For City Council and Rialto Utility Authority Meeting June 24, 2025
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: John Rossi, Interim Utilities Director
Nicole Hemmans, Senior Administrative Analyst
Title
Request City Council/Rialto Utility Authority Board to Set a Public Hearing for July 22, 2025, to Receive Public Comment Related to the Placement of Sewer Service Charges on the County Property Tax Roll for Delinquent Accounts.
Body
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority Board set a Public Hearing for July 22, 2025, to receive public comment related to the placement of charges on the County Property Tax Roll for delinquent sewer payments.
BACKGROUND
The City of Rialto (City), through the Rialto Utility Authority (RUA), is responsible for providing sewer services to all properties within the City limits and parts of Bloomington. In areas where RUA also supplies water, customers receive a combined bill for both water and sewer services. Under Rialto Municipal Code Section 12.08, the RUA is authorized to encourage timely payment through penalties and, when necessary, water service shutoffs. However, not all properties in Rialto receive water from RUA. In some parts of the City, water is instead provided by the West Valley Water District or the Fontana Water Company. For those customers, RUA bills only for sewer services. Because the RUA does not control the water supply in these cases, it lacks the ability to enforce payment through service disconnections. As a result, these “sewer-only” accounts tend to show higher rates of delinquency.
To address this issue, the City amended Rialto Municipal Code Section 12.08.201, authorizing the placement of past-due sewer charges on the County property tax rolls. This amendment, enacted by Ordinance on June 19, 2007, mirrors the approach used for recovering unpaid solid waste service fees and provides an effective tool to ensure the collection of outstanding sewer balances.
ANALYSIS/DISCUSSION
Each spring, City staff compiles a list of properties with unpaid sewer charges that may be subject to collection through the property tax roll. Once this preliminary list is created, it is cross-referenced with the latest property ownership records provided by the County to ensure accuracy. Any updates are incorporated into the final version, which is then submitted to the County for processing. This list includes accounts with outstanding sewer balances and is brought before the City Council and Rialto Utility Authority (RUA) Board for formal approval. Council authorization is required in order to move forward with placing these delinquent charges on the property tax roll.
To comply with the County’s submission deadlines, a few key steps must take place:
• A public hearing must be held, and staff must present the finalized list of qualifying properties to the Council/RUA Board for approval.
• Prior to the hearing, notification letters are sent to all affected account holders informing them of the City’s intent to place the unpaid fees on the tax roll. The letter also serves as a final opportunity for payment.
The deadline for customers to resolve their outstanding sewer charges and avoid placement on the tax roll is June 24, 2025. If payment is received by that date, both the property and associated levy will be removed from the list before it is submitted to the County. A sample of the notification letter is provided as Attachment 1, and the Notice of Public Hearing is included as Attachment 2.
SCHEDULE/LEVY PROCESS
Should the City proceed with placing levies for the current fiscal year, the following tasks must be completed by the corresponding deadlines outlined below:
ENVIRONMENTAL IMPACT
This request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA). A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378 (b)(5), a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney has reviewed and approved the staff report.
FINANCIAL IMPACT
Operating Budget Impact
The estimated revenue from placing delinquent sewer charges on the County’s secured tax roll is approximately $1,160,000 based on 1,580 delinquent accounts. These funds represent the potential recovery of outstanding charges that would otherwise remain unpaid. It is important to note that only accounts in which the customer and property owner are the same, as verified through the County’s secured tax roll, are eligible for inclusion.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget.