Council hears uncertainty over county land bank and future lien collections

During the budget presentation council members probed how changes at the county level could affect Ferguson’s revenue from tax-lien collections. The mayor and several council members described Bill 57 — a St. Louis County measure to seed or expand a county land bank — and said it could alter municipalities’ ability to foreclose or auction tax-delinquent properties.

Why it matters: Ferguson’s finance director noted that a significant part of this year’s increased property tax revenue came from previously delinquent liens that were paid; council members warned that if those enforcement tools are curtailed, it could reduce future revenues.

Details and next steps: The mayor said the county plans to choose an initial set of properties from a larger inventory and that owners whose properties are included may receive a percentage of lien returns at auction; properties not chosen are subject to uncertain treatment. The mayor scheduled a June 17 meeting with St. Louis County executive Sam Page and the county director of revenue to seek clarification on how Bill 57 will be implemented and whether municipalities will retain the ability to collect liens or use post-third auction sales. Council members recommended continuing work with county staff to understand inclusion criteria and any municipal opt-in or opt-out authority.

Council debate: Opinions in the chamber varied about strategy: some council members argued strengthening neighborhoods and reducing blight at the local level would reduce reliance on lien revenue, while others urged quick clarification from the county so Ferguson can plan revenue assumptions for its budget.