A recent Supreme Court decision implies raising rates for local governments is subject to Prop 218. How does this ruling affect MCE?
The federal Supreme Court ruled that utility water rate increases were impacted by Prop 218, which was passed by voters in 1996 and requires voter approval of local tax increases. It appears the primary issue with Prop. 218 in this specific ruling is the use of funds for purposes other than intended. One example would be collecting revenue through the electricity rates to contribute to a city’s general fund. The MCE business plan does not include any plans for the CCA to be used to raise revenue for unrelated municipal activities.
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