Background Information on Lawsuit
Manheim Township School District was served with a lawsuit by the locally elected Manheim Township Tax Collector, Mrs. Patricia Kabel, claiming that the district was not allowing her to collect district taxes. The district refutes these claims, and has made numerous attempts to work cooperatively with Mrs. Kabel to provide the best, most efficient and capable practice of collecting taxes for the citizens of Manheim Township. Since November 2013, when Mrs. Kabel was first elected the local tax collector, she did not seek to collect taxes for the Manheim Township School District. She has never communicated with the district regarding the process, method, or manner in which the school district collects taxes. School district records indicate that the school district has been collecting taxes internally with the cooperation of previously locally elected tax collectors, including now Representative Steve Mentzer, since at least 1985.
In an effort to meet and establish a positive relationship with Mrs. Kabel, the district’s newly hired Chief Operating Officer reached out to Mrs. Kabel on September 26, 2017 and again on November 2, 2017. Mrs. Kabel did not respond. Sadly, Mrs. Kabel chose to initiate a lawsuit that she did not provide to the district until well after the 2017 general election. Until the district was served with the lawsuit, the district was unaware that Mrs. Kabel wanted to collect school district taxes at a compensation rate higher than the rate that was previously established by the Board of School Directors. She did not protest, challenge, or make any effort whatsoever to communicate with the district as required by law to revise the tax collector compensation prior to initiating her lawsuit.
Below, you will find more information regarding the lawsuit, and the historical background of how the district has collected taxes for our residents. It is our continued goal to keep our community informed on this process and how it may affect our taxpayers.
Update July 3, 2018
Confusion among taxpayers occurred yesterday, July 2, when many Manheim Township residents went to the municipal office to pay their real estate taxes as outlined on their tax bill. Upon arrival they were unable to pay their taxes to the local elected tax collector, Mrs. Patricia Kabel, since she did not have the appropriate bonding.
The Local Tax Collection Law requires Mrs. Kabel to be bonded in order to collect the School District’s real estate taxes. The bonding requirement acts as insurance policy to protect the over $60 million in District tax revenues annually.
Before the Judge, Mrs. Kabel agreed she would provide the bond on or before June 11, 2018. Per that agreement, the Court entered a binding Order requiring that Mrs. Kabel meet the June 11, 2018 bonding deadline.
This past Friday, June 29, 2018, the District was notified that Mrs. Kabel is unable to obtain the necessary bond to collect the District’s real estate taxes. At no time prior to this past Friday did Mrs. Kabel give any indication whatsoever that she would have difficulty obtaining the required bond. To the contrary, she repeatedly indicated she would have no difficulty, particularly given she is bonded for the collection of County and Township real estate taxes.
The law is clear that Mrs. Kabel is prohibited from collecting the District’s tax due to her failure to obtain the statutorily-required bond. On Monday, July 2, 2018, the District obtained emergency injunctive relief. Unless Mrs. Kabel is able to produce a bond, the injunction remains in effect. Patricia is forbidden by court order from accepting any tax payments for the school district. As a result, the district has taken over collections.
In order for our community to pay their school district real estate tax bill, effective immediately, all School District Real Estate tax payments must be taken to the Manheim Township Administrative Offices or mailed to the MTSD Tax Office, P.O. Box 5386, Lancaster, PA, 17606. Real estate tax payments should be payable to the Manheim Township School District. While it is preferred that payments be made out to the MTSD, checks made payable to Patricia Kabel will be honored. Please note, this situation is out of the district’s control as Mrs. Kabel did not obtain the statutorily-mandated bond in order to qualify to collect the District taxes. It is our goal to make this disappointing situation as convenient as possible for our taxpayers.
The district continues to be disappointed that Mrs. Kabel unnecessarily caused confusion, yet again, among our residents. We continue to receive support from our community and remain hopeful that Mrs. Kabel drops the two lawsuits that remain outstanding.
A copy of the most recent emergency injunction filed by the school district to collect real estate taxes can be found here: http://prothonotary.co.lancaster.pa.us/civilcourt.public/(S(qlftvf45cybu3355d3im4lne))/default.aspx (search for “Kabel”).
We sincerely appreciate our taxpayer’s patience and cooperation.
Update June 21, 2018
It has been almost a month since our last update to the community on the lawsuit filed against the school district by the local elected tax collector, Mrs. Patricia Kabel. Unfortunately, we just found out on Tuesday that Mrs. Kabel has launched yet another lawsuit against us. This now makes two separate lawsuits.
On Friday, June 15th, Mrs. Kabel and her attorney filed an additional lawsuit against the district stating that the District’s Resolution Establishing Policies and Procedures for Elected Tax Collectors was interfering with her ability to perform her duties. The lawsuit claims that she “will continue to suffer irreparable injury in the form of the loss of rights and privileges of the office, and the freedom to fulfill her statutory obligations, in the absence of the requested injunction.” The district was not made aware of this new lawsuit until contacted by LNP Tuesday (June 19) afternoon.
The district’s Resolution, which was approved by the School Board in May, follows the standard guidelines permitted under The Local Tax Collection Law. We did not include any policies or procedures in the process that are illegal, difficult, or unusual; in fact, these are the same procedures currently followed by the school district and throughout the state of Pennsylvania. For example, the school district deposits funds the same day they are received in order to maximize interest earnings. Our elected tax collector should be required to do the same in order to preserve the interest revenue. However, Mrs. Kabel’s lawsuit disputes the district’s right to transfer tax collection funds out of her account on a daily basis, in order to invest the funds at the highest interest rates possible.
In the newly filed lawsuit, Mrs. Kabel is also seeking the right to issue tax certifications — which confirm that tax bills have been paid — and keep the fees generated from issuing those certifications. The school district currently receives about $40,000 a year in certification fees.
Unfortunately, if Mrs. Kabel is successful in her quest to invalidate the requirement that she pay over tax receipts to the district each day and in her quest to retain tax certification fees, the district could lose many tens of thousands of dollars each year from just those two changes alone. And, that does not account for any increased base compensation the district might have to pay Mrs. Kabel, additional bonding costs, and other related expenses.
It is important to note that the District provided Mrs. Kabel and her attorney with an opportunity to provide feedback about the Resolution at least two weeks before the Board was scheduled to adopt it. The District provided Mrs. Kabel and her attorney with an advanced copy of the Resolution (the standard tax collection guidelines) on May 2, 2018. However, neither Mrs. Kabel nor her attorney expressed any reservations about the Resolution before the Board approved it. In fact, just like in prior circumstances when the district has initiated communication with Mrs. Kabel, she once again never responded to the district with her thoughts or feedback on the Resolution.
Unfortunately, for the community of Manheim Township, it seems as if this is yet another way Mrs. Kabel is proving that she is more intent on increasing her income than caring about the taxpayers of Manheim Township. Indeed, The Local Tax Collection Law does not give elected tax collectors, who are intermediaries between taxpayers and the taxing authority ultimately entitled to the tax revenues, the right to issue tax certifications, and prohibiting Mrs. Kabel from doing so has no impact whatsoever on her ability to collect bills, record payments, and deposit checks. Yet, Mrs. Kabel is now demanding that she be given the right to issue tax certifications – and to pocket the $40,000 a year in fees generated by those certifications.
Due to this new lawsuit, the district will be required to file a legal pleading with the Court. However, the district hopes to consolidate Mrs. Kabel’s two lawsuits into one lawsuit to minimize the expense of the litigation process.
The district continues to be disappointed that Mrs. Kabel unnecessarily keeps expanding the scope of the litigation by raising new issues. The School District continues to receive support from the community and are very appreciative. We will continue to update the community as this matter continues to unfold.
A copy of Mrs. Kabel’s most recent complaint can be found here: http://prothonotary.co.lancaster.pa.us/civilcourt.public/(S(krjbre450t5razbnd4wg13qj))/default.aspx (search for “Kabel”).
Update May 31, 2018
Re: May 30, 2018 Court Hearing
Yesterday, the Court scheduled an emergency hearing to address Mrs. Patricia Kabel’s lawsuit against the District, her claim that the District has “deprived her” of “her right to collect taxes,” and her demand for a raise. The District was well prepared for the hearing, and was ready to litigate with the goal of protecting Manheim Township taxpayers by ensuring the compensation rate and procedures for tax collection that have been in place for at least thirty years remained in place.
Surprisingly, when Mrs. Kabel appeared at the hearing, she indicated she now also intends to challenge the District’s Resolution Establishing Policies and Procedures for Elected Tax Collectors. Notably though, Mrs. Kabel had jointly requested yesterday’s emergency hearing with the District. In any event, among other things, the District’s understanding is that Mrs. Kabel will be demanding the right to issue tax certifications and to keep the fees generated from issuing those certifications, in addition to any compensation she otherwise receives as tax collector.
The District provided Mrs. Kabel with an advance copy of the Resolution Establishing Policies and Procedures for Elected Tax Collectors on May 2, 2018, over two weeks before the Board adopted the Resolution. However, Mrs. Kabel did not express any reservations about the Resolution before the Board adopted it – save for the tax certification issue alluded to above. A copy of the May 17th Board-approved Resolution can be found here. Ultimately, the District is confident that it has the right to retain the authority to issue tax certifications.
Given Mrs. Kabel’s change in litigation tactics, the Court and both parties agreed to address both Mrs. Kabel’s pending compensation challenge and her challenge to the Resolution in a consolidated proceeding that will occur sometime later this year. The only other alternative would have been for Mrs. Kabel to file a separate litigation challenging the Resolution, which would have forced the District to defend two separate lawsuits in a piecemeal fashion.
Naturally, we are disappointed that Mrs. Kabel has now decided to expand the scope of the litigation by raising new issues at the very last moment. Again, Mrs. Kabel jointly requested yesterday’s emergency hearing and did not file a challenge to the District’s Resolution before the hearing. However, the District unfortunately has no control over what choices Mrs. Kabel makes.
In the meantime, if Mrs. Kabel wants to collect the District’s real estate tax, she may do so. The Court has no jurisdiction to remove an elected official from office. Hence, neither the District nor the Court have any legal authority to stop Mrs. Kabel from collecting the tax at this time.
Very importantly though, if Mrs. Kabel decides to collect the District’s real estate tax, she must comply with the following conditions:
- She will be paid at the current compensation rate set by the District, unless and until she successfully challenges that rate in Court.
- She must fully comply with the Resolution Establishing Policies and Procedures for Elected Tax Collectors, unless and until she successfully challenges the Resolution in Court.
Those conditions ensure that the impact on the District’s taxpayers will be minimized unless and until Mrs. Kabel convinces the Court to order the District to give her a raise or to overrule the District’s Resolution so that she can keep the fees generated from tax certifications. Those are the two remaining and primary issues that the District is currently aware of and that will need to be resolved in future litigation. In short, the litigation moving forward will be focused on compensation issues.
To read the filings and briefs in Mrs. Kabel’s case, please follow the link to the Lancaster County Prothonotary’s Office website and type “Patricia Kabel” in the “Search for a Case”: http://prothonotary.co.lancaster.pa.us/civilcourt.public/(S(g04hqq55zdk1el45xbpchhzs))/Default.aspx
The School District continues to be thankful for the community support. Of course, we will continue to update the community as this matter continues to unfold.
Update May 17, 2018
It has been almost a month since our last update to the community on the lawsuit filed against the school district by the local elected tax collector, Mrs. Patricia Kabel. We continue to receive support from the Community and are very appreciative. We know there is a community petition with over 350 signatures at this time, asking for Mrs. Kabel to end the lawsuit.
Unfortunately, the lawsuit has not been dropped. On Wednesday, May 2, our attorney sent Mrs. Kabel’s attorney a draft of the Manheim Township School Board of Directors resolution to establish policies and procedures for the school district tax collector, which was approved by the school board this evening. Furthermore, since the tax year is quickly approaching, the district had no choice but to file a Motion seeking expedited case management and an emergency hearing. On Tuesday, May 15, the district appeared in a deposition where information was gathered that will be provided at the hearing. We continue to be disappointed and frustrated with the refusal to drop the lawsuit which is costing the district considerable time and money.
A court hearing has been set for Wednesday, May 30. This is a closed hearing; however, members of the district administration team will be present with the continued goal of protecting our taxpayers and the school district. As this legal process continues to unfold, the district will continue to update our community when it is legally appropriate.
Update April 25, 2018
In the April 25th edition of LNP morning newspaper (Lancaster Newspapers), Education Reporter Alex Geli published an article on the most recent developments with Manheim Township School District’s lawsuit with the locally elected tax collector, Mrs. Patricia Kabel.
In addition, Mr. Geli also published an informational article regarding Senator Scott Martin’s recently introduced co-sponsored legislation to allow school districts to collect their own taxes. The other legislators include Senator Scott Wagner, Senator Ryan Aument, Senator Bob Mensch, and Senator Guy Reschenthaler. Under this legislation (Senate Bill 1099) Pennsylvania counties, municipalities, and school districts would be allowed to collect their own property taxes, instead of using a process of collecting taxes through a local tax collector. Manheim Township School District is extremely thankful and appreciative of Senator Martin’s bill and his recognition of the significant cost savings to taxpayers when districts collect their own taxes. The Manheim Township School Board of Directors plan to pass a resolution supporting the bill in May.
In addition, a community member recently reached out to the school district with the context of showing support of and affirming previous tax collectors’ collaboration with the school district to continue to allow the district to collect taxes. When State Representative Steven Mentzer was elected to his current position as State Representative of the 97th District, Mr. Jerry Tueche was appointed by the Manheim Township Commissioners to fill the unexpired term of Mr. Mentzer. Mr. Tueche was formally appointed in November 2012 and continued for one year as the Manheim Township Tax Collector with the intent to not seek re-election. (Meeting Minutes from the Monday, November 12, 2012 Manheim Township Commissioners Meeting). During his one-year tenure, he followed the same process of previous collectors and remained committed to working with the school district to allow the district to collect taxes and save Manheim Township taxpayers money. In November 2013, Mrs. Kabel was elected as tax collector and began her first term in January 2014.
Update April 19, 2018
Dear Manheim Township Community:
We would like to take this opportunity to provide an update on the lawsuit filed against the School District by the local tax collector, Mrs. Patricia Kabel. You’ll recall that Mrs. Kabel chose not to collect any tax or do any work for the School District during her initial four year term from 2014 through 2017, but then filed a lawsuit on the eve of the election last November demanding she be given a raise when she does decide she wants to begin working at some point later this year.
We have been in communication with Mrs. Kabel and her attorney. Although we cannot offer specific details about those communications, it is clear that Mrs. Kabel refuses to deputize the School District to collect its own taxes. Her lawsuit seeks to enable her to control the collection of real estate taxes, but more importantly to increase her compensation for that task – even though she has never actually collected taxes for the District.
In our ongoing efforts to protect the fiscally sound practice of tax collection that has been in place for the past 30+ years, we continue to receive inquiries and comments in support of the School District and its position. We recently learned that members of our community have started a petition to dissuade Mrs. Kabel from prosecuting her lawsuit against the District. As of this date, there are 184 people who have signed the petition. We are listening to our community, and we greatly appreciate their point of view.
In support of our community, Senators Scott Martin, Ryan Aument, Scott Wagner, and others have introduced Senate Bill 1099, which would give school districts and municipalities the flexibility to identify and select the most reliable and efficient alternative for property tax collection. In other words, Senate Bill 1099 would provide for local control and choice by permitting communities to decide the most effective and efficient method for the collection of its local real estate taxes. Moreover, Senate Bill 1099 would help communities prevent unfortunate situations like the one our District faces with Mrs. Kabel where, despite Mrs. Kabel having completely abdicated her duties to the District from 2014 through 2017, she nonetheless has filed a lawsuit demanding an immediate raise and seeking to dismantle a cost-efficient and fiscally sound tax collection system that has been in place for decades.
We are greatly appreciative of the work by Senator Martin, Senator Aument, Senator Wagner, and the others on Senate Bill 1099. In May or June, the Manheim Township Board of School Directors expects to consider a resolution to support Senate Bill 1099. The Pennsylvania Association of School Business Officials, a statewide organization comprised of approximately 3,000 school business and public finance experts, supports the Bill. We fully anticipate that other statewide educational organizations will soon join in that support as well.
We remain committed to keeping our families and the community updated on this situation in the need to be transparent and open about the negative impact of this lawsuit on both the community and the School District.
Update March 16, 2018
Dear Manheim Township Community:
We would like to take this opportunity to provide another update on the lawsuit filed against the school district by the local tax collector, Mrs. Patricia Kabel. The school district continues to receive many supportive emails and phone calls from our community regarding the lawsuit. We are pleased to inform our community that last week, Superintendent Dr. Robin Felty was copied on a letter that was sent to the local tax collector from Steven Mentzer, State Representative of the 97th Legislative District. In his letter to Mrs. Kabel, Representative Mentzer shared his experience as the former tax collector for Manheim Township and communicated that he worked collaboratively with the school district to allow the district to continue its longstanding method of collecting school taxes internally. Upon being elected as State Representative, Representative Mentzer was obligated to resign his position as tax collector; therefore, a formal deputization agreement between he and the school district was not executed. Despite the absence of an agreement, Representative Mentzer affirms that he was “working with the school district to officially deputize them to collect the school taxes.” Representative Mentzer further exemplified his support for the school district by urging the tax collector to meet with the school district to resolve the lawsuit, “so as not to create unnecessary costs to the taxpayers of Manheim Township.” We would like to publicly thank Representative Mentzer for the favorable and constructive communication and for reaching out to Mrs. Kabel regarding his positive experiences in working with the school district. While we have not yet received a response from Mrs. Kabel agreeing to meet with the school district, we are extremely optimistic that we will hear from her in the near future.
Update February 9, 2018
Dear Manheim Township Community:
In recent weeks, the school district has received many emails and phone calls from our residents and other individuals seeking information about the lawsuit filed by our local tax collector, and expressing their concerns about Mrs. Kabel’s decision to initiate her lawsuit. Our community members have also offered support to the district through written correspondence to the Lancaster Newspapers and postings on various social media in order to express outrage at the lawsuit whose purpose appears only to be to increase the cost of collecting their taxes. We share your anger. We thank you for taking the time to learn more about the lawsuit, the process for collecting taxes, and most importantly, offering your support of the school district. It is amazing to see how quickly our community comes together!
In order to better understand the situation surrounding the financial impact of having Mrs. Kabel collect our district real estate taxes, it is necessary to understand how she will be making money from the collection of our taxes. Our efficient and capable collection of our own taxes has been the reason that the district has collected the taxes over three decades.
The Manheim Township Board of School Directors set the tax collector compensation at 0.15 cents per tax bill in January 1997. The school district has not had any reason to modify this rate since there have been no tax collectors collecting, or expressing any interest in collecting school district taxes. In the past, the district has also offered $1,000/year to tax collectors who have agreed to deputize the school district to collect its own taxes. Deputizing the district provides the most efficient, cost effective and competent collection of taxes by utilizing existing staff and an automatic deposit process through Fulton Bank. This exact process is what Manheim Township School District has been doing for the last thirty years.
Since our last update (posted below on January 5, 2018), the district made yet another attempt to communicate with Mrs. Kabel. The district sent her a letter on January 19, 2018 offering the two options as explained above (0.15 cents a bill or deputizing the school district). Mrs. Kabel chose to respond through her counsel, who stated that she will not allow the district to continue to collect its own taxes and that she will continue to challenge the compensation of 0.15 cents per tax bill. In short, Mrs. Kabel simply wants to be paid more for tasks she never sought to perform prior to her reelection.
So how does this affect you, our taxpayer? The district strongly opposes Mrs. Kabel’s effort to increase her compensation through her litigation. The residents of the Manheim Township School District deserve a tax collection system that provides both an efficient and effective process and customer service. Many times, taxpayers come to the school district’s office for tax payment assistance and questions. The district has several individuals on staff that assist with these matters. As mentioned in our previous community letter (posted below), the Manheim Township taxpayers will have to pay significantly more to collect the same dollars while also destroying a well-organized, effective, longstanding practice.
How much more will the taxes be if Mrs. Kabel collects them? The answer to this question will be determined after a potentially lengthy and costly legal process.
We are meeting in the near future with a local Senator to address potential legislation.
In summary, it is regrettable that Mrs. Kabel pursued her lawsuit against the district to increase her own compensation. The district will continue to insist upon competent and cost effective collection of its taxes for the benefit of our taxpayers. We will continue to keep you updated on the status of Mrs. Kabel’s lawsuit.
January 5, 2018
Given inquiries about the public law suit initiated by the Manheim Township tax collector in November 2017, the Manheim Township School District (MTSD) offers the following response in order to keep our community informed and knowledgeable about the facts.
The District imposes a real estate tax pursuant to the Pennsylvania Public School Code (published in 1949), and is a taxing district for the purposes of the Local Tax Collection Law. Under this law, the elected tax collector is authorized to collect real estate taxes on behalf of the school district. The locally elected tax collector is compensated at a rate that is established by the School Board. Tax collector terms for most municipalities run for four years effective the first Monday in January following the election. Most recently, municipal elections in Manheim Township were held in 2013 and 2017.
With the cooperation of the elected tax collector(s), many school districts in Pennsylvania collect their own taxes in lieu of an elected collector due to more modern and less costly collection methods. This cooperation of allowing school districts to collect their own taxes involves an agreement between both parties known as “deputizing.” Therefore, those school districts, along with MTSD, have traditionally collaborated with the elected tax collector(s) to identify agreeable methods for collecting taxes that do not impose additional costs to the taxpayers. The MTSD has been fortunate to have worked collaboratively for many years with past MT tax collectors in order to save money for our district and avoid a negative financial impact on our taxpayers.
Beginning with the first term in office on January 1, 2014 and continuing until the filing of the lawsuit, the current tax collector took no steps, or showed any interest, to collect school district taxes. Unfortunately, this collaborative working relationship with the local elected tax collector has ended without any notice since the collector is now suing the school district in order to hold the sole power of tax collection. By removing the school district from its longstanding centralized real estate collection process, which was designed to protect our taxpayers from wasted monies, we would need to use taxpayer dollars to compensate the tax collector, and to establish a new tax collection process. At the same time, the district would lose revenue that we currently collect with the current process. The school district for many years has used existing staff and an automated deposit method through a local bank to collect taxes, which offers a cost-effective, efficient, and safe method of tax collection that does not pose an unfair financial burden on our taxpayers. At MTSD, the savings to our taxpayers is significant when the school district collects taxes instead of the tax collector. The district estimates that it could spend at least $40,000 or more a year to have this function performed by the elected tax collector.
This example of wasted money exemplifies why the school district has partnered with the local tax collector over the past 20 years or more to protect taxpayers (and the MTSD) from this undue burden. Because the tax collector has refused to speak with district staff this past summer when two separate attempts were made to continue the partnership between the MTSD and the tax collection office, we are unable to determine the rationale for the lawsuit. It would be extremely unfortunate if the primary reason for the suit was to end the longstanding partnership between both parties and force the district to spend additional taxpayer dollars. The district has already paid over $1,500 in legal fees surrounding this lawsuit, and we anticipate additional funds being spent as the tax collector continues to pursue the lawsuit.
It is known that the collaborative relationship of many past years has been a significant cost-savings to our taxpayers. At a time when the school district is striving to save dollars and balance our growing budget, it is unfortunate that an unnecessary lawsuit is the chosen method to dialogue, and end the well-established and cost-effective process that is already in place, especially at the expense of our taxpayers.