Ensuring Financial Stability for Upland’s Utility Services- Summary of City Council Agenda item H

Ensuring Financial Stability for Upland’s Utility Services

The City of Upland is taking proactive steps to improve the efficiency and financial stability of its utility services. At an upcoming City Council meeting, we will consider setting a Public Hearing on May 12, 2025, to discuss placing parcel fees for Wastewater (Sewer), Solid Waste (Trash), and Storm Drain services onto the property tax roll for billing. This action is administrative only and will not increase or change existing fees.

Why This Change is Needed?

Currently, the City directly bills residents for these services, but this process comes with significant challenges:

High Delinquency Rates – The City has accumulated over $2 million in unpaid utility bills, with over $1.1 million owed for trash services alone.

Inefficient Collections – Collecting overdue payments requires additional administrative efforts and costs.

Unstable Revenue Streams – Fluctuating payments create financial uncertainty for the City’s enterprise funds.

By shifting these fees to the San Bernardino County Tax Roll, Upland will:

Ensure More Reliable Collections – Property tax billing reduces delinquency rates and secures consistent funding.

Reduce Administrative Costs – Eliminating separate utility bills will save money on printing, mailing, and collection efforts.

Strengthen Financial Stability – A predictable revenue stream improves long-term financial planning.

Background on Recent Changes

In 2022, the City partnered with Burrtec Waste Industries to handle billing and customer service.

In 2023, Ordinance No. 1983 required property owners (rather than tenants) to be responsible for utility accounts and allowed the City to recover unpaid bills through special tax assessments.

In 2024, the City fully transitioned all utility accounts to property owners to enhance accountability.

The City Council will vote on setting the May 12, 2025, Public Hearing, where residents can provide input before the final decision is made. Affected property owners will receive notification postcards at least 45 days in advance.

This approach aligns with Upland’s commitment to fiscal responsibility while ensuring essential city services remain funded and operational.

I pulled this item for discussion during Monday night's City Council meeting. I understand the need for ensuring the financial stability of the enterprise fund. The lack of payments to the fund adds up quickly, and when the State of California passed SB 998, it took away agencies' ability to shut off utilities for non-payment. This directly impacts the City's ability to fund desperately needed infrastructure projects. However, I am uncomfortable with placing the billing on the county tax rolls due to the potential impact on mortgages from possible underfunding of escrow accounts.

I invite all residents to attend the Public Works Committee Meeting on April 9 at 5:00 PM at the Carnegie Building. This is an opportunity for the public to weigh in on the proposal, and City staff will provide a thorough presentation. Your feedback is important as we consider the best path forward.

Councilman James Breitling Chair, Public Works Committee City of Upland