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Committee updated on tax‑deed properties, a recent write‑off and planned payment‑plan approach
Summary
Finance Director Mr. Sullivan reported that new tax deeds were issued for tax year 2021, that properties have limited response windows before auction, and that one mobile home debt was settled for $2,500 with the remaining balance written off to the general fund.
On Jan. 14, 2025, the Rochester City Council Finance Committee received an update from Mr. Sullivan, finance director, on the city’s tax‑deed process, recent write‑offs and plans for abatements and payment plans.
Mr. Sullivan said the city recently issued a new round of tax deeds for tax year 2021 and that those properties have been visited and the deed is now in the city’s name. "They still have 30 days to respond to this and another 60 days for payment before we would take any actions with, auctioning the property," he said.
The packet, Mr. Sullivan said, is intended to keep the committee updated on where the city stands. He described the process as resource intensive and noted the tax collector works closely with the city attorney on each property. "We only do a few properties at a time because there's a lot of work involved in the tax deed process," he said.
Sale proceeds and write‑offs Council members asked how sale proceeds are recorded. Mr. Sullivan said recovered proceeds from a settlement or auction are recorded as miscellaneous revenue and sales of city property and are not typically budgeted in advance. In one example discussed, an owner owed approximately $25,000 in taxes on a mobile home; the committee was told the city agreed to a settlement that allowed the owner to buy the property back for $2,500. The remaining balance was written off and recorded through the tax‑foreclosure account as an expense to the general fund.
Payment plans and abatements Mr. Sullivan said the finance department is coordinating with the tax collector and the interim chief assessor to develop a methodical strategy for abatements and payment plans for taxpayers who are struggling. "We're gonna manage all this in a methodical manner and I just want to, you know, the update is we're working on it and we're gonna try and work through everything the best," he said, adding the city must avoid terms that permit interest to compound and leave taxpayers still unable to get out of debt.
Why it matters: tax‑deed actions can lead to auctions, settlements, write‑offs and modest revenue for the general fund; they also directly affect property owners who may face loss of title if payment or settlement is not reached.
Ending: Committee members thanked staff for the update and the meeting moved on to monthly reports.
