REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  July  18, 2017
CATEGORY:  Scheduled Hearings - Public Works-8.

SUBJECT:

Annual Reports of Delinquent Fees and Uncollectible Debts for County Service Areas

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Pat Minturn, Public Works Director, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

Take the following actions on behalf of County Service Areas (CSAs): (1) Convene a public hearing; (2) adopt a resolution which confirms the Reports of Delinquent Fees for CSAs; (3) direct that the annual liens be placed on the tax bills for Fiscal Year 2017-18; and (4) approve a discharge of accountability for collection of unpaid water and sewer service accounts that have been deemed uncollectible.

SUMMARY

Routine measures are proposed to collect unpaid water and sewer bills and to discharge uncollectible debts.

DISCUSSION

Some of the delinquent accounts have evaded our normal collection techniques.  These “uncollectible” accounts fall into two general categories:  (1) a former property owner who was in arrears and sold the property before we were able to place a lien, and (2) a renter of a former property owner who was in arrears and left without paying.  The delinquent accounts were either referred to Superior Court Collections and deemed uncollectible, or were deemed to be too small to warrant further collection efforts.  The Board may clear these accounts from the billing records per Government Code Sections 25257 and 25258.  The uncollectible fees are summarized below:

Historical data for delinquent fees and uncollectible debts are shown in the attached table.  Delinquent fees mirror economic trends.  They were level until 2006 and have since tripled.  Uncollectible debts lag the economy by a couple years.  They reached a low ten years ago ($269) and have since rebounded.

ALTERNATIVES

The Board may decline to lien delinquent properties.  Some of the delinquent fees could be collected through other means, but uncollectible debts would likely increase.  The CSAs could replace this foregone revenue through rate increases.  The Board may decline to discharge accountability for uncollectible debts.  The uncollectible debts would stay on the books.  Further collection efforts are not considered to be cost effective.

OTHER AGENCY INVOLVEMENT

The Auditor-Controller’s Office will include the adopted liens on the FY 2017-18 tax bills following approval by the Board at the July 18 public hearing.  The Auditor-Controller is entitled to a processing fee. County Counsel has reviewed and approved the resolution as to form only. The recommendation has been reviewed by the County Administrative Office.

FINANCING

These revenues were included in the Adopted 2017-18 budgets for the various CSAs.  The CSAs will receive payment for any lien amounts on the next property tax disbursement.  The CSAs will receive this revenue even if the property tax bills go unpaid, because Shasta County has adopted the Teeter Plan.  Reasonable allowances have been made for uncollectible debts.  There is no General Fund impact.