School board members were told by the district's former Business Manager
But the company's general manager,
"I don't know where their figures came from, but it all seems to be a misunderstanding," Geronimo said. "Unfortunately, that may have poisoned the district's thoughts on our company."
The school district last week voted 8-0 to opt out of the MRS program it had been using for three years. In the program, the company pays the school district for the liens at the start of its fiscal year and recoups the money as the delinquent taxes are collected. To get the money up front from the sale, the district pays the company fees.
The district paid about
Once the debt is paid off, Geronimo said the company will offer to sell any uncollected liens back to the district for
"Since they didn't renew, we're out of their business from 2013 on, but will continue collecting from 2012 and earlier," Geronimo said. "If we thought they owed us money, we'd tell them to give us our money, but that's not the case."
The contract between the district and company allows MRS to continue collecting delinquent real estate tax dollars from 2012 and earlier, through
"The contract says they have the right to keep collecting from previous years until they collect enough to cover their costs, or until
"On one hand, we won't be taking any money out of the budget to pay it off. But on the other hand, we won't have the cash infusion right up front that we would have gotten by selling the liens."
He said the board made the right decision in moving away from the company's services.
"It was a significant expense," Lobby said. "The question is, do you need to pay for money just to get it up front? It wasn't a good move, and that's not a cost we need to incur at this point."
(c)2014 The Leader Times (Kittanning, Pa.)
Visit The Leader Times (Kittanning, Pa.) at www.triblive.com
Distributed by MCT Information Services