Chino Hills approves $81,757.24 in write-offs; council questions collections and state limits

The Chino Hills City Council voted unanimously to authorize the write-off of $41,755.39 in uncollectible utility accounts receivable and $40,001.85 in general accounts receivable incurred prior to May 31, 2024, during the consent calendar.

Councilmember Peter asked whether changes the city had made—such as deposit requirements—had reduced annual write-offs. Finance staff explained that deposits are based on fixed charges rather than variable water consumption and that California Senate Bill 998 extended the number of billing cycles the city must allow before disconnecting service for nonpayment, sometimes allowing customers to accumulate two to three bills before a shut-off action can occur.

Council members cited specific high-balance residential accounts that remain unpaid, and asked whether property-damage claims (for knocked-over streetlights or fire hydrants) and vehicle-accident reports produce insurance or registration information that would assist collections. The police chief said accident reports do contain insurance and registration information when available, but insurance does not always cover the loss. Staff said accounts that go to collections may still be left in collections even after the city records a write-off.

Finance staff said the city weighs the cost of pursuing individual claims—particularly when insurance is not available—against expected recoveries. The council requested staff follow up on the feasibility of additional collection efforts and to return with more details if warranted.