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From the Milwaukee County Treasurer, an informational report regarding a revenue surplus in Interest and Penalty Payments in collection of Delinquent Property Taxes. (INFORMATIONAL UNLESS OTHERWISED DIRECTED BY THE COMMITTEE)
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Per the directive of County Board Resolution 86-666, departments are to notify the Finance Committee of any projected deficits or surpluses in departmental accounts that exceed budgeted amounts.
This year, the Treasurer’s Office is reporting a projected budget surplus of approximately $400,000 in Revenue Account Number 1213 - Interest and Penalty Payments on Delinquent Property Taxes
This surplus is due to three factors.
A. Foreclosures: This office undertook an initiative to reorganize our collections operations and address a backlog in foreclosures complicated by the limited action in this area by prior administrations. It began by coordinating our effort with a coalition of Milwaukee community-based organizations that were working with at-risk homeowners - especially those affected by the sub-prime mortgage crisis. Other resources directed at elderly homeowners, including our own Department on Aging and Aurora’s Project Hope, were included in our foreclosure prevention efforts.
In addition, we began a systemic review of all delinquent properties and began the process of foreclosure for those properties with long-term delinquencies. We also initiated the Wisconsin Income Tax Refund Intercept Program, primarily to help settle smaller delinquent amounts. Finally we negotiated payment plans for homeowners who had no other recourse.
As a result of these efforts, this year the backlog of foreclosures has been addressed up to one year after receipt by the municipality. The payments received through this process yielded an upward blip in revenue - resulting in the receipt of significant amounts of delinquent tax payments last year and this year. This catch-up process is now complete and we have already begun to see a decl...
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