Agda Pkt 2025.06.09 Joint SA PFA

Browse Search

Page 2 of 4 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org On May 6, 2024, the City Council adopted new sewer service rates and the annual sewer service charge amount for each parcel listed in the Sewer Service Charge Report is reflective of the newly adopted rate for Single Family Residential customers with one dwelling-unit per parcel for FY 2025-26. ANALYSIS Staff anticipate meaningful benefits from the collection of sewer service charges on the tax roll, beginning with a secured, reliable revenue stream for the Sewer Enterprise Fund. As the collector of general taxes, the County of San Mateo (County) guarantees payment of the total amount submitted for collection, paid to the City in installments throughout the fiscal year. As of May 2025, the City has received $14,471,673 (90%) of the sewer service charges billed on the tax roll for FY 2024-25, with the remaining 10% payment arriving near the fiscal year end. Additionally, a secured revenue source has the potential to improve the City’s financial position, such as through improved bond ratings and lower borrowing costs when pursuing outside financing. To monitor any unintended impacts of the pilot program, staff track trends across two metrics: enrollment in the City’s Utility Rate Assistance Program (URAP), and the rate of Redwood City single family residential properties which defaulted on their property tax payment and pay sewer service charges through the tax roll. Throughout the first three years of the transition thus far, trends for both metrics appear steady. Further information on each trend is provided below. Financial Assistance The City continues to assist utility customers in need through a utility rate assistance program. Originally started in 2016 as the Water and Sewer Rate Assistance Program, it was expanded in 2022 to the current Utility Rate Assistance Program to include assistance with solid waste rates. URAP enrollment remains consistent, and staff have not observed a significant increase in enrollment over the last three years to indicate a disproportionate impact from the sewer service charge billing transition on customers. Application forms and program information is accessible on the City’s website (link). County Default Rate The County publishes property tax default rates following the end of a fiscal year. The County considers a property in default if property tax payment is not received by the December and/or April installment due dates. Staff have been tracking available property tax default rate data for Redwood City parcels and parcels transitioned to the tax roll billing method to assess any unintended impacts of the pilot program. The percentage of parcels in default that are also billed sewer charges on the tax roll remains well below 0.5% and has not significantly changed from prior to the transition in billing. 7.B. - Page 2 of 328 395