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HomeMy WebLinkAboutTR-11-97 , THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITfEE File# f~d, 7/1 Res. # ('-:rfJA-IO!-(!7 By-Law # 97-.3 7 . Date: March 3, 1997 Report #: TR 11 97 File#: Subject: TAX CERTIFICATE FAX BACK SYSTEM Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-I1-97 be received; 2. THAT in order to provide an improved level of service option to tax certificate customers, Council approve a charge of $45.00 for tax certificates provided via a fax back service, with the fee for the current service remaining at $25.00 for 1997 and $55.00 and $35.00 respectively for 1998; 3. THAT the appropriate By-Law be forwarded to Council; 4. THAT a fee be established for tax receipts issued at other than the time of payment at $5.00 effective June I, 1997 and $7.00 effective January I, 1998, with the appropriate By-Law forwarded to Council; 5. THAT the Mayor and Clerk be authorized to execute an agreement with Synamics Inc. for the provision of a tax certificate fax back system; and 6. THAT the appropriate By-Law be forwarded to Council with the agreement attached as Schedule "A" of the By-law. ceo.wot:\ w". PAPH It:I:1 REC'CL. HISO;PFtJ"FDOOAEGYCJ:DP~PE" 801 ;...., -' 1R-1l-97 rue - 2 - BACKGROUND: 1.0 The Tax Department of the Municipality issued tsx certificates according to the following chart for 1996: JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL ..............,.,.,...,..-,.,.,-,.;.,.....,-,.;.,-,-.-,-.-,-,-.-;.,.,-,-,-.,--,..-..-.....-.....-.-.-.-.---.-.....-.....-.....................................;..., lim;I.~.~III..l 225 265 261 174 344 90 306 186 87 328 252 163 2,681 Most certificates are ordered by lawyers for adjusting tsxes between vendor and purcbaaer in a real estate transaction or by mortgage companies to ensure that tsxes are kept up to date by their borrower, the property owner. Eacb certificate lists the current year tsxes levied, and the amount of property tsxes which are in arrears for an individual property, identified by assessment roll number. The current charge for a tsx certificate is 825.00. 1.1 At the present time, tsx certificates are requested in writing and are accompanied by a cheque to cover the above noted fee. Staff p~ess these requests during business hours, as timing allows. Often during instalment months, the tsx certificate requests are held until the instalment date has passed. This causes difficulties for lawyers with set closing dates for real estate transactions. BD2 " '....r TR-1l-97 Paee-3- 1.2 Staff would like to improve service provided to those groups requiring tax certifieates by offering a fax back service. The fax back service allows lawyers to access tax certificate information by dialling a toll free number and speaking with a representative of Synamics Inc. Mter business hours, information can be accessed at the same toll free number via touch tone telephone. This results in 24 hour/seven days a week availability of tax certificates. A response is faxed directly to the lawyer generally in less than two minutes. The lawyer has the option of selecting to pay via pre-authorized bank withdrawal or major credit card. The Synamics Inc. fee is $20.00 per certificate. This in conjunction with the Municipality's standard fee of $25.00 results in a total cost of $45.00 for those lawyers who wish to use the fax back service. The standard service through the Municipality will still be available for $25.00. These fees are passed on by the lawyer to the purchaser of the property. 1.3 Since the fee from Synamics Inc. is based on a sliding scale dependent upon volume, the Municipality will generate increased revenue depending upon the volume of tax certificates processed by Synamics Inc. 1.4 An additional advantage to lawyers using the Synamics Inc. service is "one stOp shopping" since Synamics Inc. is extending this service to provide water, hydro and natural gas clearance certificates. 1.5 This service is provided at no cost to the Municipality since Synamics Inc. collects their fee directly from the lawyer. The Municipality must provide one computer at the Municipal offices to which Synamics Inc. will "dial-up" when a tax certificate request is received. This will be accommodated through the 1997 Capital Budget. This computer will be a stand alone terminal so the security of the network is maintained. 1.6 The major advantages to offering this service include customer service improvement, potential revenue increase, productivity improvement and no cost or risk to the Municipality. 1.7 Synamics Inc. has indicated that, subject to Council approval, a tentative implementation date would be mid to late 1997. Other Municipalities who are using this service or have committed to a Spring 1997 implementation include Scarborough, Richmond Hill, Kitchener, North York, Nepean, EtObicoke, Vaughan, Markham, Cambridge, Aurora, Sudbury, London and Waterloo. There are also several other municipalities working towards a mid to late 1997 implementation. 803 TR-1l-97 P8l!:e - 4 - 1.8 The Tax Department also spends a significant amount of administrative time issuing tax receipts to property owners for income tax, mortgage purposes, etc. It is recommended that a tax receipt continue to be provided free of charge at the time a payment is made and that a fee be established for tax receipts issued at times other than time of payment. CONCLUSION 2.0 In order to improve customer service and staff efficiency, it is recommended that the Municipality enter into an agreement with Synamics Inc. in order to provide a tax certificate fax back service. This would result in 24 hour avaiIahility of tax certificates with potential additional revenues for the Municipality. Respectfully submitted, filgY!= ~/~ LVL'- .~ arie A. Marano, H.BSc., A.M.C.T., Treasurer. Reviewed by, W.H.Stoc~ Chief Administrative Officer. MM/NT/hjl Attachment 804 THE CORPORATION OF THE MUNICIPAliTY OF CLARINGTON BY-LAW NUMBER 97- being a By-Law to amend By-law 96-32, a By-Law to require the payment of fees for information and services provided by the Municipality of Clarington and for prescribing the amount of such fees WHEREAS the Council of the Corporation of the Municipality of Clarington has adopted the recommendations contained within Report ADMIN-2-96 and Report TR-1l-97 to adjust existing administrative fees and to impose new administrative fees to recover costs incurred by the Municipality in providing information and services: NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON ENACTS AS FOLLOWS: 1. THAT By-Law 96-32 be amended by adding a new Schedule "F" as attached hereto as Attachment #1. By- Law read a first and second time this 10th day of March 1997. By-Law read a third time and finally passed this 10th day of March 1997. Mayor Clerk 805 AtlHchment #1 to By-Law #97- SCHEDULE "F' TO BY-LAW 96-32 FEES PRESCRIBED BY THE TREASURER SERVICE/DOCUMENT EFFECTIVE DATE FEE Fax Back Tax Certificates June 1, 1997 345.00 Fax Back Tax Certificates January 1, 1998 355.00 Regular Tax Certificates January 1, 1998 335.00 Tax Receipt June 1, 1997 S 5.00 (at other than time of payment) Tax Receipt January 1, 1998 37.00 (at other than time of payment) 806