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June 16, 2026
ITEM TITLE
Conduct Sewer Service Hearing: Assess Delinquent Sewer Service Charges as Recorded Liens Upon the Respective Parcels of Land and Place Delinquent Charges on the Next Regular Tax Bill for Collection by the County Treasurer-Tax Collector
Report Number: 26-0108
Location: Various geographic locations
Department: Finance
G.C. § 84308 Regulations Apply: No
Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.
Recommended Action
Conduct the public hearin g and adopt a resolution assessing certain delinquent sewer service charges as a recorded lien upon the respective parcels of land and placement of delinquent charges on the next regular tax bill for collection by the County Treasurer-Tax Collector.
SUMMARY
The Finance Department is recommending the approval of recording property liens against affected parcels as a preliminary action to placing the delinquencies on County property tax rolls, if they remain unpaid. This enhances collection efforts and safeguards the City of Chula Vista’s (“City”) interest in sewer service charges and related delinquent fees and ensures that collection efforts are directed toward the party responsible.
Adopting this resolution will reduce uncollectible losses, ensure payments are received timelier, and ensure responsible parties meet their sewer service charge payment obligations.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with CEQA , and it has been determined that the activity is not a project as defined under Section 15378 of the State CEQA Guidelines because the proposed activity consists of a government fiscal/administrative activity which does not result in a physical change in P a g e | 2
the environment. Therefore, pursuant to Section 15060(C)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
COMMUNITY ENGAGEMENT
Community engagement efforts for this item included outreach through public hearing notice mailouts and publishing notice in a newspaper of general circulation in the City at least ten (10) days in advance of the public hearing. The outreach effort’s focus is on education and meeting proper noticing requirements to responsible parties.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Background
City residents and places of business benefit from the use of City’s wastewater system. The City ensures an equitable distribution of the costs of complying with wastewater discharge requirements placed upon the City through interagency agreements and by state and federal regulatory bodies.
Chula Vista Municipal Code section 13.14.150 allows delinquent sewer service charges and associated fees to be assessed as recorded liens upon the affected properties and ultimately placed upon the County property tax bills on those parcels for collection by the County Treasurer -Tax Collector. Staff submit the listing of accounts to the City Council for approval at a public hearing on a biannual basis.
Statistics & Performance
In November 2025, City Council approved 255 delinquent accounts with an aggregate value of $ 103,383 to be submitted to the County Assessor for placement of property liens on their respective parcels. If not settled, delinquent accounts are placed on the County property tax rolls annually, in August, and included in property tax bills issued in September for that fiscal year, which are due in two installments . T he first is due on November 1, and the second is due on February 1, of that fiscal year.
Since the November 2025 public hearing , for billing periods from July through December 2025, staff identified 1,521 accounts totaling $ 1,310,860 as b eing over 60 days delinquent. Following preliminary collection efforts and third -party account validation, 286 delinquent accounts valued at $ 181,668 are now being submitted to the City Council for approval. The listing of accounts is available to the public at the Finance Department.
County Property Tax Bills
In August 2025, $207,684.46 was placed on the County property tax rolls; a combination of t he delinquent accounts approved in public hearings held in December 202 4 and June 2025. Of this amount, $196,471 has been collected, resulting in a 94% successful collection rate. Any approved outstanding delinquent accounts from November 2025 and June 2026 public hearings will be submitted to the County tax rolls in August 2026.
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Collections Process
Staff follow a process in line with Municipal Code requirements and collections best practices to i nform responsible parties of their delinquencies and record a lien upon affected parcels. Property owners have been notified of the delinquencies through a series of past-due notices sent by the Finance Department.
For accounts remaining over sixty (60) days delinquent, notification of the public hearing is made via mailed letters, requesting payment of the delinquent charges prior to transmittal of their delinquent account to the County T reasurer-Tax Collector . A public hearing notice is published in a locally circulated newspaper.
Account status and property ownership have been verified by City staff through a third -party consultant, Spicer Consulting Services.
At the public hearing, staff submit a lien list to City Council, containing accounts for related parcels with up to date amounts due for their consideration, together with any objections or protests by interested parties, for approving the placement of a property lien. Staff continue to accept payments and create payment arrangements during the public hearing, leading up to the lien recording date, to avoid submitting accounts resolved following the public hearing.
DECISION-MAKER CONFLICT
Staff reviewed the property holdings of the City Council members and found no property holdings within 1,000 feet of the boundaries of the properties subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff are not independently aware and have not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current-year fiscal impact associated with the approval of this resolution since the collection of delinquent sewer service charges through County property tax roll will be recovered in future fiscal years.
All expenses associated with this action are funded by City’s sewer fund and sewer service charges collected because of this action will be deposited into City’s sewer funds.
ONGOING FISCAL IMPACT
Approval of this resolution supports the collection of delinquent sewer service charges and delinquent fees through the County property tax roll and would ultimately be recovered in fiscal year 2026 -27 and subsequent fiscal years.
ATTACHMENTS
None.
Staff Contact: Jimmy Vasquez, Revenue Manager
Adrian Del Rio, Director of Finance/ Treasurer