Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Tax Lien Sale topic
No spam. Unsubscribe anytime.
Board authorizes RFP to sell delinquent tax and sewer liens after debate over value and policy
Summary
The Milford Board of Aldermen voted 14–1 on June 1 to authorize an RFP to sell certain delinquent tax and sewer‑use liens to third‑party buyers, after discussion about the scope of the list, projected totals, and whether selling liens foregoes future interest income.
The Milford Board of Aldermen on June 1 authorized a request for proposals to sell certain delinquent tax and sewer‑use liens to third‑party assignees, voting 14 yes and 1 no after extended questions about scope and fiscal impact.
The resolution, introduced under agenda item 8(d), directs the mayor, in consultation with the city attorney, finance director and tax collector, to issue an RFP and to take steps, including signing documents, necessary to effectuate the sales in accordance with sections 12‑195h and 7‑258 of the Connecticut General Statutes. City staff said the minimum sales price will be the full amount due to the city, which includes principal and interest through the assignment date.
City staff described the planned structure as a bulk list and an a‑la‑carte list. Early figures cited in the discussion included a bulk‑list total of $2,895,465.04 and an a‑la‑carte list totaling $1,857,480.22; at another point staff referenced a different bulk subtotal ($2,000,008.95) while explaining accounting distinctions between the two lists. The administration said the bulk list will include about 136 properties, with additional properties offered individually.
Aldermen pressed staff on how the list was compiled and why the city is proceeding now. One alderman warned the city was “giving up an asset” that accrues interest at 18 percent and said selling the liens could forfeit longer‑term interest income; another alderman argued monetizing delinquent liens now brings cash into the general fund and removes administrative burden. The city attorney and staff explained that properties on payment plans were excluded and that sales will require bidders to meet the full face amount due (including interest accrued to the assignment date). The attorney also said any taxes accruing after assignment would remain the city’s lien unless the assignee purchases subsequent years.
The board approved the resolution on a roll call vote. The clerk recorded 14 yes votes and one no; Alderman Winthrop Smith Jr. was recorded as the lone no vote. The motion’s passage authorizes the administration to proceed with the RFP process and to negotiate required documents if bidders come forward.
Next steps: staff will finalize the RFP and publish the bulk and a‑la‑carte lists as authorized; outcomes will return to the board as required by purchasing and finance rules.
