California voters adopted Proposition 218 in November 1996 to amend the State Constitution to establish the process by which public agencies can raise taxes or service fees. It requires greater public involvement in water rate-making. Among other things, Proposition 218 requires the City to mail a notice of proposed water rates to every property owner and customer to hold a public hearing. It also allows ratepayers to submit written protests of proposed rates. If a majority of parcel owners or customers do so, the City cannot impose the new rates.