Comments on: Moody will identify ten million dollars to cut from budget – Updated with statement

By: meghan

meghan — Tue, 25 Aug 2009 01:38:43 +0000

kateb wrote:

If it can NOT be done then we’d ought to run this guy out of town on a rail.

That shouldn’t be too difficult since he lives in Sylvania!

By: kateb

kateb — Mon, 24 Aug 2009 02:57:15 +0000

If the City can lay off that much tax debt in a sale for 10 million – which would relieve us of our tax deficit – we’d all ought to call City Council, and encourage our family and neighbors to do the same, and demand that they do it.

419 936.2020 (Clerk of Council – gerald.dendinger@toledo.oh.gov)

If it can NOT be done then we’d ought to run this guy out of town on a rail.

But you have to ask yourself why would he put himself out here like this over and over if there was no merit?

Contact Council and tell them to find out.

By: LisaRenee

LisaRenee — Sun, 23 Aug 2009 17:46:36 +0000

Jenny, I don’t disagree on the value aspect.

By: jenny

jenny — Sun, 23 Aug 2009 12:00:12 +0000

LisaRenee wrote:

What Moody has suggested though is a bit different, he’s suggesting selling the old debts similar to what the County did to collection companies

That is correct Lisa. Mr. Collins suggested that the City continue trying to collect the tax. Mr. Moody’s suggestion involved selling the debt and, hopefully, getting an immediate infusion of cash.

It is somewhat similar to the County’s tax lien sale. However, I must again point out that the value of the tax liens are likely much higher than the City’s debt. Property tax liens are secured by the property. The liens are a fraction of the value of the property, even in this depressed market, and take priority over most other liens.

I doubt that the debt owed to the City will have anywhere near the value of property tax liens. It is, though, an idea worth exploring.

By: LisaRenee

LisaRenee — Sat, 22 Aug 2009 23:51:31 +0000

Lidia is correct that Collins is the one who has been pushing for collection - he estimated 5 million - the City estimated 2 million. What Moody has suggested though is a bit different, he's suggesting selling the old debts similar to what the County did to collection companies that will do anything necessary to collect the money since they buy the old debts and how much profit they make depends on how many of the old accounts they can collect from. link from 2006. There is also a more recent article on this type of a scenario in the New York Times.

By: Lidia

Lidia — Sat, 22 Aug 2009 23:36:49 +0000

I think it is a really great idea, but Mr. Moody forgot to mention that this same idea of collecting unpaid taxes had been brought up at a press conference by… D. Michael Collins last Monday. Here’s a link to the Blade’s article By FLORENCE DETHY, which was published on Aug. 18th http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20090818/NEWS09/908180356, and another link to the media release from August 17th: http://www.dmichaelcollins.com/open_book_registry.
At least it means Moody supports Collins’ ideas…

By: jenny

jenny — Sat, 22 Aug 2009 22:33:07 +0000

toledojim wrote:

always thought why the city and county don’t collect the money owed by these people

The County does through property tax foreclosures. They also sell the property tax liens. There was a recent change in the law that allowed this collection process.

Property tax liens have more value, since you can sell the property to collect the tax. Doesn’t matter if the owner cannot be located.

I agree with you Roman that even 20% is better than nothing. My point was that Mr. Moody has a good idea, but I think he is being a little unrealistic about how much the City will receive.

By: roman

roman — Sat, 22 Aug 2009 19:35:05 +0000

Even if we get half of what is owed we could still find ourselves in the positive side of things here.

By: toledojim

toledojim — Sat, 22 Aug 2009 17:48:48 +0000

I’ve seen the lists of delinquent taxpayers published in the Blade and always thought why the city and county don’t collect the money owed by these people. You know the IRS would!

By: jenny

jenny — Sat, 22 Aug 2009 13:29:56 +0000

“Toledo will then be able to sell these uncollected debts for a minimum of $10 million dollars and may indeed get upwards of $15 million dollars.”

Certainly this is an idea worth exploring. However, the present day value of uncollected debt varies greatly. I suspect that most of the uncollected taxes will have little value, since they are old and will be difficult to even locate the taxpayer. I think Mr. Moody is being widely optimistic.

However, it is certainly an idea that should be investigated and he should be commended for this innovative approach.