Loading...
HomeMy WebLinkAbout1996-01-08 96-81 ORDERCOUNCIL ACTION Data: 1-9-96 Item No 96-81 Itm/gebjedt: Order authorizing the Finance Director and hie/hex assigns to implement a Ol atra wed Neal property. Tax and Rte Pavex pol'ev Responsible Department: Finance Co®entarys A significant portion of property tax and sewer charges remain s avding a any given time. The purpose of this policy is to collect, t the greatest extent poenible, all real property taxes, sewer charges and other accepts lawfully due the City of Deeper while affording individual citizens who may be experiencing financial distress the greatest passible flexibility :n doing so. The policy does so by actively contacting those who become delinquent a quickly as possible, and proactively offering them practical alternatives to meet their obligations to the City. The logic underlying this policy is as follows:(1) If the City makes every atonable effort to collect what it is owed; and (2) if it makes every reasonable effort to accommodate residents who, despite financial distress, make a good faith effort to meet their finencial Obligations to the City than (3) the relevant ownership rights of those who fail to make a good faith effort to correct their delinquencies should be put in jeopardy. Yv pW Affiffiesciated Information: Order, policy. FINANCE DIRECTOR CITYSOLICITOR _Introduced For A Passage _ First Reading Pageof Referral 96-81 Aa®gned to ComaBor TylerJanuary S. 1996 CITY OF BANGOR (TITLE.) WsCl12ie Authorizing the Finance Director d hie/here t"n s to: Implement a pol Scy BY the cuv Commit Of 04 city e/Bnspor: ORDERRDr THAT The attached Distressed Real Property 'Tax and Rate Payer Policy is hereby adopted. IN CITY COUNCIL 96-81 - Tanuarr 8, 1996'" 0 RDE R Pe§aed A6 Amended by Substitutipe Title, Authorizing the Finance Director .and hie/her asaiguees to implement a CITY CL6RR Distressed Real Provetty Tax and Rd%e, PeY6r PoIfcv. .,..............1....................... (�LyUBnl�. Aeaeignd to .........n �._ ///.7 Councilman 96-81 SUBSTITUTE COPY DISTRESSED REAL PROPEMTAX AND RATE PAYER POLIC 1. It is the policy of the City of Bangor to collect, to the greatest extent possible, all real property taxes, sewer charges and other amounts lawfully due it in a timely fashion, and to accordance with applicable state and local statutes. 2. It is also the City's policy to afford financially distressed individual citizens who make a good _faith effort in meeting their obligations to the City the gravest possible flexibility in doing so. Distressed tax and rete payers will be notified of delinquencies within a month atter they occur, and monthly thereafter, Notification is to be by; automatically generated letters that (1) request PxYment; (2) Urge the taxpayer to speak with us about the problems they are having with respect to the obligation; and (3)inf the turnover of the available options. Rearouliation Once contact has been established with the taxpayer, the Finance Director may authorize a workout agreement in accordance with the following guidelines: 1. The term of the agreement will not extend beyond twelve months. Where monthly payments are not sufficient to extinguish the debt, the twelfth payment is to be strucaned asa"balloon". Upon execution, the Citywill commit to renegotiating this balloon into succeeding workout agreement. 2. Monthly payment terms will reflect the taxpayer's resources and ability to pay, as documented by tax returns, pay stubs and other means. 3. Workout agreements will incorporate delinquent property tax, sewer charges and my other amounts due the City. Other options traditionally available to taxpayers will remain, such as the Tax Club (per Council Order 94415); not mortgages, per Finance Committee approval and poverty shmemears, also per Finance Committee approval. In all tax -related remedies, taxpayers will be required to apply for relief under the Maine Residents Property Tax Program. All payments resulting from this application are to be assigned to the City in satisfaction ofamoun s due. suesrxMs COPY Code Paletioda Subject properties not in compliance with statutes, regablions and/" ordinances must be brought into, and remain in compliance in accordance with terms and conditions set by the City's Code Bnfatemem Office. Such terms and conditions are to be apecified in the workout agreement. natiScafoa Moth mxpayem and mortgage holders will be notified of impending lieu, and foreclosures resulting both from delinquent real property fazes and sewer charges in accordance with state statutes that require such notification with respect to real pmperty taxes Foreeloaure and Possession Where the Finance Committeeaad City Council deem that: (1) the City has made every reasonable effort to collect the real PrOWY taxes and sewer charges it is owed; and (2) it has also made every reasonable effort In accommodate residents who, despite financial distress, make a good faith effort to mat their financial Obligations to the City; it will auNonu faking possession of the relevant property and its sale In accordance wids sound business practices. Statement of Purvme 1. It is the policy of the City of Burger to collect b the greatest extent possible, all teal property taxes, sewer charges and other amounts lawfully due it in a timely fashion, and in accordance with applicable slate and local statutes. 2. It is also the City's policy to afford financially distressed individual citizens who make a good faith effort in meeting thew obligations to the City the greatest possible flexibility in doing so. Idendfrveon Distressed tax and rate payers will be notified of delinquencies within a month after they occur, and monthly thereafter. Notification is in be by automatically generated letters that (1) request payment; (2) urge the taxpayer to speak with us about the problems they are having with respect In the obligation; and (3) hdbnm the taxpayer of the available options. Remed'mtiav Once conduct has been established with the taxpayer, the Finance Director may authorize a workout agreement in accordance with the following guidelines: 1. The term of the agreement will not extend beyond twelve months. Where monthly payments we not sufficient to a twguish the debt, the twelfth payment is to be suuctmed as a "balloon". Upon execution, the City will comm itto renegotiating this balloon into a succeeding workout agreement. 2. Monthly payment terms will reflect the taxpayer's resources and ability to pay, as dacummted by tax rmams, pay stubs ant other means. 3. Workout agreements will incorporate delinquent property tax, sewer charges and any other amounts due the City. Other options traditionally available to taxpayers will remain, such as the Tax Club (per Council Ordw 94415); tax mortgages, Icor Finance Committee approval and poverty abatements, also per Former Commdnee approval. In all dux -related remedies, taxpayers will he required to apply for relief under the Maine Residents Property Tax Program. All payments resulting from this application ate to be assigned to the City in satisfaction of amounts due. 96-81 BmIt mxpayers and mortgage holders will be notified of impending liens and foreclosures resulting both from delinquent real property taxes and sewer charges in accordance with state stamens that require such notification with respect to real property taxes Where the Finance Committee and City Council deem that: (I) the City has made every tenantable effort in collect the real pmperty mus and sewer charges it is owed; and (2) it has also made every reasonable effort to accommodate residents who, despite financial distress, make a good faith effort in meet licit financial obligations in the City; it will authorize taking possession of the relevant property and its sale in acconJame with sound business practices.