State v. City of Iowa City

LAVORATO, Justice.

In this municipal utility ratemaking case, we must decide whether a municipality’s employment of a flat use rate for sewer treatment services is unreasonable, arbitrary, and unlawfully discriminatory. The city of Iowa City is the municipality whose rate is being challenged. The challengers are the State of Iowa, the Iowa State Board of Regents, and the University of Iowa. For convenience, we refer to the city of Iowa City as the city and to the three challengers collectively as the university. Because we agree with the district court that the university failed to sustain its…