San Marcos Water District v. San Marcos Unified School District

Opinion

LUCAS, J.

I. Introduction

Are utility fees for capital funding “special assessments” from which public entities are exempt, or “user fees” which public entities must pay? This case presents the question whether the San Marcos Unified School District (school district) is obligated to pay “sewer capacity right fees” (capacity fees) imposed by the San Marcos Water District (water district). The capacity fees are used by the water district to fund capital improvements. The school district argues that the capacity fee is a special assessment, and that school districts and other public…