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Homeowners say city misbilled Mello‑Roos taxes; council and city attorney describe correction and refunds
Summary
A resident alleged the city and consultant placed an erroneous $885,115 Mello‑Roos levy on homeowners; city attorney called the incident an administrative reconciliation error tied to CFD 90‑2’s October 2024 maturity, said corrected bills were issued and refunds or credits will be provided where appropriate.
Lake Elsinore — A resident who said he is among dozens of affected homeowners accused the city Dec. 10 of improperly placing $885,115 in special‑tax charges on Riverside County property tax bills for parcels in CFD 90‑2 and demanded a public investigation and refunds.
Pat Kilroy, who identified himself as a Lake Elsinore resident, told the council he found an erroneous charge on his tax bill and asserted escrow companies already paid incorrect amounts on behalf of affected homeowners. "This big tax blunder has undermined the public trust in the city government," Kilroy said, urging council to appoint a review committee including council members, the city treasurer and affected homeowners.
City Attorney Leibold responded that an administrative reconciliation error occurred: CFD 90‑2 matured in October 2024 but that maturity had not been fully reconciled when the tax roll was prepared. He said the city corrected the roll with the county, and described how refunds or credits would be applied: 20 property owners who had paid both December and April installments would receive refunds; 46 owners who had paid the first installment would have the overpayment applied to the second installment; the remaining 358 parcels had not paid either installment and received corrected bills.
Leibold characterized the incident as an administrative oversight and not a conspiracy. Councilmembers apologized to affected residents and said staff acted quickly once the error was reported. Councilmember Sheridan said city officials were notified in early November and the city resolved the issue within eight business days of being alerted, but recognized that some homeowners remain inconvenienced while escrow companies and mortgage servicers process corrections.
Councilmembers asked staff and the consultant (Spicer Consulting Group) to review the matter and produce a written account of what happened and what remedies and process changes will be implemented. The council did not take formal disciplinary action at the meeting; multiple members said a written report and faster escrow coordination should follow.
The city’s next steps, as described on the dais, include issuing refunds and credits through the county tax system and providing a written report to council on the reconciliation and corrections.
