Agenda - 06-19-2001-8i - Laserfiche WebLink

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6 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 19, 2001 ,~ 1 Action Agenda Item No. $ - ~ SUBJECT: Contract with BB & T for Receivin and Processin Mailed Tax Pa ments DEPARTMENT: Revenue PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Contract Listing of Current Users INFORMATION CONTACT: Jo Roberson, Tax Collector, ext 2727 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 9fi8-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To approve an agreement under which payments for Orange County properly tax bills can be mailed directly to BB&T for receipt, processing, and crediting to Orange County's bank account. BACKGROUND: The Revenue Director, Finance Director, and their staffs have examined a proposed agreement with the County's financial institution, BB&T, that would enable tax payers to mail their payments for property tax bills (real, personal, and/or registered motor vehicles) directly to BB&T. Among other outcomes, this arrangement would: • reduce the amount of mail processed daily by the Revenue Director's staff • ensure same day deposits of revenues, resulting in faster crediting of payment to the County's bank account • produce greater investment earnings due to faster deposits • enable Revenue staff to shift a substantial number of work hours weekly away from mail processing to other high priority activities such as collection of delinquent accounts Staff estimates that in a one year period of time, one staff member spends approximately 1200 hours sorting, opening, preparing for processing, keying and balancing. During the month of December and early January, the entire office staff of 11 members is involved. in some facet of the mail process the majority of every working day (because tax payments increase leading up to the statutory January 5 deadline for the imposition of interest on delinquent property tax bills). The total annual effort for mail processing is approximately 1800 hours in staff time. Workload statistics reflect an approximate 21 % increase in the number of-Registered Motor Vehicles (RMV) billings since 1995-1996, from 67,557 to 85,151 annually. The number of property tax bills sent each year in late July or early August has grown from approximately 44,800 in FY 1995-1996 to 49,0000 in FY 2000-2001.