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Committee approves workout agreement proposing $600 quarterly payments toward long-standing tax debt
Summary
Treasurer Janelle Emerson presented and the committee approved a workout agreement for a taxpayer to make $600 quarterly payments toward long-standing taxes; councilors asked staff to review policy on payment application order and to finalize a policy revision draft.
The committee approved a taxpayer workout agreement after Treasurer Janelle Emerson answered follow-up questions about the debtor’s financial situation and the structure of the agreement.
Emerson explained the proposed workout is for a taxpayer whose property is his only property and that the quarterly payment proposed is $600. Councilors questioned whether partial payments are being applied to the most recent balance rather than the oldest balance and raised concerns about preserving the city’s interest in title until full redemption. Emerson explained that a partial-payment waiver differs from a workout agreement and that payments made outside the formal agreement must be handled differently; she said that under workout agreements, amounts due at the agreement’s approval are part of the agreement and anything billed afterwards is outside the agreement.
Councilor Krasen urged the council to revisit the city’s policy—particularly the guidance that staff has been following—and staff said an initial draft revision is in progress for council review. The committee moved and approved the workout agreement; the treasurer said this action does not require a report to full council.
