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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: December 11.2001 <br />Aetion Agen a <br />Item No. I- <br />SUBJECT: North Carolina Local Government Oebt <br />DEPARTMENT: Revenue PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Resolution INFORMATION CONTACT: <br />1119/01 NCACC Executive Director Memo Jo Rabersan, ext 2121 <br />Drell Memorantlum of Untlerstantling <br />Antl Agreement TELEPHONE NUMBERS <br /> Hillsborough T32-8181 <br /> Chapel Hill 968-0661 <br /> Durham 688-7331 <br /> Mebane 336-33T-]831 <br />PURPOSE: To approve a resolu8on authorizing staff [c participate in the North Carolina <br />Local Government Debt Setoff Program. <br />BACKGROUND: During the 1991 legislative session, the North Caroline General Assembly <br />approved leglelation that euthortzetl local govemments to participate in the States income tax <br />refund debt setoff program. Local governments can now work to satisfy debts owed to them by <br />collaboreiing with the Department of Rerenue [o receive portions of Sfete incmme tax refunds <br />that may be duetotaxpayers who owe money to local governments. The North Carolina <br />Association of County Commissioners and Nodh Carolina League of Municipalities have worked <br />together end have recently developed en arrangement with Five Star Computing, inc. of South <br />Carolina to assist local governments in receiving debts owetl [hem by tliveding incmme tax <br />refunds Yhat would otherwise be sent to debtors. Local governments era obliged to pay Five <br />Star $15 for every debt payment (only those tlebts of $$D or more can be offset under this <br />program) successfully obtained on behalf of the local govemmenL but the local government <br />chooses which tlebtathey tlesire thevendor to pursue on Neir behalf. Revenue DireIXOr Jo <br />Roberson would be Orange County's designated paint of contact for this program and would be <br />IDs County official empowered to consitler appeals from tlebtors untler the tlue process aspects <br />of the debt setoff program. <br />The accompanying resolution would authorize the Manager antl staff lc participate in this <br />program, as outlinetl further In the attachetl NCACC memo antl [he proposed memorentlum of <br />untlerstantling. <br />FINANCIAL IMPACT: Stall estimatesthet participation in this program wultl leatl to [he nef <br />collection of several thousantl dollars (and perhaps more, as the program matures in Orange <br />County) annually that would otherwise go uncollected. There woultl be a Nat cost of $15 for <br />