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.