Citizens for Fair Reu Rates, Plaintiffs and Appellants v. City of Redding, Defendants and Respondents.

Summary

The court held that the City's budgetary transfer from its electric utility enterprise fund to the general fund was not itself a tax because it was not imposed on utility customers. It further held that the electric rates were not taxes because undisputed evidence showed rate revenues were less than the reasonable, uncontested costs of providing electric service, even without counting the challenged transfer. The Court of Appeal judgment was therefore reversed.