City of Oak Creek
Common Council Report
Meeting Date: 11/15/05
Item No.:
Recommendation: That the Common Council adopt Resolution No. 10566-111505, a Resolution Rescinding Resolution No. 8037-072390, and Restating the Policy on the Handling of Delinquent Personal Property Taxes.
Background: In 1990, by means of Resolution No. 8037-072390, the Council approved the Policy on the Handling of Delinquent Personal Property Taxes. Section 2 of this resolution establishes the procedures for accounts determined by the City Treasurer to be delinquent as of March 31st to be turned over to the City’s collection agency or to the City Attorney for pursuit of collection, determined by the delinquent amount. In 1990 when the resolution was approved, the amount of $500.00 used for initiating legal proceedings was relevant. However, as litigation costs increase and the City faces more and more crucial issues which require considerable attention from the City Attorney, I believe it necessary to revise this procedure.
I would like to restate this procedure as follows:
1. Add to Section 2: If not paid on or before March 31, all delinquent accounts will be turned over to the City’s collection agency.
2. Delete Sections 2(a) & 2(b).
3. Add paragraph to Section 3: All delinquent accounts with a total balance due of $1,000.00 or more will be subject to a lawsuit initiated by either the City’s collection agency or the City Attorney. The City Treasurer will individually review each delinquent account to determine who shall initiate the legal proceedings, based on cost effectiveness.
Both the City Attorney and City Treasurer believe that Resolution No. 10566-111505 will be beneficial to the City of Oak Creek. A collection agency can offer specialty techniques for debt collection (i.e. find business that relocates, find owner of closed business), and has available the workforce necessary to collect delinquent amounts due the City of Oak Creek in a timely fashion. In addition, it provides the City with a cost effective way to initiate legal proceedings on an individual basis.
Fiscal Impact: Improve the City’s financial position and enhance budgeting procedures by the timely and efficient collection of monies due to the City.
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Prepared by:
Barbara A. Guckenberger City Treasurer |
Fiscal Review by:
Beverly A. Buretta, CMC City Clerk |
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RESOLUTION NO. 10566-111505
RESOLUTION TO REVISE THE POLICY ON THE HANDLING OF
DELINQUENT PERSONAL PROPERTY TAXES
WHEREAS, the City of Oak Creek must pay unpaid personal property taxes to the other taxing districts in February; and
WHEREAS, the uncollected personal property taxes must be charged back to each taxing district in the following year and thus will have an adverse effect on that years’ tax levy for each taxing district; and
WHEREAS, the City adopted Resolution 8037-072390 which established a policy on the handling of delinquent personal property taxes; and
WHEREAS, since 1990 the cost for litigation fees has increased; and
WHEREAS, the City faces more and more crucial issues which require considerable attention from the City Attorney; and
WHEREAS, the timely and efficient collection of monies due to the City of Oak Creek will benefit the taxpayer and enhance budgeting procedures of the City Government.
NOW THEREFORE BE IT RESOLVED, by the Mayor and Common Council that Resolution No. 8037-072390 is hereby rescinded; and,
BE IT FURTHER RESOLVED that the following shall be considered as the policy on the handling of delinquent personal property taxes:
1. Those accounts determined by the City Treasurer to be delinquent as of February 1, will receive a notice of delinquency.
2. Those accounts determined by the City Treasurer to be delinquent as of March 1, will receive a copy of this policy and a letter of delinquency from the City Attorney, which will advise the taxpayer of the ramifications of nonpayment. If not paid on or before March 31, all delinquent accounts will be turned over to the City’s collection agency.
3. Any delinquent amount still outstanding on October 1, regardless of whether in collection or in legal proceedings will be noticed in the City’s official newspaper, showing the taxpayer’s name and/or business name, address, the delinquent principal amount plus interest as allowed by WI State Statutes.
All delinquent accounts with a total balance due of $1,000.00 or more will be subject to a lawsuit initiated by either the City’s collection agency or the City Attorney. The City Treasurer will individually review each delinquent account to determine who shall initiate the legal proceedings, based on cost effectiveness.
As of October 1, the Treasurer shall also prepare a list of names and amounts of delinquent personal property for which the likelihood of collection appears remote, which shall be written off the books subject to approval by the Common Council; however, collection efforts may continue.
4. In the following February, the City Treasurer shall charge back to each taxing district its proportionate share of those personal property taxes, for which the City settled in full the previous February, which were delinquent at the time of settlement, which have not been collected in the intervening year and which remain delinquent.
Any delinquent personal property taxes that were charged back and are subsequently collected by the City shall be proportionately distributed to each taxing district. Distributions shall be made on May 15, August 15, November 15 and February 15.
Introduced at a regular meeting of the Common Council of the City of Oak Creek held this 15th day of November, 2005.
Approved this day of , 2005.
President, Common Council
Passed and adopted this day of , 2005
Mayor
ATTEST:
VOTE: Ayes Noes City Clerk