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"Caught in the Back--Tax Trap".(Brief Article)(Abstract)

Government Finance Review

| April 01, 2001 | Schwarz, Brennan L. | COPYRIGHT 2001 Government Finance Officers Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Kemmet, Lynndee

Governing, January 2001, pp. 44-46.

For cities struggling to make ends meet, a public-private partnership for the collection of delinquent debt may sound like an enticing arrangement. However, before local officials sign on the dotted line to get their tax-collecting woes taken care of through some form of privatization, they should read about the experiences of Waterbury and South Windsor, two cities in Connecticut that entered into a public/private partnership for the collection of delinquent debt. In this article, the author writes about the pitfalls of privatizing delinquent debt. While privatizing delinquent debt is not unusual, some localities are moving toward more sophisticated approaches that have the potential for greater rewards but expose the jurisdiction to greater risk. Sometimes, big cities bundle up their ...

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