April 2011
Helping Pennsylvania Taxing Districts Hit By Unpaid Property Taxes Generate New Revenue For Their Budgets Since 2003
PA School Districts Successfully Convert Non-Performing Assets Into Revenues At No Additional Cost To Taxpayers
We all know the old adage “If it sounds too good to be true, then it probably is.”  What then would you call an instance where you were pitched an idea that was so good it even had actual success stories and solid client references, yet you still chose to disbelieve it? Given proven fact beyond question, this is known as denial…and a missed opportunity. In recent years, 25 Pennsylvania school districts avoided the pitfalls of unyielding skepticism and denial when they participated in a statewide program that converted non-performing assets into revenues at no additional cost to taxpayers. Using a unique service developed by Municipal Revenue Service (MRS) Pennsylvania school districts became the proving ground for a new process that bridges the gap between unpaid real estate taxes by providing immediate revenue to school districts.
“Now that it’s a proven, legal process, it’s much easier to present a concept with the backing of over 160 transactions in 25 school districts. But even given that,” says Chuck Herron, MRS Founder, “I still get people telling me and my staff ‘It can’t be done.’  ‘But it has been done’, I tell them, ‘We’ve done it, dozens upon dozens of times. It is a legal process supported by Pennsylvania legislation.’  Given the facts, it is not something ‘too good to be true.’ It simply, truthfully, exists as a proven way for school districts to generate revenue when hit hard by unpaid real estate taxes.” Many school districts in Pennsylvania are experiencing increases of 10% or more in delinquent taxpayers and collections can take 3-4 years. MRS helps school districts immediately while the County or local tax collector continues to collect. “It’s a win-win situation for the taxpayers who pay on time, and the ones who are late, with new revenues to keep taxes down and provide distressed taxpayers the time they need to get caught up on their delinquent tax bills”, Chuck explains.  “Once you take all that in, there is a temptation to say upfront, ‘Hey that’s too good to be true!’, until you pick up the phone and call one of the school district business managers we’ve worked with.”  MRS has helped school districts across Pennsylvania acquire revenues in excess of $300,000,000.  School districts that have not yet participated and would like to learn more should contact MRS at 814-476-0400 to arrange a presentation.
Working with local re-development authorities and other non-profit agencies, delinquent real estate taxes and liens are recognized as a revenue source using state legislative guidelines and the MRS system, developed over two decades by Chuck Herron, CPA and MRS Founder.
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MRS Exhibits Fun at 56th Annual PASBO Conference & Thanks Everyone Who Stopped By & Helped Make The Show A Success presented by Jeff Spaulding, MRS Associate
Probably the most striking observation I came away with after exhibiting at this year’s annual PASBO Conference held at the David L. Lawrence Convention Center in Pittsburgh was that of other vendors in attendance with blank purchase orders and no resources to fill them. In talking with School District Facilities Managers, Pennsylvania’s desperate budget situation will leave many needed school improvement projects in dire need of funding. With no one betting on an easy answer to makeup for state budget cuts on their way, my job was to get the word out about Municipal Revenue Services, now more than ever a part of the solution that makes funds available even when school tax payments are not. Kudos to MRS Founder Chuck Herron for coming up with a way to draw attention to our unique services while letting attendees have some fun at the same time. Our theme of “A Winner Every Time” in reference to converting a district's nonperforming assets into immediate revenue was reinforced by Chuck’s vision of MRS slot machines that release hundreds of custom designed and stamped MRS coins. Through a snail-mail and email campaign before the show, attendees were invited to stop by our booth to learn how a district’s delinquent real-estate tax receivables can only be treated as revenue to the district when it is converted to cash, something our I-Portal program has done for dozens of school districts around the state.
Having spent over 28 years in City and County government searching for resources to make community improvements, I am constantly amazed that more districts do not see the simple and immediate advantage of using a tool at their disposal to bring resources to bear.  Grant application, regulations, uncertainties, staff time...all are eliminated by passage of a simple resolution that brings a financial transaction to close for their District within 30-45 days...and nothing to pay back as it is already their money. As for those that did stop by and learn more, I thank you on behalf of Municipal Revenue Services and look forward to helping you and your school districts make use of revenues from delinquent taxes to help solve some of your budget shortfalls in the coming year.  If you didn’t get a chance to stop by, or couldn’t attend this year’s PASBO Conference, look for us this October at the PASA-PSBA School Leadership Conference in Hershey, PA.  Go to http://www.psba.org/workshops/school-leadership-conference for more info. Please remember, you don’t have to wait to see us at conference to find out how MRS can help your school district.  If you would like to learn more contact MRS at 814-476-0400 to arrange a presentation.
MRS Way of Doing Business Makes Its Way Into PASBO’s 500 Cost Reduction Strategies for Local Education Agencies
After providing dozens of Pennsylvania school districts with over $300,000,000 in instant revenue over the last seven years using our MRS-only way of generating revenue from the sale of tax liens, it was gratifying to see bundling tax liens to sell finally recognized in the recent revision of PASBO’s “500 Cost Reduction Strategies for Local Education Agencies” which was originally drafted in 2003, a time when MRS was in its infancy.
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