Treasurer reports $443,855.59 in delinquent taxes; council approves multiple charge-offs

The Franklin City treasurer presented the office’s annual collections report and won council approval to clear several older delinquencies.

Treasurer Miss Babb told the council the city had $443,855.59 in delinquent taxes as of Dec. 31, 2025, covering tax years 2023 through 2020 and earlier, and reported $42,237.48 in real-estate delinquencies across 63 properties. "We will work with taxpayers and offer payment plans," she said, and described the office's use of DMV stops, wage liens and tax sales as primary collection tools.

The treasurer also reviewed the city's invested balances and historical interest revenue, saying the city currently has about $13,000,000 invested with the Virginia Investment Pool and is earning roughly 3.89% on those funds. She said those investments provide liquidity for short-term needs while preserving access to operating funds.

Why it matters: The report summarizes the city's exposure to unpaid taxes, the tools used to collect them, and inventory actions that can remove long-uncollectible items from the books. Council action on charge-offs clears accounting liabilities but does not change underlying collection tools.

Council actions that followed the report included votes to: - Approve charging off $25,984.84 in personal-property delinquent tax from 2018 (treasurer requested authority under state code cited in the packet). The council moved and approved the charge-off. - Approve charging off $13,731.39 in cumulative amounts associated with deceased taxpayers after review by the commissioner of the revenue; council approved the request. - Clear two orphaned real-estate map numbers from 2003–2004 totaling $2,392.36, which the treasurer said cannot be researched further due to software/ownership gaps; council voted to clear the inactive accounts.

During questions, council members pressed the treasurer on whether the city could acquire tax-delinquent properties directly rather than holding auctions. The treasurer and the city attorney explained Virginia’s tax-sale process and said local governments may bid at sales but cannot simply bypass auction requirements; purchases at auction still result in property ownership by the purchaser. The treasurer said one parcel sold while in a floodplain and brought less than the amount owed because of development constraints.

The treasurer emphasized working with taxpayers: "If they come to the office, we will work with them," she said, describing payment plans and the office’s willingness to negotiate. She also noted the office’s certification awards and staff training as part of collection improvements.

What’s next: The council approved the accounting actions and the treasurer closed her presentation, saying the office will return next year with updates and maintain its ongoing collection efforts.