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Tax Office staff has worked with Financial Services Department staff to determine a cost <br /> analysis and recommendation for pursuance of this course of action. By entering into a <br /> contract with Tax Management Associates, the County could freeze the existing Business <br /> Personal Property Appraiser position. On a twelve-month basis, the freeze would equate to a <br /> salary and benefits savings of $80,000, some of which would fund the pilot program. The <br /> outsourcing effort will cost, per the attached contract, $13-$15 per business listing. The cost <br /> for the pilot period of one year is projected to be $60,000. The cost of promoting a staff <br /> member to oversee coordination efforts between the County and TMA is projected to be <br /> $10,000, for a total cost of $70,000. (The cost of maintaining the system that currently exists <br /> by hiring an experienced business personal property appraiser plus using a second employee, <br /> with half of that position's time allotted to business would have a cost of approximately <br /> $85,000 annually.) This equates to an initial County cost savings of $15,000, but is expected <br /> to be only the beginning of the potential County benefits. <br /> For example, between the end of Fiscal Year 2004-2005 and the end of Fiscal Year 2008- <br /> 2009, the statistical report shows the personal property tax base has increased significantly. <br /> Much of this increase is likely due to annually recurring business personal property discoveries <br /> made through the enhanced auditing program. Using the current County tax rate, this growth <br /> represents a significant increase in tax revenues annually. Since discovered business <br /> personal property is annually recurring, there is an additive effect that is enhanced with each <br /> additional discovery and with every new tax year. This growth is projected to expand with the <br /> implementation of the outsourcing project. <br /> The bottom line is that with every business personal property program enhancement there is <br /> the excellent potential for increased listings, discoveries, and educational opportunities that will <br /> generate significant and annually growing monetary returns to the County. It is therefore the <br /> recommendation that this program should be pursued on a pilot basis for one year since the <br /> program has the potential to result in streamlined business personal property taxation <br /> processes with many revenue related benefits. More importantly staff believes this should be <br /> pursued since it also enhances educational opportunities and services to the public. This pilot <br /> program with Tax Management Associates will allow staff to thoroughly evaluate the benefits <br /> to the County of outsourcing while also cutting County budgetary expenditures, initially in the <br /> short term (immediate budget) and potentially long term. <br /> FINANCIAL IMPACT: Cost savings to be realized from the reorganization and reallocation of <br /> job duties as it relates directly to business personal property listing should equate to no less <br /> than $15,000 for this fiscal year. There is also the great potential for increasing and additive <br /> annual returns in County revenues. <br /> RECOMMENDATION(S): The Manager recommends that the Board: <br /> • Approve a one-year pilot project contract with Tax Management Associates and <br /> authorize the Chair to sign the contract subject to final review and approval by staff and <br /> the County Attorney; <br /> • Direct the Manager and staff to move forward with Tax Management Associates to <br /> provide the business personal property process. <br /> A motion was made by Commissioner Nelson, seconded by Commissioner Hemminger to: <br />