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Home My WebLink About2016-366 Tax - City of Mebane - Interlocal Agreement for Tax Collection c2 Di Tay NORTH CAROLINA ORANGE COUNTY INTERLOCAL AGREEMENT for TAX COLLECTION This is an interlocal c operation agreement (hereinafter called the "Interlocal Agreement") made this the V�- day of kA., 2016, and effective as of the I"day of July, 2016, by and between the City of Mebane, a municipal corporation in the State of North Carolina (hereinafter called the "CITY,") and Orange County,North Carolina, a political subdivision of the State of North Carolina (hereinafter called the "COUNTY"), and also collectively referred to as the "Parties." WITNESSETH WHEREAS, the CITY and COUNTY have determined that it is in the public benefit and interest to enter into an Interlocal Agreement for Tax Collection to provide for the listing, billing and collection by the COUNTY of ad valorem taxes and related charges which are due to the CITY; and WHEREAS, the parties have agreed that the negotiated payment set forth herein is in the best interests of their citizens; and WHEREAS, the North Carolina General Statutes in Chapter 160A, Article 20, provide that units of local government may enter into agreements in order to execute an undertaking providing for the continual exercise by one unit of any power, function or right, including the collection of taxes; and WHEREAS, the CITY and the COUNTY agree this Interlocal Agreement shall continue for five (5) years, from July 1, 2016 to June 30, 2021, unless terminated pursuant to the terms herein; and WHEREAS, the governing bodies of the CITY and COUNTY have ratified this Interlocal Agreement by record in their respective minutes; and THEREFORE, in consideration of the mutual covenants, terms and conditions contained in this Interlocal Agreement herein accruing to the benefit of each of the respective parties hereto and other good and valuable consideration, receipt and sufficiency of which is acknowledged by the CITY and the COUNTY, the parties agree as follows: I. COUNTY Billing and Collection of CITY Taxes. The COUNTY shall provide collection of CITY ad valorem taxes and directly related charges on behalf of the CITY beginning July 1, 2016, for the 2016-2017 fiscal year. The CITY shall maintain all responsibility for CITY property taxes prior to 2016. 2. Tenn of Agreement. This Interlocal Agreement shall continue for five (5) years, from July 1, 2016 to June 30, 2021, unless terminated pursuant to the terms herein. 3. Compliance. The COUNTY will comply with all applicable tax collection laws of North Carolina, including those contained in Subchapter II of Chapter 105 of the General Statutes of North Carolina, and all administrative mandates issued by the State of North Carolina. 4. Absolute Authority Except as expressly provided herein The Orange County Board of Commissioners shall have the sole and absolute authority to make any and all elections, determinations and decisions for the COUNTY and CITY that the governing bodies of the COUNTY and CITY are authorized to make pursuant to Articles 21, 26, 27 and 28 of Chapter 105 of the North Carolina General Statutes. Records and Accounts. (a) The COUNTY shall be responsible for maintaining, in an on-line environment, all ad valorem tax records, auto privilege tax records and other related charges, including amounts paid and unpaid, in the same manner as COUNTY records are maintained. (b) The CITY will provide the COUNTY with all necessary information for transfer for all funds due the CITY, the COUNTY will properly account and distribute such funds by check or other mutually agreed-upon method, on a monthly basis and notify the CITY Finance Director by 10:00 a.m. on the first business day of each month on amounts to be transferred. (c) The COUNTY'S annual audit will include an audit of the tax collection system. Upon completion of such audit the COUNTY will provide CITY with a separate report containing the CITY'S tax levy and collection information to include the auditor's opinion. Any special audit requests shall be directed to the COUNTY Finance Officer and shall be paid for by the requesting unit through a supplemental billing directed by the COUNTY to the requesting unit. (d) The COUNTY shall provide the CITY'S Internal and External Auditors, during regular business hours, access to the CITY Tax Receivables' daily cash transactions, and other records pertaining thereto to the fullest extent practicable. (e) The CITY shall provide the COUNTY Tax Collection Office with access, to the extent legally allowable, into any of the CITY'S records systems that the CITY deems to be beneficial in the collection of CITY Taxes. 5. Pro Rata Payments. The COUNTY shall distribute part payments received from CITY taxpayers on a proportionate basis between taxes owed the COUNTY and the CITY, such distribution to be the basis of respective tax rates, after all interest and penalties are first paid. 6. Costs for Billing and Collection. The COUNTY shall incur all costs for preparing, printing, billing and collections the CITY tax bills, including follow-up notices. 7. Initial Cost of Converting Billing and Collection Records The CITY will compensate the COUNTY for the cost of converting existing billing and collection records into the COUNTY's billing and collection system. This cost is estimated at $0 with the exact amount to be determined once conversion is complete. This is a one-time cost to the CITY. The CITY agrees to work with its software vendor to allow the COUNTY's software vendor access to the data and support needed to properly and accurately convert records. 8. Payment to COUNTY. (a) The fee for collection services shall be equivalent to 0.5% of collections payable within 30 days of receipt of quarterly billing from the County. (b) CITY will pay a yearly support and maintenance cost which will be approved by the Manager of each jurisdiction no later than November 30th of each year. (c) Each year the CITY and COUNTY staff will convene prior to November 15th to review prior year expenditures and coming year estimates for expenditures in preparing cost projections for yearly maintenance costs for the next fiscal year. This information will then be brought forward to each jurisdiction's Manager for review. 9. Termination. This Interlocal Agreement may be terminated by either party by providing six (6) months notice prior to the start of the next fiscal year. Upon notice of termination of the Interlocal Agreement, the COUNTY shall deliver to the CITY all tax records, in a customary electronic data format, or in whatever form held in its hands, pertaining to its listing, billing, and collecting, consistency of the tax bills, tax scrolls, and other related records by February 1 of the fiscal year in which the termination shall be effective. The COUNTY shall continue to collect current and delinquent taxes through June 30 of the fiscal year in which the termination shall be effective. Upon termination of the Interlocal Agreement the COUNTY shall provide a full accounting to the CITY of the status of all tax collections. After June 30 of the fiscal year in which the termination becomes effective, the COUNTY shall not be further obligated either as to current or delinquent taxes due to the CITY. 10. Entire Agreement. This Interlocal Agreement, including all exhibits or attachments if any, sets forth the entire Agreement between the Parties regarding the services and matters set forth herein. All prior conversations or writings between the Parties hereto or their representatives on this subject matter are merged within and extinguished. This Interlocal Agreement shall not be modified or amended except by a written instrument executed by duly authorized representatives of the Parties herein. 11. Notice. Notice under this Interlocal Agreement shall be deemed sufficient upon the mailing to the parties by certified or registered mail at the following locations: Orange County City of Mebane County Manager City Manager 200 S. Cameron St. 106 E. Washington St Hillsborough,NC 27278 Mebane,NC 27302 IN WITNESS THEREOF,the parties have executed this Interlocal Agreement in their respective names and titles, by their proper officials, all by the authority of appropriate resolutions of the governing bodies of each of the taxing units, duly adopted, as of the day and year first written above. ORANGE COUNTY CITY OF MEBANE ATTEST: ATTEST: By: &41 By: Clerk to Board Ste hanie Shaw, City Clerk By: _ By: County Manager David S. Cheek, City Manager By: end l e Step ens , Mayor CITY OF MEBANE THIS INSTRUMENT HAS BEEN THIS INSTRUMENT HAS BEEN PREAUDITED IN THE MANNER PREAUDITED IN THE MANNER REQUIRED BY THE LOCAL REQUIRED BY THE LOCAL GOVERNMENT BUDGET AND GOVERNMENT BUDGET AND FISC L CONTROL ACT. FISCAL CONTROL ACT. By: By: D.d 'k Count/F nance erector eanne Tate, City Finance Director APPROVED AS TO FORM AND APPR S T ORM AND LEGAL SUFFICIENCY LE S NCY By: By: C ty Attorney awson ro ty Attorney