Bill > AB2180

This bill, the Local Government: Proposition 218 Omnibus Implementation Act: proportional cost of service, aims to clarify how local governments can demonstrate that fees and charges for services, particularly water and sewer, do not exceed the proportional cost of that service to individual properties. Proposition 218 of the California Constitution requires that fees charged by local agencies not exceed the cost of the service provided to the property owner. This bill allows local governments to use any reasonable method to allocate the costs of providing services to all properties, as long as it's supported by data, and specifically for water and sewer services, it clarifies that governments don't need to measure the exact cost for each individual property but can use uniform or tiered rates based on common characteristics indicative of usage, such as property size or land use, with discretion in setting tier breakpoints, as long as the rate for each tier doesn't exceed the reasonably allocated proportional cost for that tier. However, these provisions do not apply to fees for water or sewer connections or capacity charges.