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Board presses legal review after municipality's delayed tax transfers cost district interest
Summary
Board members said a municipality failed to transfer tax collections for two years, costing the district roughly $80,000 in lost interest; trustees directed legal follow-up and debated civil and criminal remedies to recover funds and prevent recurrence.
During budget discussion, Mr. Cox raised a discrepancy between projected interest income and actual receipts, identifying roughly $80,000 in lost interest that the board said resulted from a neighboring municipality failing to transfer tax collections in a timely manner for two consecutive years.
"I'm looking at that number and I'm thinking about the $80,000 that we don't have in interest income," Mr. Cox said, and asked administration when the district would receive the funds. Miss Claire said she had forwarded the information to the district attorney and counsel to seek an opinion about recovery costs and remedies.
Trustees debated next steps: one member urged civil collection and legal action to recover funds, while another said the municipality may be financially strained and urged first to seek explanations and administrative remedies. Mr. Cox argued collection agents are fiduciaries for the district when they hold its tax receipts and said options could include prosecution and changing the collection arrangement.
Administration said the district had received intermittent late payments and that routine monthly transfers had not been honored during the period in question; legal counsel will advise the board on steps to recover interest and to ensure future compliance.
