HomeMy WebLinkAboutFIN 2019-06-10 Item 2A - Discussion - Transfer of Surface Water Billing to King CountyCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Vicky Carlsen, Finance Director
BY: Richard Takechi, Fiscal Coordinator
CC: Mayor Ekberg
DATE: June 10, 2019
SUBJECT: Update to the Storm and Surface Water Billings Transfer to King County
ISSUE
Update on the transition of the Storm and Surface Water billing and collection processes from
the City to King County effective January 1, 2019.
BACKGROUND
The City and King County entered into an Interagency Agreement "For Surface Water
Management Fee Collection and Remittance Related Services" which was signed by the Mayor
on December 13, 2018.
Prior to the transition to the County, the City had over 5,000 surface water accounts which were
billed in January and July. Past due notices were also processed and sent twice a year to the
customers and/or their paying agent. A monthly late charge was assessed to delinquent
accounts, and if still unpaid, a lien was filed against the property. Finance would process all the
surface water payments, which would have been made via mail, online, over the phone, drop
box, or over the counter. Finance would also receive contact from the customers or interested
third parties. The customers would call to discuss what the bill was for, status of the account,
updates to their account, or complaints about the bill itself. Escrow companies would contact
the City for final payoff amounts.
The transition to King County was intended to alleviate time and cost to the Finance Department
by reducing the number of cashiering transactions and phone calls. Other departments would
benefit as well by a reduction in inquiries and complaints related to surface water.
DISCUSSION
King County was provided with the customer/billing rate file from the City and used that data to
include the surface water charges on annual property tax statements. Before the file was given
to the County, a thorough review of accounts was done to ensure that the parcel data matched
the County data and that only accounts the County would assume billing responsibilities for
were included. The final file was sent to King County and it was successfully integrated into
their billing system. The file excluded City owned properties, condominium complexes, and
State-owned highways. These were billed directly by the City.
Notification was sent via postcard to all the customers explaining the transition. Despite the
mailings, the City still received numerous phone calls from customers inquiring about when they
would receive their bill. There were more of these types of calls in the first quarter than
expected, but they have since significantly tapered off. Overall, questions and complaints about
surface water have been negligible. As the year progresses, we will have the ability to assess
any reduction in workloads due to the transition.
INFORMATIONAL MEMO
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The City still has many delinquent accounts on its books and the City was required to retain this
function. King County only bills for current surface water charges, therefore; any outstanding
balances prior to the transition are still the City's responsibility to collect. Thus, the monthly late
charge penalties and past due notices will still be processed, as well as any liens. Once these
balances are collected in full, then the accounts will become 'inactive.'
Another efficiency the City will realize is that changes to ownership will not have to be updated
in Eden any longer. However, short plats, lot line boundary adjustments, consolidations, and
new construction will still be updated in Eden and physically checked to determine its proper
billing rate category, which will then be provided to the County to bill on future tax statements.
FINANCIAL IMPACT
The City mailed out bills in January and July, however, King County includes the surface water
charges on the property tax statements, which are paid in April/May and October/November.
Because of the change in timing of billing and revenue receipts, the full financial impact will be
provided at year-end when we have a complete year of data to compare to the prior year.
RECOMMENDATION
Information Only.
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