Moody will identify ten million dollars to cut from budget – Updated with statement
This in via e-mail from the Moody for Mayor campaign:
Moody Finds $10 Million In City Budget
Plans To Call Back All Police Officers
Mayoral Candidate Jim Moody will today identify $10 million dollars currently in the city budget that can be used to balance the city budget and restore the currently laid off police offers back to work.
At this press conference, Moody will lay out his plan for obtaining these funds and the timetable of their use. “What is important to understand is that the use of these funds will not cause any further reduction of other city services,” said Moody.
When: 1:00 P.M.
Where: Northwest Police Station (Sylvania Ave.)
Updated 8:30 p.m.
Balancing Toledo’s City Budget
By
Jim Moody
Candidate For Mayor
For nearly a year, Toledo has been in the throws of financial crisis. Unfortunately, the Mayor’s office and City Council has either refused or been unable to find creative ways to solve this problem. My guess is that part of the problem is because they do not understand how to apply business practices to government problems. This is what separates me from every other candidate and elected official…I get it.
Accounts receivable are always considered an asset. Assets must be used or they offer no good. Currently, the City of Toledo has assets in the form of uncollected income taxes exceeding $20 million dollars. I propose that we bundle these assets and then apply both auction and factoring business practices. 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. This practice is successful in both the private and public sector. Toledo has simply again been behind the curve
This infusion of cash must first be used to better protect our children and our parents. We must first bring back all of the laid off police officers. Second, we must use the balance of funds to retire the burden of debt our professional politicians have placed on us. By retiring this debt, we will be in a better position to be prepared to remedy the looming shortage of police officers that will be a result of the impending surge of retired police officers.
Toledo does not have to participate in this Nations financial crisis. We have everything we need to fix our own problems right here and right now.
“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.
August 22nd, 2009 at 9:29 amI’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!
August 22nd, 2009 at 1:48 pmEven if we get half of what is owed we could still find ourselves in the positive side of things here.
August 22nd, 2009 at 3:35 pmtoledojim wrote:
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.
August 22nd, 2009 at 6:33 pmI 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.
August 22nd, 2009 at 7:36 pmAt least it means Moody supports Collins’ ideas…
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.
August 22nd, 2009 at 7:51 pmLisaRenee wrote:
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.
August 23rd, 2009 at 8:00 amJenny, I don’t disagree on the value aspect.
August 23rd, 2009 at 1:46 pmIf 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.
August 23rd, 2009 at 10:57 pmkateb wrote:
That shouldn’t be too difficult since he lives in Sylvania!
August 24th, 2009 at 9:38 pm