HomeMy WebLinkAboutMemo - Mail Packet - 6/30/2020 - Memorandum From Clay Frickey Re: Impact Of Property Tax Delinquency Interest Waiver On Ura RevenuesUrban Renewal Authority
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Fort Collins, CO 80522
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MEMORANDUM
DATE: June 22, 2020
TO: Urban Renewal Authority Board
THRU: Darin Atteberry, Executive Director
Travis Storin, Interim Chief Financial Officer
Jackie Kozak-Thiel, Chief Sustainability Officer
Josh Birks, Economic Health Office Director
FROM: Clay Frickey, Redevelopment Program Manager
RE: Impact of Property Tax Delinquency Interest Waiver on URA Revenues
Bottom Line: The County Treasurer has extended a waiver of interest payments for delinquent
property tax payments. This policy so far has had no impact on URA revenues or the URA’s ability to
make debt payments.
Discussion:
State legislation grants county treasurers the ability to waive delinquent interest on property tax
payments through October 1, 2020 for 2019 taxes payable in 2020. The Larimer County Treasurer will
waive delinquent interest for any taxpayer who still owes current year property taxes beginning on June
16, 2020. Taxpayers may submit payment until September 30, 2020 without penalty of delinquent
interest.
This policy could encourage late property tax payments and impact the cash flow of the URA. Changes to
cash flows could impact the URA’s ability to make payments on bonds and other sources of debt. Staff
has compared collections of incremental property tax revenue for 2019 and 2020 through June 10 for
both years. The URA has collected a similar proportion of incremental property tax revenues compared
to last year when the waiver of delinquent interest policy was not in place.
Year to Date Collections 2019
(Percentage of total collections)
Year to Date Collections 2020
(Percentage of total collections)
North College 67.5% 70.1%
Prospect South 82.53% 84.45%
Foothills Mall 53.31% 52.16%
The Treasurer has collected 93% of expected property taxes for 2019 taxes payable in 2020. As such,
URA staff expect minimal to no impact on URA revenues from the Treasurer waiving delinquent interest
on 2019 taxes payable in 2020. The URA has also made all its 2020 payments on its outstanding debt. As
such, lower than expected collections will not jeopardize the URA’s ability to make debt payments in
2020.
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