Leveraging Prop 218 requirements to engage meaningfully about rate adjustments
BY LAUREN BONANNO
Communicating about rate adjustments can be a challenge, because let’s face it, no one wants to pay more for anything, let alone utility services that can be taken for granted.
Another fun complication is that customers often lack the foundational knowledge needed to truly understand why the rate adjustment is needed. Most agencies err on the side of hiding behind legal language, dense data and complex calculations that perplex (or dare we say bore!) the average customer. Far too often, we see that the first reaction to a rate adjustment is to send the required 218 notice, and hope no one shows up at the meeting, only to be surprised and unprepared when they do.
In our experience, successful rate adjustments are the ones that do more than simply check a legally required box. When agencies use the rate adjustment process to explain their value, engage customers and earn public trust, our clients experience lasting positive effects long after public meetings have ended and new rates have been adopted by boards and councils.
Let’s take a closer look at how local government communicators can help engage customers throughout a rate adjustment process and exceed legal Prop 218 requirements.
About California Proposition 218
Proposition 218, or the “Right to Vote on Taxes Act,” was approved by California voters in November 1996. Prop 218 requires voter approval of tax/rate increases and advanced notice to property owners and ratepayers 45 days before a public hearing to adopt the increases along with information on how to protest.
Prop 218 also ensures that the money agencies collect from rates does not exceed the actual cost of providing services and the agencies do not use rate funding for any purpose other than delivering services.
The 218 notice is the minimum requirement to comply with state regulations – the spirit of which is a goal to transparently inform customers and offer public input opportunities before new rates go into effect.
When considering how to engage customers beyond just the requirements of Prop 218, these four pillars are a good guide.
Pillars of planning for a successful rate adjustment
Start with the why: We believe that rate adjustments are a chance to reinforce relationships with the public, so it’s important start your strategy with the “why.” Why is the rate adjustment necessary? Why should customers care? Why is now the right time? And, perhaps most importantly, why does it matter to them?
The answers can vary from replacing aging infrastructure, sourcing water locally, introducing new treatment methods, covering increased costs, and planning for the future. All of these are valid reasons that justify cost adjustments, and with supporting data from cost-of-service studies. But too often, they are communicated in convoluted terms that confuse and frustrate non-technical readers. We recommend plain language. The simpler, the better. Illustrations and infographics can also go a long way to make a complex topic, like the intricacies of utility services, more easily understandable.
Trust: For customers to understand and appreciate the need for higher rates, they must first trust you. Simple, transparent language, advance notice and approachable design can all help ensure that the information legally required to share with customers is clear and understood. Our recommendation is to serve as a translator of legalese for your customers, creating messages and materials that address “the why” clearly and why this issue is important to them. If someone knows why they should care, then they might choose to participate in the process; if they choose not to, at least they’ll know they had a choice.
Accessibility: It’s important to take concerted steps to reach everyone in a service area. Harder to reach audiences are especially important to map out when planning an outreach strategy, as there are customers in our communities with language, technical, cultural or societal barriers that make messages less likely to be received through traditional communication channels. The best approach is to include a wide range of tactics and methods for community input. Think about what can complement the required mailed Prop 218 notice (emails, social media, workshops, postcards, etc.), and consider how your customers prefer to engage with you. What’s worked in the past? What trusted partners in your community can help share the information? Who might be missed?
Transparency: Transparency is a fourth pillar of communicating during a rate adjustment, and it serves to help build trust and further accessibility. If customers believe that you did not attempt to share information in earnest, they will not trust you. Perhaps worse, if customers think information is missing or hiding in jargon, they could not trust the process. Be clear, and be understandable with messaging, and when in doubt, ask a non-engineer to edit materials. Your role is to translate technical lingo with accuracy, but make sure it’s readable. While not an easy exercise, it’s worth it.
In the end, rate adjustments are opportunities to rethink how communication is done within an agency. They can build trust, showcase customer service, and reassure customers that municipal services will continue to be reliable. These aims do, however, require more than just one Prop 218 notice. If you’d like to plan for a successful rate adjustment, contact us at [email protected] or read our recent case studies that highlight the City of Tustin and Western Municipal Water District’s recent projects.