Office of the Tax Collector

Transcription

1 FY STRATEGIC BUSINESS PLAN Office of the Tax Collector, North Carolina

2 STRATEGIC BUSINESS PLAN Office of the Tax Collector OUR VISION The Office of the Tax Collector's vision is to serve the community and contribute to high quality of life by providing revenue to the and municipal governments, assisting taxpayers by administering laws and ordinances accurately and professionally, and by being good stewards of public resources. OUR MISSION The Office of the Tax Collector's mission is to serve residents with integrity by administering tax laws equitably and exceeding collections goals while achieving exemplary customer satisfaction results. This team works tirelessly to provide funds that are needed for county and municipal operations and priorities. Neal Dixon, Department Director [The representative] certainly knew how to keep the "Customer," in customer service that seems to be hard to find anymore. OTC Customer [The representative] went out of their way to be courteous to me in every way until we solved my problems if all your employees are as good as she is you would sure have a top rated office. OTC Customer 2

3 OUR ENVIRONMENT The Office of the Tax Collector (OTC)is organized into two divisions under the Tax Collector, the Collections Division and the Operations Division. The Collections Division is comprised of two business units which are responsible for collecting ad valorem taxes (tax based on value) and gross receipts taxes (tax based on gross income) in accordance with North Carolina Statutes and local ordinances for the County and the municipalities within the County. The Operations Division is comprised of two business units which provide technology services and specialized tax services (e.g., project management): Tax Technology Services and Specialized Tax Services. The OTC implemented a reduction in force and an organizational restructure on July 1, The restructure aligned services to achieve greater efficiencies by consolidating two business units into one, creating a new service delivery office, and reducing the position count. The department will now focus on high revenue and more complex taxes with less administrative workload. Opportunities to revise business processes, improve efficiency, make technological advancements, and explore additional lines of business will be the departmental focus during the next three years. The OTC is comprised of 40 full-time positions. Contract employees are utilized as needed. ECONOMIC AND FISCAL TRENDS Between 2012 and 2014, the County s tax base continued to grow as evidenced by several economic indicators. Over that time building permits are up 18.9%, construction permit values are up 19.9%, gross retail sales are up 14.1%, and unemployment had dropped from 9.3% to 5.1%. Today, the housing market is showing significant gains as home sales are up 25.2% and the closing value is up 12.3%. Source: Charlotte Chamber Economic trends within the City of Charlotte and Mecklenburg County show a rebounding economy and a growing tax base. Not all taxpayers are experiencing positive economic trends. There is a segment of the population that have stagnant revenue sources that affect their ability to pay taxes. DEMOGRAPHIC & SOCIAL CHANGES The department s number of ad valorem tax payments accepted in-person has decreased by 46% between 2013 and 2015, and currently stands at 81,588. The Community Pulse Report indicates that Millennials now make up the largest segment (30%) of the County s population, and is now the largest demographic in the work force, resulting in the need for more innovative technological options to meet service delivery preferences. The use of smart phones has contributed to the expanding use of mobile devices, as well as the demand for information on services available through them. Research from Paymentus Corp. shows that one-third of customers are now mobile only and that multiple channels of mobile payments are the best options for customers and allows organizations to go paperless. These mobile payment options include textto-pay, mobile web presentment, and mobile apps. Additionally, Paymentus research shows that ipad kiosk use for payments is another fast growing payment option. Over the coming years, our department will continue to explore ways of using these and other new technologies effectively. LEGISLATIVE CHANGES Tag and Tax Together (implemented September 1, 2013) and the repeal of the Privilege License Tax (implemented July 1, 2015) has resulted in two reductions in force and one organizational restructure. Session Law (SL362) and Senate Bill 159 will impact collections as taxpayers will have the option to enter into payment plans that allows payment of taxes over several fiscal years. OTHER CHANGES The OTC is currently replacing the gross receipts tax collection software system. The new system is a vendor-supported solution that will be fully implemented in Fiscal Year The solution will enable the OTC to shift the support of the system to the vendor, and have the ability to configure the system to meet changing demands. 3

4 OUR GOAL The OTC is charged with collecting taxes for and the municipalities within the County. Taxes collected by the OTC has provided approximately 60%, on average, of the County s revenue since fiscal year The revenue is used to provide services such as public education, community and health services, social and economic services, parks and recreation, public libraries, and pay down debt. Because taxes collected by the OTC account for such a substantial portion of the County s revenue, we have one goal: maximize tax collections. The OTC s strategic business plan focuses on creating an environment that maximizes tax collection through realizing efficiencies in multiple areas of our service delivery. This includes expanded legal services, engaging current and future vendors to utilize existing and emerging technology, and implementing a comprehensive foreclosure strategy. The OTC aligned its goal with current and forecasted economic growth, an increasingly diversified customer base, and to comply with recent legislative changes. Taxes collected by the OTC has provided approximately 60%, on average, of the County s revenue since fiscal year The OTC has seen exemplary customer service performance from its employees, maintaining above a 97% customer satisfaction rate over the last three fiscal years. DIRECTOR S MESSAGE The Office of the Tax Collector is responsible for collecting various property, business, and special assessment taxes in accordance with North Carolina General Statute 105, Subchapter II (the Machinery Act ) and the Revenue Laws of North Carolina. The Machinery Act provides the mechanism for the listing, appraisal, and assessment of property and the levy and collection of taxes on property by counties and municipalities. The OTC collects taxes for the County and all seven municipalities within. The OTC is committed to providing our customers with exemplary customer service, and customers have rated our service as such. The OTC has seen exemplary customer service performance from its employees, maintaining above a 97% customer satisfaction rate over the last three fiscal years. Knowing that our customers expect exemplary customer service, the OTC s strategic plan reflects our commitment to excellent service delivery while also maximizing tax collections. Each objective and action of the OTC s goal is focused on providing data, information, and access to our customer base in new and innovative ways to maximize tax collections. 4

5 GOAL 1: Maximize Tax Collections Objective 1: Expanded Legal Services Strategy Contract with vendors to expand legal services that will increase the number of legal actions completed. Actions Issue Request for Proposal. Conduct Vendor Conference. Select Vendors. Contract with Vendors. Performance Beginning in FY18, increase the number of foreclosures filed annually above the single-provider fouryear average of 36. Measures Increase the average provider response time to taxpayers for legal proceedings to 90% or greater. Provider to utilize multiple marketing channels per quarter to develop a pool of bidders and to increase general awareness of foreclosure opportunities. Comment The Office of the Tax Collector has referred 2,857 parcels to the current foreclosure service provider with an average of 36 foreclosures filed per year over the previous four years. This equates to 1.2% of the total referred foreclosures filed each year. At that pace, it would take 79 years to close all existing referrals. Increasing the number of service providers will enable the OTC to make referrals to two service providers which distributes the workload evenly and improves the number of foreclosure cases. Currently, the OTC maintains a high collection rate with foreclosures not being a significant contributor to the collection rate. At the end of the strategic plan the goal is to increase the collection rate and have foreclosures be a more significant contributor to that result. Objective 2: Implement a Comprehensive Foreclosure Strategy Strategy Partner with legal services providers and private entities to create, implement, and manage a comprehensive foreclosure strategy. Actions Improve the foreclosure website to include a mapping feature. Utilize mortgage and in rem foreclosure remedies per NCGS and NCGS Create a foreclosure policy or board awareness policy. Implement Foreclosure Acquisition Program (one-time funding of pilot program). Actions Create and implement an aggressive marketing approach to advertise properties available for bid, utilizing television, radio, and Internet marketing advertisements to reach prospective bidders; Initiate bids by the County to acquire property through foreclosure when there are no other bidders and maintain it until sold; Partner with private entities such as real estate professionals to increase investor access to data and to sell County-owned foreclosed-upon properties; increase scope of Foreclosure Acquisition Program. Actions Maintain established marketing program to advertise foreclosed properties. Maintain partnerships with private entities to increase investor access to data and sell County property. Increase scope of Foreclosure Acquisition Program. Performance Measures Establish a baseline in FY17 of the number of potential bidders interested in properties available in the foreclosure process by using Google Analytics data of monthly webpage views provided by PI. Comment The OTC agrees that developing a foreclosure policy or a board awareness policy is an appropriate action for FY17 and the strategic plan has been updated to include this recommendation for FY17. The current foreclosure strategy is not maximizing the collection remedy as prescribed by North Carolina law. This objective will fully maximize the collection remedy to increase the foreclosure completion rate to meet the goal to maximize tax collections. To accomplish this the plan calls for additional legal services providers to increase the number of foreclosures filed each year, for the County to budget funds for the acquisition of properties through the pilot. Foreclosure Acquisition Program, and a comprehensive advertisement and marketing strategy to attract prospective bidders. 5

6 Objective 3: Maximize Use of and Acquire Existing Technology Strategy A Action Maximize use of and acquire technology that exists in the marketplace to meet taxpayer demand and present tax information across myriad technology options. Implement the Taxpayer Transparency Initiative. Actions Accept credit and debit card payments in the field. Accept credit and debit card payments in the office. Initiate system enhancements. Implement marketing via multiple media channels. Actions Install payment kiosks. Implement marketing via multiple media channels. Performance Increase number of online payments by 3% or greater over the FY2016 baseline. Measures Accept credit and debit card payments in the field and in the office. Replace 3% or greater of cashier transactions with kiosk transactions. Comment Strategy B Actions Actions Performance Measures Comment The OTC is not recommending that the County absorb credit card fees. This is consistent with other Counties in similar size to Mecklenburg. Wake County, Guilford County, Durham County, and Forsyth County do not absorb credit/debit card fees. The majority of property tax collection payments are currently processed by our outsourced lockbox service provider. Following the implementation of the strategies specified in this plan over the next three years, the payment processing trend may shift to more online payments. An evaluation will be completed in FY 2019 to determine if the absorption of credit card fees would be a viable strategy at that time. As economic trends show an increase in building permits and a growing tax base, it is anticipated that the number of bills could grow by as much as 18.9%. To avoid the cost of adding staff commensurate with that increase, the funding and implementation of this strategy will drive more payments to options not requiring manual processing. If adding payment options increases collection rates that will be an added benefit. Maximize use of and acquire emerging technology that provides options to a changing customer base to meet service delivery preferences Implement the following: - Text reminders - Online bill presentment and payment - Live chat - Social media channels - Marketing via multiple media channels - Construction/Workplace modifications - Technology Equipment (live chat, video conferencing) - Tax System enhancements Implement the following: - Text-to-pay - OTC mobile application - Video conferencing - Marketing via multiple media channels - System enhancements Increase customer service satisfaction rate by 0.5% or greater. Reduce number of items mailed by 3% or greater. Replace 1% or greater of cashier transactions with text-to-pay and bill presentment transactions. Decrease the number of s, telephone calls, office visits and letters, misdirected 311 calls by 3% by implementing and utilizing live chat, social media channels, OTC mobile application, and virtual visits (video conference). The costs that will come standard in the new facility have been removed as requested. The costs unassociated with the relocation remain in the plan. 6

7 GOAL 2: Maintain Environmental Sustainability of Operations Objective 1: Adhere to environmentally preferable purchasing (EPP) guidelines Strategy Actions Monitor department practices to ensure adherence to environmentally preferable purchasing (EPP) guidelines FY 2017 Performance Measures Identify a department representative to work with the County s Sustainability Manager to track and meet the department s environmental goals FY 2017 FY 2019 Educate department employees on the importance of adhering to the County s environmentally preferable purchasing (EPP) guidelines Enforce the department s adherence to the County s EPP guidelines by monitoring purchasing habits Embrace new and innovative opportunities for improving the environmental-friendliness of the department s purchasing habits When making purchasing decisions, consider the full cost of the products environmental, social, and economic Dollars spent on recycled paper / Dollars spent on all paper purchases Dollars spent on environmentally preferable office supplies / Dollars spent on all office supplies Dollars spent on remanufactured printer cartridges / Dollars spent on all printer cartridges 7

8 GOAL 2: Maintain Environmental Sustainability of Operations (cont d) Objective 2: Provide employees with opportunities to learn about and practice environmentallyfriendly activities (via the County s Work Green program) Strategy Actions Support employee involvement in environmentally-friendly activities (via the County s Work Green program) FY 2017 Identify a department representative to work with the County s Sustainability Manager to track and meet the department s environmental goals FY 2017 FY 2019 Performance Measure Educate department employees on the importance of participating in the County s Work Green program Educate department employees on opportunities to participate in the County s Work Green program via educational opportunities (i.e. Lunch & Learns), volunteer opportunities, alternative commuting (i.e. carpooling, mass-transit, walking, or cycling), and other unique employee engagement campaigns Enforce the department s participation to the County s Work Green program by consistently monitoring performance Total number of Work Green credits earned by the department s employees 8