This week, the Court of Appeal issued its decision on whether conservation water rates (aka tiered water rates) are consistent with the provisions of Proposition 218.  The Court, in interpreting Proposition 218, emphasized that conservation water rates, standing alone, were not prohibited.  However, the court concluded that Proposition 218 requires that each tier must reflect the actual costs of service for property falling in each of the tiers.  The case, Capistrano Taxpayers Association, Inc. v. City of San Juan Capistrano (Case No. G048969) can be accessed here.