Number
161217
Version
ORIGINAL
Reference
Sponsor
ALD. BOHL
Title
Resolution relating to purchase of Milwaukee County delinquent taxes.
Analysis
This resolution directs the City Attorney, assisted by other City and non-City entities as needed, to renegotiate the City/County intergovernmental agreement for the City to purchase Milwaukee County delinquent property taxes to enhance parity between the City’s economic and financial interests and those of Milwaukee County.
In addition, the City Attorney is directed to submit the renegotiated agreement for Common Council approval with sufficient time to execute the new agreement by December 31, 2017, or report the status of negotiations as soon as possible if it appears, in the City Attorney’s judgement, negotiates will likely not be completed in time to execute the new agreement by year end 2017.
Body
Whereas, The City has purchased delinquent taxes owed to Milwaukee County on properties located in the City through an intergovernmental agreement for over 25 years, effectively eliminating the collection risk, and making both entities whole for these unpaid taxes; and
Whereas, The City incurs a direct financial loss which would otherwise be borne by Milwaukee County whenever delinquent taxes purchased on a property through the City/County intergovernmental agreement are not paid and the City is forced to pursue a tax foreclosure; and
Whereas, The incidence of tax foreclosure on properties for property tax default has significantly increased since March, 1991, when the current intergovernmental agreement governing the City’s purchase of Milwaukee County delinquent taxes was executed; and
Whereas, The higher incidence of property tax foreclosures has significantly increased the City’s collection risk on delinquent taxes purchased through the City/County intergovernmental agreement; and
Whereas, The City incurs significant costs for property upkeep, police and fire services, and property disposition in addition to the direct loss of County delinquent taxes purchased on a tax-foreclosed property; and
Whereas, In light of the recent, current and expected future climate of property tax foreclosures in the City, a renegotiation of the existing City/County delinquent tax purchase agreement is needed to establish collection-risk parity between the City and Milwaukee County; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Office of the City Attorney, with assistance from the Budget and Management Division of the Department of Administration, the City Treasurer, the City Comptroller, other City agencies or outside entities as needed, shall renegotiate the terms of the City’s intergovernmental agreement to purchase Milwaukee County delinquent property taxes in order to enhance collection-risk parity between the City’s economic and financial interests and those of Milwaukee County; and, be it
Further Resolved, The Office of the City Attorney shall submit the renegotiated intergovernmental agreement to the Common Council for approval with sufficient time to execute the new agreement by December 31, 2017, or report the status of these negotiations to the Common Council as soon as possible if it appears, in the City Attorney’s judgement, negotiates will likely not be completed in time to execute the new agreement by December 31, 2017.
Requestor
Drafter
LRB #167176 - 1
Aaron Cadle
December 12, 2016