City to place delinquent utility charges on property-tax roll after council vote

Mountain House council members voted unanimously June 9 to direct staff to place eligible delinquent utility charges on the county property-tax roll beginning fiscal year 2026–27. Staff reported roughly 415–430 delinquent accounts totaling about $634,500, an average delinquency of about $1,380 per account.

Staff explained that the city already places property liens on overdue accounts but that placing delinquent utility charges on the tax roll is a more reliable collection tool because county collection mechanisms and the Teeter-style process provide near‑guaranteed payment to the city (less a 1% auditor fee). The staff presentation noted that both property liens and tax‑roll placement remain available tools and are not mutually exclusive.

The council was told staff will prepare the required written report and notices and hold the statutorily required public hearing July 22. If a majority of the affected accounts protest at the hearing, the city would not place those accounts on the tax roll; in practice staff said majority protests are rare.

Staff also addressed the origins of some delinquencies. During the meeting council members asked whether lingering delinquencies were caused by earlier billing errors; staff said accounts placed on payment plans as a corrective measure will not be included if customers are paying as agreed and that staff will provide a breakdown at the July hearing identifying accounts tied to prior billing corrections.

What’s next: Staff will publish and mail required notices, prepare the listing for the public hearing on July 22 and provide a classification of accounts that stem from past billing errors, as requested by council.