Frazier may enlist tax lien management service
PERRYOPOLIS — Frazier School Board is pondering the benefit of using a tax lien management service to generate additional revenue for the district.
Representatives of Municipal Revenue Service Inc. (MRS) of McKean presented information to the board on Thursday on the company’s role in locating revenue sources for Pennsylvania’s taxing districts hit by delinquent property taxes.
“This program in the first year of transaction usually generates about 75 percent additional revenue,” said Jim Geronimo of MRS.
According to Geronimo, the program could produce an extra $100,000 in revenue for a school district the size of Frazier.
District business manager Kevin Mildren said Frazier has struggled with revenue sources from delinquent property taxes since 1990.
“It (the program) brings funds into the district quicker for the operational expenses we have,” said Mildren.
Additionally, Mildren said the program would provide a valid figure from delinquent property tax collections instead of having to anticipate how much the district would receive before the budget is due to the state in June.
Under the program, MRS works with taxing districts in cities, counties, municipalities and school districts and nonprofit entities to buy their delinquent real estate tax liens.
Geronimo said MRS charges a 10 percent service fee that covers managing the program for as long as the district is involved.
The company obtains the current estimated real estate tax liens from the local county tax claim bureau or delinquent tax collector and uses the information to provide immediate cash and revenue for the taxing district.
As part of the program, the taxing district sells its delinquent real estate tax liens to a nonprofit entity.
Geronimo said the closing process takes about 30 days after a taxing district adopts a resolution authorizing the sale.
Geronimo noted the program does not affect the operations of the local county tax claim bureau or its outside tax collector.
Geronimo further stressed the regular and delinquent taxpayer will see no change in the process of collecting delinquent taxes.
The program also assures that the school district or municipality continues to receive all the penalties and accrued interest on the delinquent taxes received.
The Uniontown Area School District is listed as one of 41 clients on the MRS website to contract the service.
In an unrelated issue, Dr. David Blozowich, superintendent, said the state audit report for 2009-10 is in the process of being published.
Blozowich said the report identified four areas of error for Frazier, including a nonresident pupil membership resulting in a $27,993 refund.
However, Blozowich said it most likely would take up to three years for the state to return the money.
The other areas of finding include a “memorandum of understanding” in law enforcement with the school district that is part of new state safety requirements; monitoring the qualification of bus drivers; and a violation pertaining to a pension that was discussed in executive session.