Erie County property taxes going up 3% ?

[VegasDude]

Erie County’s budget director predicted Tuesday that property taxes would rise by about 2 or 3 percent next year if the state-appointed control board again refuses to let an outside company buy the right to collect and keep overdue tax payments, plus late fees.

Xspand of Morristown, N.J., is willing to pay $27.8 million for the right to collect $26.5 million in past-due taxes on properties with liens placed on them, plus the 18 percent late penalty that can be imposed under the county’s tax law.

The government does not need all of that money to balance next year’s budget. Officials wanted to use much of it to replenish the reserve fund.

However, Budget Director James M. Hartman said that if the control board rejects the latest Xspand proposal, it would punch a $9 million hole in the budget for 2008.

While it is not considered a crisis, he will propose closing the gap with a property tax increase that would add less than $2 a month to the tax bill on a home assessed at $100,000.

Hartman also told the County Legislature’s Finance and Management Committee that if the control board balks on Xspand, he could not ensure Erie County’s cultural groups that they would receive the 3 percent of property tax revenue County Executive Joel A. Giambra had promised them for 2008.

Giambra has proposed a law that would require future county executives to give the county’s arts and cultural groups 3 cents of every dollar raised in property taxes to ensure them a reliable flow of money. Even though the Legislature is still debating that idea, Giambra had promised to meet the 3 percent goal in his next budget.

The control board will discuss the Xspand deal when it meets at 1 p.m. Friday in the Central Library. The members are expected to amplify this question: Why do Giambra, the Legislature and County Comptroller Mark C. Poloncarz want to collect the money upfront from Xspand when the government might derive more over the long term by cutting out the middleman and collecting overdue tax payments on its own?

Control board Executive Director Kenneth J. Vetter said that even

if Hartman’s prediction about the 2008 budget is accurate, “he is focusing on the short term.”

“They focus on items between election cycles,” he said of county officials. “That’s how the county gets into problems. We have to take a longer view.”

Christopher C. Collins, Republican candidate for county executive, took a similar stance early this month after the Legislature approved the Xspand deal, 12-3, with the three Republican legislators in dissent.

“As a local businessman with more than 500 local employees, I would never think of selling my accounts receivable at a substantial discount for short-term gain,” Collins said at the time. “No person in the business world would.”

Similarly, the Democratic candidate for county executive, James P. Keane, would not have supported the Xspand deal, said his campaign manager, Donald A. Van Every. Keane sees it as a one-shot revenue source and wants the county, not a private entity, collecting property taxes, Van Every said.

County leaders will argue that they indeed are looking at the long term. Xspand is willing to pay 105 percent of a late account’s “redemptive value,” meaning 105 percent of the past-due amount plus the penalties that were attached when the lien changes hands.

Further, if officials can restore the county’s reserve fund to $50 million, they can improve the county’s credit rating and lessen the amount the government pays to insure its bonds. As an incentive, money in hand now can be invested.

Erie County lost about $5,000 a day in interest when the control board rejected a previous $36 million proposal from Xspand. The control board’s chief complaint then was that Giambra’s aides received offers from just two companies and should have talked with more bidders interested in the county’s business.

So county officials started over by casting a wider net. But they again received just two offers, from the same two companies: Xspand, a unit of the investment house Bear Stearns, and American Tax Funding of Jupiter, Fla.

In the second round, neither was willing to pay as much as Xspand had offered in the first round.

The Giambra administra- tion thinks that it will be too costly to hire its own team of collectors for the small percentage of taxpayers who don’t pay and that it would take years to collect the money Xspand is willing to pay immediately.

Andrew J. Rudnick, president and chief executive officer of the Buffalo Niagara Partnership, once hailed the Xspand proposal as “forward-thinking” because it would relieve the county’s Division of Real Property Tax Services from the responsibility and cost of collecting delinquent taxes.

Vetter said Tuesday, however, that county officials might be overstating the cost of an inhouse collection team.

[LHardy]

Hey all you EC idiots! Wake Up!

XPAND has been buying EC foreclosure paper for years. This is not new nor is the company.
Not new for me but many people in EC have yet to pay attention to anything. As expected.
I've mentioned this company three years ago right here on SUWNY.

God; EC people are stupid.

Xpand is run by NYS judges and lawyers with inside tracks on foreclosures.

Even the local federal bankruptcy trustee has his connection.

Many homeowners in EC have missed tax payments to the tune of $2,000.
The county will foreclose the property and sell that property to expand who in turn boots out the elderly and underemployed with no hope of ever regaining their homes. All because of PROPERTY TAX RATES!!

All you Bush haters and Haliburton wonks should be screaming from the highest building. A single company to buy all foreclosed properties for back taxes. Not sent out for bid. Run by the very politicians, judges and lawyers of EC.
Nice to play all sides of the people your supposed to serve. Not be self serving. Oh Hello Mr. Keane!

I'll say it again! WAKE UP! EC DUMB ASSES!!

[LHardy]

Tax-lien sale to generate $9.8 million
Kapszukiewicz outlines transaction with N.J. firm

The Lucas County Treasurer's Office expects to distribute payments totaling about $9.8 million to school districts, cities, and other taxing districts from the sale of liens on delinquent property taxes, Treasurer Wade Kapszukiewicz announced yesterday.
The money will come from the sale of liens on about 4,800 tax-delinquent parcels to a New Jersey collection company.

He said his office awarded the tax-lien sales to Xpand, of Morristown, N.J., a subsidiary of Bear Stearns Cos. Inc., for $9.8 million, which gives it the right to collect on the delinquent parcels and to charge interest rates of up to 18 percent.


Soon all those elderly people of WNY will have paid off their homes but will not be able to afford to pay the extortionist tax rates of EC and NYS.
Loosing their homes to EC and sold to expand.
EC does not care about you and never has, just keep your money moving to the government coffers, sit down and shut up.

[LHardy]

If the government doesn't need all the money why not give those who EC is about to foreclose on a break instead of sending them to the streets?

Oh that's right! Then the EC politician wouldn't their cut on the side.

NYS wants to give one million illegals a drivers license so they can receive free welfare and all the other services they are not entitled to. Yet a legal homeowner who is being forced due to economics of our region to decide between dog food or paying their property taxes.
NYS and EC would rather throw those elderly and underemployed to the streets.

No helping hand just a slap on the face and a kick in the ass out the door.

Hey what about all you anti-flipping people. This is flipping at its' finest.

[Cgoodsp466]

Erie County needs to layoff before they raise your taxes. I have said for years those people are the enemy.Get rid of half of the loosers and things will improve. Zieg Heil EC Government. Hartman is an Idiot, Napolean complex.

[LHardy]

Anyone care to provide researchable information about Xpand?

A phone number?
A name of the CEO?
Names of the principles?

There is no information available through google.

Bears and Stearns does not even give up that information nor does American Tax Funding of Jupiter, Fla.

A secret orginization ready to screw you to the wall.

[LHardy]

Instead of the city of Buffalo demolishing those 20,000+ homes they absorbed for tax forclosure why didn't they use Xpand?

[buffalopundit]

Anyone care to provide researchable information about Xpand?

A phone number?
A name of the CEO?
Names of the principles?

There is no information available through google.

Bears and Stearns does not even give up that information nor does American Tax Funding of Jupiter, Fla.

A secret orginization ready to screw you to the wall.

It's spelled "Xspand".

The website is here.

The management team:

Kurt P. Shadle, Managing Director
James J. Purcell, Managing Director

Nancy Andre, Vice President, Project Management
Douglas M. Badaszewski, Associate Director, Structured Finance
Eric R. Elwin, Associate Director, General Counsel
Albert M. Fiorello, Vice President, Servicing
Christopher L. Heagele, Vice President, Due Diligence and Data Integration
Fu-Zu Jen, Vice President, Information Technology
Hillary Leonard, Vice President, Project Management
Larry Marsh, Vice President, Sales and Marketing
Marc Nelson, Vice President, Collections
Dean Reiche, Vice President, Project Management
Charles R. Smith, Associate Director, Sales and Marketing

Client list:

New York City, NY
Los Angeles County Schools, CA
Erie County, NY
Nassau County, NY
Monroe County, NY
City of Camden, NJ
Cuyahoga County, OH
Montgomery County, PA
Blair County, PA
Chester, PA
Chester Upland School District, PA
Jeannette City School District, PA
York City School District, PA
Norristown, PA
Altoona Area School District, PA
New Castle, PA
Steelton, PA
Steelton-Highspire School District, PA

[buffalopundit]

Also - Xspand was founded in 2000 by former NJ Governor Jim Florio.

[LHardy]

Also - Xspand was founded in 2000 by former NJ Governor Jim Florio.

Thanks,
I was having a block when it came to Xspand this morning.
These guy's are bad news for residence who fall behind on taxes.

How about all the buisnesses that are behind on taxes? George Holt????
Why not take their buisnesses as long as where destroying the people and the economy of WNY.

[buffalopundit]

Thanks,
I was having a block when it came to Xspand this morning.
These guy's are bad news for residence who fall behind on taxes.

How about all the buisnesses that are behind on taxes? George Holt????
Why not take their buisnesses as long as where destroying the people and the economy of WNY.

When Holt was behind on his sales taxes - which he basically collects as an agent of the state - it was a criminal matter, and the money he owed was uncollateralized.

If you're behind on your property taxes, you should call and make payment arrangements before you end up in foreclosure.

[LHardy]

When Holt was behind on his sales taxes - which he basically collects as an agent of the state - it was a criminal matter, and the money he owed was uncollateralized.

If you're behind on your property taxes, you should call and make payment arrangements before you end up in foreclosure.

Granted Holt was the wrong example but there are many buisnesses in EC who have not paid their Property taxes and where are their forclosures?

Have you experianced the effects of a county tax foreclosure?

Someone I know did and the county did not want him to make payments they would only except full payment nothing more. Then xspand bought the note and never allowed partial payments.
It is amazing that xspand now has a website and a phone number to contact them. Back in 2004 no such website could be found nor could anyone in the county give the phone number to xspand.
These guys are crooks and for the county to give up on taxpayers and subject them to extortion. Kiss EC good bye.

[LHardy]

Xspand of Morristown, N.J., is willing to pay $27.8 million for the right to collect $26.5 million in past-due taxes on properties with liens placed on them, plus the 18 percent late penalty that can be imposed under the county’s tax law.

Done deal back in 2003. So this is just political BS from a crooked government.

From Xspand Website:

Challenge. Erie County, New York accumulated a delinquent tax lien pool of over $25 million. The county wanted to convert these liens to revenue to replenish its reserve fund and put these properties back on the active tax rolls through a focused redemption processing effort. With leading capabilities in the purchasing, financing, and servicing of tax liens, XSPAND was well qualified to tailor creative and innovative solutions for Erie County.

Solution. On November 6, 2003, XSPAND entered into a combined purchase and servicing transaction with Erie County. The county received the revenue it required to meet its financial objectives. As part of the transaction, XSPAND will assume the management of Erie County’s delinquent tax lien portfolio that includes all interaction with taxpayers, collection activities, foreclosure management and bankruptcy processing. XSPAND’s collection team works with property owners to discuss all available payment options. These include full payment and installment plans, as well as a variety of financing tools available through local banks and mortgage companies.

[buffalopundit]

Done deal back in 2003. So this is just political BS from a crooked government.

From Xspand Website:

Challenge. Erie County, New York accumulated a delinquent tax lien pool of over $25 million. The county wanted to convert these liens to revenue to replenish its reserve fund and put these properties back on the active tax rolls through a focused redemption processing effort. With leading capabilities in the purchasing, financing, and servicing of tax liens, XSPAND was well qualified to tailor creative and innovative solutions for Erie County.

Solution. On November 6, 2003, XSPAND entered into a combined purchase and servicing transaction with Erie County. The county received the revenue it required to meet its financial objectives. As part of the transaction, XSPAND will assume the management of Erie County’s delinquent tax lien portfolio that includes all interaction with taxpayers, collection activities, foreclosure management and bankruptcy processing. XSPAND’s collection team works with property owners to discuss all available payment options. These include full payment and installment plans, as well as a variety of financing tools available through local banks and mortgage companies.

It's not a done deal until the control board approves it - hopefully on Friday.

The 2003 deal was a separate deal which, compared with the current $1.05 for every collectible dollar, paid only 78 cents for every collectible dollar.

[therising]

If you're behind on your property taxes, you should call and make payment arrangements before you end up in foreclosure.

Call who? Jim Ostrowski?