Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance Tax Collection topic
No spam. Unsubscribe anytime.
Audit restatement and rising uncollected property taxes prompt talk of letters, tax sale
Summary
The committee reviewed an audit restatement that reclassified roughly $1.5 million in gaming revenue and discussed long-running tax-collection shortfalls, with outstanding property taxes the committee estimated at about $26 million and collection rates below earlier budget assumptions.
Town officials briefed committee members on an audit restatement and large outstanding property-tax balances at the Jan. 9 meeting. The audit restatement moved approximately $1.5 million in gaming-related revenue between governmental and fund accounts; officials said the change corrected earlier reporting misclassifications for fiscal 2022'2023.
Committee members expressed concern about a multi-year decline in collection rates for property taxes. The meeting record shows the town's collection rate has dropped below prior budget assumptions (the transcript cited recent collection percentages in the low-to-mid 90s in past years and lower recent actuals), and committee members reported roughly $26 million outstanding in property taxes across multiple years.
Town staff told the committee the finance office is planning more active outreach, including sending demand letters to delinquent taxpayers and possibly proceeding with tax sale procedures where warranted. Committee members said the last full tax sale occurred in 2015 and that staff will first attempt letter campaigns to trigger voluntary payment before formal tax-sale action.
Committee members asked for periodic updates on the results of outreach and any tax-sale preparations, noting that improved collections would materially affect near-term municipal revenue projections and could reduce pressure on the operating budget or the need to draw accumulated surplus.
Members also asked for clarification on audit details, including asset posting and the reconciliation of records with county clerk files; staff said a new auditing firm has reviewed prior work and that the town will request management letters and follow-up documentation.
