Treasury, collecting divisions report high collection rates, digital upgrades and postage pressures in FY26 budget briefing

City finance leaders told the Boston City Council Committee on Ways and Means on May 27 that the Treasury Department and the Collecting Division continue to maintain near‑complete collection rates while adding electronic payment options and outreach efforts to reduce delinquencies.

Celia Botten, first assistant collector-treasurer, and Tim McKenzie, interim deputy treasurer, presented organizational responsibilities and FY26 budget recommendations. The administration recommended approximately $2,630,000 for the Treasury Department’s operating budget in FY26 and a $2,134,250 operating recommendation for the Office of Participatory Budgeting (presented separately), with most increases driven by wage benchmarking and higher postage costs.

Botten described the collecting division’s mission and operations: maintaining a high collection rate, assisting taxpayers with payment plans and outreach (including work with Age Strong and the Home Center), operating telewindows and online portals, reconciling daily deposits and managing tax title actions. She reported a FY24 collection rate of 99.2% (99.1% in FY22) and said the division had collected roughly $23,100,000 in delinquent taxes, reducing tax-title volume by about 23% year-over-year.

McKenzie explained Treasury functions including cash and investment management, payroll and vendor payments, defined contribution plans, and trust and community preservation oversight. He said Treasury processes roughly $110,000,000 of payroll and $65,000,000 for retirees each month, issues about 55,000 checks and advices monthly, and pays about $200,000,000 a month in vendor payments. He described the FY26 operating recommendation of roughly $2,630,000 as a $37,000 increase over FY25, primarily for wage increases and postage.

Officials told the committee they have rolled forward operational improvements that include an expanded online payment portal, pay-by-phone options, scheduled payment capability and plans to add QR codes on tax bills. Botten said the office also implemented outreach automation to contact taxpayers by email and phone, which she credited with collecting $23,100,000 in delinquent taxes.

Councilors questioned the divisions about several operational details. Councilor Flynn praised the professionalism of collecting-staff interactions with taxpayers. Council members asked whether postage increases (a cited 5¢ federal increase) had been budgeted; officials said the FY26 recommendation includes funding for the postage increase and that about 1,000,000 tax bills are mailed annually because of a state requirement to mail tax bills even when online options are available.

Officials said they are working to expand language access and partner with community groups to reach seniors and residents with limited digital access. Botten described current payment-plan outreach and coordination with the Home Center and Age Strong for residents experiencing difficulty paying taxes. The office also reported an approximately 23% reduction in tax-title filings year-over-year because of improved outreach.

Committee members pressed for additional follow-ups. Treasury and collecting staff agreed to provide the council with a clear inventory and status of trust funds referenced during the hearing, including the law enforcement trust fund balance, and to provide updated figures on outstanding real‑estate taxes and the results of recent operational reviews of collection practices. Tim McKenzie said the pension and trust portfolios are overseen with a consultant (NEPC) and are managed for long-term performance.

The administration also described planned technical improvements intended to reduce manual work and late notices. Officials told the committee they had budgeted for postage increases and wage benchmarking but did not propose new permanent staffing in FY26; they said personnel costs comprise about 80% of operating budgets for these offices.

Committee members and public commenters asked about targeted relief options, such as payment plans or hardship funds, for residents with limited resources. Officials described existing payment-agreement options and outreach to identify taxpayers in hardship and said they can coordinate with the Home Center for additional support. Staff agreed to follow up with more detail on payment-plan volumes and potential program design options for hardship assistance.