Fort Fairfield will create a plan for delinquent taxpayers to catch up on what they owe rather than foreclose on their properties.
Councilors took no formal action on the matter when they met Wednesday, but agreed the town should temporarily acquire the affected properties while working out strict payment plans with the owners.
That arrangement will help taxpayers, but will also keep the town from becoming the permanent owner of some 40 properties it would see no income from and could take years to sell, Town Manager Tim Goff said.
“If we own it, we have to clean it up. We don’t want to be landlords,” Goff said. “We make zero tax revenue and we could be permanently displacing people, and nobody wants to do that.”
A 2023 U.S. Supreme Court ruling made it difficult for towns to foreclose without losing money, he said, referring to Tyler vs. Tennepin County. In that case, the court ruled governments can’t keep any excess money from sales of property seized because of unpaid taxes.
Municipalities have to return any excess funds above fees and expenses to the property owners, Goff said. While towns aren’t looking to make money from such real estate sales, if they acquire property from unpaid taxes they’ll incur the expenses of cleanup or demolition.
Demolition can cost the town about $10,000 per building, making those properties liabilities and not assets, Public Works Director Darren Hanson said.
In Fort Fairfield, about 40 property owners owe 2022 taxes as of Dec. 18, Goff said. The owners have received seven notices, including three certified letters, over the past three years.
Councilors discussed how to deal with the affected properties, and in the end agreed with Goff’s suggestion to have town leaders create detailed plans that homeowners must follow to make tax payments.
The town will acquire the properties temporarily but will return them to the owners once taxes are caught up.
“The benefit is that we give them time to get back on their feet, and the town gets the revenue of the taxes,” Goff said.
In other business, the town manager reported several residents had complained their water and sewer bills were late. The delay happened because the district is short-staffed and also had a water main break to deal with, but bills have now been sent out, Goff said.
Councilors voted to dissolve Fort Fairfield’s Arbor Committee. The longtime group has met sporadically in recent years and only two members remain. Requests for volunteers and new members haven’t yielded results.
The council tabled appointments to other panels, including the Budget Advisory Committee, because no one applied to fill vacancies.
Town Clerk Neadra DuBois was appointed registrar of voters.
Councilors approved an $8,049.95 grant to the Fort Fairfield Police Department from the U.S. Department of Homeland Security and the Aroostook County Emergency Management agency.
Of that money, $7,800 will pay for upgrades to in-vehicle communications equipment, and the other $249.95 will buy traffic safety vests for officers.
The next town council meeting is scheduled for 6 p.m. Wednesday, Feb. 19.
