Settlement of Proposition 218 Case with City of Riverside


Javier and Vivian Moreno and the City of Riverside have entered into a settlement of the lawsuit brought by the Morenos against Riverside in July 2012.  The lawsuit alleged that Riverside illegally transferred more than $5 million per year from its water utility to its general fund in violation of Proposition 218.  Proposition 218 requires local governments to expend property-related fees, such as water service fees, only on the services for which the fee was collected.  It also prohibits local governments from imposing water service fees to fund general governmental services.

Following the filing of the lawsuit, Riverside ceased the transfers from the water utility to the general fund. The settlement requires Riverside to restore $10 million from the general fund to the water utility fund.  Riverside is also asking voters in June 2013 to approve these transfers in the future.  If the ballot measure does not pass, Riverside has agreed to cease all transfers unless and until it obtains voter approval.

Krause, Kalfayan, Benink & Slavens, LLP is a boutique law firm that represents citizens, ratepayers, and taxpayers in fee-related litigation against municipalities.  Contact: Eric J. Benink, 550 West C Street, Suite 530, San Diego, California, 92101; Tel: (619) 232-0331; Fax (619) 232-4019;;