HomeMy WebLinkAboutAgenda - 11-01-2011 - 5gORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 1, 2011
Action Agenda
Item No.
SUBJECT: Amendment of a Resolution Approving Orange County's Participation in the
North Carolina Local Government Debt Setoff Program
DEPARTMENT: County Attorney/Financial PUBLIC HEARING: (Y/N) No
Services/Animal
Services/Health-
Environmental Health/Library
Services/Solid Waste
ATTACHMENT(S):
Resolution Amendment (Designation of
Financial Services Director as an
Additional Appeals Hearing Officer)
INFORMATION CONTACT:
John Roberts, County Attorney's
Office, 245-2318
Clarence Grier, Financial Services,
245-2453
Jennifer Galassi, County Attorney's
Office, 245-2320
PURPOSE: To amend the Resolution Approving Orange County's Participation in the North
Carolina Local Government Debt Setoff Program to designate the Financial Service Director to
consider appeals from debtors under the North Carolina Local Government Debt Setoff Program
(the "Program").
BACKGROUND: During the 1997 legislative session, the North Carolina General Assembly
approved legislation that authorized local governments to participate in the State's income tax
refund debt setoff program. On November 6, 2002, the Board of County Commissioners
approved a resolution authorizing Orange County to participate in the Debt Setoff Program.
Since 2003, the Tax Collector (now known as the Tax Administrator) has satisfied debts owed to
Orange County through collaboration with the North Carolina Department of Revenue to receive
portions of State income tax refunds due to Orange County taxpayers. Currently, the Director of
Tax Administration (the "Tax Administrator") hears appeals of taxpayers who desire to contest a
proposed setoff of monies that the Tax Administration Department collects.
Beginning in January 2012, Animal Services, Library Services, Environmental Health, and Solid
Waste will commence submitting debt owed to those departments for collection by setoff. Prior
to submission of these debts, staff is requesting that the Financial Services Director be
authorized to consider appeals from debtors to comply with the due process requirement of the
Program. The Tax Administrator will continue to hear appeals regarding debts collected by that
Department, while the Financial Services Director will hear appeals from taxpayers owing
monies to the other departments that will participate in the Debt Setoff Program.
2
FINANCIAL IMPACT: Since January 1, 2011, implementation of the Delinquents Account
Collection Policy has resulted in the collection of over $90,000. Staff estimates that these
additional departments' participation in the debt setoff program could lead to the collection of
thousands of dollars annually that would otherwise go uncollected. Based on the experience of
Tax Administration and other jurisdictions, it is likely that the County would receive the majority
of this revenue from payments made by the debtors after receipt of the required notice advising
of the intent to set off the debt against the individual's State tax refund or North Carolina State
Lottery winnings.
The Tax Administration Department has entertained only a handful of appeals since it began
participation in the Program. Based on this experience, it is anticipated that the Financial
Services Director will likely hear a similar small number of appeals.
RECOMMENDATION(S): The Manager recommends that the Board approve and authorize
the Chair to sign the amendment to the Resolution Approving Orange County's Participation in
the North Carolina Local Government Debt Setoff Program to allow the Financial Services
Director to consider appeals from debtors who wish to contest the intended setoff of monies
owed to other departments.
Res- ~o~ f- oq~
ORANGE COUNTY BOARD OF COMMISSIONERS
A RESOLUTION APPROVING ORANGE COUNTY'S PARTICIPATION IN THE
NORTH CAROLINA LOCAL GOVERNMENT DEBT SETOFF PROGRAM
WHEREAS, North Carolina General Statute Chapter lOSA, the Setoff Debt Collection Act,
authorizes the North Carolina Department of Revenue to cooperate in identifying debtors who
owe money to local governments and who qualify for refunds from the Department of Revenue;
and
WHEREAS, the law authorizes the setting off of certain debts owed to local governments against
tax refunds; and
WHEREAS, the North Carolina Association of County Commissioners and the North Carolina
League of Municipalities have jointly established a clearinghouse to submit debts on behalf of
Orange County, as provided by law;
NOW THEREFORE BE IT RESOLVED that the Orange County Board of Commissioners does
hereby indicate its intention that Orange County will participate in the debt setoff program and
does hereby designate the Orange County Tax r^'~~r- Administrator as the officer to hold
hearings and conduct necessary proceedings as established by law with regard to the monies
collected by the Tax Administration Department.
NOW THEREFORE BE IT RESOLVED that the Orange County Board of Commissioners does
hereby designate the Orange County Financial Services Director to hold hearings and conduct
necessaryproceedings as established by law with regard to appeals from debtors owing monies
to Animal Services Library Services Environmental Health, and Solid Waste and to other
departments that later choose to utilize the Program.
BE IT FURTHER RESOLVED THAT the County Manager is hereby empowered to execute
such agreements and related documents as may be necessary to implement Orange County's
participation in the debt setoff program.
This the 1 S' day of November, 2011.
Bernadette Pelissier, Chair
Orange County Board of Commissioners