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5. RESOLUTIONSIPROCLAMATIONS <br />a. North Carolina Local Government Debt Setoff Program <br />The Board considered a resolution authorizing staff to participate in the N.C. Local <br />Government Debt Setoff Program. <br />John Link said that the County Commissioners' Association and the League of Municipalities <br />have worked together with the Department of Revenue so that now a portion of state income tax refunds <br />may be paid back to the local governments as back taxes or other fees owed by taxpayers that have <br />been delinquent in making payments. This program has statewide support. <br />Revenue Collector Ja Roberson said that this program is under a state law that was passed in <br />1997. The state of North Carolina has mandated since 1997 that all state agencies have to participate in <br />the program. There has been an expansion to allow local governments to participate in the program. <br />The League of Municipalities and the North Carolina Association of County Commissioners have worked <br />with the State Legislators to set up a debt setoff clearinghouse that will handle it for the counties and <br />municipalities that choose to participate. There is a requirement that the debt must be $50 or more. <br />South Carolina has been doing this program since 1993 and has returned to local governments in <br />excess of $175 million. She said that this was a worthwhile program to participate in. If the Board <br />approves this program, a test program will be done the first year and evaluated before there is a notice <br />sent out to the individuals before the debt is ever submitted, giving them an opportunity to appeal it. <br />Commissioner Carey verified that the company that is collecting this debt would not get <br />anything if the County does not get anything. Jo Roberson said that there is a $15 fee for each hit. A <br />portion of it is returned to the League of Municipalities and the North Carolina Association of County <br />Commissioners. Commissioner Carey also verified that the state would get its money before the County <br />would get its money. <br />Commissioner Brown asked if there is a reason that Jo Roberson chose the EMS outstanding <br />bills and Jo Roberson said that these bills date back to November of 1996 and the staff has actively <br />pursued collection of these debts. <br />Commissioner Brawn asked what other categories would also be pursued. Jo Roberson said <br />that some other categories would include debts owed to the Health Department, Social Services, the <br />landfill, and others. <br />Commissioner Brown said that she associates these debts with citizens who have the lowest <br />of incomes and she is not comfortable with pursuing these debts. <br />Commissioner Halkiotis asked if this is strictly voluntary for the County and Jo Roberson said <br />yes. He would like to have a better picture of who would be impacted by this. He does not want to hurt <br />someone that is having a difficult time financially. <br />Jo Roberson said that the County may also submit taxation through this resolution as well to <br />the state. She recommends that it be done for primarily registered motor vehicles. There are a lot of <br />transient people in Orange County and there are registered motor vehicle bills that do not get paid. She <br />said that this would be a good collection tool relative to taxation. <br />Commissioner Carey said that this Board is sensitive to trying to da what we can to mitigate <br />against imposing more hardships on the citizens of Orange County, especially those in need. It troubles <br />him that some of the individuals might be in need. However, he would like to know more about the <br />individuals to find out whether they can pay or not. He will support this. <br />Assistant County Manager Rod Visser said that this program is not an all ar nothing program. <br />The staff has some discretion in the particular accounts that might be pursued. <br />Chair Jacobs suggested that the County Commissioners be provided with additional <br />information and this item be brought back in January. He suggested looking at a different target group <br />for the program rather than EMS bills. Perhaps the right group might be registered motor vehicles. <br />A motion was made by Commissioner Halkiotis, seconded by Commissioner Carey to table <br />this item until the next meeting, January 16, 2002. More information will be brought back about debt <br />collection and which accounts will be pursued. <br />Commissioner Brown would like to see the list of the registered motor vehicles. <br />NOTE: Commissioner Gordon arrived at this point in the agenda - 6:57 p.m. <br />John Link said that the staff could also bring back any information from the State Department <br />of Revenue as to whether or not the income tax refunds can be measured. <br />