Lawrence is so broke, the city cannot afford adequate police and fire protection for its citizens.
Lawrence had to beg for state permission to borrow up to $35 million to close out a shortfall on last year's books. To balance the $72 million municipal budget for the current year, the city had to lay off 84 city workers, including 47 police officers and firefighters.
Lawrence is chronically short of money. Yet at the same time, tax delinquents owe the city $25 million.
Lawrence officials have to be much more aggressive in collecting those past-due bills.
It won't be easy, as the city's experience with the burned-out Merrimac Paper Co. illustrates.
The property, located at 9 South Canal St., is the city's top tax scofflaw, having racked up $2.67 million in unpaid taxes, water and sewer bills since 2002.
Officials said interest alone on the paper company's giant bill is $900,000 — which could certainly help restore some of the fire and police departments' lost manpower.
So who is responsible for the bill?
City officials, including Lantigua administration chief of staff Leonard Degnan and Building Commissioner Peter Blanchette say it is Stephen Stapinski of Andover. He is the manager of Julian-Edward Realty LLC, which owns the paper company. King Weinstein is the other manager listed for Julian-Edward Realty LLC.
In an interview with reporter Jill Harmacinski last week, Stapinski denied that he owns the paper company and said the tax bills on the property were never sent to him.
"I want to set the record straight," he said. "I am not personally the owner."
Degnan and Blanchette told Harmacinski they are surprised by Stapinski's assertion. They said they're working on a tax payment plan with him. Stapinski also has a payment plan with the Fire Department for $150,000 in fire watch detail money racked up at the paper company building since December 2005.
"And why is he working on a tax payment plan if he doesn't own it?" Degnan asked.
"Every issue we have had on that property, he has answered to," Blanchette said.
The dispute over the taxes owed on Merrimac Paper Co. shows how difficult it can be to track down ownership on old or abandoned city properties. In some cases, the owners are long dead or are companies that went out of business years ago.
But when those with an interest in tax-delinquent properties can be found, the city does have leverage.
Stapinski has other business interests in Lawrence. The city wasn't going to let Stapinski knock down the former Cedar Crest restaurant on Broadway to make way for a new Burger King until the fire watch detail bill was resolved. But Stapinski agreed to pay $1,000 per month until the bill is paid off, and a demolition permit for Cedar Crest was issued.
This summer, a legal intern working with the city placed liens on 350 delinquent properties. Nearly $1 million in back taxes were collected recently after demand notices were sent to residents and businesses.
Lawrence has to be aggressive in attempting to collect from its tax delinquents. The city gets almost 70 percent of its budget from the state. It isn't fair to ask the state's taxpayers to support Lawrence until the city has done all it can to collect what it is rightfully owed by its own property owners.
