The Price of Water Just Got More Complicated: San Diego’s Legal Battle Over Tiered Rates

On July 30, 2025, a divided California Court of Appeal issued its long-awaited opinion in Patz v. City of San Diego, affirming the trial court’s judgment that the City’s tiered residential water rates violated Proposition 218 of the California Constitution. The ruling reinforces the strict interpretation of cost-of-service requirements previously articulated in Coziahr v. Otay Water District. However, given the nearly 70-page dissenting opinion, the California Supreme Court may take up the case if the City seeks review.