictions reached outlying public agencies, such as water districts. Now it appears that question has been largely answered in the affirmative, creating an additional obstacle for public water agencies in their attempts to provide water while remaining fiscally viable.