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Home My WebLink AboutAgenda - 08-17-2010 - 4h i ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 17, 2010 Action Agenda Item No. �{- - h SUBJECT: Tax Collector's Annual Settlement for Fiscal Year 2009-10 DEPARTMENT: Revenue PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Resolution Jo Roberson, 245-2735 Reports (4) Orders to Collect Insolvent Reports (3) (provided to Clerk) Informational Memorandum PURPOSE: To receive the tax collector's annual settlement on current and delinquent taxes, approve the accounting thereof, and upon acceptance of the reports, issue the Orders to Collect for Fiscal Year 2010-2011. BACKGROUND: The reports in the annual settlement provide in detail the collection for the County, all fire and special districts, and the Towns of Carrboro, Chapel Hill, and Hillsborough during Fiscal Year 2009-2010. The overall tax collection percentage is 98.72%. The overall collection percentage has three components — real property, personal property, and motor vehicles — and is reflective of all jurisdictions charged to the collector. The largest and most important component is real property. The collection staff has concentrated on increasing real property tax collections and continues to consistently collect over 99% on the real property levy for the last finrelve consecutive years. The tax collector is required by North Carolina General Statute (NCGS) 105-373 to give an annual settlement to the governing body. It is the intent of the Machinery Act to creafe a direct relationship of responsibility and accountability between the tax collector and the governing body. NCGS 105-373 requires the tax collector to furnish a sworn report to the governing body showing a list of property owners whose taxes remain unpaid for the preceding fiscal year. There are three reports: one for real property owners, one for personal property owners, and one for motor vehicle owners. By acceptance of the resolution the Board declares the taxes to be insolvent and designates the list entered into the minutes as the insolvent list to be credited to the tax collector on the settlement report. The Board's determination of insolvency is not a release. The tax claim is not discharged or written off. Insolvent accounts are recharged to the collector as delinquent accounts, and the collector has full authority to use levy and 2 garnishment to effect their collection. A CD has been provided to the Clerk to the Board for the permanent record of all outstanding tax by category. There are two settlement reports for tax attached. The first settlement report shows all taxes charged for collection for the 2009-2010 Fiscal Year. The tax collector is credited with all sums representing taxes collected and deposited, the principle amount of unpaid taxes on real property, and the principal amount of unpaid taxes on personal property determined to be insolvent. All uncollected taxes allowed as credits in a settlement are recharged to the tax collector. The second settlement report shows all prior years' taxes collected during the 2008- 2009 Fiscal Year. A third report is also provided detailing all other miscellaneous revenue charged to the tax collector for collection during Fiscal Year 2009-2010. There is also a fourth report on minimal property tax bills. FINANCIAL IMPACT: None RECOMMENDATION(S): The Manager recommends the Board: • receive the Tax Collector's annual settlement, and approve the resolution accepting it as reported for entry into the minutes; and • approve and issue the Orders to Collect to the Tax Collector for Fiscal Year 2010-2011. � � s - �oio - oc� � 3 RESOLUTION APPROVING THE TAX COLLECTOR'S ANNUAL SETTLEMBVT FOR THE CURRENT YEAR 2009 AND PRIOR YEARS BE IT RESOLVED by the Board of Commissioners of Orange County that the following documents attached hereto are received and approved, consisting of the following: (1) Tax Collector's Report of 2009 Unpaid Taxes on Real Property (Insolvent List) (2) Tax Collector's Report of 2009 Unpaid Taxes on Personal Property (Insolvent List) (3) Tax Collector's Report of 2009 Unpaid Taxes on Motor Vehicles (Insolvent List) (4) Tax Collector's Report of Minimal Property Tax Bills (5) Report of Collections of Non-Tax Revenue and Miscellaneous Taxes (6) Settlement of 2009 Tax Accounts (7) Settlement of Prior Years (2000-2008) Tax Accounts ADOPTED this the 17th day of August, 2010. Valerie Foushee Chair, Board of County Commissioners Attest: Clerk to the Board of County Commissioners . il I Settlement for 2009 Tax Accounts ' Orange County,Fire and Speclal Districts Towne of Cerrboro,Chapet Hlll,and Hillsborough for Fiacal Year 2009•2010 Orange Fire&Speclaf Town of Town of 7own of Grand County Districts Carrboro Chapel Hill Hillsborough Total CHARGES Adjustad Levy-Real 121,031,158.40 20,597,414.22 10,524,983.15 29,887,243.36 4,092,685.96 18B,213,485.08 Adjusted Levy-Personai 5,046,844.95 180,400.68 1,176,349.16 350,511.61 6,764,106.40 AdJusted Levy-Motor Vehicles 7,342,324.28 605,924.99 1,383,375.85 238,031.65 9,589,856.77 Adjusted Levy--Personal&Motor Vehicles 1,794,4b2.04 1,794,452.04 Adjusted Levy-Vehicle Fees 384,215.00 799,880.00 48,240.00 1,212,335.00 fnterest&Penalties 377,476.03 18,259.31 81,881.47 20,227.41 477,844.22 Totai 135,797,803.66 22,391,888.26 11,703,783.13 33,388,729.84 4,748,896.63 206,031,878.52 CREDITS Real Uncollected 1,109,848.03 158,688.24 120,145.04 129,898.92 54,616.74 1,573,194.97 Personal Uncol{ected 148,203.58 92.14 87,149.30 1,105.82 216,520,84 Motor Vehiciea Uncoilected b80,275.72 49,072.69 78,107.80 27,140.38 734,596.51 ?ersonal&Mo1or Vehicles Uncollected 97,717.41 97,717.41 Molor Vehic�e Fees Uncollected 46,404.11 72,144.19 8,017.86 126,588.26 Cash Deposited 131,959,476.33 22,135,460.61 11,488,069.23 33,041,461.63 4,658,815.73 203,283,283.63 Total 133,797,803.66 22,397,866.26 11,703,783.13 33,388,729.84 4,749,696.63 206,031,879.52 COLLECTION CREDIT � Cash Deposited 131,959,476.33 22,135,460.61 11,488,089.23 33,041,461.63 4,658,815.73 203,283,283.53 Prop Tax Appeals Pending Credit 67,630.38 15,167.66 34,853.75 2,879.97 - 120,531.66 Total Collection Credit 132,027,106.71 22,150,628.17 11,522,922.98 33,044,341.60 4,658,815.73 203,403,815.19 , COLLECTION PERCENTAGE Real 99.14% 99.23% 99,19% 89.58°h 98.87% Personat 97.06°h 99.95% 94.29% 99.889�0 Motor Veh(cles 92.10% 91.90% 94.36% 88.60% Personal 8 Moior Vahicles 94.55% Motor Vehicle Fees 87.28% 90.98% 83.38% 'i Total 98.67% 98.85% 88.45°h 88.97% 98.08% ..�:t13Aitlqf :��'�'��' Percenta e Re orted in the CAFR and to the LGC 88.71% binedCwnly,FVadSp�clelDh4kt Overall CoileCtioi 88.72% �,��J�. - s�v _�tobersy,CTC,Tax Colteclor for Orange County,Towns of Carrboro,Chapel Hill,and Hillaborough,and appficable iire/specia�disiricls,being duly appointed,respectfully �� No'�f'?eports thU ha has made a diligent effort withfn the time permitted by law to coilect the taxes due from persons Iisted out ot Iheir personal property and b s open �o QV 5w`m t 8 subscribed before me this the�day of August,2010. ��'Q,� - J� � /�/�q , Jo erson,Tax lector,CTC nnNIR� h � ,55� � • �,(,Il1Gf Sn;,h Notary Public My commission expires c�-l(D-abl3 � SETTLEMENT OF UNPAiD TAXES FOR THf YEARS 2000-2008 Orange County,Fire and Special Districts Towns of Cerrboro,Chapel HIII,and Hiils6orough AdJusted Levy Total Uncollected Balance Interest Collections (Accounts Receivable) Collected Orange Counry 3,597,573.14 1,478,655.98 2,120,108.26 Downtown Revitalizaiion 2,003.40 2,202.28 85.95 Orange Rural Fire bistrict 17,239.55 11,815.09 5,424.46 EOand 10,010.11 6,745.7q 3,264.37 Soutfi Orange 10,152.39 6,655.69 3,496.70 New Hope 3,831.44 3,234.OA 597.40 Eno 7,237.12 4,842.55 2,594.57 Orange Grove 5,989.82 4,146.18 1,853.64 Chapel Hill 80.84 - . Little River 3,070.82 2,423.18 647.64 Cedar Grove 6,855.34 4,q58.61 2,196.73 South Triangle 1,060.27 7gZ,pq 27g,2g Damascus 367.09 343.11 23.98 White Cross b,328.31 3,075.54 2,252.77 CH School Districl 167,443.41 110,297.47 57,145.94 Total County,Fire,and Special Districts 3,838,033.06 1,638,4.77.50 2,199,948.64 228,302.56 Town ot Carrboro Rea1 263,101.45 84,350.40 219,416.18 i Motor Vehicle and Other Personal Property 182,940.11 33,243.46 88,679.78 � Total 426,041.56 117,583.86 308,095.96 8,654.84 i Town of Chapef Hill Real 437,787.76 130,889.97 428,820.83 Motor Vehicle and Other Personai Property 2U3,814.81 37,878.11 103,376.58 ' Total 701,602.67 168,568.08 53i,997.41 54,388.31 � Town of Hiilsborough Real 228,272.87 149,895.42 78,512.14 � Molor Vehicle and Other Personal Property 50,453.10 28,754.08 21,699.02 � 7otal 278,725.77 178,449.50 100,211.16 39,173.45 i Jo Roberson,CTC,Tax Collector for Orange Counry,Towns ot Carrboro,Chapel Hili,and Hillsborough,and applicable fire/special dislricts,being duty appofnted, � respectfully reports,In accordance with G.S.105-373(b),lhe amount af laxes remaining unpaid for years 2000 through 2008,1hat sh de a d(ligent eNort within the time parmitted by law to collect such taxes out of the personal property of such laxpayers,or by other means la r for ecti of such taxes. ....�5�«f=$jy�orn and subscribed before me on ihis the I�I�day of August,2010 �� I `n`r;y�Y�`�'•�'�LL/sO Jo R rson,Tax C ctor �'y y �� NoTaRY � p11��-� � UXK� Notary Public My commission expires - 'a�f��3 ' . o�� , �,�n a�n��U�`,� C37 2009-2010 COLLECTIONS OF NON-TAX REVENUE 20d9-2010 COLLECTION OF RENTAL VEHICLE GROSS RECEIPT 7AX FOR MUNICIPALITIES EMS Ambulance Fees $2,001,203.55 not inclusive of Medicaid Relmbursement Chapel Hill 32,745.23 (see additional EMS report) Medicaid Reimbursement for EMS $ 149,848.00 Hilisborough 9,654.80 Carrboro 487.66 Schedule B Licenses $435 TOTAL 42,787,69 Beer 8 Wine Licenses $10,795.00 Rental Vehicle Gross Recefpts Tax $ 52,920.33 Emergency Mgmt Collectfons 44,651.00 (all other charges but ambulance) 3R Fee Collection (97.78%Collectec� 3,787,512.45 TOTAL 6,047,365.33 COLLECTIONS OF MISCELLANEOUS AD VALOREM TAXES&MOTOR VEHICLE TAG FEES Fiscal Year2009-2010 All PriorYears Adjusted Total Amount Collection Adjusted Tofal Amount Collection Levy Collected Uncoltected Percentage Levy Coliected Uncollected Percentage Town of Mebane,Motor Vehicle Taxes 44,992.42 39,787.37 5,225.05 88.39% 6,084.98 4,137.06 1,927.90 68.21°/a City of Durham,Motor Vehicle Taxes 662.62 424.84 237.88 84.06% 137.32 137.32 - 100.00°k City of Durham,Motor Vehicle Tag Fees 210.00 160.00 50.00 78.19°h 50.00 50.00 • 100.009'0 � � 8 7 TAX COLLECTOR'S REPORT OF MINIMAL PROPERTY TAX BILLS Fiscal Year 2009-2010 North Carolina General Statute 105-321(fl is a provision authorizing the governing board of a taxing unit that collects its own taxes to adopt a resolution foregoing the collection of bills that do not exceed a specified amount, up to five dollars ($5.00). The Orange County Board of Commissioners has adopted, by resolution effective July 26, 1995, a policy change to permit the County Assessor and Tax Collector to waive the billing and collection of tax notices that do not exceed five dollars ($5.00), and that the tax collector keep record of such and report the total amount as part of annual settlement. The total number of motor vehicle notices less than five dollars ($5.00) is 5449. The total amount of taxes waived is $ 11,045.58. The total number of real estate and personal property notices less than five dollars ($5.00) is 1547. The total amount of taxes waived is $971.68. is $ ORDER OF THE BOARD OF COUNTY COMMISSIONERS IN ACCORDANCE WITH G.S.105-321 State of North Carolina County of Orange - To Jo Roberson,Tax Collector of Orange Counry: You are hereby authorized, empowered, and commanded to collect the 2010 taxes set forth in the tax records filed in the office of the Orange County Tax Assessor,and in the tax receipts herewith delivered to you, in the amounts and from the taxpayers likewise set forth. Such taxes are hereby declared to be a first lien upon all real property of the , respective taxpayers in the County of Orange. This order shall be a full and sufficient authority to direct, require, and enabie you to levy on and sell any real or personal property of such taxpayers, for and on account thereof,in accordance with law. Witness my hand and official seal,this 17th day of August,2010. Valerie Foushee Chair,Board of County Commissioners Attest: Clerlc to the Board of County Commissioners ��PRc` �� .� 9 ,� �� r .;�rn �at�`'" ORANGE COUNTY TAX ADMINISTRATION 228 S CHURTON STREET,SUITE 200 PO BOX 8181 HILLSBOROUGH,NORTH CAROLINA 27278 Jo Roberson, Director Telephone(919)245-2100 Fax(919)644-3332 To: Board of County Commissioners Frank Clifton, County Manager Subject: Ta�c Status Memorandum Date: August 17, 2010 The purpose of this memorandum is to share some information concerning this past fiscal year process and to provide some information concerning current ongoing projects. In an"informal"pole conducted b taa� rofessionals rece _ y p ntly, the top five lar est counties . g ranking in overall collection percentages were as follows: Durham County 98.88 Wake County 98.66 New Hanover County 98.64 Buncombe County 98.63 Mecklenburg County 98.08 , By population ratio we are ranked within this group of counties and we are most pleased to I advise that Orange County overall t�collection percentage is 98.72%. For our division,would place Orange County collections second within the State. The outsourcing of business listings using the company known as Tax Management Associates has proceeded in what has proven to date, a success manner. Our listing process has been completed and a11 billings have been mailed. The number of accounts listed and the values appear to be in alignment with previous years. Pam Bryant,Appraisal Technician, has been instrumental in this success by closely working with staff from Tax Management Associates. The listing process was completed 30 days in advance to previous years. Additionally the Taa� Clerks in the Assessment Division completed the personal property listing process 30 days in advance. Because of a11 the stafF endeavors we mailed our billings to our residents on July 20�'°°, 2010. This will a11ow additional time for residents to make arrangements for payment either individually or with the assistance of the Collections staff. I also am pleased to report that the first six months of working with EMS Management& Consultants has proceeded as we planned. As we originally stated, by outsourcing the daily billing and collections, we have been able to secure by enforced collections the sum of$154,299. 10 This amount is up from the prior year by over $50,000. It is our plan, as we complete the final clean up from those accounts billed and filed prior to the beginning of our contract with EMS Management & Consultants in January of 2010,to improve the delinquent amount. However, we believe these figures have already established that the outsourcing costs can be covered by the increased collection of delinquent accounts. The Board of Equalization and Review have completed the formal process of appeal having hear 380 appeals. The Board of Equalization and Review convened the beginning of April and their final hearing was held on June 30,2010. Mr. Tom Heffner, Chair has indicated to staff that he and the other members have been very pleased this year with the organization and flow of the meetings. Minutes for the meetings are available on our website at http://www.co.orange.nc.us/assessor/minutes asp . The appeals for 2009 that were made by citizens to the North Carolina Property Tax Commission are being worked by staff in conjunction with the North Carolina Department of Revenue, as directed by state statute. The PIMS (Property Information Management System)project is moving forward on schedule. Our intent is to take the entire system live on October 4, 2010. The staff of the Land Records Division of T�, have done a tremendous job of maintaining their work load while working with the vendor to completely redesign the PIN number system. As you are aware,the PIN System is , the official index of the Register of Deeds, and is maintained as part of the land ecord/ownership for t�ation process. This has been no sma11 endeavor. I must applaud their hard work. Currently we axe completing the final stage of the PIN System development and testing. Staff in the Assessment, and Revenue Collections Divisions have not been without their own challenges. They are working with the vendor in the conversion and verification of the mainframe data into a new"sta.te of the art"assessment and billing/collections system. This project would not be at the stage it is at without the hard work and dedication of the staff of the Tax Administration Department. I cannot leave out the tremendous help that Todd Jones and his staff, along with Clarence Grier and his staff have been and will continue to be in the process of go live. The integration between the multiple systems will enhance the passing of data and therefore the final outcomes. We currently are on schedule to take the system live effective within the first week of October,2010. Respectfully submitted, Jo Roberson, Tax Administrator I