Agenda - 10-20-2009 - 4h - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 20, 2009 Action Agenda Item No. ~ ~ {'1 SUBJECT: Addendum to Existing Inter-local Agreement for Tax Collections DEPARTMENT: Revenue PUBLIC HEARING: (Y/N) No ATTACHMENT(S): 1) Chart Cost of Collections Paid by Towns 2) Addendum to Present Inter-local Agreement on Collections 3) Original Inter-local Agreement INFORMATION CONTACT: Jo Roberson 245-2735 PURPOSE: To allow for the Towns of Chapel Hill, Carrboro, and Hillsborough's participation in the cost acquisition and yearly maintenance costs of the Property Information Management System (PIMS), and to establish a reserve account to allow for the preparation for enhancements, improvements and law-driven changes to the software in coming years. BACKGROUND: The current tax software used by Orange County has been in existence for nearly 30 years. The software was developed and. has been maintained by County staff. After several years in development it has been recommended to the Board of County Commissioners that new software be acquired that will involve outside vendors. In July of 2006, the Board of County Commissioners and the Towns of Chapel Hill, Carrboro, and Hillsborough entered into the existing Inter-local Agreement for Tax Collections (Attachment 3). The purpose was to provide for continued centralized and systemized collection of property taxes owed to the respective jurisdictions. Included in the Inter-local Agreement is a statement concerning the intention of the towns to participate in the procurement of new tax software. Additionally, the towns agreed within the Agreement to pay a yearly cost toward the maintenance of the system. Staff from each jurisdiction has been meeting over the past several months to develop and agree on a staff level to the proposed addendum (Attachment 2). The proposed addendum being presented will in no way affect the cost for collection currently paid by each of the respective towns. Attachment 1 is a chart reflecting the sums each of the towns has paid over the past 10 years for the collection of monies on their behalf. The towns have agreed to continue payment for services at the rate of one-half of 1 %. Additionally, town staff have agreed to sharing the cost of yearly maintenance for the North Carolina Property Tax System (NCPTS) portion using the agreed upon percentages. The percentages are the same percentages which are being brought forward for approval of the respective Boards as the fair and equitable cost for acquisition costs (Attachment A of Attachment 2). These costs will be determined based upon the combined costs of the NCPTS billing and collection portion of the new system. It is