Published June 12, 2009 01:31 pm - Cash-starved Conneaut is working hard to claim nearly $500,000 in unpaid municipal income taxes, officials said.
Deadbeats owe Conneaut $500,000 City has issued court summonses, put collection
By MARK TODD - Staff Writer - mtodd@starbeacon.com Star Beacon
CONNEAUT
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CONNEAUT — Cash-starved Conneaut is working hard to claim nearly $500,000 in unpaid municipal income taxes, officials said.
Collection agencies and court summonses are some of the weapons the city has unleashed to help it tap into the pile of desperately needed money.
Finance Director John Williams told City Council this week that it is keeping tabs on 953 delinquent accounts dating back to 2001. Some 252 accounts are in collection, leaving 701 still outstanding, said Larry Gasch, tax administrator.
All overdue accounts, when totaled, owe the city $453,000, Gasch said. That’s money the city, which laid off a handful of employees at the beginning of the year to balance its budget, desperately needs, he said.
Collection companies and court notices are last-ditch attempts to get the taxpayers’ attention, Gasch said.
“The last thing we want to do, especially in this economic climate, is take people to collection,” he said. “Even worse is taking people to court.”
People found guilty in court often see court costs tacked onto their bills.
A lot of the headache can be avoided with a telephone call to the tax office, requesting a payment plan, Gasch said. The city realizes times are tough and, for some residents, tax bills are even tougher to pay, he said.
“All we ask is a good-faith attempt,” Gasch said.
The collection of unpaid taxes is more important than ever, given the city’s declining tax revenues, Williams said. Revenue was down $54,000 and $44,000 in April and May, respectively, he said. Overall, collections are off $181,000, or 11 percent, compared to this time last year, Williams said.
New computer software in the finance department unveiled the average wage earned in Conneaut last year was $31,000, according to new software in the finance department, he said.
Future tax collections are tough to predict, Williams said.
“Some companies say they will be hiring, while some may be decreasing the size of their work force,” he said.
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