MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Colette Thompson, Borough Attorney

Scott Holt, Finance Director

Rhonda Krohn, Property Tax and Collections Supervisor

DATE: March 4, 2004

SUBJECT: Ordinance 2004-07, amending KPB 5.12.350 regarding procedures for enforcement of personal property and leasehold taxes

This ordinance revises the procedures set out in KPB 5.12.350. As written, this ordinance requires the administration to provide the assembly with a list of all persons delinquent in personal property taxes and taxes on property in which persons have a leasehold interest from the government. However, at the time that such list would have to be presented to the assembly, significant manual effort would be required by finance to ensure the accuracy of the list of names. Additionally, before the delinquent property list is published, many of the persons whose names would appear on such a list will have paid their taxes in full. To avoid unnecessarily publishing incorrect names and the significant administrative effort that would be required to comply with this code section, the administration respectfully requests that the assembly amend the code to delete the requirement that the assembly be presented with a copy of the list of these delinquent taxpayers. The list will be published within a month after the assembly approves the publisher, and current names would be provided at that time in the newspaper.

Additionally, the code requires that the borough attorney promptly file suit against the delinquent property taxpayers involved. The administration recommends that this requirement be modified to require that the administration pursue collection actions. A lawsuit is frequently not required to recover payment from these property owners. Filing the lawsuit requires the borough to incur costs that may prove unnecessary. Your support of the ordinance would be appreciated.