TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:May 9, 2023
SUBJECT: Residential Wastewater Service Charges on Property Tax Roll RECOMMENDATION:
1. Adopt resolution approving the report of residential wastewater service charges and authorizing the County of Ventura to collect residential wastewater service charges via direct assessment on the Ventura County secured tax roll for FY 2023-
24. Two-thirds vote required.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
FINANCIAL IMPACT:
No Additional Funding Requested. An estimated cost of $7,663.74 will be included in the Proposed FY 2023-24 Wastewater Fund Budget for billing services provided by the County of Ventura. Minimal staff time to prepare report is also included in the Adopted FY 2022-23 Wastewater Fund Budget.
BACKGROUND:
On April 13, 2021, City Council approved the collection of single-family residential wastewater service charges through the Ventura County Secured property tax roll for the first time with Ordinance No. 1684-NS.
The table on the next page is a history of the wastewater service charge collection since it started July 1, 2021. The FY 2022/23 row displayed is as of April 10, 2023, when the second installment of the Secured Property Tax is due. The accounts that remain unpaid will receive a mailed delinquent tax notice by Ventura County Tax Collector in May with a due date of June 30, 2023. The City has averaged a
99.6 percent property tax collection rate over the past ten years, and it is estimated that the current collection rate will increase before fiscal year end.
Residential Wastewater Service Charges on Property Tax Roll May 9, 2023
On December 14, 2021, City Council adopted wastewater service charges for FY 2022-23 and FY 2023-24. Effective July 1, 2023, the wastewater service charge for single-family residential parcels is $381.36 for parcels located inside City limits and $386.64 for parcels located outside City limits. Property owners that are enrolled in the City’s Utilities Assistance Program will have their wastewater service charge offset by a $60 credit on their property tax bill.
DISCUSSION/ANALYSIS:
California law permits local agencies, such as municipalities and sanitation districts, to attach to the County’s property tax bill certain direct charges unrelated to the assessed value of the property. This means that wastewater service charges, classified as a “fee” rather than a “tax” via Prop 218, are an allowable expense that can be included as a separate line-item charge on the property tax bill, via a direct assessment.
The City is required to submit to the County of Ventura the Assessor’s Parcel Number (APN) and the associated wastewater service charge being levied on each property by July 5, 2023. In addition, City Council is required to adopt a resolution (Attachment #1) approving the Report of Annual Residential Charges (Attachment #2) for placement of the FY 2023-24 residential wastewater service charges on the County Property Tax Roll.
Collecting residential wastewater service charges on the County Tax Roll is the most efficient and cost-effective means of collecting wastewater service charges. The City has not received any concerns or questions from customers during the first two years of implementation and staff recommends approval of the recommendation.
Residential Wastewater Service Charges on Property Tax Roll May 9, 2023
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Tara Tosatto, Revenue Operations Manager
Attachments:
Attachment #1 – Resolution
Attachment #2 – Report of Annual Residential Charges
FIN:1000-22\tt\H:\COMMON\Council\2023\Public Services\050923 WW to County Staff Report.docx