LAKEPORT, Calif. – At its most recent meeting, the Lakeport City Council approved a letter to the county supporting the city of Clearlake’s efforts to have issues with the Treasurer-Tax Collector’s Office addressed, particularly regarding the need to increase sales of properties in tax default.
Over the course of the last several months, the city of Clearlake, led by City Manager Alan Flora, has sought to get Treasurer-Tax Collector Barbara Ringen to increase the sales of tax defaulted properties, a key task Flora said she’s failed to do.
In a special meeting in November, the Clearlake City Council approved sending letters to the Board of Supervisors, the Lake County Grand Jury and state officials seeking recourse that includes investigations into Ringen’s performance, as Lake County News has reported.
At the Lakeport City Council’s meeting on Dec. 17, its last of the year, council members considered a request from Flora to join in support of getting the property sales increased.
Lakeport City Manager Margaret Silveira said Flora brought the issues to the city’s attention.
A list provided to Flora by the assistant treasurer-tax collector shows that 3,652 properties of 14,191 properties in Clearlake are delinquent on their taxes. In Lakeport, there are 1,334 delinquent properties with 414 eligible for tax sale, Silveira reported.
She said the total defaulted amount of property tax countywide is about $18.3 million. “That's a huge impact in the county and the city,” said Silveira, adding that not only is it a huge loss of funding and revenues but it creates blight.
Silveira said it is a big issue for Lakeport but an even bigger issue for Clearlake and the county of Lake.
Councilwoman Stacey Mattina asked if the county has given a reason why it hasn’t done more sales.
“I think there's just a lot of excuses,” said Flora.
He said the county is intending to have a tax sale in March of up to 300 properties. No tax sale was held this year; one had initially been scheduled but canceled.
Over the last 11 years, there have been seven tax sales; over the last five years, there have been two, Flora said.
Even having a sale of 300 properties is not addressing the problem, said Flora, adding that between 500 to 700 properties a year are going into default.
Flora said Riverside County had a similar problem 10 years ago. Once officials there started regularly doing tax sales, more people paid their taxes.
Tax default is a real big problem in Clearlake, where Flora said nearly 25 percent of all properties are delinquent on their taxes. It contributes to blight, hinders investment and impacts special districts like fire departments.
While the county has to make up the 1 percent of property tax that is delinquent and owed to the cities and other agencies, it’s not required to do the same for the assessments implemented by fire and other special districts, he explained, adding he hasn’t analyzed how significant of a problem that is.
Flora said that property tax default has the greatest financial impact on the county itself.
In his 11 years in Lake County, Flora said he's never been involved in an issue in which more community members and organizations have contacted him to thank him for finally addressing the situation.
Flora and Clearlake Police Chief Andrew White went to the Board of Supervisors in September to ask for action to be taken. Mayor George Spurr asked Flora what action the board took.
At that time, Ringen said she intended to sell 300 properties in March, based on what has been budgeted. Flora said they told the board they didn’t think that was enough and they requested that they be allowed to submit priority properties.
Flora said he put together a list of 166 such priority properties and submitted them to Ringen’s office, which subsequently informed him that approximately 15 of those would be added to the tax sale list.
It was at that point that Flora said they lost patience, and moved forward with asking for the grand jury, the California Controller’s Office, the California Treasurer’s Office and the Board of Equalization to start investigations into Ringen’s actions.
Flora alleged that Ringen has been negligent of her statutory obligations.
During the discussion, Spurr noted that the last county tax sale took place in March 2018. Flora said 100 to 150 properties were sold at that time.
Silveira wondered if the county can contract to get the properties sold. Flora said he thinks there are a number of options, and that’s one of them.
He said the letter the city of Clearlake sent to the Board of Supervisors presented a number of ideas that haven’t previously been explored.
Councilman Kenny Parlet said the situation showed an “epic” amount of irresponsibility that is costing everyone in Lake County money, and setting a tone to encourage blight and crime. He said he had no idea this was happening.
During public comment, Lakeport resident Michael Green said it wasn’t fair to attack a department head without them being there, adding that Clearlake has done a good job of “stirring the pot.”
Green said doing tax defaulted property sales is not Ringen’s only duty, noting she also has to collect taxes. He said accusing someone of negligence and willful omission of their duties borders on slander.
The situation, Green said, is decades in the making, and it’s not in Ringen’s or the county’s capacity to fix it. He said there are other options they can consider, adding that he didn’t think they were asking the right question.
Councilwoman Mireya Turner suggested approving the letter to the Board of Supervisors Flora was requesting with focus on providing Ringen’s office with the resources needed to have a second tax sale in 2020, to enter into an agreement with the city of Clearlake for reduction of fees and penalties for eligible properties, pursue options to facilitate regular tax sales, and provide additional support to facilitate annual tax sales that address the backlog of defaulted properties and meet the statutory requirements.
The council approved the amended letter 5-0.
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Lakeport City Council offers support for Clearlake’s request to increase tax defaulted property sales
- Elizabeth Larson
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