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6.L.- Page 2of8 Some cities charge sewer service charges in conjunction with annual property taxes. Health and Safety Code (H&S Code) Section 5473 et seq. authorizes public agencies to collect sewer service charges on the tax roll in the same manner, by the same persons, and at the same time as, together with and not separately from general taxes. The City will need to meet multiple requirements before it can place any charges on the tax roll: 1. Staff must create a report that details the charge for each parcel. 2. Notices must be mailed to the owners of parcels identified in the report. 3. A public hearing must be held to consider any objections or protests to the report. Once the City has met all requirements, the City Council may elect to adopt a resolution authorizing the collection of charges on the tax roll. Staff recommends gradually transitioning the collection of residential sewer service charges to the tax roll in order to increase the efficiency of the process for collecting charges. The first group to be transitioned would be Residential customers with one dwelling unit per parcel. These parcels have fixed annual costs and represent a majority of the City's sewer service revenue. Sewer service charges that are collected on the tax roll are imposed in one lump sum on an annual basis. However, the City's Sewer Service Charge Ordinance (Section 27.100 of Article IX of Chapter 27 of the Municipal Code) currently provides that all customers will be charged on a monthly basis. As such, in order to permit the City Council to hold a public hearing and consider whether to begin collecting sewer charges on the tax roll, staff is proposing revisions to the Sewer Service Charge Ordinance to authorize the City to charge Residential customers with one dwelling unit per parcel on an annual basis, rather than only on a bi-monthly basis. These proposed revisions will not affect all other customers' billing methods. ANALYSIS The proposed amendment to the Sewer Service Charge Ordinance authorizing sewer service charges for Residential customers with one dwelling unit per parcel to be charged on an annual, rather than a bi- monthly, basis will not result in an increase in any customers' total sewer charges. Further, adopting the proposed amendment will not immediately see charges placed on the tax roll. Staff will still need to generate a report detailing the charges for each parcel, mail notices to affected parcel owners, and the City Council will still have the opportunity to conduct a public hearing and consider a resolution authorizing the charges to be collected on the tax roll. The County of San Mateo (County) Controller's Office is responsible for placing charges on the tax roll while the Tax Collector's Office is responsible for collection. Therefore, the County guarantees payment of the total amount submitted for collection, paid in installments throughout the fiscal year. This means that the County will handle any necessary collections or assessment of penalties in the event of non- payment. Staff would like to transition to this collection method because it will provide a more reliable revenue stream and improve staff's ability to make more accurate budget projections. Although staff do not currently track the amount of time spent handling sewer charges, staff believe that collecting Page 2 of 3 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 348