Citizens for Fair REU Rates v. City of Redding

(Supreme Court of California) – Held that a city’s practice of annually transferring funds from a city-operated electric utility to the city’s general fund did not run afoul of the California Constitution, which prohibits local governments from imposing any tax without voter approval. A citizen association brought this suit arguing that the city was, in effect, using utility rates to impose a tax without voter approval. Rejecting this contention, the California Supreme Court reversed the court of appeal.