Franklin treasurer reports $496,120 in delinquent taxes, outlines collection tools and $15 million invested

Miss Babb, Franklin city treasurer, told the Franklin City Council at its March 10 work session that the city had $496,120.50 in delinquent taxes as of Dec. 31, 2024, covering tax year 2022 and earlier.

The treasurer said the total reflects a reduction from a prior delinquency balance because some taxpayers paid their accounts: “This is money that’s been paid in,” she said. She gave a line-item breakdown: $119,037.57 in delinquent real estate (62 properties), $344,660.20 in delinquent personal property (tax years 2017–2022), $6,685 in delinquent business-license fees and about $25,737.24 in delinquent meals taxes. She said the city’s cumulative collection rate for the most recent real-estate tax year was 99.76 percent and 97.31 percent for personal property.

The report explained the treasurer’s regular collection tools: payment plans, wage liens through the Virginia Employment Commission, garnishments, DMV holds that prevent registration or license renewal, debt set-off against state refunds and, as a last resort, referral to a tax attorney and possible tax sale. The treasurer said she currently has about eight accounts under wage liens and about 10 on payment plans and that she turned roughly 18 properties to the city’s tax attorney for further collection work.

Miss Babb also discussed required charge-offs under state law. She said the city will follow state limitations to remove accounts that are beyond the statute of limitations and that she will present a list to council later; she cited specific code references during the presentation.

On investments, Miss Babb said she and the finance director have placed what she described as idle or short-term funds into the Virginia investment pool for immediate-access investments. “Right now I have about $15,000,000 of idled money,” she said, and later answered a council question that the investments have returned “a little over $600,000” since they began. She told the council the pool is liquid — funds can be moved by 2 p.m. and appear in the city account by 5 p.m. the same day — and reported a current yield of about 4.49 percent.

Council members pressed on the trade-offs between investing short-term cash and using funds to pay down outstanding debt. Councilman Macklemore said he was concerned that keeping $15 million invested while the city carries debt could cost more in interest than it earns; Miss Babb and City Manager Ms. Oglesby responded that the investments are intended to preserve cash flow for upcoming known payments (for example, semiannual jail payments) and that some borrowed funds are earmarked for projects that are not yet ready to spend.

Miss Babb highlighted other collection results: $268,877 recovered through debt set-off, 125 garnishments placed, and $37,718.90 received from the clerk of court from prior tax sale surplus funds. She also noted the treasurer’s office retained accreditation requirements and received a 2024 Commonwealth Award from the Treasurer’s Association of Virginia.

The treasurer closed by noting she will return with the formal list of required charge-offs and with details as part of routine financial housekeeping. City staff and council members asked follow-up questions during the presentation; no formal council action on the report itself was recorded.

Ending: The treasurer said the figures covered Jan. 1–Dec. 31, 2024, and thanked her staff. Council members asked for more detail on city debt and investment balances; the city manager said she would provide a full debt amount to the council after the meeting.