Riverside council orders draft homestead discount and delays non‑residential stormwater credits amid funding shortfall

A majority of the Riverside City Council on Monday directed staff to draft an ordinance to offer a homestead adjustment to the city’s recently adopted stormwater service charge, aiming to consider the measure in January while delaying a broader non‑residential credit program.

Council asked the law director and staff to prepare ordinance language replacing section 935.23 so the city can apply a fee reduction to parcels already enrolled in the county homestead program or otherwise qualifying under criteria the council will decide. The council majority said the timing gives staff time to assess first‑year revenue and collections while still responding to affordability concerns for seniors, disabled veterans and low‑income homeowners.

The vote follows an extensive staff presentation on the city’s stormwater challenges. City engineering and operations staff reviewed the 2015 stormwater master plan, identified priority problem areas across Riverside and updated cost estimates to 2026 dollars for projects such as new storm sewers, detention ponds and ditch reconstruction. Staff emphasized that, under current adopted rates and collection performance, capital funding for the 25‑year plan is limited — projected capital contributions fall far short of the plan’s estimated needs without additional rate increases or improved collection rates.

Staff reported one full annual billing cycle so far and said the initial delinquency rate improved from roughly 30% to 25% after delinquent notices were issued. That early performance, staff and the finance director said, reduced available capital funding and led the city to recommend caution before adding new credit programs that would reduce revenue further.

City staff recommended against immediately launching a non‑residential stormwater credit program for businesses, churches and other non‑residential parcels. The staff memo said successful non‑residential credit programs in peer cities were generally implemented well after utilities had several years of stable collections, a mapped asset base and dedicated review capacity. Staff cited limited staff capacity, the need for clear engineering review criteria, and current high delinquency as reasons to delay.

Legal counsel advised the council on the mechanisms required. The law director said a homestead adjustment would require an amendment to the ordinance (two readings and a public hearing) so that eligibility and administrative review are codified; by contrast, new non‑residential credit rules could be added to the city’s stormwater credit manual by resolution if objective criteria are established and consistently applied.

Council members discussed alternative uses for the city’s $698,000 in host community cannabis funds during the earlier agenda item — including a residential road program, hiring additional public‑safety staff, or holding the funds for the upcoming budget cycle — and many of those same trade‑offs framed the stormwater debate. Several members asked staff to run cost models for either hiring additional police/fire staff or funding targeted road work as part of the fall budget deliberations.

What’s next: Council directed staff to prepare draft implementing language for a homestead service adjustment for review at a future meeting with an aim to make the change effective with January billing. Staff will also prepare budget‑cycle materials, a pavement‑management workshop (targeted for August/September), and continue mapping and asset‑management work required by the city’s EPA stormwater permit.