AB 2180: Local government: Proposition 218 Omnibus Implementation Act: proportional cost of service.

This bill aims to update the requirements for local government finance in California. The proposed law allows local governments to demonstrate the proportional cost of a service by any method that reasonably allocates the cost to all parcels, if substantiated. For water or sewer services, a local government may impose uniform or tiered rates on parcel or customer classes defined by common characteristics of likely usage. The proportional cost of service within each tier can be substantiated using a reasonable basis for allocating costs attributed to the tier. Local governments have discretion to determine the costs allocated to each tier, as long as the rate for each tier does not exceed the proportional cost reasonably allocated to parcels subject to that tier. This bill aims to simplify the process of implementing Proposition 218 and provide more flexibility for local governments to m…