Blogpost
4.2 minute read
January 01, 0001
California’s new Assembly Bill 2257 (AB 2257) introduces critical changes for local agencies navigating property-related water and sewer fees and assessments under Proposition 218. This legislation, signed into law in September 2024, establishes an “exhaustion of administrative remedies” procedure aimed at fostering transparency, reducing litigation risks, and enhancing trust between local agencies and their ratepayers. AB 2257 is optional, its protections will only apply to property-related water and sewer fees and assessments that opt to incorporate AB 2257’s requirements and procedures into its approval process. For finance and public works directors, city planners, and municipal leaders, this bill marks a significant shift in how fee-setting processes are managed.
Harris & Associates, with its expertise in municipal finance, community planning, and risk management, is uniquely positioned to help local agencies meet the new requirements efficiently while maximizing public engagement and maintaining compliance.
What Does AB 2257 Change?
AB 2257 builds upon the existing Proposition 218 Omnibus Implementation Act by requiring ratepayers to raise specific objections during the public process before pursuing litigation. Key provisions of the bill include:
1. Enhanced Public Notice and Engagement:
- Local agencies must provide a clear, written basis for proposed fees at least 45 days before the deadline for objections.
- Notices must include instructions for submitting objections and emphasize that failure to object timely bars future legal challenges.
2. Exhaustion of Remedies Requirement:
- Ratepayers must submit written objections to proposed fees or assessments within a specified timeline (minimum of 45 days from notice).
- Objections must detail the grounds for alleging noncompliance with Proposition 218.
3. Written Responses by Agencies:
Agencies must respond in writing to objections before concluding public hearings, explaining why proposed fees comply or whether adjustments are warranted.
4. Judicial Review Limitations:
- Legal challenges are restricted to the administrative record, which includes rate studies, agency responses, and public comments.
- Additional evidence is allowed only under narrow circumstances, such as procedural irregularities or issues beyond the fee’s validity.
By formalizing these processes, AB 2257 aims to reduce costly, surprise litigation and ensure that local agencies have the opportunity to address concerns before fees are finalized.
How Does This Benefit Local Agencies?
AB 2257 provides local agencies with several key advantages:
• Stronger Legal Defensibility: Agencies adhering to the outlined procedures can build a robust administrative record, minimizing vulnerabilities to legal challenges.
• Greater Transparency: The bill requires clearer communication with ratepayers, fostering trust and informed participation in the decision-making process.
• Operational Efficiency: By resolving disputes during the public process, agencies can avoid prolonged litigation that delays implementation of critical water and sewer projects.
However, these benefits come with responsibilities. Agencies must ensure compliance with the new requirements while effectively engaging their communities—a task that demands expertise in communication, record-keeping, and procedural design.
How Harris & Associates Can Help
At Harris & Associates, we understand the complexities of public finance and the regulatory landscape. Our comprehensive suite of services equips agencies to navigate AB 2257’s requirements while delivering equitable, resilient, and sustainable solutions. Here’s how we can support:
1. Municipal Finance Expertise
• Fee Structure Development: Harris helps agencies design compliant, defensible rate structures supported by detailed engineer’s reports or rate analyses and reports.
• Public Engagement Strategies: Our team works closely with agencies and their counsels to ensure ratepayer communications are clear, accessible, and legally sound, helping to reduce objections and foster trust.
2. Community Planning and Stakeholder Engagement
• Robust Administrative Processes: We assist in establishing procedures to manage public comments, objections, and responses efficiently.
• Public Outreach Processes: We assist in developing clear public outreach plans such as presenting at community meetings and creating documents such as FAQs to help stakeholders understand the implications of proposed rates.
3. Risk Management and Legal Compliance
• Administrative Record Preparation: Our experts ensure the completeness of administrative records, including engineer’s reports and rate studies.
• Regulatory Guidance: With deep knowledge of Proposition 218 and related laws, we help agencies stay ahead of compliance challenges.
4. Capacity Building for Smaller Agencies
• Staff Augmentation: For agencies facing resource constraints, Harris provides skilled personnel to manage administrative tasks and public hearings seamlessly.
AB 2257 in Action: Building Trust and Stability
The passage of AB 2257 reflects a broader shift toward transparency and accountability in local government. Agencies that proactively implement its provisions will build stronger relationships with their communities. For instance:
• Streamlined Hearings: Early resolution of objections enables agencies to conduct more focused public hearings, reducing delays in funding implementation.
• Defensible Rate Setting: By addressing concerns transparently and documenting decisions comprehensively, agencies can protect themselves against frivolous lawsuits while demonstrating fiscal responsibility.
Conclusion
AB 2257 offers local agencies a roadmap for transparent, efficient, and legally defensible rate-setting processes. By partnering with Harris & Associates, municipal leaders can confidently navigate these changes, ensuring their communities receive the services they need without unnecessary legal setbacks.
Let us help you turn compliance into opportunity. Contact Harris & Associates today to learn more about how we can support your agency under AB 2257.
