For Utilities Commission Meeting [June 18, 2024]
TO: Honorable Chairperson and Commission
APPROVAL: Nicole Hemmans, Senior Administrative Analyst
Title
Placement of charges on the 2024 County Property Tax Roll for delinquent wastewater payments.
(RECEIVE AND FILE)
RECOMMENDATION
Staff recommends the Utilities Commission receive and file the placement of charges on the 2024 County Property Tax Roll for delinquent wastewater payments.
Body
BACKGROUND
The City of Rialto (City)/Rialto Utility Authority (RUA) provides sewer services throughout the entire City and areas of Bloomington. Where RUA provides water service, both water and sewer services are billed together. For delinquent accounts, RUA is able to impose penalties and shut off water services to promote payment, per Rialto Municipal Code Section 12.08. However, there are areas of the City where either the West Valley Water District or the Fontana Water Company provides water services and RUA only bills for sewer service. The sewer-only accounts have high delinquency rates, as the RUA cannot disconnect services for lack of payment.
In order to collect sewer-only accounts more effectively, the Rialto Municipal Code Section 12.08.201 was amended to allow for placement of delinquent charges on property tax bills through the County Tax Collector’s Office. The Ordinance approved on June 19, 2007, provides a method for collecting delinquent accounts similar to the lien placement process used for solid waste delinquent accounts.
ANALYSIS/DISCUSSION:
During the spring of each year, Staff develops a list of properties to be levied for delinquent sewer fees. Once the list of properties to be levied has been completed, the list will be compared with the most recent County property ownership data. Changes will be incorporated into the final list which is then submitted to the County. This list is comprised of accounts where the account owner is delinquent on sewer payments. Once created, this list is presented to the City Council/Rialto Utility Authority Board for permission to place the delinquent sewer fees on the tax rolls.
To meet the County submittal deadline, several things must occur, most notably, a list must be presented to the City Council/Rialto Utility Authority Board of properties meeting the criteria for placement of liens with the County and a public hearing must be held to approve the levy. Notification letters were sent to the delinquent account holders and the property owner if different, alerting them of the RUA’s plan to place the delinquent charges on the property tax roll and giving them one last opportunity to pay.
The last date for a customer to pay their delinquent sewer bill before placement on the tax rolls is June 24, 2024. It should be noted that if a customer paid their delinquent wastewater bill prior to the deadline, their property and the levy amount will be removed from the list provided to the County. A copy of the letter is included as Attachment 1 and a copy of the Notice of Public Hearing is included as Attachment 2. Once the list of properties to be levied has been completed, the list will be compared with the most recent County property ownership data. Changes will be incorporated into the final list which is then submitted to the County.
SCHEDULE/LEVY PROCESS
If the City were to post levies for this fiscal year, the following tasks must be completed by the deadlines listed below:
FINANCIAL IMPACT:
Operating Budget Impact
The levy is comprised of accounts where the account owner is the same as the current property owner per the County secured tax roll. The potential total levy amount is estimated at $1,106,758 and there are approximately 1,580 delinquent accounts.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget.