HomeMy WebLinkAboutAgenda 02-03-2026; 6-b - Update to Interlocal Agreements between County and Towns on Tax Collection 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 3, 2026
Action Agenda
Item No. 6-b
SUBJECT: Update to Interlocal Agreements between County and Towns on Tax Collection
DEPARTMENT: Tax Administration
ATTACHMENT(S): INFORMATION CONTACT:
Current Interlocal Agreement and Nancy Freeman, 919-245-2735
Addendum with Chapel Hill, Carrboro
and Hillsborough
PowerPoint Presentation
PURPOSE: To:
1) Receive information on the current interlocal agreement (ILA) between Orange County,
Chapel Hill, Carrboro and Hillsborough for municipal tax collection charges and the
potential need for an update to the agreement;
2) Consider authorizing the Tax Administrator and Budget Director to begin discussions with
Chapel Hill, Carrboro and Hillsborough on the current ILA and potential actions to meet the
County's costs related to billing and collecting taxes for the municipalities; and
3) Consider authorizing the Tax Administrator and Budget Director to initiate discussions with
the cities of Durham and Mebane based on pending expiration of those respective tax
collections agreements.
BACKGROUND: In 1979 the County entered into an agreement with Chapel Hill, Carrboro, and
Hillsborough whereby the Orange County Tax Collector would, on behalf of the Towns, bill and
collect their tax levies in accordance with North Carolina General Statute 160A-461.
In 2006 the agreement was updated, and the municipal tax collection rate was set at 0.5% of the
annual amount collected for each of the towns. The expiration was set not to exceed 99 years
from July 1, 2006. The agreement requires unanimous agreement from all three towns to make
amendments and requires a one-year notice for termination.
In 2009, an addendum was approved by all parties that, in addition to the 0.5% tax collection rate,
updated the agreement to add an agreed-upon annual surcharge for new software installed for
the purpose of tax ownership, billing, and collection. However, the annual surcharge addendum
has not been utilized to supplement revenue for the County.
Research by Tax Office staff indicates that the current 0.5% municipal tax collection rate is below
the state average and does not sufficiently sustain the costs incurred by the County to bill and
collect municipal taxes, including software costs.
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The Tax Office proposes the following plan to the realize the revenue originally envisioned by the
annual software surcharge:
1) Meet with the towns staffs to discuss the current ILA and potential actions to meet the
County's costs related to billing and collecting taxes for the towns.
2) Discussion would include the possibility of an amendment to the current ILA to for a
proposed increase of the fee as of July 1, 2026 and the possibility of replacing the current
joint ILA with separate ILAs that follow a shorter expiration schedule.
The County separately has agreements with the cities of Durham and Mebane that are both
scheduled to expire on June 30, 2026. The Tax Office proposes to initiate discussions with both
jurisdictions to address the pending expirations and also in order to potentially standardize the
fee schedule and expiration schedule between all of the municipal collection ILAs.
The Tax Assessment Work Group has issued a request for proposals (RFP) to retain a consultant
to make recommendations on enhancements to the Assessment Division of the Tax Office. These
enhancements will be targeted to ensure a more equitable and better communicated revaluation
in 2029. The County will be able to utilize additional municipal funding to fund the
recommendations made by the consultant and other tax office divisions enhancements.
FINANCIAL IMPACT: There would be an increase in revenue generated from the proposed
amendment to the current ILA. The revenue accrued through the new ILAs could be used to fund
recommended improvements to the Tax Office beginning in FY 2026-27. The County received
$410,000 in FY 2024-2025 from the Towns based on a 0.5% tax collection fee.
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• GOAL 6: DIVERSE AND VIBRANT ECONOMY
OBJECTIVE 3. Streamline and improve County administrative processes to facilitate
efficient and effective interactions between residents, businesses, and County
departments.
OBJECTIVE 5. Increase access to and awareness of information and assistance available
to residents and businesses through clear communication and responsive service delivery.
RECOMMENDATION(S): The Manager recommends that the Board:
1) receive the information regarding the current interlocal agreement (ILA) between Orange
County, Chapel Hill, Carrboro and Hillsborough for municipal tax collection;
2) authorize the Tax Administrator and Budget Director to begin discussions with Chapel Hill,
Carrboro and Hillsborough on the current ILA and potential actions to meet the County's
costs related to billing and collecting taxes for the municipalities. The discussions would
include:
o the possibility of an amendment to the current ILA for a proposed increase of the
fee as of July 1, 2026; and
o the possibility of replacing the current joint ILA with separate ILAs that follow a
shorter expiration schedule;
3) direct the Tax Office and Budget Director to report back to the Board after discussions with
the three towns; and
4) authorize the Tax Administrator and Budget Director to initiate discussions with the cities
of Durham and Mebane, and with the pending expiration of those respective agreements,
direct staff to present the Board with proposed amendments extending the agreements or
with new ILAs with the two jurisdictions.
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NORTH CAROLINA
ORANGE COUNTY
This AGREEMENT,made and entered this the,3 day of
2006,by and among Orange County(hereinafter referred to
Co ty), Town of Carrboro, Town of Chapel Hill, and Town of Hillsborough
(hereinafter individually and collectively referred to as Town or Towns), to
provide for centralized and systemized collection of property taxes in Orange
County which will benefit the units of government contracting both in cost and
information services, the parties to this agreement,pursuant to the authority
contained in Article 20, of Chapter 160A of the North Carolina General Staiutes
contract and agree as follows:
I. The County shall perform for itself and each of the Towns all of
the tax collection functions prescribed in Subchapter U of Chapter
105 of the North Carolina General Statutes (hereinafter referred to
as the Machinery Act). This activity shall hereinafter be referred to
as the joint tax collection system.
II. Effective July 1, 1978,the County tax collector began the joint
venture as tax collector for the County and each Town that is a
party to this agreement under the original interlocal agreement
signed in 1979. Reference in this agreement of"tax collector"
shall hereinafter refer to the County tax collector. The tax collector
and any deputy tax collectors shall be appointed by the County
Board of Commissioners.
III. Effective with the tax levy for the fiscal year beginning July 1,
2006 and each fiscal year thereafter so long as this contract is in
effect, and not to exceed 99 years, The governing bodies of the
County and the Towns shall adopt an order pursuant to North
Carolina General Statutes §105- 321 (b) directing the tax collector
to collect the taxes charged in the tax records and receipts. A copy
4
of this order, along with the tax receipts, shall be delivered to the
tax collector. Thereafter,the tax collector shall cause the
preparation of the tax "Scroll"and shall deliver a copy thereof to
each of the TOWNS. The Annual Settlement of the tax collector as
detailed in Sections 105-352 and 105-373 of the North Carolina
General Statutes shall be made to the governing body of the
County.
IV. 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 the Towns that the governing bodies of the County and each
Town are authorized to make pursuant to Articles 21, 26, 27 and
28 of Chapter 105 of the North Carolina General Statutes.
V. When taxes are paid in full,tax receipts will be marked paid as a
verification of the transaction.Partial payments may be made and
partial payment receipts shall be issued and forwarded to the
taxpayer by the tax collector. Any such partial payment shall be
identified where appropriate as to a particular parcel or tract of
land and credited as prescribed by law as to collection expense,
interest,penalty and principal and to each governing body
proportionally. Each town shall be credited by the tax collector
with that portion of the payment received that bears the same
relationship to the total amount received as the amount of taxes
owed to the Town for the property bears to the total amount of
taxes owed for the property. All tax payments received by the
Towns shall be deposited in an account designated by the County.
Processed information shall be forwarded to the County tax
collector.
VI. All tax collections that are made pursuant to the joint tax collection
system shall be deposited daily in accounts specified by the County
Finance Officer. At or before 1:00PM of the work day following
5
the collection deposit date the County Finance Office will cause
each governmental unit's share of that day's deposits to be
transferred to an account as designated by the Finance Officer of
each Town. The share of each unit shall be determined by a
computer distribution of all payments. Daily transfer information
will be provided to Carrboro,Chapel Hill, and Hillsborough by
telephone call from the County Finance Office at or before 12:00
PM on the date of transfer. The County Finance Officer will
provide monthly reports with detailed payment and distribution
information to the Finance Officer of each governmental unit.
Additionally,monthly reports will be provided which include a
listing of any changes to the levy such as discoveries and taxes
released, refunded, compromised,or in any way affected by
actions of the County Board of Commissioners, Tax Collector or
Assessor.
The County's annual audit will include an audit of the tax
collection system . Upon completion of such audit the County will
provide each Town with a separate report containing the Town'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.
The County will bill each Town quarterly for its services in the
operation of the joint tax collections system. This quarterly billing
for each town will be computed at a rate of 5110 (one half) of 1%
of the total taxes collected for each respective Town. Tax
collections will be based on the monthly tax levy and collection
information provided to the Towns as mentioned above. This
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change in charge of collection will take place no earlier than July
1,2007. Notification of this change will be given by January
2007. The current formula in place will remain until such change
is instituted.
The Towns will remit payment to Orange County within 30 days
of receipt of the bill from the County. To the extent that the annual
financial tax audits reveal that actual year-end collections are
different from calculated costs previously billed by the County,
adjustments will be made either by refund or invoice for final
payment no later than 45 days following the close of the fiscal year
end.
Additionally the Towns agree to a surcharge to be credited toward
the purchase and yearly maintenance of a comprehensive software
package to support and maintain the collection of revenues due.
The surcharge will be determined by staff from all jurisdictions no
later than November 30th of each year and approved by the
manager of each jurisdiction for their levied surcharge. The
surcharge will be a calculated based on agreed formula.
VII. Collection of all delinquent taxes shall be the sole responsibility of
the County. The County will use the same diligence and effort to
collect taxes owed to the Towns as it does to collect taxes owed to
the County. The County may elect to buy property at foreclosure
on the basis of sound business considerations.Nothing in this
section or agreement requires the County to purchase property at
foreclosure or otherwise in situations where the market value of the
property does not exceed the cost of extinguishing all liens on the
property at the time of sale.
VIR. Additionally, the County agrees under NCGS 153A-156 to handle
the collection and auditing of all short term lease or rentals,known.
7
as Gross Receipt Tax,within the County area. This includes all
three Towns, at no cost to the Towns.
IX. This agreement may be terminated at the conclusion of any fiscal
year. The governmental unit wishing to terminate the agreement
may do so only after giving each other unit of government twelve
months written notice of its decision to do so.
X. This agreement shall become effective when properly executed by
all parties pursuant to resolutions adopted by the governing boards
of each. This agreement may be amended pursuant to a resolution
properly executed by all parties and adopted by the governing
board of each party. The parties hereto have caused this agreement
to be executed in accordance with resolutions of their respective
0 sai t,�♦� governing bodies,this the 3 day of 92006.
t s COUNTY OF ORANGE
*�<<� gets���� BY: J
ATTEST:
CLERK
'INN�u��ii r n r rrrrrry����ry'
�' CR ,� �ry
``� ••'' ••••' �' TOWN OF CARRBORO
cQIRPOEp ;
1911 • BY:
MAYOR
Q ......••• •. ���
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'��<<-4 fllliCl u%%��`
LERK
TOWN OF C EL EM
BY:
TOWN MANAGER `'nK
ATTEST:
8
OWN OF
,
c RK CyAPE��`
TOWN OF HILLS OUGH
B
M A Y rIV
AT ST: ��
Town �+
CLERK i
_ y
Hal `
CARot%
This contract has been preaudited in the manner required by
Government Budget and Fiscal Control Act.
Ken Chavious, Orange County Finance Officer
L.Bingham Roenigk, Town of born
Finance Officer
Kay Jo on, Town of Chapel Hill Finance Officer
Greg Siler, Town of Hillsborough Finance Officer
0811412008
Tax Collections Interlocal Agreement Work(90up
Options for Recouping Cost to Collect Taxes Within Town Jurisdictions
Current Practice County char es Towns 1/2 of 1%of collections Future Years Projections
%of Total
2007 Collections Attributed to FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13
Each Entity
Assumes annual increase in levy of 2.5%;
118,142,453 Assumptions RMV levy will revert to State July 1,2011
(2007 Collections"2.5%annual increase
Of the total levy value,the following values are attributed to the individual jurisdictions: Calculation in levy)* 1/2 of 1%
Town of Cha el Hill 28,093,124 25.2% $143,977 $147,489 $132,437 $154,512
Town of Carrboro 10,190,123 9.2% $52,224 $53,498 $51,121 $56,046
Town of Hillsborough 3,839,842 3.5% $19,679 $20,159 $19,267 $21,119
City of Mebane 1 0.0%
Total Revenue to Orange County, $215,881 $221,146 $202,824 $231,677
ADDENDUM TO THE INTER-LOCAL AGREEMENT
FOR TAX COLLECTIONS
This is an ADDENDUM to the Inter-local Agreement for Tax Collections entered into on July 3,
2006, by Orange County (referred to as "County"), the Town of Carrboro, the Town of Chapel
Hill, and the Town of Hillsborough (individually and collectively referred to as "Town" or
"Towns"). This ADDENDUM sets forth the terms and conditions for the shared costs between
the County and the Towns for the purchase and yearly maintenance costs of a centralized and
systemized tax billing and collection software system for the Joint Tax Collection System. The
parties to this Addendum, pursuant to the authority contained in Article 20, of Chapter 160A of
the North Carolina General Statutes, this the Z0 day of October, 2009, do hereby agree as
follows:
WHEREAS, on July 3, 2006, the County and the Towns entered into an Inter-local
Agreement to provide for centralized and systemized collection of property taxes in Orange
County benefiting the units of government contracting both in costs and information services;
and
WHEREAS, pursuant to Article VI of the Inter-Local Agreement, the Towns agreed to
pay a surcharge to be credited toward the purchase and yearly maintenance of a comprehensive
software package to support and maintain the collection of tax revenues due to the Towns; and
WHEREAS, the County has identified and secured funding for the first installment of the
acquisition and installation of comprehensive billing and collections software that will support
and maintain the collection of tax revenues; and
WHEREAS, it is anticipated that the County will seek and acquire additional financing
during fiscal year 2010-11, with repayment to begin in fiscal year 2011-12; and
WHEREAS, the surcharge collected will used for acquisition and installation of the
comprehensive tax billing and collection portion of the software acquisition calculated based
upon an formula agreed upon by the parties (see attachment A), and a yearly support and
maintenance cost which is to be determined by staff from all jurisdictions no later than
November 301h of each year and approved by the Manager of each jurisdiction.
NOW THEREFORE, in consideration of the premises and of the following mutual promises,
covenants, and conditions, The County of Orange, the Towns of Carrboro, Chapel Hill and
Hillsborough agree as follows:
I. The County Responsibility:
a. The County will provide the initial funding for the acquisition of the
comprehensive tax billing and collection software system and all related
requirements; the total cost for the acquisition and installation of the software
shall not exceed $2.5 million. The County will acquire the financing for both
the County and the Towns' portion of the cost of the acquisition and
installation of the tax billing and collection software and related requirements.
b. The County will finance the cost of the tax billing and collection software
system in two installments: the first financing installment shall be for $1.5
million over a 64 month period; and the second financing installment, shall
occur during fiscal year 2010-2011, for the balance needed to complete the
project not to exceed $1 million and financed for a period of 54 to 64 months.
c. The County will bill the Towns for their portion of the cost of the acquisition
and installation of the software in two yearly installments beginning in fiscal
year 2010-2011.
d. The County will bill the Towns beginning in fiscal year 2010, and every year
thereafter. On June 30th the County will bill the Towns for an interest and
principal payment. On November 30th of the same year the County will bill
the Towns for an interest only payment. The County will bill the Towns for
the cost software system until the Towns' portion of the costs is paid in full.
2. The Towns Responsibilities:
a. The Towns will pay the County a surcharge toward the purchase and yearly
maintenance of the comprehensive software package to support and maintain
the collection of tax revenues due to the Towns.
b. Each Town will repay the County their portion of the cost of the acquisition
and installation of the tax billing and collection software based upon a formula
agreed upon by the parties (see attachment A).
c. Each Town will repay the County in two yearly payments: on or by July 31 st
of each year the Towns will pay the County a principal and interest payment
and on or by December 3 1" of each year, the Town will pay an interest only
payment, beginning July 31, 2010;
d. Each Town will pay a yearly support and maintenance cost which will be
determined by staff from all jurisdictions no later than November 301h of each
year and approved by the Manager of each jurisdiction. This cost will be in
addition to the cost of acquisition and installation of the software.
3. The Parties Responsibilities:
a. Each party within this ADDENDUM agrees that requested customization of
reports or software will be the sole financial responsibility of the requesting
entity.
oy
4. Each year the Towns and County will convene prior to November 15th to review
prior year expenditures and coming year estimates for expenditures in preparing
cost projections for the yearly maintenance costs for the next fiscal. This
information will then be brought forward to each jurisdiction's review.
This ADDENDUM shall become effective when properly executed by all parties
pursuant to Resolutions adopted by the governing board of each. The parties hereto have
caused this ADDENDUM to be execd in accor ance with resolutions of their
respective governing bodies this the�_day of , 2009.
COUNTY O NGE
4 L
a,.. Valerie P. Foush Chair
Orange County Board of Commissioners
ATTEST•
� 0
Donni Baker, Clerk to the Board of Commissioners
TOWN OF CARRBORO
BY:
- Mark Chilton, Mayor
s --
ATTEST
CLERK
TOWN OF E L
�0W
t ® _ e
L BY:
Town M �er, hapel Hill
ATTEST:
CLERK
13
OF I SBOROUGH
om Stevens, Mayor
ATTEST:
y4wwowl tug
CLERK
This addendum has been preaudited in the manner required by the Local Government Budget
And Fiscal Control Act:
Gary H e: ge County Finance Officer
LC�ti� (�
L. Bing Roeni k, o o Carrbo Finance Officer
1 4 -) Io
Kenne C. Penn'oyer,Yown of Chapel Hill Finance Officer
Greg Siler, Town of Hillsborough Finance Officer
14
t
ORANGE COUNTY
NORTH CAROLINA
Interlocal —Agreement Countyand Towns
Taxation Collection
Board of Commissioners
Business Meeting
Fe 2026
15
Purpose
The Tax Office will :
1 . Provide information on the current interlocal agreement (ILA) between
Orange County, Chapel Hill, Carrboro and Hillsborough for municipal tax
collection charges and the potential need for an update to the agreement.
2. Request that the Board consider authorizing the Tax Administrator and
Budget Director to begin discussions with Chapel Hill, Carrboro and
Hillsborough on the current ILA and potential actions to meet the County's
costs related to billing and collecting taxes for the municipalities.
ORANGE COUNTY
2 NORTH CAROLINA
16
Current Joint ILA for Municipal Tax Collection Charges
• Original Interlocal Agreement made in 1978 in accordance with North Carolina General
Statute 160A-461 to collect taxes for Carrboro, Chapel Hill, and Hillsborough.
• Updated in 2006 — single agreement that included all three towns.
• Municipal tax collection rate set at 0.5% of the annual amount collected for each of the towns
with an expiration of agreement set not to exceed 99 years from July 1 , 2006.
• Agreement requires unanimous approval from all three towns and County to make
amendments and requires a one-year notice for termination.
— Amendment to the current agreement is an option to make changes to take effect for FY 2027.
• In 2009, an addendum was approved to add an annual surcharge for new software installed
for the purpose of tax ownership, billing, and collection. This Annual surcharge addendum
has not been utilized to supplement revenue for the County.
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ORANGE COUNTY
3 NORTH CAROLINA
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Annual Software Surcharge
• Since 2010, annual software costs have averaged $ 160,000
• Range of annual costs is from $48,000 to $224,000
• Agreed-upon method to calculate surcharge used the number of bills
created annually, allocated by location in unincorporated County or in
each municipality to create a percentage of the annual software
charges:
&Q&L&nnual DistribMjknPercentages
Carrboro 5.2%
Chapel Hill 13%
Hillsborough 3.7%
Durham 0.05%
Mebane 1 .6%
Orange County 76.5%
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ORANGE COUNTY
4 NORTH CAROLINA
18
Calculated Annual Software Surcharge
• The estimated amounts for each municipality and the County from
2010 to 2025 are shown in the chart below. These amounts were
calculated using the agreed-upon method for calculating
surcharges from 2009.
Carrboro $139,739
• Total received from the Chapel Hill $343,898
Hillsborough $82,098
municipalities over this Durham $1 ,192
time period would have Mebane $15,611
been $582,539. Orange County $1 ,976,802
Total $2,559,341
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ORANGE COUNTY
5 NORTH CAROLINA
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KVO
• History: Municipal Fee
for Tax Collection
Revenue Municipal Fee for Collections
$450,000.00
$400,000.00
• County received $410,000 in $350,000.00
FY 2025 $300,000.00
$250,000.00
$200,000.00
• Increase from 2016 to 2025 $100,000.00
$100,000.00
— $12 7,3 7 3 $50,000.00
$0.00
— 4 5% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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ORANGE COUNTY
6 NORTH CAROLINA
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Slide 6
KVO Changed chart to not be a picture. I can pull data automatically from MUNIS cubes but it only goes back to
2016, not 2009.
Kirk Vaughn,2026-01-25T15:49:30.078
21
KVO
Tax Office Operating
Expenses
Tax Office Expenditures
$6,000,000.00
• Increased by 62% since 2016
$5,000,000.00
• $ 1 ,882,056 increase in annual
needs $4,000,000.00
• Operating Expenses have $3,00 °° °°
outpaced Municipal Fee $2,000,000.00
Revenue
$1,000,000.00
• Municipal Fee covers 7% of Dept
Expenses $ °°
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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ORANGE COUNTY
7 NORTH CAROLINA
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Slide 7
KVO Same, made chart not picture and made matching format as prior chart.
Kirk Vaughn,2026-01-25T15:52:05.119
23
KVO
Survey: Fees Charged for Municipal Tax Collection
• Tax Office staff surveyed counties In Comparison, Orange's Cost
for municipal collection rates, and To Municipalities is the lowest
combined results with results of a at 0.5%.
Wake County survey. 1.50% 10
2.00% 4
• Twenty-seven counties 0.75% 3
1.00% 3
3.00% 2
• Range from 0.5% to 3.0%. 0.50% 2
1.75% 1
0.85% 1
• Ten counties charge 1 .5% 1.25% 1
Grand
IV
Median ,,
• Average rate 1 .45% Average 1.45
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ORANGE COUNTY
8 NORTH CAROLINA
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Slide 8
KVO I think these could be adjusted. They are both pictures which are ADA issues, they have missing data in #of
municipalities (which can be excluded), and they aren't formatted the same.
Kirk Vaughn,2026-01-25T15:53:52.037
25
Wake County Fee Increase
• Wake County presented to Tax Assessment Workgroup on December 2nd. Kvo
• In 2021 went through similar review of its costs to municipalities, which was
significantly below peers.
• Implemented four-year phase in from FY 2022 through FY 2025 from 0.2% to
0.75%.
• Goal was to have Municipal Fees cover 50% of Operating and Revaluation
expenses.
• Funded enhancements to the office in that four-year window.
• Since 2024 revaluation, Wake BOCC committed to a transition from 4-year
cycle to 2-year cycle by 2029.
ORANGE COUNTY
9 NORTH CAROLINA
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Slide 9
KVO Added a slide on Wake County, since half the board is in the workgroup.
Kirk Vaughn,2026-01-25T16:12:15.695
27
Other Town ILAs , Schedules , and Equity
• Tax Office has separate 5-year agreements with Mebane and Durham that
will expire June 30, 2026.
• Tax Office proposes to begin similar discussions with both jurisdictions with
the goal of matching the agreements established with Chapel Hill, Carrboro
and Hillsborough.
• Alignment of schedules and expiration dates and continuing to match fee
amounts provides equity in serving our municipalities and simplifies future
maintenance.
• All Agreements include provision to provide gross receipts collection at no
charge. Proposal is to continue that practice.
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ORANGE COUNTY
10 NORTH CAROLINA
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Tax Office Plan
The Tax Office proposes the following plan to the realize the
revenue originally envisioned by the annual software surcharge:
1 ) Meet with the towns staffs to discuss the current ILA and potential actions to
meet the County's costs related to billing and collecting taxes for the towns.
2) Discussion would include the possibility of an am&EIment to the current ILA
to for a proposed increase of the fee as of July 1 , 2026 and the possibility of
replacing the current joint ILA with separate ILAs that follow a shorter
expiration schedule.
1 ) Report to the Board of Commissioners after discussions with towns.
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ORANGE COUNTY
11 NORTH CAROLINA
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Slide 11
KVO I'll email some thoughts on this slide since it is in both the slide deck and the agenda.
Kirk Vaughn,2026-01-25T16:14:47.872
30
Suggested Use of Revenue Increase
❖ The Tax Assessment Work Group has issued a request for proposals (RFP)
to retain a consultant to make recommendations on enhancements to the
Assessment Division of the Tax Office.
❖ The revenue accrued through the new ILAs could be used to fund
recommended improvements to the Tax Office beginning in FY 2026-27.
❖ Additionally, there are enhancements in the other tax office divisions that can
be addressed.
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ORANGE COUNTY
12 NORTH CAROLINA
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Questions?
ORANGE COUNTY
NORTH CAROLINA