Item #08
Date: July 21, 2026
To: Mayor and City Council
From: Anissa Leung, Finance Director
Jim Schaad, City Manager
Subject: Assessing the Cost of Delinquent Sewer Disposal Charges Against Certain Properties Recommendation:
Pass a Motion to 1) conduct the noticed public hearing to receive comments on the proposed tax lien assessment and 2) adopt Resolution No. 2026-XX, to assess liens of delinquent sewer disposal charges against certain parcels to be placed on the Yuba County Secured Assessment Roll for Fiscal Year 2026- 2027.
Rationale for Recommendation:
The sewer disposal accounts of several property owners in the City of Marysville are delinquent. Those property owners have been notified via sewer bills and letters advising them of the delinquent status of their accounts. In addition to the aforementioned letters, property owners have been notified of the consequences of delinquent accounts. Assessment of delinquent sewer disposal accounts allows the City to pursue collection activity for unpaid balances.
Background:
Since the City began charging for sewer service in the early 1980’s, unpaid charges had not been an issue because they were collected along with property owner’s water utility bills. Customers generally pay the water bill because it is relatively easy to discontinue water service for nonpayment. It is more difficult to install a temporary plug in the sewer line in order to encourage payment of past due accounts. Fortunately, Sections 5470 and 5473 of the California Health and Safety Code expressly permit the City to collect these unpaid sewer charges on the County’s secured property tax bill, as further authorized by the Marysville Municipal Code Section 6.04.130 and Ordinance 960 (1981). To enable the use of that statutory collection procedure, the City Council must first conduct a noticed public hearing to permit affected property owners a final opportunity to bring their accounts current or to contest the validity of the listed charges. As required by state law, legal notice of this scheduled public hearing was published in the Appeal-Democrat on July 3rd, 2026.
Discussion & Analysis:
Utility Management Services (UMS) of Chico provides wastewater billing and payment collection services under contract to the City. At the end of each fiscal year, as part of that service, UMS prepares a report of delinquent accounts with unpaid sewer service charges billed prior to June 13th of the current year. The delinquent charges listed in the attached report are for the proposed parcels that are subject to collection by tax lien, following the public hearing. Tax lien notification letters were mailed to all delinquent customers requesting payment and serving notice of the public hearing.
Due to the fluidity of the mailings and payments on delinquent accounts, a most up to date listing will be provided on the dais for Council. The final delinquent list will be updated to reflect any payments made prior to being transmitted to the County.
Environmental Review:
The action proposed in this item is administrative in nature and does not constitute a project under the California Environmental Quality Act (CEQA).
Alignment with City Council Goals:
Goal #1 – Increase Fiscal Sustainability
Attachments:
a) Attachment 1 - Resolution No. 2026-XX
b) Attachment 2 - City of Marysville Lien List