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HomeMy WebLinkAbout13 - Collection of Certain Sewer and Recycling Fees and Charges Through the Property Tax Roll - PowerPointJuly 26, 2022 Item No. 13 Newport Beach City Council Public Hearing July 26, 2022 Scott Catlett - Finance Director/Treasurer Y • The city provides sewer service to approximately 23,000 customers and recycling service to approximately 22,500 customers • Most residents and businesses receive both of these services from the City along with water service • The City also provides services to a limited number of customers located outside of the City • 4,693 customers receive only recycling service from the City, and 598 customers receive only sewer service • Customers not receiving water service from the City have higher delinquency rate than water customers • The City can shut off water service to incentivize payment • Non -water customers go through a collections process that is sometimes unsuccessful • Collection efforts require staff time, and once the City's outside collection agency is involved there is a 30% collections charge on amounts received • While difficult to quantity, this change is anticipated to result in a cost savings to the City for collections • Staff propose moving the sewer -only and recycling -only customers from the City's utility billing process to the County's property tax billing process • This will eliminate bi-monthly or quarterly bills to the customers • Health and Safety Code Section 547o et seq. authorizes the collection of these charges via the property tax roll • This is a common method of billing for California public agencies • The County handles collection via the normal property tax billing, collection, and foreclosure processes • The City will receive the fee revenues, plus any penalties and interest for delinquent amounts, when paid c'94 FO aN�P • The Finance Committee reviewed this issue at its April 14, 2ozz, meeting • The Committee recommends transitioning these customers to property tax billing • If approved by the Council, the change will be effective with the July 2022billing period • Staff will pursue one final collection effort for delinquent accounts after the transition, and any � remaining delinquent accounts will be referred to theCity's collection agency t-ils Fo aN`P • _ • � � •• Staff Recommendations • Conduct a public hearing • Determine this action is except from CEQA • Adopt resolutions confirming the FY 2022-23 Sewer Service Fee and Recycling Fee Reports and authorizing collection of the fees through the Orange County tax roll Newport Beach City Council Public Hearing July 26, 2022