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Galt seeks to recoup delinquent assessments

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Posted: Tuesday, August 6, 2013 12:00 am

A once well-known California home builder owes Galt close to $25,000 in delinquent tax levies, forcing the city council to decide whether to start foreclosure proceedings on the affected property.

The issue is on this week’s agenda when the city council meets Wednesday. The council pushed back its regular Tuesday meeting due to today’s National Night Out activities.

Kimball Hill Homes, formerly based near Chicago, is not the only entity that has failed to pay its annual special assessments on property in Galt. It owes $24,588, according to the city.

Additionally, two Sacramento property owners owe roughly $6,000 each on other parcels, the city said.

All of the money goes toward bonds that pay for improvements in two of the city’s assessment districts. Sacramento County could refund the delinquent amounts to the city.

To do this, the city must begin foreclosure proceedings. Any associated costs would be paid by the assessment district, not directly by taxpayers.

The chances of recouping the money are slim.

Kimball Hill Homes, which constructed thousands of homes across the country, went out of business five years ago after a failed attempt at restructuring due to bankruptcy in 2008. Its inventory, which included housing developments throughout Sacramento and San Joaquin counties, was liquidated.

The property in Galt was located on 41 acres near Kost Road.

The Galt City Council meets at 7 p.m. Wednesday in the council chambers at City Hall, 380 Civic Drive, Galt.

Contact reporter Jennifer Bonnett at jenniferb@lodinews.com.

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