Memorandum
Date: July 20, 2021
To: The Honorable Bruno Sabatier Chair,
Lake County Sanitation District Board of Directors
From: Scott Harter, Special Districts Administrator
Jesus Salmeron, Deputy Administrator-Fiscal
Subject: 9:30 A.M. - PUBLIC HEARING - (Continued from July 13, 2021) - (Sitting as Lake County Sanitation District - Board of Directors) - Consideration of Resolution of Delinquent Sewer Fees for Lake County Sanitation District
Executive Summary: (include fiscal and staffing impact narrative):
On July 13, 2021 at 9:30 a.m. a PUBLIC HEARING was held to hear protests regarding the placement of Delinquent Sewer Fees on the 2021-2022 Tax Rolls for collection. At that hearing your Board took action to continue the public hearing for further discussion to July 20, 2021 at 9:30 a.m.
In the intervening week staff has reviewed the delinquent account aging report for data specific only to Lake County Sanitation District accounts, and discussed the implications of deferring this action with both the Auditor/Controller’s and Tax Collector’s offices.
All accounts with a past due balance which were at risk of being placed on the tax roll were notified with a courtesy letter on either May 20th, 2021 or June 18th, 2021 depending on the account billing cycle. Information has also been provided on our social media accounts which directs our customers to resources for assistance with housing and utility costs if they are unable to pay their bills as a result of the pandemic. Across all of our sewer accounts there were approximately 15 who contacted our offices to set up payment plans and address their delinquent account prior to being placed on the tax roll.
Within LACOSAN service areas there are 3,715 delinquent accounts with a total amount to be placed on the tax roll of $1,056,875.23. Discussion with other involved departments confirmed that any deferment will result in this deferred amount ($1M) in addition to any future delinquencies (likely a similar amount) being placed on the 2022/2023 tax roll. This action will delay the receipt of potentially $2M in revenues for a full year and impact the ability of the department to operate effectively.
The resolution to place the delinquent sewer fees on the tax roll requires a two-thirds supermajority for approval, and once approved by your Board, authorize this action in accordance with Article 4, Sanitation and Sewerage Systems, of the Health and Safety Code, and Sections 25215.4 and 25215.5 of the Government Code. The required Resolution is attached for your consideration.
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Recommended Action: Approve Resolution Authorizing the Placement of Delinquent Sewer Fees on the Property Tax Roll for Lake County Sanitation District