ITEM TITLE:
Report - Delinquent Property Taxes and Foreclosure Process
SUBMITTED BY: Brian Carlson, Finance Director
FISCAL NOTES:
Expenditure Required: n/a
Unencumbered Balance: n/a
Funding Source: n/a
RECOMMENDATION:
Receive and file
SUMMARY STATEMENT:
This report apprises Council of the status of property tax delinquencies and the related foreclosure procedures.
• Initiated Foreclosures: 2010-2012
o See attachment: 2010-2012 Updated Delinquencies
o Seven distinct properties; total delinquent amount $71K
o These delinquencies are filed with the Third Judicial District Court, and are awaiting the filing of a “motion and memorandum for transfer and entry of judgment of foreclosure”, following Finance staff verification of delinquent amounts.
o Next steps in filing are estimated to be concluded by end of March, 2019. Staff has delayed this filing pending review of data following ransomware, software updates, and staff turnover.
• Next delinquency/foreclosure filing: 2013-2018
o Estimated 174 properties totaling $474K in delinquent taxes
o Staff anticipates initial filings by end of May, 2019.
o Initial motions and pre-publication notices typically clear 70% to 90% of delinquent balances.
o Staff will provide Council with a detailed list following, or concurrent with, formal publication of same.
• Timeline for regular annual foreclosure process
o Staff will initiate regular, annual filings in November, 30 days following final due-date for payment (October 15), beginning in 2019.
o Staff anticipates $5K to $8K in annual legal fees for regular foreclosure proceedings. Services are provided by Levesque Law Group, and are billed to Finance Department, professional services.